Trade Title of the 2002 Farm Bill: Comparison of Final Provisions with the House and Senate Proposals, and Prior Law
CRS Report for Congress
Trade Title of the 2002 Farm Bill:
Comparison of Final Provisions with the
House and Senate Proposals, and Prior Law
September 27, 2002
Geoffrey S. Becker
Specialist in Agricultural Policy
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress
Trade Title of the 2002 Farm Bill:
Comparison of Final Provisions with the
House and Senate Proposals, and Prior Law
Summary
Exports, whether commercial or provided as food aid, are viewed by most U.S.
agricultural groups as critical to their prosperity. Thus, the trade and food aid
provisions of the omnibus farm bill, the Farm Security and Rural Investment Act of
are of great interest to the agricultural community.
The measure includes a trade title (Title III) amending and/or extending, through
2007, the major agricultural export and foreign food aid programs. These include
direct export subsidies (the Export Enhancement Program and Dairy Export Incentive
Program); market promotion programs (the Market Access Program and Foreign
Market Development Cooperator Program); food aid (for example, P.L. 480, the
Food for Peace Program; and Food for Progress); and export credit guarantees (the
so-called GSM-102 and GSM-103 programs).
The law also contains (in Title X) provisions setting new country-of-origin
labeling requirements for meat, seafood, peanuts, and fruits and vegetables. Title I,
the commodity title, significantly expands the availability of domestic U.S. farm
subsidies. Both have implications for U.S. trade relations, particularly as the United
States currently is negotiating new agricultural trade rules in the World Trade
Organization. Stated U.S. goals are the elimination of all countries’ export subsidies,
as well as substantial reductions in domestic farm support and import restrictions.
This report, which is not intended for future updates, provides a side-by-side
comparison of the new law’s major trade provisions with prior law, and with the
differing farm bills passed earlier in the 107th Congress by the House and Senate.
Contents
In troduction ......................................................1
Selected Policy Issues..............................................2
Projected Costs....................................................3
Comparison of Provisions: Prior Law, House and Senate Bills, New Law......4
Agricultural Export Assistance Programs...........................4
Market Access Program (MAP)
Foreign Market Development Cooperator Program
Export Enhancement Program
Dairy Export Incentive Program
Export Credit Guarantees (GSM)
Emerging Markets Program
Food Aid Programs............................................8
P.L. 480 (Food for Peace) General
P.L.480 Assistance Levels and Funding
P.L. 480 Operation & Administration
Certified Institutional Partners
Farmer-to-Farmer Program
CCC (Section 416) Surplus Donations
Bill Emerson Humanitarian Trust
Food for Progress
International Food for Education
Farmers for Africa & Caribbean Basin
Terrorism and Foreign Assistance
Other Trade Provisions........................................15
Trade Agreement Compliance
Technical Assistance for Barriers to Trade
Biotechnology and Agricultural Trade Program
Trade Negotiating Objectives
Exporter Assistance Initiative
Cuba Trade Sanctions
Studies and Reports
Country of Origin Labeling; Grading
Trade Title of the 2002 Farm Bill:
Comparison of Final Provisions with the
House and Senate Proposals, and Prior Law
Introduction1
With agricultural exports accounting for about one-fourth of U.S. farm income,
policymakers view efforts to develop and maintain overseas markets as vital to the
sector’s financial health. The Administration and Congress, primarily through its
Agriculture Committees, attempt to promote U.S. exports through an array of
domestic farm programs, agricultural export subsidy and promotion activities, and
foreign food aid programs. Most of these programs are periodically reviewed,
amended, and reauthorized as part of an omnibus, multi-year farm bill.
A new farm bill, the Farm Security and Rural Investment Act of 2002 (H.R.
2646), was cleared by Congress in early May. The President signed the measure into
law (P.L. 107-171) on May 13, 2002.
The measure includes a trade title (Title III) amending and/or extending, through
2007, the major foreign food aid and agricultural export programs. These include
direct export subsidies [the Export Enhancement Program (EEP) and Dairy Export
Incentive Program (DEIP)]; market promotion programs [the Market Access
Program (MAP) and Foreign Market Development Cooperator Program (FMDP)];
food aid (for example, P.L. 480, the Food for Peace Program; and Food for
Progress); and export credit guarantees (the so-called GSM-102 and GSM-103
programs).
Also, Title X of the law sets out new country-of-origin labeling requirements for
meat, seafood, peanuts, and fruits and vegetables. Title I, the commodity title,
significantly expands the availability of domestic U.S. farm subsidies. Both have
implications for U.S. trade relations, particularly as the United States currently is
negotiating new agricultural trade rules in the World Trade Organization (WTO).
