§ 1736o. Food for progress
(a) Short title
This section may be cited as the ‘‘Food for
Progress Act of 1985’’.
(b) Definitions
In this section:
(1) Cooperative
The term ‘‘cooperative’’ has the meaning
given the term in section 402 of the Food for
Peace Act (7 U.S.C. 1732).
(2) Corporation
The term ‘‘Corporation’’ means the Com-
modity Credit Corporation.
(3) Developing country
The term ‘‘developing country’’ has the
meaning given the term in section 402 of the
Food for Peace Act (7 U.S.C. 1732).
(4) Eligible commodity
The term ‘‘eligible commodity’’ means an
agricultural commodity, or a product of an ag-
ricultural commodity, in inventories of the
Corporation or acquired by the Secretary or
the Corporation for disposition through com-
mercial purchases under a program authorized
under this section.
(5) Eligible entity
The term ‘‘eligible entity’’ means—
(A) the government of an emerging agri-
cultural country;
(B) an intergovernmental organization;
(C) a private voluntary organization;
(D) a nonprofit agricultural organization
or cooperative;
(E) a nongovernmental organization;
(F) a college or university (as such terms
are defined in section 3103(4) of this title);
and
(G) any other private entity.
(6) Food security
The term ‘‘food security’’ means access by
all people at all times to sufficient food and
nutrition for a healthy and productive life.
(7) Nongovernmental organization
The term ‘‘nongovernmental organization’’
has the meaning given the term in section 402
of the Food for Peace Act (7 U.S.C. 1732).
(8) Private voluntary organization
The term ‘‘private voluntary organization’’
has the meaning given the term in section 402
of the Food for Peace Act (7 U.S.C. 1732).
(9) Program
The term ‘‘program’’ means a food ass
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Page 1011
TITLE 7—AGRICULTURE
§ 1736o
Editorial Notes
CODIFICATION
Section was enacted as part of the Agriculture and
Food Act of 1981, and not as part of the Food for Peace
Act which comprises this chapter.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective Dec. 22, 1981, see section 1801 of Pub.
L. 97–98, set out as a note under section 4301 of this
title.
§§ 1736m, 1736n. Repealed. Pub. L. 104–127, title
II, §§ 226, 266, Apr. 4, 1996, 110 Stat. 962, 974
Section 1736m, Pub. L. 97–98, title XII, § 1207, Dec. 22,
1981, 95 Stat. 1278; Pub. L. 99–198, title XI, § 1126(c), Dec.
23, 1985, 99 Stat. 1482, related to expansion of inter-
national markets for United States agricultural com-
modities and products.
Section 1736n, Pub. L. 97–98, title XII, § 1208, Dec. 22,
1981, 95 Stat. 1280; Pub. L. 101–624, title XV, § 1515(a),
Nov. 28, 1990, 104 Stat. 3663, directed Secretary of Agri-
culture to continue investigating potential for in-
creased usage of protein byproducts derived from alco-
hol fuel production and report results to Congress.
§ 1736o. Food for progress
(a) Short title
This section may be cited as the ‘‘Food for
Progress Act of 1985’’.
(b) Definitions
In this section:
(1) Cooperative
The term ‘‘cooperative’’ has the meaning
given the term in section 402 of the Food for
Peace Act (7 U.S.C. 1732).
(2) Corporation
The term ‘‘Corporation’’ means the Com-
modity Credit Corporation.
(3) Developing country
The term ‘‘developing country’’ has the
meaning given the term in section 402 of the
Food for Peace Act (7 U.S.C. 1732).
(4) Eligible commodity
The term ‘‘eligible commodity’’ means an
agricultural commodity, or a product of an ag-
ricultural commodity, in inventories of the
Corporation or acquired by the Secretary or
the Corporation for disposition through com-
mercial purchases under a program authorized
under this section.
(5) Eligible entity
The term ‘‘eligible entity’’ means—
(A) the government of an emerging agri-
cultural country;
(B) an intergovernmental organization;
(C) a private voluntary organization;
(D) a nonprofit agricultural organization
or cooperative;
(E) a nongovernmental organization;
(F) a college or university (as such terms
are defined in section 3103(4) of this title);
and
(G) any other private entity.
(6) Food security
The term ‘‘food security’’ means access by
all people at all times to sufficient food and
nutrition for a healthy and productive life.
(7) Nongovernmental organization
The term ‘‘nongovernmental organization’’
has the meaning given the term in section 402
of the Food for Peace Act (7 U.S.C. 1732).
(8) Private voluntary organization
The term ‘‘private voluntary organization’’
has the meaning given the term in section 402
of the Food for Peace Act (7 U.S.C. 1732).
(9) Program
The term ‘‘program’’ means a food assist-
ance or development initiative proposed by an
eligible entity and approved by the Secretary
under this section.
(10) Rate of return
For purposes of applying subsection (j)(3),
the rate of return for an eligible commodity
shall be equal to the proportion that—
(A) the proceeds eligible entities generate
through monetization of such commodity,
bears to
(B) the cost to the Federal Government to
procure and ship the commodity to the
country where it is monetized.
(11) Secretary
The term ‘‘Secretary’’ means the Secretary
of Agriculture.
(c) Program
In order to use the food resources of the
United States more effectively in support of de-
veloping countries, and countries that are
emerging democracies that have made commit-
ments to introduce or expand free enterprise ele-
ments in their agricultural economies through
changes in commodity pricing, marketing, input
availability, distribution, and private sector in-
volvement, the Secretary shall enter into agree-
ments with eligible entities to furnish to the
countries eligible commodities made available
under subsections (e) and (f).
(d) Consideration for agreements
In determining whether to enter into an agree-
ment under this section, the Secretary shall
consider whether a potential recipient country
is committed to carry out, or is carrying out,
policies that promote economic freedom, pri-
vate, domestic production of eligible commod-
ities for domestic consumption, and the creation
and expansion of efficient domestic markets for
the purchase and sale of such eligible commod-
ities. Such policies may provide for, among
other things—
(1) access, on the part of farmers in the
country, to private, competitive markets for
their product;
(2) market pricing of eligible commodities to
foster adequate private sector incentives to in-
dividual farmers to produce food on a regular
basis for the country’s domestic needs;
(3) establishment of market-determined for-
eign exchange rates;
(4) timely availability of production inputs
(such as seed, fertilizer, or pesticides) to farm-
ers;
(5) access to technologies appropriate to the
level of agricultural development in the coun-
try; and
(6) construction of facilities and distribution
systems necessary to handle perishable prod-
ucts.
