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107th Congress                                            Rept. 107-191
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 3

======================================================================



 
                       FARM SECURITY ACT OF 2001

                                _______
                                

 September 10, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Hyde, from the Committee on International Relations, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2646]

    The Committee on International Relations, to whom was 
referred the bill (H.R. 2646) to provide for the continuation 
of agricultural programs through fiscal year 2011, having 
considered the same, report favorably thereon with amendments 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     2
Purpose and Summary..............................................    14
Background and Need for the Legislation..........................    15
Hearings.........................................................    15
Committee Consideration..........................................    16
Votes of the Committee...........................................    16
Committee Oversight Findings.....................................    16
New Budget Authority and Tax Expenditures........................    17
Committee Cost Estimate..........................................    17
Performance Goals and Objectives.................................    17
Constitutional Authority Statement...............................    17
Section-by-Section Analysis......................................    17
New Advisory Committees..........................................    27
Congressional Accountability Act.................................    27
Federal Mandates.................................................    27
Changes in Existing Law Made by the Bill, as Reported............    27

                             The Amendment

    The amendments are as follows:

    Amend title III of the bill to read as follows (and conform 
the table of contents accordingly):

                            TITLE III--TRADE

SEC. 301. MARKET ACCESS PROGRAM.

    Section 211(c)(1) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5641(c)(1)) is amended--
            (1) by striking ``and not more'' and inserting 
        ``not more'';
            (2) by striking ``2002'' and inserting ``2001''; 
        and
            (3) by inserting ``and not more than $180,000,000 
        for each of fiscal years 2002 through 2007,'' after 
        ``2001,''.

SEC. 302. FOOD FOR PROGRESS.

    (a) In General.--Subsections (f)(3), (g), and (k) of 
section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) 
are each amended by striking ``2002'' and inserting ``2007''.
    (b) Increase in Funding.--Section 1110(l)(1) of the Food 
Security Act of 1985 (7 U.S.C. 1736o(l)(1)) is amended--
            (1) by striking ``fiscal years 1996 through 2002'' 
        and inserting ``fiscal years 2002 through 2007''; and
            (2) by striking ``$10,000,000 (or in the case of 
        fiscal year 1999, $12,000,000)'' and inserting 
        ``$15,000,000''.
    (c) Exclusion From Limitation.--Section 1110(e)(2) of the 
Food Security Act of 1985 (7 U.S.C. 1736o(e)(2)) is amended by 
inserting before the period ``, and subsection (g) does not 
apply to such commodities furnished on a grant basis or on 
credit terms under title I of the Agricultural Trade 
Development and Assistance Act of 1954''.
    (d) Transportation Costs.--Section 1110(f)(3) of the Food 
Security Act of 1985 (7 U.S.C. 1736o(f)(3)) is amended by 
striking ``$30,000,000'' and inserting ``$40,000,000''.
    (e) Amounts of Commodities.--Section 1110(g) of the Food 
Security Act of 1985 (7 U.S.C. 1736o(g)) is amended by striking 
``500,000'' and inserting ``1,000,000''.
    (f) Multiyear Basis.--Section 1110(j) of the Food Security 
Act of 1985 (7 U.S.C. 1736o(j)) is amended--
            (1) by striking ``may'' and inserting ``is 
        encouraged''; and
            (2) by inserting ``to'' before ``approve''.
    (g) Monetization.--Section 1110(l)(3) of the Food Security 
Act of 1985 (7 U.S.C. 1736o(l)(3)) is amended by striking 
``local currencies'' and inserting ``proceeds''.
    (h) New Provisions.--Section 1110 of the Food Security Act 
of 1985 (7 U.S.C. 1736o) is amended by adding at the end the 
following:
    ``(p) The Secretary is encouraged to finalize program 
agreements and resource requests for programs under this 
section before the beginning of the relevant fiscal year. By 
November 1 of the relevant fiscal year, the Secretary shall 
provide to the Committee on Agriculture and the Committee on 
International Relations of the House of Representatives, and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a list of approved programs, countries, and commodities, 
and the total amounts of funds approved for transportation and 
administrative costs, under this section.''.

SEC. 303. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY COUNTRIES.

    (a) Use of Currencies.--Section 416(b)(7)(D) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is amended--
            (1) in clauses (i) and (iii), by striking ``foreign 
        currency'' each place it appears;
            (2) in clause (ii)--
                    (A) by striking ``Foreign currencies'' and 
                inserting ``Proceeds''; and
                    (B) by striking ``foreign currency''; and
            (3) in clause (iv)--
                    (A) by striking ``Foreign currency 
                proceeds'' and inserting ``Proceeds'';
                    (B) by striking ``country of origin'' the 
                second place it appears and all that follows 
                through ``as necessary to expedite'' and 
                inserting ``country of origin as necessary to 
                expedite'';
                    (C) by striking ``; or'' and inserting a 
                period; and
                    (D) by striking subclause (II).
    (b) Implementation of Agreements.--Section 416(b)(8)(A) of 
the Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)(A)) is 
amended--
            (1) by inserting ``(i)'' after ``(A)''; and
            (2) by adding at the end the following new clauses:
    ``(ii) The Secretary shall publish in the Federal Register, 
not later than October 31 of each fiscal year, an estimate of 
the commodities that shall be available under this section for 
that fiscal year.
    ``(iii) The Secretary is encouraged to finalize program 
agreements under this section not later than December 31 of 
each fiscal year.''.

SEC. 304. EXPORT ENHANCEMENT PROGRAM.

    Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 
(7 U.S.C. 5651(e)(1)(G)) is amended by inserting ``and for each 
fiscal year thereafter through fiscal year 2007'' after 
``2002''.

SEC. 305. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) In General.--Section 703 of the Agricultural Trade Act 
of 1978 (7 U.S.C.5723) is amended--
            (1) by striking ``There are authorized'' and 
        inserting ``(a) Prior Years.--There are authorized'';
            (2) by striking ``2002'' and inserting ``2001''; 
        and
            (3) by adding at the end the following new 
        subsection:
    ``(b) Fiscal 2002 and Later.--For each of fiscal years 2002 
through 2007 there are authorized to be appropriated such sums 
as may be necessary to carry out this title, and, in addition 
to any sums so appropriated, the Secretary shall use 
$40,000,000 of the funds of, or an equal value of the 
commodities of, the Commodity Credit Corporation to carry out 
this title.''.
    (b) Report to Congress.--Section 702 of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5722) is amended by adding at the 
end the following:
    ``(c) Report to Congress.--
            ``(1) In general.--The Secretary shall report 
        annually to the appropriate congressional committees 
        the amount of funding provided, types of programs 
        funded, the value added products that have been 
        targeted, and the foreign markets for those products 
        that have been developed.
            ``(2) Definition.--In this subsection, the term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Agriculture and the 
                Committee on International Relations of the 
                House of Representatives; and
                    ``(B) the Committee on Agriculture, 
                Nutrition and Forestry and the Committee on 
                Foreign Relations of the Senate.''.

SEC. 306. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Reauthorization.--Section 211(b)(1) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking 
``2002'' and inserting ``2007''.
    (b) Processed and High Value Products.--Section 202(k)(1) 
of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is 
amended by striking ``, 2001, and 2002'' and inserting 
``through 2007''.
    (c) Report.--Section 211 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641) is amended by adding at the end the 
following:
    ``(d) Report on Agricultural Export Credit Programs.--
            ``(1) In general.--Not later than one year after 
        the date of the enactment of the Farm Security Act of 
        2001, and annually thereafter, the Secretary shall 
        prepare and submit to the designated congressional 
        committees a report on the status of multilateral 
        negotiations regarding agricultural export credit 
        programs at the World Trade Organization and the 
        Organization of Economic Cooperation and Development in 
        fulfillment of Article 10.2 of the Agreement on 
        Agriculture (as described in section 101(d)(2) of the 
        Uruguay Round Agreements Act). The report submitted 
        under this paragraph shall be submitted in unclassified 
        form, but may contain a classified annex.
            ``(2) Definition.--In this subsection, the term 
        `designated congressional committees' means the 
        Committee on Agriculture and the Committee on 
        International Relations of the House of Representatives 
        and the Committee on Agriculture, Nutrition and 
        Forestry of the Senate.''.

SEC. 307. FOOD FOR PEACE (PL 480).

    The Agricultural Trade Development and Assistance Act of 
1954 (7 U.S.C. 1691 et seq.) is amended--
            (1) in section 2 (7 U.S.C. 1691), by striking 
        paragraph (2) and inserting the following:
            ``(2) promote broad-based, equitable, and 
        sustainable development, including agricultural 
        development as well as conflict prevention;'';
            (2) in section 202(e)(1) (7 U.S.C. 1722(e)(1)), by 
        striking ``not less than $10,000,000, and not more than 
        $28,000,000'' and inserting ``not less than 5 percent 
        and not more than 10 percent of such funds'';
            (3) in section 203(a) (7 U.S.C. 1723(a)), by 
        striking ``the recipient country, or in a country'' and 
        inserting ``one or more recipient countries, or one or 
        more countries'';
            (4) in section 203(c) (7 U.S.C. 1723(c))--
                    (A) by striking ``foreign currency''; and
                    (B) by striking ``the recipient country, or 
                in a country'' and inserting ``one or more 
                recipient countries, or one or more 
                countries''; and
            (5) in section 203(d) (7 U.S.C. 1723(d))--
                    (A) by striking ``Foreign currencies'' and 
                inserting ``Proceeds'';
                    (B) in paragraph (2)--
                            (i) by striking ``income 
                        generating'' and inserting ``income-
                        generating''; and
                            (ii) by striking ``the recipient 
                        country or within a country'' and 
                        inserting ``one or more recipient 
                        countries, or one or more countries''; 
                        and
                    (C) in paragraph (3), by inserting a comma 
                after ``invested'' and ``used'';
            (6) in section 204(a)(1) (7 U.S.C. 1724(a)(1))--
                    (A) by striking ``1996 through 2002'' and 
                inserting ``2002 through 2007''; and
                    (B) by striking ``2,025,000'' and inserting 
                ``2,250,000'';
            (7) in section 205(f) (7 U.S.C. 1725(f)), by 
        striking ``2002'' and inserting ``2007'';
            (8) in section 207(a) (7 U.S.C. 1726a(a))--
                    (A) by redesignated paragraph (2) as 
                paragraph (3); and
                    (B) by striking paragraph (1) and inserting 
                the following:
            ``(1) Recipient countries.--A proposal to enter 
        into a non-emergency food assistance agreement under 
        this title shall identify the recipient country or 
        countries subject to the agreement.
            ``(2) Time for decision.--Not later than 120 days 
        after receipt by the Administrator of a proposal 
        submitted by an eligible organization under this title, 
        the Administrator shall make a decision concerning such 
        proposal.''; and
            (9) in section 403 (7 U.S.C. 1733), by inserting 
        after subsection (k) the following:
    ``(l) Sales Procedures.--Subsections (b) and (h) shall 
apply to sales of commodities to generate proceeds for titles 
II and III of this Act, section 416(b) of the Agricultural Act 
of 1949, and section 1110 of the Food and Security Act of 1985. 
Such sales transactions may be in United States dollars and 
other currencies.''.

