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Public Law 480, Title I

Woman handing food to childThe Food for Peace Act (FPA) was formerly referred to as Public Law 480 or P.L. 480. FPA has three titles, and each title has a specific objective and provides assistance to countries at a particular level of economic development. Title I is administered by USDA, and Titles II and III are administered by USAID.

FPA, Title ITrade and Development Assistance, provides for government-to-government sales of U.S. agricultural commodities to developing countries on credit or grant terms. Agreements under the Title I credit program may provide for repayment terms of up to 30 years with a grace period of up to 5 years. The authority also allows for grant programs, which have outnumbered loans in recent years. Depending on the agreement, commodities provided under the program may be sold in the recipient country and the proceeds used to support agricultural, economic, or infrastructure development projects.

Since fiscal year 2006, new funding has not been requested because demand for food assistance using credit financing has fallen or grant programs have been a more appropriate tool.

FPA, Title IIEmergency and Private Assistance, provides for the donation of U.S. agricultural commodities to meet emergency and nonemergency food needs in other countries, including support for food security goals.

Agricultural commodities donated by the U.S. government to meet emergency needs are traditionally provided through the WFP or PVOs, though they may also be provided under government-to-government agreements. Nonemergency assistance may only be provided through PVOs, cooperatives, and intergovernmental organizations.  Title II is administered by USAID.

FPA, Title IIIFood for Development, provides for government-to-government grants to support long-term growth in the least developed countries. Donated commodities are sold in the recipient country, and the revenue generated is used to support economic development programs. In recent years, this title has been inactive.  

 

 

P.L. 480 Title I Resources


 

P.L. 480: A Brief Explanation of Title I
     An explanation of commodity purchase and transportation policies
Invitation for Bids (IFB's)
     No current invitations for bid.
P.L. 480 Food Aid Program Press Releases
Cartagena Protocol on Biosafety: Update for U.S. Food Aid Partners (April 2004)
Regulations
 
     Food for Peace Act (May 22, 2008)
     P.L. 480: Title I, Financing Regulations
     Regulations Governing the Financing of Commercial Sales of Agricultural Commodities
     SUMMARY and COMMENTS Published Oct. 10, 1997, in the Federal Register
     Amendment (final rule) regarding private entry participation in the PL 480, Title I
     program SUMMARY Published Nov. 5, 1998 in the Federal Register

 

Questions or comments can be directed to the Food Assistance Division at 202-720-4221
or via e-mail at PPDED@fas.usda.gov.

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