Page 1012
TITLE 7—AGRICULTURE
§ 1736o
1 So in original.
(e) Funding of eligible commodities
(1) The Corporation shall make available to
the Secretary such eligible commodities as the
Secretary may request for purposes of fur-
nishing eligible commodities under this section.
(2) Notwithstanding any other provision of
law, the Corporation may use funds appro-
priated to carry out title I of the Food for Peace
Act [7 U.S.C. 1701 et seq.] in carrying out this
section with respect to eligible commodities
made available under that Act [7 U.S.C. 1691],
and subsection (g) does not apply to eligible
commodities furnished on a grant basis or on
credit terms under that title.
(3) The Corporation may finance the sale and
exportation of eligible commodities, made avail-
able under the Food for Peace Act [7 U.S.C. 1691
et seq.], which are furnished under this section.
Payment for eligible commodities made avail-
able under that Act which are purchased on
credit terms under this section shall be on the
same basis as the terms provided in section 103
of that Act [7 U.S.C. 1703].
(4) In the case of eligible commodities made
available under the Food for Peace Act for pur-
poses of this section, section 406 of that Act [7
U.S.C. 1736] shall apply to eligible commodities
furnished on a grant basis under this section and
sections 402, 403(a), 403(c), and 403(i) of that Act
[7 U.S.C. 1732, 1733(a), (c), (i)] shall apply to all
eligible commodities furnished under this sec-
tion.
(5) NO
EFFECT
ON
DOMESTIC
PROGRAMS.—The
Secretary shall not make an eligible commodity
available for disposition under this section in
any amount that will reduce the amount of the
eligible commodity that is traditionally made
available through donations to domestic feeding
programs or agencies, as determined by the Sec-
retary.
(f) Provision of eligible commodities to devel-
oping countries
(1) The Corporation may provide for—
(A) grants, or
(B) sales on credit terms,
of eligible commodities made available under
section 1431(b) of this title for use in carrying
out this section.
(2) In carrying out section 1431(b) of this title,
the Corporation may purchase eligible commod-
ities for use under this section if—
(A) the Corporation does not hold stocks of
such eligible commodities; or
(B) Corporation stocks are insufficient to
satisfy commitments made in agreements en-
tered into under this section and such eligible
commodities are needed to fulfill such com-
mitments.
(3) No funds of the Corporation in excess of
$40,000,000 (exclusive of the cost of eligible com-
modities) may be used for each of fiscal years
1996 through 2023 to carry out this section with
respect to eligible commodities made available
under section 1431(b) of this title unless author-
ized in advance in appropriation Acts.
(4) The cost of eligible commodities made
available under section 1431(b) of this title
which are furnished under this section, and the
expenses incurred in connection with furnishing
such eligible commodities, shall be in addition
to the level of assistance programmed under the
Food for Peace Act [7 U.S.C. 1691 et seq.] and
may not be considered expenditures for inter-
national affairs and finance.
(5) SALE PROCEDURE.—In making sales of eligi-
ble eligible 1 commodities under this section, the
Secretary shall follow the sale procedure de-
scribed in section 403(l) of the Food for Peace
Act [7 U.S.C. 1733(l)].
(g) Minimum tonnage
Subject to subsection (f)(3), not less than
400,000 metric tons of eligible commodities shall
be provided under this section for the program
for each of fiscal years 2002 through 2023.
(h) Prohibition on resale or transshipment of eli-
gible commodities
An agreement entered into under this section
shall prohibit the resale or transshipment of the
eligible commodities provided under the agree-
ment to other countries.
(i) Displacement of United States commercial
sales
In entering into agreements under this sec-
tion, the Secretary shall take reasonable steps
to avoid displacement of any sales of United
States commodities that would otherwise be
made to such countries.
(j) Multicountry or multiyear basis
(1) In general
In carrying out this section, the Secretary,
on request and subject to the availability of
eligible commodities, is encouraged to approve
agreements that provide for eligible commod-
ities to be made available for distribution or
sale by the recipient on a multicountry or
multiyear basis if the agreements otherwise
meet the requirements of this section.
(2) Deadline for program announcements
Before the beginning of any fiscal year, the
Secretary shall, to the maximum extent prac-
ticable—
(A) make all determinations concerning
program agreements and resource requests
for programs under this section; and
(B) announce those determinations.
(3) Report
Not later than April 1 of each fiscal year, the
Secretary shall submit to the Committee on
Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition,
and Forestry of the Senate—
(A) a list of programs, countries, and eligi-
ble commodities, and the total amount of
funds for transportation and administrative
costs, approved during the prior fiscal year
under this section;
(B) a description of the actual rate of re-
turn for each commodity made available
under this section for the previous fiscal
year including—
(i) factors that influenced the rate of re-
turn; and
(ii) with respect to the commodity, the
costs of bagging or further processing,
Page 1013
TITLE 7—AGRICULTURE
§ 1736o
ocean
transportation,
inland
transpor-
tation, storage costs, and any other infor-
mation that the Secretary determines to
be necessary; and
(C) for each instance in which a com-
modity was made available under this sec-
tion at a rate of return less than 70 percent,
an explanation for the rate of return real-
ized.
(k) Effective and termination dates
This section shall be effective during the pe-
riod beginning October 1, 1985, and ending De-
cember 31, 2023.
(l) Administrative expenses
(1) To enhance the development of private sec-
tor agriculture in countries receiving assistance
under this section the Secretary may, in each of
the fiscal years 1996 through 2023, use in addition
to any amounts or eligible commodities other-
wise made available under this section for such
activities, not to exceed $15,000,000 (or, in the
case of fiscal year 1999, $12,000,000) of Corpora-
tion funds (or eligible commodities of an equal
value owned by the Corporation), to provide as-
sistance in the administration, sale, and moni-
toring of food assistance programs, and to pro-
vide technical assistance for monetization pro-
grams, to strengthen private sector agriculture
in recipient countries.
