International Food Assistance in USDA

1. International Food Assistance in USDA Presented by Members of the Office of Capacity Building and Development Foreign Agricultural Service U.S. Department of Agriculture April 6, 2009 1 1

2. Welcome Ross Kreamer Assistant Deputy Administrator Office of Capacity Building and Development Foreign Agricultural Service 2

3. Introductions and Agenda • Welcome and Introductory Remarks Ross Kreamer, Assistant Deputy Administrator, Office of Capacity Building and Development (OCBD) • Global Food Security and FAS Programs Roger Mireles, Director, Policy Coordination and Policy Staff • Food Assistance Division Overview Ron Croushorn, Director, Food Assistance Division (FAD) • Food for Progress Programming for FY 2010 & Beyond Nicola Sakhleh, Senior Analyst, Food for Development Branch, FAD • McGovern-Dole Program Dorothy Feustel, Chief, School Feeding and Humanitarian Assistance Branch, FAD • Transportation and Logistics Amy Harding, Senior Analyst, Transportation and Logistics Branch, FAD • Monitoring and Evaluation Brenda Freeman, Director, Monitoring and Evaluation Staff, OCBD Delphine Hamlin, Senior Analyst, M&ES • Questions and Answers 3 3

4. Role ofthe Foreign Agricultural Service (FAS) in Development • Primarily responsible for USDA’s international activities • Provide food aid and technical assistance to foreign countries • Help increase income and food availability in developing nations • Support trade-capacity building and creating new markets 4

5. OCBD Mission OCBD advances international agricultural trade and U.S. national security by strengthening the institutions and economies of developing countries through trade capacity building and agricultural development 5 Lebanon

6. GLOBAL FOOD SECURITY: The USDA Approach Roger P. Mireles Director Policy Coordination and Planning Office of Capacity Building and Development Foreign Agricultural Service/USDA

7. Food Insecurity Makes the Headlines • Food prices increased 45 percent, April 2007-April 2008 • Demand surged • Energy soared • Global grain supplies dropped • U.S. dollar weakened • Biofuels production increased • Prices tumbled from peak • Improved crop outlook • Easing export restrictions • stronger dollar • Lower oil prices and freight costs • Prices expected to remain above historical average

8. USG Tackling the Issue • Policy environment • Trade and market investment • Research, training and technology transfer • Sound natural resource management • Global market information and monitoring systems • Social safety nets • Market-based risk management

9. GoalBE EFFECTIVE

10. Today’s Challenging Environment The Right Approach • A Common Strategy • Public/Private Partnerships • Host Nation Involvement

11. USDA’s Unique Toolbox Tools that promote agricultural development • Food Aid Programs • Trade and Scientific Exchange Programs • USDA Technical Expertise • Partnerships • Overseas Representation

12. TEAMTogether Everyone Achieves More PVOs/NGOs U.S. Agribusiness, Trade Associations USG Agencies Land-Grant Universities Multilateral Organizations Foreign Governments Agricultural development Credit guarantee programs Rural credit, microfinance Regulatory and policy capacity building Educational Improvement Trade missions Scientific research Economic analysis Post Harvest/Marketing Systems

13. “To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds.”President ObamaJanuary 20, 2009

14. Food Assistance Division Ron Croushorn Director, Food Assistance Division Office of Capacity Building and Development Foreign Agricultural Service 14

15. Program Overview • McGovern-Dole Food for Education and Child Nutrition Program • Food for Progress • Section 416(b) • Title I of the Food for Peace Act • Local and Regional Purchase Pilot Program 15

16. Status of the USDA Local and Regional Purchase Pilot Program • On January 16, 2009, the USDA study on local and regional purchase was sent by the Secretary of Agriculture to the House and Senate Agriculture Committees. • The USDA study found that local and regional purchases: • Are a tool that enables quick food aid responses during and after food crises and disasters • Can be a timely and effective complement to in-kind food aid programs • Require appropriate methods at the correct time to meet emergency food aid needs while avoiding harm to low-income consumers, producers and fragile market systems. 16

17. Pilot Program Guidelines • USDA is drafting program implementation guidelines • During the summer, a draft of the guidelines will be made public for comments • The public is encouraged to review and provide feedback • During this conference, local and regional purchase will be discussed on Wednesday afternoon with an FAS participant 17

18. FY 2009 Focus Areas • During today’s session, FAS will provide information on: • Program Management • Regulations • Strategic Framework & Indicators • Procurement Practices

19. Food for Progress Presented by: Nicola David Sakhleh Senior Analyst

20. Food for Progress • Overview • FY 09 Proposal and Award Cycle • Priority Country Criterion and Selections • Resources • Proposal review

21. Food for Progress • Food for Progress Act of 1985 • Targets developing countries and emerging democracies • Supports the expansion of private enterprise in the agricultural sector • Commodities are usually monetized

22. Food for ProgressExpected Resources Until 2012 • Funding authorized by the Farm Bill • $40 million cap on transportation costs • $15 million for administrative costs • Commodity value not restricted by Farm Bill

23. Food for Progress Projects • Soil and water conservation • Improved farming methods • Agricultural extension • Animal and plant health • Processing, storage and marketing • Roads and other infrastructure • Cooperative development • Micro-credit and business training

24. Food for ProgressActive Agreements (2005-2009) • 41 Countries • 109 Agreements • $660 Million in Agreement Value Number of Agreements per Country