SEC. 308. EMERGING MARKETS.

    Section 1542 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5622 note) is amended--
            (1) in subsections (a) and (d)(1)(A)(i), by 
        striking ``2002'' and inserting ``2007''; and
            (2) in subsection (d)(1)(H), by striking 
        ``$10,000,000 in any fiscal year'' and inserting 
        ``$15,000,000 for each of fiscal years 2002 through 
        2007''.

SEC. 309. BILL EMERSON HUMANITARIAN TRUST.

    Subsections (b)(2)(B)(i), (h)(1), and (h)(2) of section 302 
of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) 
are each amended by striking ``2002'' each place it appears and 
inserting ``2007''.

SEC. 310. FEE FOR SERVICES.

    (a) Authority To Charge Fee.--The Secretary of Agriculture 
may, subject to subsection (c), charge and retain a fee to 
cover the costs for providing persons (other than an agency of 
the United States Government) with commercial services 
performed abroad on matters within the authority of the 
Department of Agriculture administered through the Foreign 
Agricultural Service or any successor agency.
    (b) Treatment of Fees.--Fees collected under the authority 
of subsection (a) shall be deposited as an offsetting 
collection to any Department of Agriculture appropriation 
account to recover the cost of providing commercial services.
    (c) Compliance with Budget Act.--Fees collected under the 
authority of subsection (a) shall be collected and available to 
the Secretary of Agriculture only to such extent or in such 
amounts as are provided in advance in an appropriations Act 
and, after so provided in an appropriations Act, shall remain 
available until expended.

SEC. 311. MULTIYEAR AGRICULTURAL TRADE STRATEGY.

    (a) In General.--Not later than one year after the date of 
the enactment of this Act, the Secretary of Agriculture shall 
develop and implement a comprehensive long-term agricultural 
trade strategy that meets the goals described in subsection 
(b).
    (b) Goals.--The agricultural trade strategy described in 
subsection (a) shall ensure--
            (1) the elimination of export subsidies and other 
        measures that distort agricultural trade in order to 
        reduce levels of protection, foster market growth, and 
        promote global food security;
            (2) the efficient and coordinated use of United 
        States Government programs designed to promote the 
        export of United States agricultural commodities; and
            (3) the improvement in the commercial potential of 
        markets in both developed and developing countries for 
        United States agricultural commodities.
    (c) Policy Coordination.--In implementing the agricultural 
trade strategy described in subsection (a), the Secretary shall 
consult with--
            (1) the United States Trade Representative to 
        ensure that the strategy is coordinated with the 
        national trade policy agenda and the annual report of 
        the President on the trade agreements program;
            (2) the Secretary of Commerce to ensure that all 
        the programs and activities of the Foreign Agricultural 
        Service of the Department of Agriculture are 
        coordinated with the programs and activities of the 
        United States and Foreign Commercial Service of the 
        Department of Commerce; and
            (3) each of the designated representatives of 19 
        Federal agencies included on the Trade Promotion 
        Coordinating Committee to coordinate and report on 
        government-wide United States export promotion, 
        financing, and policy activities.
    (d) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the 
designated congressional committees a report on the development 
and implementation of the comprehensive long-term agricultural 
trade strategy under this section.
    (e) Definition.--In this section, the term ``designated 
congressional committees'' means the Committee on Agriculture 
and the Committee on International Relations of the House of 
Representatives and the Committee on Agriculture, Nutrition and 
Forestry of the Senate.

SEC. 312. GEORGE MCGOVERN-ROBERT DOLE INTERNATIONAL FOOD FOR EDUCATION 
                    AND CHILD NUTRITION PROGRAM.