(2) To carry out this subsection, the Secretary
may provide eligible commodities under agree-
ments entered into under this section in a man-
ner that uses the commodity transaction as a
means of developing in the recipient countries a
competitive private sector that can provide for
the importation, transportation, storage, mar-
keting and distribution of such eligible com-
modities.
(3) The Secretary may use the assistance pro-
vided under this subsection and proceeds derived
from the sale of eligible commodities under
paragraph (2) to design, monitor, and administer
activities undertaken with such assistance, for
the purpose of strengthening or creating the ca-
pacity of recipient country private enterprises
to undertake commercial transactions, with the
overall goal of increasing potential markets for
United States agricultural eligible commodities.
(4)
HUMANITARIAN
OR
DEVELOPMENT
PUR-
POSES.—The Secretary may authorize the use of
proceeds to pay the costs incurred by an eligible
entity under this section for—
(A)(i) programs targeted at hunger and mal-
nutrition; or
(ii) development programs involving food se-
curity;
(B) transportation, storage, and distribution
of eligible commodities provided under this
section; and
(C) administration, sales, monitoring, and
technical assistance.
(m) Secretarial approval
In carrying out this section, the Secretary
shall approve, as determined appropriate by the
Secretary, agreements with agricultural trade
organizations, intergovernmental organizations,
private voluntary organizations, and coopera-
tives that provide for—
(1) the sale of eligible commodities, includ-
ing the marketing of eligible commodities
through the private sector; and
(2) the use of the proceeds generated in the
humanitarian and development programs of
such agricultural trade organizations, inter-
governmental
organizations,
private
vol-
untary organizations, and cooperatives.
(n) Program management
(1) In general
The Secretary shall ensure, to the maximum
extent practicable, that each eligible entity
participating in 1 or more programs under this
section—
(A) uses eligible commodities made avail-
able under this section—
(i) in an effective manner;
(ii) in the areas of greatest need; and
(iii) in a manner that promotes the pur-
poses of this section;
(B) in using eligible commodities, assesses
and takes into account the needs of recipi-
ent countries and the target populations of
the recipient countries;
(C) works with recipient countries, and in-
digenous institutions or groups in recipient
countries, to design and carry out mutually
acceptable programs authorized under this
section; and
(D) monitors and reports on the distribu-
tion or sale of eligible commodities provided
under this section using methods that, as de-
termined by the Secretary, facilitate accu-
rate and timely reporting.
(2) Requirements
(A) In general
Not later than 270 days after May 13, 2002,
the Secretary shall review and, as necessary,
make changes in regulations and internal
procedures designed to streamline, improve,
and clarify the application, approval, and
implementation
processes
pertaining
to
agreements under this section.
(B) Considerations
In conducting the review, the Secretary
shall consider—
(i) revising procedures for submitting
proposals;
(ii) developing criteria for program ap-
proval that separately address the objec-
tives of the program;
(iii) pre-screening organizations and pro-
posals to ensure that the minimum quali-
fications are met;
(iv) implementing e-government initia-
tives and otherwise improving the effi-
ciency of the proposal submission and ap-
proval processes;
(v) upgrading information management
systems;
(vi) improving commodity and transpor-
tation procurement processes; and
(vii) ensuring that evaluation and moni-
toring methods are sufficient.
(C) Consultations
Not later than 1 year after May 13, 2002,
the Secretary shall consult with the Com-
Page 1014
TITLE 7—AGRICULTURE
§ 1736o
mittee on Agriculture, and the Committee
on International Relations, of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Sen-
ate on changes made in regulations and pro-
cedures.
(3) Reports
Each eligible entity that enters into an
agreement under this section shall submit to
the Secretary, at such time as the Secretary
may request, a report containing such infor-
mation as the Secretary may request relating
to the use of eligible commodities and funds
furnished to the eligible entity under this sec-
tion.
(o) Private voluntary organizations and other
private entities
In entering into agreements described in sub-
section (c), the Secretary—
(1) shall enter into agreements with eligible
entities described in subparagraphs (C) and (G)
of subsection (b)(5); and
(2) shall not discriminate against such eligi-
ble entities.
(p) Pilot agreements
(1) In general
For each of fiscal years 2019 through 2023,
subject to the availability of appropriations
pursuant to the authorization in paragraph (3),
the Secretary shall enter into 1 or more pilot
agreements with 1 or more eligible entities
through which the Secretary shall provide fi-
nancial assistance to the eligible entities to
carry out activities consistent with subsection
(l)(4)(A).
(2) Report required
In each of fiscal years 2020 through 2024, the
Secretary shall submit to the Committee on
Agriculture of the House of Representatives
and Committee on Agriculture, Nutrition, and
Forestry of the Senate a report describing,
with respect to the previous fiscal year—
(A) the amount provided to eligible enti-
ties under each pilot agreement pursuant to
paragraph (1) and how the funds were used;
(B) the activities carried out under each
pilot agreement;
(C) the number of direct and indirect bene-
ficiaries of those activities; and
(D) the effectiveness of the pilot agree-
ments, including as applicable the impact on
food security and agricultural productivity.
(3) Authorization of appropriations
There is authorized to be appropriated to
carry out pilot agreements pursuant to this
subsection $10,000,000 for each of fiscal years
2019 through 2023.
(Pub. L. 99–198, title XI, § 1110, Dec. 23, 1985, 99
Stat. 1472; Pub. L. 100–418, title IV, § 4303, Aug.
23, 1988, 102 Stat. 1397; Pub. L. 101–624, title XV,
§§ 1516, 1572(1), Nov. 28, 1990, 104 Stat. 3663, 3702;
Pub. L. 102–237, title III, § 335, Dec. 13, 1991, 105
Stat. 1859; Pub. L. 102–511, title VII, § 701, Oct. 24,
1992, 106 Stat. 3348; Pub. L. 104–127, title II, §§ 227,
265(b), Apr. 4, 1996, 110 Stat. 962, 974; Pub. L.