1 A primary source for this report is the conference report (H.Rept. 107-424) to accompany
H.R. 2646, the Farm Security and Rural Investment Act of 2002. For a lengthier discussion
of U.S. agricultural export and food aid programs, including data on recent spending levels,
how the programs are funded in the federal budget, and current issues, see CRS Issue Brief
IB98006, Agricultural Export and Food Aid Programs, updated periodically. For details
on the entire farm law, including projected costs and other information, see CRS Report
RL31195, The 2002 Farm Bill: Overview and Status.
Selected Policy Issues
Some critics believe that the availability of expanded farm support under the
commodity title increases the possibility that the United States will exceed its subsidy
limits ($19.1 billion per year in trade-distorting subsidies) set forth in the multilateral
the bill’s drafters included, in Title I, a requirement that the Secretary of Agriculture,
to the maximum extent practicable, make adjustments in domestic farm support to
ensure that subsidies do not exceed the limits. Some have questioned the feasibility
of implementing this provision — the so-called “circuit breaker” — and how it could
be applied equitably among programs and producers.
Also, the expansion of domestic farm support has caused some critics here and
abroad to question the sincerity of the U.S. proposal, in the current global trade
negotiations, to further reduce all countries’ trade-distorting farm policies. Defenders
counter that the United States has remained within its URAA limits and is not likely
to exceed them in the future, and, furthermore, that so long as the European Union
and others heavily subsidize their farmers, the United States should not unilaterally
cut back on aid. (See CRS Report RL30612, Farm Support Programs and World
Trade Commitments.)
In renewing the food aid and export assistance programs, the 107th Congress
again was confronted with questions of policy direction and funding. Levels of
spending and volumes of product subsidized under EEP and DEIP are subject to
limitations under the multilateral 1994 Uruguay Round Agreement on Agriculture
(URAA). In practice, EEP has been used little in recent years; DEIP has been used
to the limits of the URAA. Market promotion programs like MAP, the food aid
programs, and export credits (GSM) are not considered to be trade distorting under
the current URAA, and therefore are not subject to spending disciplines. However,
foreign trading partners argue that the United States has utilized food aid and export
credits as ways to dispose of heavily subsidized farm surpluses, thereby distorting
trade — and want such programs to be disciplined in the new round of negotiations.
(The United States says it is willing to discuss export credits during the negotiations.)
Some have questioned whether export subsidy and promotion activities actually
increase overseas sales or simply displace commercial sales. Even if sales increase,
do they translate into higher farm prices and incomes — or might direct farm
subsidies be more cost-effective? Some critics claim that these programs benefit
primarily large food and export companies (who can afford to pay for promotion
activities themselves) or foreign buyers more than U.S. producers. Defenders cite
studies claiming positive outcomes from such spending. Similar questions arise with
regard to foreign food aid.
Projected Costs
The Congressional Budget Office (CBO) in March 2002 projected that under the
trade title of the new farm bill, mandatory spending over six years (FY2002-2007)
would increase by $532 million (new budget authority) over the baseline of $1.572
billion, for total mandatory spending of $2.104 billion. Actual spending is expected
to be higher, because some programs are so-called discretionary programs, meaning
that their funding is determined through annual appropriations. Most notably, P.L.
Comparison of Provisions: Prior Law, House and Senate Bills, New Law
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
port Assistance Programs
rogram (MAP)
MAP helps exporters (mainlya. Extends current law, except ita. Extends current law, except thata. Extends current law through
trade associations,increases mandatory funding to notin addition to any funds specificallyFY2007 at the following mandatory
more than $200 million yearly in CCCappropriated for the program,funding levels: $100 million in
agricultural cooperativesfunds through FY2011. [§301]mandatory funding of not more thanFY2002; $110 for FY2003; $125
all businesses) finance$100 million in FY2002; $120million for FY2004; $140 million for
otional activities overseasmillion in FY2003; $140 million inFY2005; $200 million for FY2006;
for more consumer-oriented,FY2004; $180 million in FY2005;$200 million for FY2007. [§3103]
her value products). Requiredin $200 million in FY2006 (in CCC
iki/CRS-RL31581andatory) funding of not more thanillion yearly in CCC fundsfunds or equivalent CCCcommodities). [§322]
g/wh FY2002. [Agricultural Trade
s.or
leak
://wikiFAIR) Act of 1996]
http
No provision.b. No provision.b. Priority, for funds in excess ofb. In providing funds in excess of
$90 million in any year, for eligiblethe FY2001 level (i.e., $90 million)
organizations that have notSecretary shall, for proposals from
participated in the past, and fornew program participants and for
programs in emerging markets.emerging markets, give
[Section 322]consideration equal to that given to
current participants. [§3103]
ision.c. No provision.c. New U.S. Quality Exportc. No provision.