    (a) In General.--In fiscal year 2002 or any subsequent 
fiscal year during which the President determines to use the 
authority of section 416(b) of the Agricultural Act of 1949 
(hereinafter in this section referred to as ``section 416(b)'') 
to initiate, continue, and expand--
            (1) preschool and school feeding programs to 
        improve food security, reduce the incidence of hunger, 
        and improve literacy and primary education, 
        particularly with respect to girls; and
            (2) maternal, infant, and child nutrition programs 
        for pregnant women, nursing mothers, infants, and 
        children who are five years of age or younger;
the President shall direct the purchase of commodities and the 
provision of financial and technical assistance to carry out 
such programs.
    (b) Eligible Commodities and Cost Items.--Notwithstanding 
any other provision of law--
            (1) any agricultural commodity is eligible for 
        distribution under this section;
            (2) the Commodity Credit Corporation shall purchase 
        agricultural commodities for use under this section if 
        its stocks are not sufficient to meet commitments 
        entered into under this section;
            (3) as necessary to achieve the purposes of this 
        section--
                    (A) Commodity Credit Corporation funds 
                shall be used to pay the transportation costs 
                incurred in moving commodities (including 
                prepositioned commodities) provided under this 
                section from the designated points of entry or 
                ports of entry of one or more recipient 
                countries to storage and distribution sites in 
                these countries, and associated storage and 
                distribution costs;
                    (B) Commodity Credit Corporation funds 
                shall be used to pay the costs of activities 
                conducted in the recipient countries by a 
                nonprofit voluntary organization, cooperative, 
                or intergovernmental agency or organization 
                that would enhance the effectiveness of the 
                activities implemented by such entities under 
                this section; and
                    (C) Commodity Credit Corporation funds 
                shall be provided to meet the allowable 
                administrative expenses of private voluntary 
                organizations, cooperatives, or 
                intergovernmental organizations which are 
                implementing activities under this section; and
            (4) for the purposes of this section, the term 
        ``agricultural commodities'' includes any agricultural 
        commodity, or the products thereof, produced in the 
        United States.
    (c) General Authorities.--The President shall designate one 
or more Federal agencies to--
            (1) implement the program established under this 
        section;
            (2) ensure that the program established under this 
        section is consistent with the foreign policy and 
        development assistance objectives of the United States; 
        and
            (3) consider, in determining whether a country 
        should receive assistance under this section, whether 
        the government of the country is taking concrete steps 
        to improve the preschool and school systems in its 
        country.
    (d) Eligible Recipients.--Assistance may be provided under 
this section to private voluntary organizations, cooperatives, 
intergovernmental organizations, governments and their 
agencies, and other organizations.
    (e) Procedures.--
            (1) In general.--The President shall assure that 
        procedures are established that--
                    (A) provide for the submission of proposals 
                by eligible recipients, each of which may 
                include one or more recipient countries, for 
                commodities and other assistance under this 
                section;
                    (B) provide for eligible commodities and 
                assistance on a multi-year basis;
                    (C) ensure eligible recipients demonstrate 
                the organizational capacity and the ability to 
                develop, implement, monitor, report on, and 
                provide accountability for activities conducted 
                under this section;
                    (D) provide for the expedited development, 
                review, and approval of proposals submitted in 
                accordance with this section;
                    (E) ensure monitoring and reporting by 
                eligible recipients on the use of commodities 
                and other assistance provided under this 
                section; and
                    (F) allow for the sale or barter of 
                commodities by eligible recipients to acquire 
                funds to implement activities that improve the 
                food security of women and children or 
                otherwise enhance the effectiveness of programs 
                and activities authorized under this section.
            (2) Priorities for program funding.--In carrying 
        out paragraph (1) with respect to criteria for 
        determining the use of commodities and other assistance 
        provided for programs and activities authorized under 
        this section, the implementing agency shall consider 
        the ability of eligible recipients to--
                    (A) identify and assess the needs of 
                beneficiaries, especially malnourished or 
                undernourished mothers and their children who 
                are five years of age or younger, and school-
                age children who are malnourished, 
                undernourished, or do not regularly attend 
                school;
                    (B)(i) in the case of preschool and school-
                age children, target low-income areas where 
                children's enrollment and attendance in school 
                is low or girls' enrollment and participation 
                in preschool or school is low, and incorporate 
                developmental objectives for improving literacy 
                and primary education, particularly with 
                respect to girls; and
                    (ii) in the case of programs to benefit 
                mothers and children who are five years of age 
                or younger, coordinate supplementary feeding 
                and nutrition programs with existing or newly-
                established maternal, infant, and children 
                programs that provide health-needs 
                interventions, and which may include maternal, 
                prenatal, and postnatal and newborn care;
                    (C) involve indigenous institutions as well 
                as local communities and governments in the 
                development and implementation to foster local 
                capacity building and leadership; and
                    (D) carry out multiyear programs that 
                foster local self-sufficiency and ensure the 
                longevity of recipient country programs.
    (f) Use of Food and Nutrition Service.--The Food and 
Nutrition Service of the Department of Agriculture may provide 
technical advice on the establishment of programs under 
subsection (a)(1) and on their implementation in the field in 
recipient countries.
    (g) Multilateral Involvement.--The President is urged to 
engage existing international food aid coordinating mechanisms 
to ensure multilateral commitments to, and participation in, 
programs like those supported under this section. The President 
shall report annually to the Committee on International 
Relations and the Committee on Agriculture of the United States 
House of Representatives and the Committee on Foreign Relations 
and the Committee on Agriculture, Nutrition, and Forestry of 
the United States Senate on the commitments and activities of 
governments, including the United States government, in the 
global effort to reduce child hunger and increase school 
attendance.
    (h) Private Sector Involvement.--The President is urged to 
encourage the support and active involvement of the private 
sector, foundations, and other individuals and organizations in 
programs assisted under this section.
    (i) Cooperation With Other Government Agencies.--
Notwithstanding section 11 of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714i), Commodity Credit Corporation 
funds may be used to pay the administrative expenses of any 
agency of the Federal Government, including any bureau, office, 
administration, or agency of the Department of Agriculture, 
implementing or assisting in the implementation of this 
section.