105–277, div. A, § 101(a) [title XI, § 1125], Oct. 21,
1998, 112 Stat. 2681, 2681–45; Pub. L. 107–171, title
III, §§ 3009(b)(2), 3106, May 13, 2002, 116 Stat. 283,
291; Pub. L. 108–7, div. A, title VII, § 745, Feb. 20,
2003, 117 Stat. 44; Pub. L. 110–246, title III,
§§ 3001(b)(1)(A), (2)(F), 3014(b)(2), 3105, June 18,
2008, 122 Stat. 1820, 1826, 1833; Pub. L. 113–79, title
III, § 3201, Feb. 7, 2014, 128 Stat. 779; Pub. L.
115–334, title III, § 3302, Dec. 20, 2018, 132 Stat.
4617.)
Editorial Notes
REFERENCES IN TEXT
The Food for Peace Act, referred to in subsecs. (e)
and (f)(4), is act July 10, 1954, ch. 469, 68 Stat. 454, which
is classified generally to this chapter (§ 1691 et seq.).
Title I of the Act is classified to subchapter II (§ 1701 et
seq.) of this chapter. For complete classification of this
Act to the Code, see Short Title note set out under sec-
tion 1691 of this title and Tables.
CODIFICATION
Section was enacted as part of the Food Security Act
of 1985, and not as part of the Food for Peace Act which
comprises this chapter.
AMENDMENTS
2018—Pub. L. 115–334, § 3302(1), substituted ‘‘Sec-
retary’’ for ‘‘President’’ wherever appearing, except in
subsecs. (f)(5) and (l)(4).
Subsec. (b)(5)(F), (G). Pub. L. 115–334, § 3302(2)(A),
added subpar. (F) and redesignated former subpar. (F)
as (G).
Subsec. (b)(10), (11). Pub. L. 115–334, § 3302(2)(B), added
pars. (10) and (11).
Subsec. (f)(3). Pub. L. 115–334, § 3302(3), substituted
‘‘2023’’ for ‘‘2018’’.
Subsec. (g). Pub. L. 115–334, § 3302(4), substituted
‘‘2023’’ for ‘‘2018’’.
Subsec. (j)(3). Pub. L. 115–334, § 3302(5), substituted
‘‘April 1’’ for ‘‘December 1’’, inserted dash after ‘‘the
Senate’’ and subpar. (A) designation before ‘‘a list’’,
substituted ‘‘approved during the prior fiscal year’’ for
‘‘approved to date for the fiscal year’’, and added sub-
pars. (B) and (C).
Subsec. (k). Pub. L. 115–334, § 3302(6), substituted
‘‘2023’’ for ‘‘2018’’.
Subsec. (l)(1). Pub. L. 115–334, § 3302(7), substituted
‘‘2023’’ for ‘‘2018’’.
Subsec. (m). Pub. L. 115–334, § 3302(8), substituted
‘‘Secretarial’’ for ‘‘Presidential’’ in heading.
Subsec. (o). Pub. L. 115–334, § 3302(9), struck out ‘‘(act-
ing through the Secretary)’’ before dash at end of intro-
ductory provisions.
Subsec. (o)(1). Pub. L. 115–334, § 3302(10), substituted
‘‘subparagraphs (C) and (G)’’ for ‘‘subparagraphs (C) and
(F)’’.
Subsec. (p). Pub. L. 115–334, § 3302(11), added subsec.
(p).
2014—Subsec. (f)(3). Pub. L. 113–79, § 3201(a)(1), sub-
stituted ‘‘2018’’ for ‘‘2012’’.
Subsec. (f)(6). Pub. L. 113–79, § 3201(b), struck out par.
(6) which related to approval of project for Malawi dur-
ing fiscal year 2009.
Subsecs. (g), (k), (l)(1). Pub. L. 113–79, § 3201(a)(2)–(4),
substituted ‘‘2018’’ for ‘‘2012’’.
2008—Subsec. (b). Pub. L. 110–246, § 3001(b)(1)(A), (2)(F),
substituted ‘‘Food for Peace Act’’ for ‘‘Agricultural
Trade Development and Assistance Act of 1954’’ wher-
ever appearing.
Subsec. (e)(1). Pub. L. 110–246, § 3014(b)(2), struck out
‘‘determined to be available under section 401 of the
Agricultural Trade Development and Assistance Act of
1954’’ after ‘‘such eligible commodities’’.
Subsec. (e)(2) to (4). Pub. L. 110–246, § 3001(b)(1)(A),
(2)(F), substituted ‘‘Food for Peace Act’’ for ‘‘Agricul-
tural Trade Development and Assistance Act of 1954’’.
Subsec. (f)(3). Pub. L. 110–246, § 3105(a), substituted
‘‘2012’’ for ‘‘2007’’.
Page 1015
TITLE 7—AGRICULTURE
§ 1736o
Subsec. (f)(4), (5). Pub. L. 110–246, § 3001(b)(1)(A), (2)(F),
substituted ‘‘Food for Peace Act’’ for ‘‘Agricultural
Trade Development and Assistance Act of 1954’’.
Subsec. (f)(6). Pub. L. 110–246, § 3105(b), added par. (6).
Subsecs. (g), (k), (l)(1). Pub. L. 110–246, § 3105(a), sub-
stituted ‘‘2012’’ for ‘‘2007’’.
2003—Subsecs. (c), (g). Pub. L. 108–7, § 745(1), sub-
stituted ‘‘shall’’ for ‘‘may’’.
Subsec. (o). Pub. L. 108–7, § 745(2), added subsec. (o).
2002—Subsecs. (b), (c). Pub. L. 107–171, § 3106(b)(1),
added heading and text of subsecs. (b) and (c) and
struck out former subsecs. (b) and (c) which read as fol-
lows:
‘‘(b) In order to use the food resources of the United
States more effectively in support of developing coun-
tries, and countries that are emerging democracies,
that have made commitments to introduce or expand
free enterprise elements in their agricultural econo-
mies through changes in commodity pricing, mar-
keting, input availability, distribution, and private
sector involvement, the President is authorized to
enter into agreements with the governments of such
countries (including the independent states of the
former Soviet Union), or with private voluntary organi-
zations, nonprofit agricultural organizations, coopera-
tives, intergovernmental organizations, or other pri-
vate entities, to furnish commodities made available
pursuant to subsections (e) and (f) of this section. Such
agreements may provide for commodities to be fur-
nished on a multiyear basis.