Initiative (using appropriated MAP,
FMDP funds), to promote U.S.
products with a new “U.S. Quality”
seal overseas. [Section 322]
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
oreign Market Development
rogram (FMDP)
FMDP helps U.S. exportersa. Extends current law, except setsa. Extends current law, except setsa. Extends current law, except sets
ainly through commodity basedmandatory funding at $37 million inmandatory funding of $37.5 millionmandatory funding at $34.5 million
CCC funds yearly through FY2011.for FY2002; $40 million forannually from FY2002 to FY2007.
otional activities overseas. [§305]FY2003; and $42.5 million for[§3105]
authority (at such sums asFY2004 and subsequent years (in
) through FY2002; currentCCC funds or equivalent CCC
is $28 million per year.commodities). [§324]
gricultural Trade Act of 1978 as
FMDP has focused on promotingb. New emphasis on exporting value-b. Establishes a priority, for fundsb. In providing funds in excess of
iki/CRS-RL31581ainly bulk and partially processedadded products to emerging markets. above $35 million in any year, forthe FY2001 level (i.e., $28 million)
g/wmodities, targeted to foreignRequires annual report to Congress oneligible organizations that have notthe Secretary shall, for proposals
s.orporters/processors — althoughprogram. [§305]participated in the past, and forfrom new program participants and
leakram promotesprograms in emerging markets.for emerging markets, give
://wikilue-added products.[§324]consideration equal to that given tocurrent participants. Calls for “a
httpcontinued significant emphasis” on
value-added products to emerging
markets. Requires annual report to
Congress. [§3105]
port Enhancement Program
)
EEP authorizes cash payments ora. Current law extended througha. Current law extended througha. Current law extended through
modities as bonus subsidiesFY2011, at current level of up to $478FY2006, at current level of up toFY2007 at current level of up to
riculturalmillion per year. [§304] $478 million per year. [§323]$478 million per year. [§3104]
h not statutorily
e, mainly wheat and other
ains have used EEP) at more
petitive prices in targeted foreign
arkets. Authority through FY2002,
th CCC funding at up to $478
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
illion per year. [Agricultural Trade
EEP may be used to help mitigate b. No expanded definition. b. Expands the definition of unfairb. Expands definition of unfair trade
trade practices to include (1) pricingpractices to include (1) an exporting
foreignpractices by an exporting stateSTE that prices its commodities
that “violates, or istrading enterprise (STE) that “areinconsistently with sound
isions of,not consistent with soundcommercial practice; (2) provision
commercial practices conducted inof subsidies that decrease U.S.
tradethe ordinary course of trade,” or (2)export market opportunities or
reement...” or “is unjustifiable,changing U.S. “export terms ofunfairly distort market opportunities
inatory andtrade through a deliberate change into detriment of U.S. exporters; (3)
the dollar exchange rate of aunfair technical barriers to trade
iki/CRS-RL31581merce.” [Agricultural Trade Actcompeting exporter.” [§323]including commercial requirements
g/wadversely affecting new technology
s.orlike biotechnology and unjustified
leaksanitary or phytosanitary restrictions;
://wiki(4) unfair implementation of tariffrate quota rules; (5) failure to meet
httptrade agreement obligations with the
United States. [§3104]
port Incentive Program
EIP)
P authorizes cash or CCCExtends current law through 2011.Extends current law throughExtends current law through 2007.
modities as bonus subsidies to[Title I-C, §143]FY2006. [Title I-C, §133][Title I- E, §1503]
ore competitive prices
eted foreign markets.
through FY2002, with CCC
to provide commodities to
aximum levels consistent with
ations as a member of the
rade Organization. [Food
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
port Credit Guarantees
SM)a. Extends current law througha. Extends current law througha. Extends current law through
Authority through FY2002 withFY2011. [§306]FY2006. Requires a report toFY2007. Instead of report, requires
unding, where USDACongress within 1 year on the statusregular consultations with Congress
arantees commercial financing ofof multilateral negotiationson the status of multilateral
ofregarding agricultural export creditnegotiations regarding agricultural
ricultural exports. Financingprograms. [§321]export credit programs. [§3102]
term credit
102) for up to 3 years; and for
-term credit (GSM-103), for 3-10
rams are used in
ay not be available without the CCC
arantees. (At least 35% of total
iki/CRS-RL31581uarantees must be to promote
g/wh-value agricultural
s.or[Agricultural Trade Act of
leak
://wiki
http Supplier Credits feature permitsb. No change in supplier credit term.b. Permits guarantees of supplierb. Permits supplier credit guarantees
o issue credit guarantees forcredits for up to 12 months. [§321]for up to 360 days, subject to
ment of credit made availableappropriations for any loan terms
a U.S. exporter to a foreign buyerlonger than the current 180 days.
s. [Agricultural[§3102]
rogram
Requires CCC through FY2002 toa. Extends current law througha. Extends current law througha. Extends current law through
earFY2011. [§308]FY2006. [§332]FY2007. [§3203]
uarantees,
erging markets
erly emerging democracies).
ood, Agriculture, Conservation and
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
b. Increases this funding to $13b. No increase.b. No increase.