SEC. 313. FARMERS FOR AFRICA AND CARIBBEAN BASIN PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) Many African farmers and farmers in Caribbean 
        Basin countries use antiquated techniques to produce 
        their crops, which result in poor crop quality and low 
        crop yields.
            (2) Many of these farmers are losing business to 
        farmers in European and Asian countries who use 
        advanced planting and production techniques and are 
        supplying agricultural produce to restaurants, resorts, 
        tourists, grocery stores, and other consumers in Africa 
        and Caribbean Basin countries.
            (3) A need exists for the training of African 
        farmers and farmers in Caribbean Basin countries and 
        other developing countries in farming techniques that 
        are appropriate for the majority of eligible farmers in 
        African or Caribbean countries, including standard 
        growing practices, insecticide and sanitation 
        procedures, and other farming methods that will produce 
        increased yields of more nutritious and healthful 
        crops.
            (4) African-American and other American farmers, as 
        well as banking and insurance professionals, are a 
        ready source of agribusiness expertise that would be 
        invaluable for African farmers and farmers in Caribbean 
        Basin countries.
            (5) A United States commitment is appropriate to 
        support the development of a comprehensive agricultural 
        skills training program for these farmers that focuses 
        on--
                    (A) improving knowledge of insecticide and 
                sanitation procedures to prevent crop 
                destruction;
                    (B) teaching modern farming techniques, 
                including the identification and development of 
                standard growing practices and the 
                establishment of systems for recordkeeping, 
                that would facilitate a continual analysis of 
                crop production;
                    (C) the use and maintenance of farming 
                equipment that is appropriate for the majority 
                of eligible farmers in African or Caribbean 
                Basin countries;
                    (D) expansion of small farming operations 
                into agribusiness enterprises through the 
                development and use of village banking systems 
                and the use of agricultural risk insurance 
                pilot products, resulting in increased access 
                to credit for these farmers; and
                    (E) marketing crop yields to prospective 
                purchasers (businesses and individuals) for 
                local needs and export.
            (6) The participation of African-American and other 
        American farmers and American agricultural farming 
        specialists in such a training program promises the 
        added benefit of improving access to African and 
        Caribbean Basin markets for American farmers and United 
        States farm equipment and products and business 
        linkages for United States insurance providers offering 
        technical assistance on, among other things, 
        agricultural risk insurance products.
            (7) Existing programs that promote the exchange of 
        agricultural knowledge and expertise through the 
        exchange of American and foreign farmers have been 
        effective in promoting improved agricultural techniques 
        and food security, and, thus, the extension of 
        additional resources to such farmer-to- farmer 
        exchanges is warranted.
    (b) Definitions.--In this section:
            (1) Agricultural farming specialist.--The term 
        ``agricultural farming specialist'' means an individual 
        trained to transfer information and technical support 
        relating to agribusiness, food security, the mitigation 
        and alleviation of hunger, the mitigation of 
        agricultural and farm risk, maximization of crop 
        yields, agricultural trade, and other needs specific to 
        a geographical location as determined by the Secretary.
            (2) Caribbean basin country.--The term ``Caribbean 
        basin country'' means a country eligible for 
        designation as a beneficiary country under section 212 
        of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
        2702).
            (3) Eligible farmer.--The term ``eligible farmer'' 
        means an individual owning or working on farm land (as 
        defined by a particular country's laws relating to 
        property) in the sub-Saharan region of the continent of 
        Africa, in a Caribbean Basin country, or in any other 
        developing country in which the Secretary determines 
        there is a need for farming expertise or for 
        information or technical support described in paragraph 
        (1).
            (4) Program.--The term ``Program'' means the 
        Farmers for Africa and Caribbean Basin Program 
        established under this section.
    (c) Establishment of Program.--The President shall 
establish a grant program, to be known as the ``Farmers for 
Africa and Caribbean Basin Program'', to assist eligible 
organizations in carrying out bilateral exchange programs 
whereby African-American and other American farmers and 
American agricultural farming specialists share technical 
knowledge with eligible farmers regarding--
            (1) maximization of crop yields;
            (2) use of agricultural risk insurance as financial 
        tools and a means of risk management (as allowed by 
        Annex II of the World Trade Organization rules);
            (3) expansion of trade in agricultural products;
            (4) enhancement of local food security;
            (5) the mitigation and alleviation of hunger;
            (6) marketing agricultural products in local, 
        regional, and international markets; and
            (7) other ways to improve farming in countries in 
        which there are eligible farmers.
    (d) Eligible Grantees.--The President may make a grant 
under the Program to--
            (1) a college or university, including a 
        historically black college or university, or a 
        foundation maintained by a college or university; and
            (2) a private organization or corporation, 
        including grassroots organizations, with an established 
        and demonstrated capacity to carry out such a bilateral 
        exchange program.
    (e) Terms of Program.--(1) It is the goal of the Program 
that at least 1,000 farmers participate in the training program 
by December 31, 2005, of which 80 percent of the total number 
of participating farmers will be African farmers or farmers in 
Caribbean Basin countries and 20 percent of the total number of 
participating farmers will be American farmers.
    (2) Training under the Program will be provided to eligible 
farmers in groups to ensure that information is shared and 
passed on to other eligible farmers. Eligible farmers will be 
trained to be specialists in their home communities and will be 
encouraged not to retain enhanced farming technology for their 
own personal enrichment.
    (3) Through partnerships with American businesses, the 
Program will utilize the commercial industrial capability of 
businesses dealing in agriculture to train eligible farmers on 
farming equipment that is appropriate for the majority of 
eligible farmers in African or Caribbean Basin countries and to 
introduce eligible farmers to the use of insurance as a risk 
management tool.
    (f) Selection of Participants.--(1) The selection of 
eligible farmers, as well as African-American and other 
American farmers and agricultural farming specialists, to 
participate in the Program shall be made by grant recipients 
using an application process approved by the President.
    (2) Participating farmers must have sufficient farm or 
agribusiness experience and have obtained certain targets 
regarding the productivity of their farm or agribusiness.
    (g) Grant Period.--The President may make grants under the 
Program during a period of 5 years beginning on October 1 of 
the first fiscal year for which funds are made available to 
carry out the Program.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $10,000,000 for 
each of fiscal years 2002 through 2007.

SEC. 314. INTERNATIONAL FOOD RELIEF PARTNERSHIP.