‘‘(c) As used in this section, the term ‘commodities’
means agricultural commodities and the products
thereof.’’
Subsec. (d). Pub. L. 107–171, § 3106(b)(2)(A), (D), (c), in-
serted heading, in introductory provisions struck out
‘‘food’’ after ‘‘domestic production of’’ and substituted
‘‘eligible commodities’’ for ‘‘commodities’’ in two
places, and in par. (2) substituted ‘‘eligible commod-
ities’’ for ‘‘commodities’’.
Subsec. (e). Pub. L. 107–171, § 3106(b)(2)(D), (E), (d), in-
serted heading, substituted ‘‘eligible commodities’’ for
‘‘commodities’’ and ‘‘Corporation’’ for ‘‘Commodity
Credit
Corporation’’
wherever
appearing,
inserted
‘‘, and subsection (g) does not apply to eligible com-
modities furnished on a grant basis or on credit terms
under that title’’ before period at end of par. (2), and
added par. (5).
Subsec. (f). Pub. L. 107–171, § 3106(b)(2)(D), (E), (e)(1),
inserted heading and substituted ‘‘eligible commod-
ities’’ for ‘‘commodities’’ and ‘‘Corporation’’ for ‘‘Com-
modity Credit Corporation’’ wherever appearing.
Subsec. (f)(3). Pub. L. 107–171, § 3106(a), (b)(2)(D), (E),
substituted ‘‘Corporation’’ for ‘‘Commodity Credit Cor-
poration’’, ‘‘eligible commodities’’ for ‘‘commodities’’
in two places, and ‘‘2007’’ for ‘‘2002’’.
Pub. L. 107–171, § 3106(e)(2), which directed substi-
tution of ‘‘$40,000,000’’ for ‘‘$30,000,000 (or in the case of
fiscal year 1999, $35,000,000)’’, was executed by making
the substitution for ‘‘$30,000,000 (or, in the case of fiscal
year 1999, $35,000,000)’’ to reflect the probable intent of
Congress.
Subsec. (f)(5). Pub. L. 107–171, § 3009(b)(2), added par.
(5).
Subsec. (g). Pub. L. 107–171, § 3106(f), added subsec. (g)
and struck out former subsec. (g) which read as follows:
‘‘Not more than 500,000 metric tons of commodities
may be furnished under this section in each of the fis-
cal years 1986 through 2002.’’
Subsec. (h). Pub. L. 107–171, § 3106(b)(2)(D), (g), in-
serted heading and substituted ‘‘eligible commodities’’
for ‘‘commodities’’.
Subsec. (i). Pub. L. 107–171, § 3106(h), inserted heading.
Subsec. (j). Pub. L. 107–171, § 3106(b)(2)(D), (i), inserted
heading, designated existing provisions as par. (1), in-
serted par. (1) heading, struck out ‘‘may’’ after ‘‘the
President’’, substituted ‘‘eligible commodities’’ for
‘‘commodities’’ in two places, ‘‘is encouraged to ap-
prove’’
for
‘‘approve’’,
and
‘‘multicountry
or
multiyear’’ for ‘‘multiyear’’, and added pars. (2) and (3).
Subsec. (k). Pub. L. 107–171, § 3106(a), (j), inserted
heading and substituted ‘‘2007’’ for ‘‘2002’’.
Subsec. (l). Pub. L. 107–171, § 3106(a), (b)(2)(B), (D), (E),
(k), inserted heading, substituted ‘‘eligible commod-
ities’’ for ‘‘commodities’’ wherever appearing, in par.
(1) substituted ‘‘2007’’ for ‘‘2002’’, ‘‘$15,000,000’’ for
‘‘$10,000,000’’, and ‘‘Corporation’’ for ‘‘Commodity Cred-
it Corporation’’ after ‘‘$12,000,000) of’’, in par. (2) struck
out ‘‘agricultural’’ after ‘‘President may provide’’, in
par. (3) substituted ‘‘proceeds’’ for ‘‘local currencies’’,
and added par. (4).
Subsec. (m). Pub. L. 107–171, § 3106(b)(2)(C), (D), (l), in-
serted heading and, in par. (1), substituted ‘‘eligible
commodities’’ for ‘‘commodities’’ in two places and
struck out ‘‘these’’ after ‘‘marketing of’’.
Subsec. (n). Pub. L. 107–171, § 3106(m), added subsec.
(n) and struck out former subsec. (n) which read as fol-
lows: ‘‘During fiscal year 1999, to the maximum extent
practicable, the Secretary shall utilize Private Vol-
untary Organizations to carry out this section.’’
Subsec. (o). Pub. L. 107–171, § 3106(b)(2)(F), struck out
subsec. (o) which read as follows: ‘‘As used in this sec-
tion, the term ‘independent states of the former Soviet
Union’ means the independent states of the former So-
viet Union as defined in section 5602(8) of this title.’’
1998—Subsec. (f)(3). Pub. L. 105–277, § 101(a) [title XI,
§ 1125(1)], inserted ‘‘(or, in the case of fiscal year 1999,
$35,000,000)’’ after ‘‘$30,000,000’’.
Subsec. (l)(1). Pub. L. 105–277, § 101(a) [title XI,
§ 1125(2)], inserted ‘‘(or, in the case of fiscal year 1999,
$12,000,000)’’ after ‘‘$10,000,000’’.
Subsecs. (n), (o). Pub. L. 105–277, § 101(a) [title XI,
§ 1125(3), (4)], added subsec. (n) and redesignated former
subsec. (n) as (o).
1996—Subsec. (b). Pub. L. 104–127, § 227(1), struck out
‘‘(1)’’ before ‘‘In order to use’’, inserted ‘‘intergovern-
mental organizations,’’ after ‘‘cooperatives,’’, and
struck out par. (2) which read as follows: ‘‘The annual
tonnage limitation contained in subsection (g) of this
section shall not apply with respect to commodities
furnished to the independent states of the former So-
viet Union during fiscal year 1993.’’