25. 67 Received 62 proposals from 37 PVOs 2 WFP proposals 3 government proposals 24 countries Total value of $2.3 billion 15 Approved 1 government 14 PVO programs approved Total value of $164.5 million Food for Progress FY 2009 Proposals

26. Food for Progress Priority Country Determination • Per capita incomes below $3,705 (World Bank) • Percent (>20) of children under the age of 5 that are stunted (WHO) • Positive movement in political rights or civil liberties (Freedom House) • USDA Post coverage and ability to monitor

27. Other Determining Factors • Security concerns • Potential market disruptions • Other donor activity

28. Asia (5) Afghanistan Bangladesh Pakistan Philippines Timor-Leste Latin America (5) El Salvador Ethiopia Guatemala Honduras Nicaragua Africa (10) Benin Burkina Faso Kenya Liberia Malawi Mali Mozambique Senegal Tanzania Uganda Food for Progress Countries Meeting All Criteria / Other Factors 20 Countries

29. Asia (2) Timor-Leste Pakistan Latin America (4) El Salvador Guatemala Honduras Nicaragua Africa (4) Kenya Liberia Mozambique Tanzania Food for Progress FY 2010 Priority Countries 10 Countries

30. FY 2011 AND BEYOND A more “strategic” approach to programming How? Through prioritizing activities Communication among USDA, implementing organizations, and governments to determine priority activities WHY? To facilitate Agency mission To provide clear instructions to applicants Food for ProgressFuture Programming

31. FYs 2011 & 2012 Priority Country Preliminary Lists *Final 2011 priority country list, along with corresponding priority activities and guidance, will be announced through a press release in autumn of 2009 ** Final 2012 priority country list, along with corresponding priority activities and guidance, will be announced at the 2010 IFAC

32. Key Sections of Proposal • Introductory Statement • Section 5(a) – Activity Objectives • Section 5(b) – Method of Choosing Beneficiaries • Section 5(h) – Criteria for Measuring Progress • Section 6(e) – Uses of Sales Proceeds

33. Commodities and Market Analyses • Appropriate commodity(ies) and tonnage in the proposal • Thorough Bellmon analysis MUST be conducted using consumption rather than nutritional requirements • Attaché concurrence is required

34. Food for Progress Proposal Feedback -- Limited Agricultural Focus -- Commodity / Monetization Issues -- Organizational Capabilities and Experience -- Proposal Quality -- Weak Progress Measures / Outcomes -- Lack of Coordination with Embassy / Govt

35. Food for Progress Program Guidelines • Guidelines for Introductory Statement • Guidelines for Plan of Operation • Sample Plan of Operation • http://www.fas.usda.gov/excredits/FoodAid/FFP/ApplyForProgram.htm

36. Food for Progress

37. McGovern-Dole International Food for Education & Child Nutrition Program Dorothy Feustel, Chief School Feeding & Humanitarian Branch, Food Assistance Division, OCBD Guinea-Bissau 37

38. Supports education, child development, and food security Reaches poor children, especially girls, in developing countries Encourages health and nutrition complements McGovern-Dole ProgramOverview Guatemala 38

39. McGovern-DoleOverview U.S. commodities are fed directly Cash resources to fund activities; otherwise monetization only in extenuating situations Strives for sustainability Kyrgyzstan 39

40. McGovern-Dole ProgramOverview What is sustainability? A sustainable project is one that enables either a national government, local government, or community to continue providing an environment that is conducive to attracting children to school and providing them with an education; and, where possible, Continuing some level of school feeding after the US government support ends

41. McGovern-Dole ProgramOverview Creating Partnerships Public Private Community level Capacity Building & Training Training PTAs Vocational Training (teachers, cooks, students) Creating Infrastructure

42. McGovern-Dole ProgramSchool Feeding School Lunches Food for Work (cooks, teachers) Take Home Rations Albania

43. McGovern-Dole ProgramSample Activities Improving Infrastructure Training School Environment Improvement Nutrition and Health Education and Services Senegal 43

44. McGovern-Dole Program Active Agreements 33 active agreements currently funded with 18 cooperating sponsors, in 28 countries, with more than 5 million beneficiaries 44

45. McGovern-Dole ProgramActive Agreements – Cont. 45

46. McGovern-Dole ProgramFY 2009 Resources & Awards $184 million received 48 proposals received; valued at $700 million Three new programs funded; valued at $27.4 million 12 multi-year agreements continued; valued at $68.3 million Additional awards pending! Mozambique 46

47. McGovern-Dole Program FY2010 Resources 54 proposals received; valued at $760 million $45 million exists under multi-year agreements FY 2010 resources will become available through the President’s budget Afghanistan 47

48. McGovern-Dole Program Proposal Review in FY 2010 Continuation of existing programs will receive highest priority Limited funds will remain after these programs are funded Vietnam 48

49. McGovern-Dole Program Priority Country Determination Priority country determination factors under review The following three criteria will remain: Government commitment to education USDA Post coverage and ability to monitor agreements No concerns with security or market issues Country Criteria Roundtable this afternoon 49

50. McGovern-Dole Program Timing Proposal awards for FY 2010 will be announced in late Fall of 2009 FY 2011 Priority Country List will be released late Fall 2009 Next solicitation for new proposals at 2010 IFAC 50