
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1736o]

 
                          TITLE 7--AGRICULTURE
 
        CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
 
           SUBCHAPTER IV--GENERAL AUTHORITIES AND REQUIREMENTS
 
Sec. 1736o. Food for progress


(a) Short title

    This section may be cited as the ``Food for Progress Act of 1985''.

(b) Agreements with developing countries and emerging democracies to 
        furnish commodities

    In order to use the food resources of the United States more 
effectively in support of developing countries, and countries that are 
emerging democracies, that have made commitments to introduce or expand 
free enterprise elements in their agricultural economies through changes 
in commodity pricing, marketing, 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 organizations, nonprofit agricultural organizations, 
cooperatives, intergovernmental organizations, or other private 
entities, to furnish commodities made available pursuant to subsections 
(e) and (f) of this section. Such agreements may provide for commodities 
to be furnished on a multiyear basis.

(c) ``Commodities'' defined

    As used in this section, the term ``commodities'' means agricultural 
commodities and the products thereof.

(d) Considerations for agreements

    In determining whether to enter into an agreement under this 
section, the President shall consider whether a potential recipient 
country is committed to carry out, or is carrying out, policies that 
promote economic freedom, private, domestic production of food 
commodities for domestic consumption, and the creation and expansion of 
efficient domestic markets for the purchase and sale of such 
commodities. 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 commodities to foster adequate private 
    sector incentives to individual farmers to produce food on a regular 
    basis for the country's domestic needs;
        (3) establishment of market-determined foreign exchange rates;
        (4) timely availability of production inputs (such as seed, 
    fertilizer, or pesticides) to farmers;
        (5) access to technologies appropriate to the level of 
    agricultural development in the country; and
        (6) construction of facilities and distribution systems 
    necessary to handle perishable products.

(e) Availability of commodities; financing sale and exportation of 
        commodities; payment of costs and charges

    (1) The Commodity Credit Corporation shall make available to the 
President such commodities determined to be available under section 401 
of the Agricultural Trade Development and Assistance Act of 1954 [7 
U.S.C. 1731] as the President may request for purposes of furnishing 
commodities under this section.
    (2) Notwithstanding any other provision of law, the Commodity Credit 
Corporation may use funds appropriated to carry out title I of the 
Agricultural Trade Development and Assistance Act of 1954 [7 U.S.C. 1701 
et seq.] in carrying out this section with respect to commodities made 
available under that Act [7 U.S.C. 1691].
    (3) The Commodity Credit Corporation may finance the sale and 
exportation of commodities, made available under the Agricultural Trade 
Development and Assistance Act of 1954 [7 U.S.C. 1691 et seq.], which 
are furnished under this section. Payment for commodities made available 
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 commodities made available under the Agricultural 
Trade Development and Assistance Act of 1954 for purposes of this 
section, section 406 of that Act [7 U.S.C. 1736] shall apply to 
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 commodities furnished under this section.

(f) Provision to developing countries on grant basis; purchase of 
        commodities by Commodity Credit Corporation; funds for 
        implementation; cost of commodities and expenses

    (1) The Commodity Credit Corporation may provide for--
        (A) grants, or
        (B) sales on credit terms,

of 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 Commodity 
Credit Corporation may purchase commodities for use under this section 
if--
        (A) the Commodity Credit Corporation does not hold stocks of 
    such commodities; or
        (B) Commodity Credit Corporation stocks are insufficient to 
    satisfy commitments made in agreements entered into under this 
    section and such commodities are needed to fulfill such commitments.

    (3) No funds of the Commodity Credit Corporation in excess of 
$30,000,000 (or, in the case of fiscal year 1999, $35,000,000) 
(exclusive of the cost of commodities) may be used for each of fiscal 
years 1996 through 2002 to carry out this section with respect to 
commodities made available under section 1431(b) of this title unless 
authorized in advance in appropriation Acts.
    (4) The cost of 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 commodities, shall be in 
addition to the level of assistance programmed under the Agricultural 
Trade Development and Assistance Act of 1954 [7 U.S.C. 1691 et seq.] and 
may not be considered expenditures for international affairs and 
finance.

(g) Maximum amount of metric tons of commodities to be furnished

    Not more than 500,000 metric tons of commodities may be furnished 
under this section in each of the fiscal years 1986 through 2002.

(h) Prohibition on resale of transshipment of commodities

    An agreement entered into under this section shall prohibit the 
resale or transshipment of the commodities provided under the agreement 
to other countries.