Subsec. (e)(3). Pub. L. 104–127, § 265(b), substituted
‘‘section 103’’ for ‘‘section 106’’.
Subsec. (e)(4). Pub. L. 104–127, § 227(2), substituted
‘‘section 406’’ for ‘‘section 203’’.
Subsec. (f)(1)(B). Pub. L. 104–127, § 227(3)(A), struck
out ‘‘in the case of the independent states of the former
Soviet Union,’’ before ‘‘sales on credit terms,’’.
Subsec. (f)(2) to (5). Pub. L. 104–127, § 227(3)(B)–(D), in
par. (4), inserted ‘‘for each of fiscal years 1996 through
2002’’ after ‘‘may be used’’, redesignated pars. (3) to (5)
as (2) to (4), respectively, and struck out former par. (2)
which read as follows: ‘‘Not less than 75,000 metric tons
shall
be
made
available
pursuant
to
section
1431(b)(10)(C) of this title to carry out this section un-
less the President determines there are an insufficient
number of eligible recipients.’’
Subsec. (g). Pub. L. 104–127, § 227(4), substituted ‘‘2002’’
for ‘‘1995’’.
Subsec. (j). Pub. L. 104–127, § 227(5), substituted ‘‘may’’
for ‘‘shall’’.
Subsec. (k). Pub. L. 104–127, § 227(6), substituted ‘‘2002’’
for ‘‘1995’’.
Subsec. (l)(1). Pub. L. 104–127, § 227(7), substituted
‘‘1996 through 2002’’ for ‘‘1991 through 1995’’ and inserted
‘‘, and to provide technical assistance for monetization
programs,’’ after ‘‘monitoring of food assistance pro-
grams’’.
Subsec. (m). Pub. L. 104–127, § 227(8), in introductory
provisions, struck out ‘‘with respect to the independent
states of the former Soviet Union’’ after ‘‘this section’’
and substituted ‘‘agricultural trade organizations,
intergovernmental organizations, private voluntary or-
ganizations, and cooperatives’’ for ‘‘private voluntary
organizations and cooperatives’’, and in par. (2), struck
out ‘‘in the independent states’’ after ‘‘the use’’ and
substituted ‘‘agricultural trade organizations, inter-
governmental organizations, private voluntary organi-
zations, and cooperatives’’ for ‘‘private voluntary orga-
nizations and cooperatives’’.
1992—Subsec. (b). Pub. L. 102–511, § 701(1), designated
existing provisions as par. (1), inserted ‘‘(including the
Page 1016
TITLE 7—AGRICULTURE
§ 1736o–1
independent states of the former Soviet Union)’’ after
‘‘such countries’’, substituted ‘‘cooperatives, or other
private entities’’ for ‘‘or cooperatives’’, and added par.
(2).
Subsec. (f)(1). Pub. L. 102–511, § 701(2), amended par. (1)
generally. Prior to amendment, par. (1) read as follows:
‘‘Commodities made available under section 1431(b) of
this title for use in carrying out this section shall be
provided on a grant basis.’’
Subsecs. (m) and (n). Pub. L. 102–511, § 701(3), added
subsecs. (m) and (n).
1991—Subsec. (k). Pub. L. 102–237, § 335(1), (3), redesig-
nated subsec. (l) as (k) and struck out ‘‘September 30,’’
before ‘‘December 31’’.
Subsecs. (l), (m). Pub. L. 102–237, § 335(2), (3), redesig-
nated subsec. (m) as (l) and substituted ‘‘this section’’
for ‘‘this Act’’ wherever appearing.
1990—Subsec. (b). Pub. L. 101–624, § 1516(1), substituted
‘‘developing countries, and countries that are emerging
democracies, that’’ for ‘‘countries that’’, and ‘‘the gov-
ernments of such countries, or with private voluntary
organizations, nonprofit agricultural organizations, or
cooperatives,’’ for ‘‘developing countries’’.
Subsec. (d). Pub. L. 101–624, § 1516(2), struck out ‘‘with
countries’’ before ‘‘under this section’’ in introductory
provisions.
Subsec. (e)(3). Pub. L. 101–624, § 1516(3), struck out ‘‘to
a developing country’’ before ‘‘under this section’’, and
‘‘by a developing country’’ before ‘‘for commodities’’.
Subsec. (e)(4). Pub. L. 101–624, § 1516(4), struck out ‘‘to
a developing country’’ before ‘‘under this section’’ in
two places, and substituted ‘‘sections 402, 403(a), 403(c),
and 403(i)’’ for ‘‘section 401(b)’’.
Subsec. (f)(1). Pub. L. 101–624, § 1516(5), struck out ‘‘to
developing countries’’ before ‘‘on a grant basis’’.
Subsec. (g). Pub. L. 101–624, § 1516(6), substituted
‘‘1995’’ for ‘‘1990’’.
Subsec. (j). Pub. L. 101–624, § 1572(1), redesignated sub-
sec. (k) as (j) and struck out former subsec. (j) which
read as follows: ‘‘Within 90 days after the end of each
fiscal year in which an agreement under this section is
in effect with respect to a country, the President shall
report to the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the
Senate on the status of such agreement and the
progress being made to implement private, free enter-
prise agricultural policies for long-term agricultural
development in such country.’’
Pub. L. 101–624, § 1516(7), struck out ‘‘entered into
with a country’’ before ‘‘under this section’’, and in-
serted ‘‘with respect to a country’’ after ‘‘effect’’.
Subsec. (k). Pub. L. 101–624, § 1572(1)(B), redesignated
subsec. (k) as (j).
Pub. L. 101–624, § 1516(8), substituted ‘‘the recipient’’
for ‘‘recipient countries’’.
Subsec. (l). Pub. L. 101–624, § 1516(9), substituted ‘‘De-
cember 31, 1995’’ for ‘‘1990’’.
Subsec. (m). Pub. L. 101–624, § 1516(10), added subsec.
(m).
1988—Subsecs. (k), (l). Pub. L. 100–418 added subsec.
(k) and redesignated former subsec. (k) as (l).