    (a) Assistance for Stockpiling and Rapid Transportation, 
Delivery, and Distribution of Shelf-Stable Prepackaged Foods.--
Section 208(f) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended by 
striking ``fiscal years 2001 and 2002'' and inserting ``fiscal 
years 2001 through 2007''.
    (b) Prepositioning of Commodities.--Section 407(c)(4) of 
the Agricultural Trade Development and Assistance Act of 1954 
(7 U.S.C. 1736a(c)(4)) is amended by striking ``fiscal years 
2001 and 2002'' and inserting ``each of fiscal years 2001 
through 2007''.

SEC. 315. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    (a) Establishment.--The Secretary of Agriculture shall 
establish an export assistance program (referred to in this 
section as the ``program'') to address unique barriers that 
prohibit or threaten the export of United States specialty 
crops.
    (b) Purpose.--The program shall provide direct assistance 
through public and private sector projects and technical 
assistance to remove, resolve, or mitigate sanitary and 
phytosanitary and related barriers to trade.
    (c) Priority.--The program shall address time sensitive and 
strategic market access projects based on--
            (1) trade effect on market retention, market 
        access, and market expansion; and
            (2) trade impact.
    (d) Funding.--The Secretary shall make available $3,000,000 
for each of fiscal years 2002 through 2007 of the funds of, or 
an equal value of commodities owned by, the Commodity Credit 
Corporation.

    In section 461(c)(3)(A)(iii) of the bill, strike 
``Congress'' and insert ``the appropriate congressional 
committees''.

    In section 461(d)(3)(C)(ii) of the bill, insert after the 
final period the following: ``Not less than one year of the 
Fellowship shall be dedicated to fulfilling the requirement of 
subparagraph (B)(i)(I).''.

    In section 461(d)(3)(D)(ii)(V) of the bill, strike ``and'' 
at the end.

    In section 461(d)(3)(D)(ii)(VI) of the bill, strike the 
period and insert ``; and''.

    In section 461(d)(3)(D)(ii) of the bill, add at the end the 
following:

                                    (VII) such other attributes 
                                as determined to be appropriate 
                                by the Board of Trustees.

    In section 461(f)(4)(C) of the bill, strike ``Congress'' 
the second place it appears and insert ``appropriate 
congressional committees''.

    In section 461(h) of the bill, strike ``Congress'' and 
insert ``the appropriate congressional committees''.

    In section 461 of the bill, add at the end the following:

    (j) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Agriculture and the Committee 
        on International Relations of the House of 
        Representatives; and
            (2) the Committee on Agriculture, Nutrition and 
        Forestry and the Committee on Foreign Relations of the 
        Senate.

                          Purpose and Summary

    The principal purpose of the Committee's consideration of 
title III of H.R. 2646, ``The Farm Security Act of 2001'' was 
(1) the reform of procedures and policies relating to 
international food assistance programs which are administered 
jointly by the United States Agency for International 
Development, USAID, and the United States Department of 
Agriculture, USDA, including, in particular, a discretionary 
authority for a global school feeding program with 
developmental objectives designed to improve literacy and 
primary education, particularly with respect to girls, and (2) 
ensuring proper oversight of and funding levels for U.S. 
agricultural promotion programs. The Committee is authorizing 
these programs through 2007 because there are several new 
programs being permanently authorized and others that are being 
reformed and brought up to date. In addition to the need to 
monitor the progress of these programs, the dynamic nature of 
the trade and food assistance environments demand a shorter 
review than 10 years for these programs.

                Background and Need for the Legislation

    The goal of the Committee is to ensure that the food and 
development objectives of the U.S. Government are well 
coordinated with all of the private voluntary organizations 
that administer the emergency and non-emergency food assistance 
programs. In addition, it would like to see more simplified and 
expedited food aid delivery services. The challenge confronting 
the Committee is to ensure that food aid reaches its intended 
recipients without disrupting local agricultural production and 
creating a permanent dependence on U.S. food aid. The 
provisions in the bill provide authority to fund multi-country 
food aid programs, provide greater flexibility in using any 
currency in food aid transactions and encourage streamlined 
approval of food aid proposals.
    In addition, the Committee proposes some funding increases 
for several key agricultural export promotion programs operated 
by the Foreign Agricultural Service, FAS, of the U.S. 
Department of Agriculture with the goal of opening markets for 
agriculture to benefit the entire U.S. economy. Expanding 
existing market access and opening new markets will 
significantly boost U.S. agricultural export sales. Close to 
one third of our farm and food system is geared toward serving 
these overseas markets and U.S. agriculture is one of the few 
sectors of our economy that consistently enjoys a trade 
surplus.
    The Committee proposes funding increases for the Market 
Access Program, the Foreign Market Development Cooperator 
Program and the Emerging Markets Program and a reauthorization 
period through 2007 designed to ensure close oversight and 
scrutiny of these programs. In addition, it provides the FAS 
with additional policy guidance and authorities designed to 
ensure that it can meet the emerging threats to our overseas 
markets while it can more effectively coordinate its export 
promotion activities with all other government agencies.
    The Committee also establishes a program to complement the 
bilateral exchange programs which are currently being 
administered by USDA and USAID. The existing programs bring 
together American farmers with their Sub-Saharan African and 
Caribbean counterparts to share expertise and experiences. The 
Committee's proposed program provides technical advice and 
training to farmers in African and Caribbean Basin countries 
and other developing countries in farming techniques that are 
appropriate for the majority of eligible farmers in these 
countries. Such techniques include modern pre- and post-harvest 
techniques for standardization of quality assurance purposes, 
systematic development of efficient indigenous growing 
practices, insecticide and sanitation procedures, and 
``organic'' farming methods that consistently increase yields 
of nutritious crops.