(i) Agreements not to displace other sales of United States commodities

    In entering into agreements under this section, the President shall 
take reasonable steps to avoid displacement of any sales of United 
States commodities that would otherwise be made to such countries.

(j) Agreements for distribution or sale on multiyear basis

    In carrying out this section, the President may, on request and 
subject to the availability of commodities, approve agreements that 
provide for commodities to be made available for distribution or sale by 
the recipient on a multiyear basis if the agreements otherwise meet the 
requirements of this section.

(k) Effective and termination dates

    This section shall be effective during the period beginning October 
1, 1985, and ending December 31, 2002.

(l) Additional assistance in administration of food assistance programs

    (1) To enhance the development of private sector agriculture in 
countries receiving assistance under this section the President may, in 
each of the fiscal years 1996 through 2002, use in addition to any 
amounts or commodities otherwise made available under this section for 
such activities, not to exceed $10,000,000 (or, in the case of fiscal 
year 1999, $12,000,000) of Commodity Credit Corporation funds (or 
commodities of an equal value owned by the Corporation), to provide 
assistance in the administration, sale, and monitoring of food 
assistance programs, and to provide technical assistance for 
monetization programs, to strengthen private sector agriculture in 
recipient countries.
    (2) To carry out this subsection, the President may provide 
agricultural commodities under agreements entered into under this 
section in a manner 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, marketing and 
distribution of such commodities.
    (3) The President may use the assistance provided under this 
subsection and local currencies derived from the sale of commodities 
under paragraph (2) to design, monitor, and administer activities 
undertaken with such assistance, for the purpose of strengthening or 
creating the capacity of recipient country private enterprises to 
undertake commercial transactions, with the overall goal of increasing 
potential markets for United States agricultural commodities.

(m) Agreements for sale of commodities

    In carrying out this section, the President shall approve, as 
determined appropriate by the President, agreements with agricultural 
trade organizations, intergovernmental organizations, private voluntary 
organizations, and cooperatives that provide for--
        (1) the sale of commodities, including the marketing of these 
    commodities through the private sector; and
        (2) the use of the proceeds generated in the humanitarian and 
    development programs of such agricultural trade organizations, 
    intergovernmental organizations, private voluntary organizations, 
    and cooperatives.

(n) Private Voluntary Organizations to carry out section

    During fiscal year 1999, to the maximum extent practicable, the 
Secretary shall utilize Private Voluntary Organizations to carry out 
this section.

(o) ``Independent states of the former Soviet Union'' defined

    As used in this section, the term ``independent states of the former 
Soviet Union'' means the independent states of the former Soviet Union 
as defined in section 5602(8) of this title.

(Pub. L. 99-198, title XI, Sec. 1110, Dec. 23, 1985, 99 Stat. 1472; Pub. 
L. 100-418, title IV, Sec. 4303, Aug. 23, 1988, 102 Stat. 1397; Pub. L. 
101-624, title XV, Secs. 1516, 1572(1), Nov. 28, 1990, 104 Stat. 3663, 
3702; Pub. L. 102-237, title III, Sec. 335, Dec. 13, 1991, 105 Stat. 
1859; Pub. L. 102-511, title VII, Sec. 701, Oct. 24, 1992, 106 Stat. 
3348; Pub. L. 104-127, title II, Secs. 227, 265(b), Apr. 4, 1996, 110 
Stat. 962, 974; Pub. L. 105-277, div. A, Sec. 101(a) [title XI, 
Sec. 1125], Oct. 21, 1998, 112 Stat. 2681, 2681-45.)

                       References in Text

    The Agricultural Trade Development and Assistance Act of 1954, 
referred to in subsecs. (e) and (f)(5), is act July 10, 1954, ch. 469, 
68 Stat. 454, as amended, which is classified generally to this chapter 
(Sec. 1691 et seq.). Title I of the Act is classified to subchapter II 
(Sec. 1701 et seq.) of this chapter. For complete classification of this 
Act to the Code, see Short Title note set out under section 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 Agricultural Trade Development and Assistance Act of 
1954 which comprises this chapter.