Statutory Notes and Related Subsidiaries
CHANGE OF NAME
Committee on International Relations of House of
Representatives changed to Committee on Foreign Af-
fairs of House of Representatives by House Resolution
No. 6, One Hundred Tenth Congress, Jan. 5, 2007.
EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Pub. L. 110–246 effective May 22, 2008,
see section 4(b) of Pub. L. 110–246, set out as an Effec-
tive Date note under section 8701 of this title.
Executive Documents
EXECUTIVE ORDER NO. 12583
Ex. Ord. No. 12583, Feb. 19, 1987, 52 F.R. 5427, which re-
lated to the delegation of functions relating to entering
into agreements with developing countries and waiving
minimum tonnage requirements, was revoked by sec-
tion 6 of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256,
set out as a note under section 1691 of this title.
§ 1736o–1. McGovern-Dole International Food for
Education and Child Nutrition Program
(a) Definition of agricultural commodity
In this section, the term ‘‘agricultural com-
modity’’ means an agricultural commodity, or a
product of an agricultural commodity, that—
(1) is produced in the United States; or
(2)(A) is produced in and procured from—
(i) a developing country that is a recipient
country; or
(ii) a developing country in the same re-
gion as a recipient country; and
(B) at a minimum, meets each nutritional,
quality, and labeling standard of the recipient
country, as determined by the Secretary.
(b) Program
Subject to subsection (l), the Secretary may
establish a program, to be known as ‘‘McGovern-
Dole International Food for Education and Child
Nutrition Program’’, requiring the procurement
of agricultural commodities and the provision of
financial and technical assistance to carry out—
(1) preschool and school food for education
programs in foreign countries to improve food
security, reduce the incidence of hunger, and
improve literacy and primary education, par-
ticularly with respect to girls; and
(2) maternal, infant, and child nutrition pro-
grams for pregnant women, nursing mothers,
infants, and children who are 5 years of age or
younger.
(c) Eligible commodities and cost items
Notwithstanding any other provision of law—
(1) any agricultural commodity is eligible to
be provided under this section;
(2) as necessary to achieve the purposes of
this section, funds appropriated under this
section may be used to pay—
(A)(i) the cost of acquiring agricultural
commodities;
(ii) the costs associated with packaging,
enrichment, preservation, and fortification
of agricultural commodities;
(iii) the processing, transportation, han-
dling, and other incidental costs up to the
time of the delivery of agricultural commod-
ities free on board vessels in United States
ports;
(iv) the vessel freight charges from United
States ports or designated Canadian trans-
shipment ports, as determined by the Sec-
retary, to designated ports of entry abroad;
(v) the costs associated with transporting
agricultural
commodities
from
United
States ports to designated points of entry
abroad in the case—
(I) of landlocked countries;
(II) of ports that cannot be used effec-
tively because of natural or other disturb-
ances;
(III) of the unavailability of carriers to a
specific country; or
(IV) of substantial savings in costs or
time that may be effected by the utiliza-
tion of points of entry other than ports;
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Notice of negotiations** The Secretary of State and the Secretary of the Treasury shall, in every feasible instance, notify the designated congressional committees not less than 15 days prior to any formal negotiation for debt relief under this subchapter.
**(b) Transmittal of text of agreements** The Secretary of State shall transmit to the designated congressional committees a copy of the text of any agreement with any foreign government which would result in any debt relief under this subchapter no less than 30 days prior to its entry into force, together with a detailed justification of the interest of the United States in the proposed debt relief.
**(c) Annual report** The Secretary of State or the Secretary of the Treasury, as appropriate, shall submit to the designated congressional committees not later than February 1 of each year a consolidated statement of the budgetary implications of all debt relief agreements entered into force under this subchapter during the preceding fiscal year.
**(d) Designated congressional committees** As used in this section, the term “designated congressional committees” means the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
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Federal law — U.S. Code and appendices · legal_authorities
§ 1691. United States policy
It is the policy of the United States to use its
abundant agricultural productivity to promote
the foreign policy of the United States by en-
hancing the food security of the developing
world through the use of agricultural commod-
ities and local currencies accruing under this
chapter to—
(1) combat world hunger and malnutrition
and their causes;
(2) promote broad-based, equitable, and sus-
tainable development, including agricultural
development;
(3) expand international trade;
(4) foster and encourage the development of
private enterprise and democratic participa-
tion in developing countries; and
(5) prevent conflicts.
(July 10, 1954, ch. 469, § 2, 68 Stat. 454; Pub. L.
89–808, § 2(A), Nov. 11, 1966, 80 Stat. 1526; Pub. L.
94–161, title II, § 201, Dec. 20, 1975, 89 Stat. 850;
Pub. L. 99–198, title XI, § 1111(a), Dec. 23, 1985, 99
Stat. 1474; Pub. L. 101–624, title XV, § 1512, Nov.
28, 1990, 104 Stat. 3633; Pub. L. 107–171, title III,
§ 3001, May 13, 2002, 116 Stat. 280; Pub. L. 110–246,
title III, § 3002, June 18, 2008, 122 Stat. 1821.)
Editorial Notes
AMENDMENTS
2008—Pars. (4) to (6). Pub. L. 110–246 redesignated
pars. (5) and (6) as (4) and (5), respectively, and struck
out former par. (4) which read as follows: ‘‘develop and
expand export markets for United States agricultural
commodities;’’.
2002—Par. (6). Pub. L. 107–171 added par. (6).
1990—Pub. L. 101–624 amended section generally, sub-
stituting present provisions for provisions declaring
policy of United States to expand trade, develop export
markets, encourage economic development and private
enterprise in developing countries, improve local food
production and promote foreign policy, and requiring
President to give priority to countries most a
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
#### Codification
Section, act July 10, 1954, ch. 469, title III, § 310, formerly § 303, 68 Stat. 459, as amended and renumbered, which related to bartering authority of Secretary, was transferred to [section 1727g of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1727g&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
§ 1701. Economic assistance and food security
(a) In general
The President shall establish a program under
this subchapter to provide for the sale of agri-
cultural commodities to developing countries
and private entities for dollars on credit terms,
or for local currencies (including for local cur-
rencies on credit terms) for use under this sub-
chapter. Such program shall be implemented by
the Secretary.