                                Hearings

    While the Committee was unable to hold any hearings prior 
to the consideration of the amendment to H.R. 2646 owing to the 
urgent need to report the bill prior to its consideration by 
the House, extensive briefings were held with representatives 
from farm and commodity groups, private voluntary organizations 
and with Administration officials from the Department of 
Agriculture and the Agency for International Development on 
food aid and agricultural export promotion programs included in 
the amendment.

                        Committee Consideration

    H.R. 2646 was introduced by Representative Combest on July 
26, 2001, and was referred to the House Committee on 
Agriculture. On August 2, 2001, the Committee on Agriculture 
favorably reported the bill to the House (H. Rept. 107-191, 
Part I). On August 31, 2001, a supplemental report was filed by 
the Committee on Agriculture (H. Rept. 107-191, Part II). On 
August 2, 2001, H.R. 2646 was sequentially referred to the 
House Committee on International Relations for a period ending 
not later than September 7, 2001, for consideration of such 
provisions of the bill and amendment as fall within the 
jurisdiction of the Committee.
    On September 6, 2001, the Committee met in open session and 
ordered favorably reported the bill H.R. 2646, with amendment, 
by voice vote, a quorum being present.
    The Committee adopted three amendments. The first was an 
amendment en bloc offered by Chairman Hyde. The second 
amendment, offered by Mr. Bereuter to the Hyde amendment, 
ensures that the Agency for International Development keeps in 
place its current requirement mandating that value-added 
commodities comprise no less than 75% of non-emergency P.L. 
480, title II food aid. The Bereuter amendment was agreed to by 
voice vote.
    Mr. Blumenauer offered the third amendment, an amendment to 
the Hyde amendment which strikes Sec. 301(b) of the Hyde 
amendment. The Hyde amendment incorporated a provision inserted 
by the Agriculture Committee allowing leaf tobacco to be 
included as an eligible commodity under the Market Access 
Program. The Blumenauer amendment was agreed to by a record 
vote of 24 ayes to 7 noes.
    The Hyde en bloc amendments, as amended, were agreed to by 
voice vote.

                         Votes of the Committee

    Clause (3)(b) of rule XIII of the Rules of the House of 
Representatives requires that the results of each record vote 
on an amendment or motion to report, together with the names of 
those voting for or against, be printed in the committee 
report.
    Mr. Blumenauer offered an amendment to the Hyde amendment 
which strikes Sec. 301(b) of the Hyde amendment. The amendment 
was agreed to by a record vote of 24 ayes to 7 noes.
    Voting yes: Hyde, Gilman, Leach, Bereuter, Smith (NJ), 
Chabot, Paul, Pitts, Issa, Flake, Davis (VA), Lantos, Ackerman, 
Brown, Wexler, Engel, Meeks, Lee, Crowley, Hoeffel, Blumenauer, 
Berkley, Napolitano, and Schiff.
    Voting no: Ros-Lehtinen, Ballenger, Burr, Smith (MI), 
Cantor, Kerns, and Hilliard.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House Rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

                        Committee Cost Estimate

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee believes that 
the Amendment to H.R. 2646 would have no cost for the current 
fiscal year, and that it would result in approximately $667 
million in budget authority and outlays between fiscal years 
2002 through 2007.

                    Performance Goals and Objectives

    The goals and objectives are limited to those sections of 
title III and IV that are being marked up by the Committee on 
International Relations.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8, clause 18 of the 
Constitution (relating to making all laws necessary and proper 
for carrying into execution powers vested by the Constitution 
in the government of the United States)..