Requires CCC to provide $10million annually. [§308]
illion annually through FY2002 to
isors to emerging
rkets. Food, Agriculture,
Food Aid Programs
.L. 480 (Food for Peace)
eneral
Seeks to combat hunger anda. Extends P.L. 480 (i.e., authority toa. Extends P.L. 480 througha. Extends P.L. 480 authority
iki/CRS-RL31581e development overseas.enter into new agreements) throughFY2006. [§311]through FY2007. [§3012]
g/w makes export credit availableFY2011. [§307]
s.ors (e.g. low
leakears); Title
es donations for emergency
://wikiemerge ncy
httpanitarian assistance. Authority to
reements
ainly through
h
[§408 of P.L. 480
gricultural Trade Development and
as amended
Congress has stated five specificb. Adds “conflict prevention” as ab. Adds “conflict prevention” as ab. Adds “prevent conflicts” as a new
. combatnew purpose. [§307]new purpose. [§301]purpose. [§3001]
er, expand international trade,
[§2 of P.L. 480]
e groupc. Extends Food Aid Consultativec. Extends Food Aid Consultativec. Extends Food Aid Consultative
of specified federalGroup through FY2006; clarifies whatGroup through FY2006. [§305]Group through FY2007. [§3005]
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
es of privatethe group is to review to include
luntary organizations (PVOs),policies and guidelines. [§307]
n non-government
anizations, and agriculture
roups, is authorized
h FY2002. [§205 of P.L. 480]
.L.480 Assistance Levels and
nding
Minimum Title II assistance isa. Increases the minimum level ofa. Increases the minimum level of
illion metric tons (MMT) ofa. Increases the minimum level ofcommodities to 2.1 MMT incommodities to 2.5MMT annually
ricultural commodities per yearcommodities to 2.25MMT per yearFY2002, 2.2MMT in FY2003, 2.3beginning in FY2002. Changes the
h FY2002; AID Administratorthrough FY2011. [§307]MMT in FY2004, 2.4 MMT insub-minimum requirement for non-
e authority to waiveFY2005, and 2.5 MMT in FY2006.emergency programs to 1.875 MMT
iki/CRS-RL31581inimum. Subminimum requirement[§304]annually. [§3004]
g/wemergency programs is
s.or. [§204 of P.L. 480]
leak
://wiki Limits CCC Title II costs to $1early; some Presidentialb. Removes limit on CCC Title IIb. Doubles limit on CCC Title IIcosts to $2 billion per year. [§306]b. Removes limit on CCC Title IIcosts. [§3006]
httpiver authority. [§206 of P.L. 480] costs. [§307]
ides that at least $10 millionc. Replaces dollar designations byc. Replaces dollar designations by
ore than $28 million of Titlec. Replaces dollar designations bysetting support for eligiblesetting support for eligible
per year shall be use tosetting support for eligibleorganizations at not less than 5%organizations at not less than 5% and
ible organizations (PVOs,organizations at not less than 5% andand not more than 10% of Title IInot more than 10% of Title II
es, organizations like thenot more then 10% of Title II funding.funding. [§302]funding. [§3002]
ram, etc.) in[§307]
Title II activities. [§202 of
.L. 480 Operation &
ministration
Permits PVOs to sell Title IIa. Authorizes the use of U.S. dollarsa. Similar to House [§303, §310, &a. Monetization language similar to
modities in the recipient countryand other currencies for monetization§325]. Also, a food aid commodityHouse and Senate. Adopts Senate’s
country) to financein P.L. 480 — and also Food forsale is to be “at a reasonable market“reasonable market price” language.