(b) General authority
To carry out the policies and accomplish the
objectives described in section 1691 of this title,
the Secretary may negotiate and execute agree-
ments with developing countries and private en-
tities to finance the sale and exportation of ag-
ricultural commodities to such countries and
entities.
(July 10, 1954, ch. 469, title I, § 101, 68 Stat. 455;
Pub. L. 85–931, § 1, Sept. 6, 1958, 72 Stat. 1790;
Pub. L. 87–128, title II, § 201(1), Aug. 8, 1961, 75
Stat. 306; Pub. L. 88–205, pt. IV, § 403(a), Dec. 16,
1963, 77 Stat. 390; Pub. L. 88–638, § 1(1), (2), Oct. 8,
1964, 78 Stat. 1035; Pub. L. 89–808, § 2(B), Nov. 11,
1966, 80 Stat. 1526; Pub. L. 97–113, title IV, § 401(1),
Dec. 29, 1981, 95 Stat. 1537; Pub. L. 99–198, title
XI, § 1111(c), Dec. 23, 1985, 99 Stat. 1474; Pub. L.
100–202, § 8, Dec. 22, 1987, 101 Stat. 1329–447; Pub.
L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat.
3633; Pub. L. 104–127, title II, § 202, Apr. 4, 1996,
110 Stat. 951; Pub. L. 110–246, title III, § 3004(b),
June 18, 2008, 122 Stat. 1822.)
Editorial Notes
AMENDMENTS
2008—Pub. L. 110–246 substituted ‘‘Economic assist-
ance and food security’’ for ‘‘Trade and development as-
sistance’’ in section catchline.
1996—Subsec. (a). Pub. L. 104–127, § 202(1), inserted
‘‘and private entities’’ after ‘‘developing countries’’.
Subsec. (b). Pub. L. 104
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The President shall establish a program under this subchapter to provide for the sale of agricultural commodities to developing countries and private entities for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this subchapter. Such program shall be implemented by the Secretary.
**(b) General authority** To carry out the policies and accomplish the objectives described in [section 1691 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1691&num=0&edition=prelim), the Secretary may negotiate and execute agreements with developing countries and private entities to finance the sale and exportation of agricultural commodities to such countries and entities.
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Federal law — U.S. Code and appendices · legal_authorities
§ 1703. Terms and conditions of sales
(a) Payment
(1) Dollars
Except as provided in paragraph (2), agree-
ments under this subchapter shall require that
payment for agricultural commodities be
made in dollars.
(2) Local currencies
(A) In general
The Secretary may permit payment under
an agreement under this subchapter in the
local currency of the appropriate country in
order to use the proceeds from such pay-
ments to carry out activities under section
1704 of this title.
(B) Rates of exchange
Payments in local currency shall be at
rates of exchange that are no less favorable
than the highest exchange rate legally ob-
tainable in the country and that are no less
favorable than the highest exchange rate ob-
tainable by any other country.
(b) Interest
Such agreements shall provide that interest
accrue on the payment deferred under such
agreement at a concessional rate as determined
appropriate by the Secretary.
(c) Duration
Payments required under such agreements
may be made in reasonable annual amounts over
the period (not more than 30 years from the date
of the last delivery of commodities in each year
under such agreement) specified in the agree-
ment.
(d) Deferral of payments
The Secretary may defer the date on which
the developing country or private entity is re-
quired to begin making payment, under such
agreements, for a period of not in excess of 5
years after the date of the last delivery of com-
modities in each year under the agreement, and
interest shall be computed from the date of such
last delivery.
(e) Delivery of commodities
Delivery of the commodities shall be made in
accordance with the terms of the agreement.
(July 10, 1954, ch. 469, title I, § 103, 68 Stat. 456;
Aug. 12, 1955, ch. 873, § 1, 69 Stat. 721; May 28
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
#### Codification
Section, Pub. L. 98–473, title III, § 304, Oct. 12, 1984, 98 Stat. 2195, which required the President to submit a comprehensive annual report to appropriate committees of Congress detailing activities carried out under this subchapter, terminated, effective May 15, 2000, pursuant to section 3003 of Pub. L. 104–66, as amended, set out as a note under [section 1113 of Title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section1113&num=0&edition=prelim), Money and Finance. See, also, page 21 of House Document No. 103–7.
Stored review status: release_metadata_unconfirmed. The source passage cites 7 U.S.C. § 1732. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1732. Definitions
As used in this chapter:
(1) Administrator
The term ‘‘Administrator’’ means the Ad-
ministrator of the Agency for International
Development, unless otherwise specified in
this chapter.
(2) Agricultural commodity
The term ‘‘agricultural commodity’’, unless
otherwise provided for in this chapter, in-
cludes any agricultural commodity or the
products thereof produced in the United
States, including wood and processed wood
products, fish, and livestock as well as value-
added, fortified, or high-value agricultural
products. Effective beginning on October 1,
1991, for purposes of subchapter III, a product
of an agricultural commodity shall not be con-
sidered to be produced in the United States if
it contains any ingredient that is not produced
in the United States, if that ingredient is pro-
duced and is commercially available in the
United States at fair and reasonable prices.
(3) Appropriate committee of Congress
The term ‘‘appropriate committee of Con-
gress’’ means—
(A) the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate;
(B) the Committee on Agriculture of the
House of Representatives; and
(C) the Committee on Foreign Affairs of
the House of Representatives.
(4) Cooperative
The term ‘‘cooperative’’ means a private sec-
tor organization whose members own and con-
trol the organization and share in its services
and its profits and that provides business serv-
ices and outreach in cooperative development
for its membership.
(5) Developing country
The term ‘‘developing country’’ means a
country that has a shortage of foreign ex-
change earnings and has difficulty meeting all
of its food needs through commercial chan-
nels.
(6) Food security
The term ‘‘food security’’ means access by
all people at all
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Federal law — U.S. Code and appendices · legal_authorities
Congress encourages the Secretary of Agriculture, in coordination with other appropriate Federal departments and agencies, to continue to consult with representatives of other major grain exporting nations toward the goal of establishing more orderly marketing of grain and achieving higher farm income for producers of grain.