                               Amendments

    1998--Subsec. (f)(3). Pub. L. 105-277, Sec. 101(a) [title XI, 
Sec. 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, Sec. 101(a) [title XI, 
Sec. 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, Sec. 101(a) [title XI, 
Sec. 1125(3), (4)], added subsec. (n) and redesignated former subsec. 
(n) as (o).
    1996--Subsec. (b). Pub. L. 104-127, Sec. 227(1), struck out ``(1)'' 
before ``In order to use'', inserted ``intergovernmental 
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 Soviet Union during 
fiscal year 1993.''
    Subsec. (e)(3). Pub. L. 104-127, Sec. 265(b), substituted ``section 
103'' for ``section 106''.
    Subsec. (e)(4). Pub. L. 104-127, Sec. 227(2), substituted ``section 
406'' for ``section 203''.
    Subsec. (f)(1)(B). Pub. L. 104-127, Sec. 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, Sec. 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 unless the 
President determines there are an insufficient number of eligible 
recipients.''
    Subsec. (g). Pub. L. 104-127, Sec. 227(4), substituted ``2002'' for 
``1995''.
    Subsec. (j). Pub. L. 104-127, Sec. 227(5), substituted ``may'' for 
``shall''.
    Subsec. (k). Pub. L. 104-127, Sec. 227(6), substituted ``2002'' for 
``1995''.
    Subsec. (l)(1). Pub. L. 104-127, Sec. 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 programs''.
    Subsec. (m). Pub. L. 104-127, Sec. 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 organizations, 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, intergovernmental organizations, 
private voluntary organizations, and cooperatives'' for ``private 
voluntary organizations and cooperatives''.
    1992--Subsec. (b). Pub. L. 102-511, Sec. 701(1), designated existing 
provisions as par. (1), inserted ``(including the 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, Sec. 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, Sec. 701(3), added subsecs. 
(m) and (n).
    1991--Subsec. (k). Pub. L. 102-237, Sec. 335(1), (3), redesignated 
subsec. (l) as (k) and struck out ``September 30,'' before ``December 
31''.
    Subsecs. (l), (m). Pub. L. 102-237, Sec. 335(2), (3), redesignated 
subsec. (m) as (l) and substituted ``this section'' for ``this Act'' 
wherever appearing.
    1990--Subsec. (b). Pub. L. 101-624, Sec. 1516(1), substituted 
``developing countries, and countries that are emerging democracies, 
that'' for ``countries that'', and ``the governments of such countries, 
or with private voluntary organizations, nonprofit agricultural 
organizations, or cooperatives,'' for ``developing countries''.
    Subsec. (d). Pub. L. 101-624, Sec. 1516(2), struck out ``with 
countries'' before ``under this section'' in introductory provisions.
    Subsec. (e)(3). Pub. L. 101-624, Sec. 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, Sec. 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, Sec. 1516(5), struck out ``to 
developing countries'' before ``on a grant basis''.
    Subsec. (g). Pub. L. 101-624, Sec. 1516(6), substituted ``1995'' for 
``1990''.
    Subsec. (j). Pub. L. 101-624, Sec. 1572(1), redesignated subsec. (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 Committee on Agriculture, 
Nutrition, and Forestry of the Senate on the status of such agreement 
and the progress being made to implement private, free enterprise 
agricultural policies for long-term agricultural development in such 
country.''
    Pub. L. 101-624, Sec. 1516(7), struck out ``entered into with a 
country'' before ``under this section'', and inserted ``with respect to 
a country'' after ``effect''.
    Subsec. (k). Pub. L. 101-624, Sec. 1572(1)(B), redesignated subsec. 
(k) as (j).
    Pub. L. 101-624, Sec. 1516(8), substituted ``the recipient'' for 
``recipient countries''.
    Subsec. (l). Pub. L. 101-624, Sec. 1516(9), substituted ``December 
31, 1995'' for ``1990''.
    Subsec. (m). Pub. L. 101-624, Sec. 1516(10), added subsec. (m).
    1988--Subsecs. (k), (l). Pub. L. 100-418 added subsec. (k) and 
redesignated former subsec. (k) as (l).

                         Delegation of Functions

    Functions of President under this section delegated to Secretary of 
Agriculture, by section 4(g) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 
F.R. 8256, set out as a note under section 1691 of this title.

                        Executive Order No. 12583

    Ex. Ord. No. 12583, Feb. 19, 1987, 52 F.R. 5427, which related to 
the delegation of functions relating to entering into agreements with 
developing countries and waiving minimum tonnage requirements, was 
revoked by section 6 of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, 
set out as a note under section 1691 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1431, 1736a of this title; 
title 22 sections 5413, 5425.