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
modity transportation, storage,Progress and Section 416 programs;price in the economy” where theContains language encouraging
elopment projectspermits PVOs to submit multi-countrycommodity is to be sold. [§310]multi-country proposals, from all
onetization”). [§203 of P.L. 480] proposals; and permits food aideligible organizations, not just
monetization in more than one countryPVOs. [§3003; §3009; §3106]
in the region. [§302; §303; §307]
The AID Administrator has 45b. Increases the time for decisionsb. Increases, to 120 days, time theb. Increases, to 120 days, time the
s to decide on Title II proposalsfrom 45 to 120 days. [§307]Administrator has to decide on TitleAdministrator has to decide on Title
itted by eligible organizations orII proposals. Contains otherII proposals; clarifies that the period
issions. [§207 of P.L.timelines for finalizing programbegins after submission of the
agreements and announcingproposal to AID Administrator, who
programs each year. Permitsis encouraged to make decisions on
USDA to approve an agreement thatproposals within that period. Deletes
iki/CRS-RL31581provides for direct delivery ofSenate provision on direct delivery
g/wcommodities to foreign milling orof commodities. [§3007]
s.orprocessing facilities that are more
leakthan 50% U.S.-owned, with cash
://wikiproceeds transferred to eligibleorganizations for carrying out
httpprojects. [§307]
uthorizes $2 million in each ofc. Extends authorization throughc. Extends authorization throughc. Extends authorization through
modities in the U.S. and
n countries. [§407 of P.L. 480]
Authorizes appropriations of up tod. Extends authorization throughd. Extends authorization throughd. Extends authorization through
illion annually through FY2002FY2011. [§307]FY2006. [§308]FY2007. [§3008]
rants to PVOs and U.S. non-
piling shelf-stable,
packaged foods. [§208 of P.L.
equires USDA (if feasible) toe. No provision.e. Extends the authorization as ane. Adopts the Senate provision
icronutrientongoing program through FY2006.through FY2007 with technical
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
ram; authority[§313]corrections; includes language aimed
[§415 of P.L.at improving and insuring quality of
fortified food aid commodities.
[§3013]
ision.f. No provision.f. Permits President to establish,f. As part of required report to
under Title II, a “pilot emergencyCongress within 120 days on use of
relief program to provide live lambperishable commodities, Agriculture
to Afghanistan.” [§309.]Secretary must report on feasibility
of transporting lambs and other live
animals in food aid programs.
[§3207]
iki/CRS-RL31581ertified Institutional Partners
g/wision in current law. No provision.Requires AID or USDA, asFor Title II Food for Peace, AID
s.or PVOs and cooperativesapplicable, to establish a processAdministrator must establish, within
leaknerally must undergo the sameenabling PVOs and cooperatives1 year, streamlined guidelines and
that can demonstrate their capacityapplication procedures and, by
://wikiarious food aid programs eachto carry out the programs (underFY2004, incorporate, to the
httpe they apply.P.L. 480; §416; or Food formaximum extent practicable, the
Progress) to qualify as “certifiedchanges. Requires consultation with
institutional partners,” which wouldstakeholders and Congress, and a
entitle them to use streamlinedreport to Congress within 270 days
application procedures, includingon improvements. [§3002]. For
expedited review and approval toFood for Progress and Section 416,
receive commodities for use inrequires, respectively, the President
more than one country. [§302;and Secretary of Agriculture, within
§325; §334]270 days, to review and make any
needed changes in rules and
procedures aimed at streamlining
application procedures, including
consideration of pre-screening
organizations and proposals; requires
consultations with Congress.
[§3106; §3201].
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
armer-to-Farmer Program
Extends funding authority at currentExtends funding authority throughExtends funding authority through
ide0.4% through FY2011. [§307]FY2006, and increases minimumFY2007, and increases minimum
S. farmers’ and other agriculturalfunding to 0.5% of P.L. 480 funds.funding to 0.5% of P.L. 480 funds.
[§314]Farmers for Africa and Caribbean
eloping, middle income andBasin Program is incorporated into
erging market countries. [Title V ofthis title (see No. 10, page 14, for
details). [§3014]
[Note: renames program “John
Ogonowski Farmer-to-Farmer
Pr ogr a m.”]
Section 416) Surplus
ions Permanent law authorizesMaintains current law, and requiresMaintains current law, and permitsAdopts House language regarding
iki/CRS-RL31581e use of CCC-owned surplusUSDA to publish in the FederalUSDA to approve an agreement thatOctober 31 and December 31
g/wmodities for overseas donations. Register, by each October 31, anprovides for direct delivery ofdeadlines. Omits Senate provision
s.orb) of the Agricultural Act ofestimate of Section 416 commoditiescommodities to foreign milling oron direct delivery of commodities.
leakto be made available for the fiscalprocessing facilities that are more[§3201]
year. Also encourages Section 416than 50% U.S.-owned, with cash
://wikiprogram agreements to be finalized byproceeds transferred to eligible
httpDecember 31. [§303] organizations for carrying out
projects. [§334]
merson Humanitarian
ust
es, through FY2002, a trustExtends the Trust through FY2011.Extends the Trust through FY2006.Extends the Trust through FY2007.
not more than 4MMT of[§309][§331][§3202]
hum, or any
bination as a reserve solely to
eet emergency humanitarian food
[Bill Emerson Humanitarian
gricultural Act of
Food Security
mmodity Reserve)]
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
Food for Progress (FFP)
Provides commodities to supporta. Reauthorizes FFP through FY2011.a. Reauthorizes FFP under a newa. Reauthorizes FFP through
e committed to[§302] Title VIII of the 1978 AgriculturalFY2007 under existing law (i.e., not
Trade Act called “Food for Progressa new Title VII). Encourages
ricultural economies; commoditiesand Education Programs,”President to finalize agreements
ay be provided under Title I of P.L.authorized through FY2006. before beginning of relevant fiscal
Permits USDA to provideyear. Requires him to submit to
ng CCC funds. Authority expiresagricultural commodities to supportCongress by each December 1 a list
ber 31, 2002. [§1110 of theintroduction or expansion of freeof programs, countries, eligible
trade enterprises in recipientcommodities, and transportation and
country economies, and to provideadministrative costs for the year.
food or nutrition assistance. [§325]Defines eligible commodities.
Incorporates a definition section into
the statute; establishes program
iki/CRS-RL31581purposes and quality assurance
g/wrequirements; and requires President
s.orto ensure that eligible organizations
leakare optimizing use of donated
://wikicommodities. [§3106]
http Annual limits on CCC funds forb. Increases annual limits onb. Permits up to $55 million perb. Increases annual limits on
inistrative costs and foradministrative costs to $15 million,year to be used for transportation,administrative costs to $15 million,
modity transportation costs areand on transportation costs to $40administrative, processing, andand on transportation costs to $40
illion and $30 million,million. [§302]related costs. [§325]million. [§3106]
ely.
it on commodityc. Increases annual limit onc. Sets an annual minimum tonnagec. Annual minimum tonnage
.commodities to 1 million MT. Also,requirement for FFP of 400,000MTrequirement: “not less than
excludes from the tonnage limit thosethrough FY2006, using the CCC. 400,000MT may be provided”
commodities furnished on a grant basisIn addition, authorizes thethrough CCC. Excludes, from the
or on credit terms under Title I. [§302]appropriation of such sums as maycurrent annual tonnage limits, those
be necessary to carry out FFP, pluscommodities furnished on a grant
permits the use of P.L. 480 Title Ibasis or on credit terms under P.L.
funds. All commodities and related480, Title I. [§3106]
expenses must be in addition to any
other P.L. 480 assistance. [§325]
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
ood for
ion
and child nutritionAuthorizes George McGovern-RobertRequires establishment of anPermits President to establish the
ects have been operated withinDole International Food for EducationInternational Food for EducationMcGovern-Dole International Food
O and United Nationsand Child Nutrition Program wherebyand Nutrition Program whereby thefor Education and Child Nutrition
ram (WFP) food aidthe President is permitted to direct theSecretary of Agriculture mayProgram, with mandatory funding
linton Administrationprovision of U.S. agriculturalprovide commodities and technicalfrom CCC of $100 million in
lobal food forcommodities and financial andand nutrition assistance forFY2003 to continue existing pilot
e whereby USDAtechnical assistance for foreignprograms that improve foodprojects; and subject to
mitted to provide up to $300preschool and school feeding programssecurity and enhance educationalappropriations in FY2004-2007.
illion (under Section 416 authority)to reduce hunger and improve literacyopportunities for preschool andEligible costs include commodity
modities and transportation(particularly among girls), andprimary school children in recipientacquisition, processing,
schoolnutrition programs for pregnant andcountries. CCC authority and fundstransportation, handling (including
ects and relatednursing women and young children. of not more than $150 million shallspecified in-country costs if
iki/CRS-RL31581ities in developing countries. Authorizes the appropriation of suchbe used in each of FY2002-2005. President makes certain
g/wed projects conducted throughsums as may be necessary each yearEligible organizations includedeterminations). Eligible
s.orP, PVOs, and eligible foreignthrough FY2011. Gives PresidentPVOs, cooperatives,organizations: cooperatives, PVO’s,
leakvernments using USDAauthority to designate the federalnongovernmental organizations,intergovernmental organizations,
://wiki authorities. [Generalagency to administer program; defineseligible recipients to include PVOs,and foreign countries, which aresubject to a “graduationgovernments of developing countriesand their agencies, and other
httpcooperatives, intergovernmentalrequirement” to provide fororganizations. Includes Senate
organizations, governments and theircontinuation of program after endgraduation requirement; program
agencies, and other organizations.of funding. [§325]funding priorities and application
[§312]guidelines; assurances that recipient
country production and marketing
are not disrupted. [§3107]
armers for Africa &
asin
ision in current law.Creates a Farmers for Africa andNo provision.House provision is incorporated into
Caribbean Basin Program offeringthe John Ogonowski Farmer-to-
grants to eligible organizations forFarmer Program, with authorization
bilateral exchange programs utilizingfor appropriations of up to $10
African-American and other U.S.million annually through FY2007.
farmers and agricultural specialists.Up to 5% of appropriation can be
Authorizes $10 million in annualused for administrative expenses.
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
appropriations annually through[§3014]
FY2011. [§311]
oreign
ision.No provision.Sense of Senate that U.S. foreignSense of Congress that U.S. foreign
aid should play increased role inaid should play increased role in
addressing conditions breedingaddressing conditions breeding
global terrorism. [§338]global terrorism. [§3209]
rovisions
uay RoundIf the Secretary of AgricultureSame as House bill, but withIf Secretary determines that
iki/CRS-RL31581reement on Agriculture (URAA)nited States agreed to limit thedetermines that total spending for suchcommodity support will exceed theadditional language requiringannual notifications to Congress onexpenditures will exceed URAAallowable levels for any applicable
g/wlue of trade-distorting U.S.limits in the URAA, the Secretary maycurrent and following marketingreporting period, Secretary shall, to
s.orestic farm supports to $19.1make adjustments in the programs toyear estimates of support to bethe maximum extent practicable,
leak
ear. However, U.S. lawreduce spending to (but not below)reported to the World Trademake adjustments in such
://wikiit onsuch limits. [§181] Organization, and effectivelyexpenditures to ensure that they do
httprequiring Congress to considernot exceed allowable levels. Prior to
amending (within 18 months) anydoing so, Congress must be notified
programs that might cause theof the adjustment types and levels.
URAA limits to be breached. [Title I, §1601]
[§164]
echnical Assistance for
rriers to Trade
reements disciplineRequires USDA to establish aA section within the BiotechnologyRequires USDA to establish, outside
and“Technical Assistance for Specialityand Agricultural Trade Programof the Biotechnology and
tosanitary (SPS) and otherCrops” program, providing direct(see below) directs USDA to assistAgricultural Trade Program (see
assistance through public and privateU.S. exporters harmed bybelow), a “Technical Assistance for
ers,projects and technical assistance, to“unwarranted and arbitrary”Specialty Crops” program providing
ricultural and natural resources. help overcome the “unique barriers”barriers to trade due to marketing ofdirect assistance through public and
DA agencies, the U.S. Trade— such as SPS and related barriers —biotechnology products, foodprivate projects and technical
e, and other federalinhibiting exports of U.S. specialtysafety, disease, or other SPSassistance to remove, resolve, or
e establishedcrops (e.g., fruits, vegetables). concerns; authorizes appropriationsmitigate SPS and related barriers to
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
echanisms for identifying suchRequires use of $3 million annually inof $1 million annually throughexports of U.S. specialty crops.
pting to resolveCCC funds through FY2011. [§310]FY2006. [§333]Requires use of $2 million annually
er them.in CCC resources through FY2007.
[§3205]
iotechnology and Agricultural
rogram
ision.No provision.Requires USDA to establish aEstablishes a Biotechnology and
Biotechnology and AgriculturalAgricultural Trade Program, using
Trade Program to address thetechnical assistance and public and
market access, regulatory, andprivate sector project grants, to
marketing issues related to exportsremove, resolve, or mitigate
of U.S. agricultural biotechnologysignificant regulatory nontariff
products. Requires CCC to makebarriers to U.S. exports involving:
iki/CRS-RL31581available $15 million for theagricultural commodities produced
g/wprogram annually through FY2006.through biotechnology; food safety;
s.or[§333]disease; or other SPS concerns.
leakAuthorizes appropriations of $6
million annually through FY2007.
://wiki [ §3204]
http
otiations are underNo provision.Sense of Congress provision alsoContains an explicit description of
y to reform further the terms ofcontains an explicit description ofagricultural trade negotiating
ricultural trade in place under theagricultural trade negotiatingobjectives, but as a Sense of Senate
uay Round Agreement onobjectives. [§336]rather than Sense of Congress.
riculture. Present trade law[§3210]
ectives and consultation
ents for agriculture that U.S.
otiators are supposed to follow.
rade Act of 2002, Title XXI]
xporter Assistance Initiative
arious federal agencies routinelyNo provision.Authorizes appropriations ($1Requires Secretary to maintain a
ide market intelligence, trademillion for each of FY2002-2004website with information to assist
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
ation aimed atand $500,000 for each of FY2005-U.S. agricultural exporters. No
U.S. agricultural exporters2006) for an “Exporter Assistanceappropriations authorized. [§3101]
Initiative” to create an Internet[Note: extensive conference report
erseas markets. For example, bothwebsite providing a single source oflanguage directs Secretary to
ic Research Serviceinformation from all federalimprove FAS web-based
oreign Agricultural Serviceagencies to help U.S. agriculturalinformation.]
aintain written and web-basedexporters. [§326]
much of this information.
riculture appropriationsNo provision.Lifts restrictions on privateNo provision.
codified the lifting of unilateralfinancing of agricultural sales to
mercial sales ofCuba [§335]
iki/CRS-RL31581ricultural commodities,
g/wedicine, and medical products to
s.ora, North Korea, and Sudan;
leak to apply to
ore restrictive way by
://wiki all financing of such sales,
httpen with private credit sources.
ent, Food and Drug
]
udies and Reports
Services provided by USDA’sa. Requires USDA to study and reporta. No provision.a. Requires study, but only of fees
reign Agricultural Service (FAS)to Congress within 1 year on thefor services beyond those already
enerally taxpayer-funded.feasibility of a program charging feesprovided by FAS as part of an
to pay for providing commercialoverall market development strategy
services abroad on matters under FAS.for a particular country or region.
[§313] [§3208]
Secretary of Agriculture isb. Requires USDA to report tob. No provision.b. Requires USDA to consult with
elop a long-termCongress within 1 year on nationalrelevant congressional committees
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
ricultural trade strategy every 3export strategy. [§314]on Global Market Strategy within
ubsequent farm bills have180 days of enactment and every 2
ided more explicit guidance onyears after that. [§3206]
y goals and procedures.
gricultural Trade Act of 1978;
ision.c. Requires USDA annual report toc. No provision.c. No provision.
Congress on U.S. beef and pork
imports each calendar year. [§946]
No provision.d. No provision.d. Requires USDA to report tod. Requires USDA to report to
iki/CRS-RL31581Congress within 120 days onCongress within 120 days on
g/wtransportation, infrastructure, andimplications of storage and
s.orfunding deficiencies that havetransportation capacity and funding
leaklimited the use of perishablefor use of perishable and semi-
://wikicommodities in food aid programs.[§337]perishable commodities in food aidprograms. [§3207]
http
Origin Labeling;
rading
Most imports, including manya. Requires retailers other thana. Requires retailers other thana. Requires retailers other than
s, must bear labelsrestaurants and other food servicerestaurants and other food servicerestaurants and other food service
ing the final purchaser of theirestablishments to inform consumers ofestablishments to inform consumersestablishments to inform consumers
of origin. However, certainthe country of origin of “perishableof the country of origin of groundof the country of origin of ground
freshagricultural commodities” (fresh orand muscle cuts of beef, lamb andand muscle cuts of beef, lamb, and
egetables, nuts, live and deadfresh frozen fruits and vegetables)pork, of wild and farm-raised fish,pork, of farm-raised and wild fish, of
als (e.g., meats), and fish, amongthrough labels, marks, or other in-storeof perishable agriculturalperishable agricultural commodities,
enerally are exempted. [§304information; specifies the daily finescommodities, and of peanuts,and of peanuts, through labels,
ended;for violations. [Title IX, §944]through labels, marks, or other in-marks, or other in-store information.
store information. Defines what isDefines what is meant by country of
meant by country of origin for eachorigin for each category (e.g., meats
of these categories; authorizes themust be from animals born, raised
Secretary to set up a record-keepingand slaughtered in the United
IOR LAW/POLICYHOUSE BILL (H.R. 2646)SENATE BILL (S. 1731NEW LAW (P.L. 107-171)
Covers 2002-2011 Amended) Covers 2002-2006Covers 2002-2007
system; authorizes but does notStates); includes language on
specify fines for violations. [Titleimplementation and enforcement.
X, §1001]Program is voluntary beginning
September 30, 2002, and mandatory
beginning September 30, 2004.
[Title X, § 10816]
USDA provides a fee-basedb. No provision.b. Prohibits imported carcasses,b. No provision.
ice to the industry that gradesmeats, or meat food products from
eats and meat products based onbearing a USDA quality grade
and affixes those gradeslabel. [Title X, §1002]
estic and
ported meats are eligible.
gricultural Marketing Act of 1946
iki/CRS-RL31581
g/w
s.or
leak
://wiki
http