               Section-by-Section Analysis and Discussion

Section 301. Market Access Program.
    The Market Access Program, MAP, is designed to encourage 
the creation, maintenance and expansion of foreign markets for 
U.S. agricultural, fish, and forests products. MAP operates 
through public-private partnerships among non-profit U.S. 
agricultural trade associations, U.S. agricultural 
cooperatives, non-profit state-regional trade groups, small and 
medium sized U.S. businesses, and the Commodity Credit 
Corporation of the U.S. Department of Agriculture to share the 
costs of overseas marketing and promotional activities such as 
consumer promotions, market research, trade shows, and trade 
services.
    Each year, MAP helps launch and expand sales of a wide 
variety of U.S. agricultural, fish and forest products 
overseas. Since its inception, the program has been used to 
transform a potential market to a consuming market and to 
ensure that mature markets continue to see expansion of U.S. 
agricultural products. In combination with programs under the 
Foreign Market Development Program, it has been used in the 
past, for example, to educate consumers abroad about health 
risks and those measures taken by the U. S. to protect against 
BSE, thereby assuring continued expansion of U.S. meat exports.
    First established as the Targeted Export Assistance, TEA, 
the Committee had a role in reauthorizing the program in the 
1990 Farm Bill as the Market Promotion Program and ensuring in 
subsequent years that it was used to help U.S. agricultural 
producers and industries overcome the unfair trading practices 
of its international trading competitors. The Committee 
supports the proposed funding increase for MAP to $180 million 
per year for the period 2002 through 2007. This proposed 
increase would bring the program back very close to the funding 
level attained 15 years ago in 1986, ensuring that we can begin 
to compete more effectively with the member states of the 
European Union and the Cairns Group.
    Our competitors' investment in market development is much 
larger and has grown faster since the Uruguay Trade Round with 
the U.S. being regularly outspent by our trading competitors on 
a magnitude of 4 to 1. Increases in agriculture export market 
development spending have been especially noteworthy for the 
Cairns Group which alone spent $592 million on market 
development in 1998 compared to $295 million for the U.S.
    In light of the unprecedented market access and market 
development challenges facing U.S. agriculture and U.S. 
agricultural exports from our trading competitors, the 
Committee recommends a 6-year authorization of this program and 
all other programs in this title.
    The Committee notes the past controversies surrounding MAP 
and believes that its proposed funding increase and 
reauthorization should continue to receive close and periodic 
scrutiny and that a 10-year reauthorization period is too long 
to meet the potential challenges facing our agricultural 
exports in the next round of trade negotiations in the context 
of the World Trade Organization.
    We must ensure that our market development programs can 
keep pace with the evolution of the global trading environment, 
especially with such major prospective developments as the Free 
Trade Area of the Americas due to be finalized in 2005, and the 
many potential threats that may emerge for U.S. agriculture in 
the future, and with any emerging threats to U.S. agricultural 
exports. We will need, for example, in the near future to 
address the market access, regulatory and marketing issues in 
agricultural biotechnology trade.
Section 302. Food for Progress.
    The purpose of the Food for Progress program is to finance 
the sale and export of agricultural commodities on credit 
terms, or on a grant basis, to support developing countries and 
countries that are emerging democracies and have made 
commitments to introduce or expand free enterprise elements 
into their agricultural economies. Under the Food for Progress 
program, commodities may be provided under the authority of 
P.L. 480, title I, or section 416(b). Under certain conditions, 
the Commodity Credit Corporation (CCC) may also purchase 
commodities for use in Food for Progress programs if the 
commodities are currently not held by CCC. For commodities 
furnished on a grant basis, the CCC may pay, in addition to 
acquisition costs and ocean transportation, such related 
commodity and delivery charges.
    The Food for Progress program is currently limited by a 
global 500,000 metric ton ceiling, by a $30 million cap on non-
commodity costs (primarily transportation) and by a $10 million 
cap on administrative expenses.
    The Committee recognizes the need for this program, since 
its inception in the 1985 Food Security Act. The goals of the 
program include making use of the food resources of United 
States agriculture in order to support countries that are 
committed to policies that promote economic freedom, private, 
domestic production of food commodities for domestic 
consumption and the creation of and expansion of domestic 
markets for the purchase and sale of these commodities.
    The Committee determined that the amount of commodities 
provided through the Food for Progress program should increase 
and thereby the Committee increases the ceiling from 500,000 
metric tons to 1,000,000 metric tons. Furthermore, the limit on 
transportation costs is increased to $40 million per year and 
the limit on administrative costs to $15 million per year so 
that additional commodities may be allocated to eligible 
countries. In addition, since the Food for Progress program 
allows for the use of commodities from P.L.480, title I, the 
Committee makes clear that the limitation on commodities for 
Food for Progress does not apply to commodities from P.L.480, 
title 1 that are used under the Food for Progress program.
    The Committee is authorizing the use of U.S. dollars and 
other currencies for the monetization of commodities in 
recognition of the need to hedge against inflation and maintain 
the value of the proceeds of such sales in developing 
countries. In addition, the Committee recognizes that 
international financial transactions are increasingly 
negotiated using U.S. dollars and other hard currencies. 
Nevertheless, the Committee is mindful of the need to ensure 
that the proceeds of such sales are to be used only in the 
country in which the transaction is carried out unless 
otherwise authorized in the agreements executed between private 
voluntary organizations and other eligible organizations with 
USDA or USAID.
    Efficient administration of the Food for Progress program 
is essential and therefore the Secretary is encouraged to make 
determinations regarding final program agreements and requests 
for this program before the beginning of the fiscal year. The 
Committee directs the Secretary to report, by November 1 of 
each fiscal year, on the programs, countries and commodities 
approved for the Food for Progress program for that fiscal 
year. Additionally the Secretary will include in that report 
the amount of funds approved for transportation and 
administrative costs.
Section 303. Surplus Commodities for Developing or Other Friendly 
        Countries.
    This section amends section 416(b) of the Agricultural Act 
of 1967 and authorizes the Secretary to allow the Commodity 
Credit Corporation to provide funds to nonprofit and voluntary 
organizations and cooperatives for the administration, 
monitoring and implementation of technical assistance and 
logistics related to food assistance programs under this 
section.
    The Committee is authorizing the use of U.S. dollars and 
other currencies for the monetization of commodities in 
recognition of the need to hedge against inflation and maintain 
the value of the proceeds of such sales in developing 
countries. In addition, the Committee recognizes that 
international financial transactions are increasingly 
negotiated using U.S. dollars and other hard currencies. 
Nevertheless, the Committee is mindful of the need to ensure 
that the proceeds of such sales are to be used only in the 
country in which the transaction is carried out unless 
otherwise authorized in the agreements executed between private 
voluntary organizations and other eligible organizations with 
USDA or USAID.
    The Committee is requiring the Secretary to publish in the 
Federal Register by October 31 of each fiscal year an estimate 
of the total commodities available under this section for that 
fiscal year and encourages the Secretary to finalize program 
agreements by December 31 of each fiscal year. The Committee 
recognizes that any estimates are likely to change through out 
the course of the year and that availability of additional 
commodities may make it difficult to meet set deadlines. 
However, the Committee feels such information will assist the 
Private Voluntary Organizations and International Organizations 
community in making programmatic and administrative decisions.
Section 304. Export Enhancement Program.
    The Export Enhancement Act (EEP) is reauthorized at the 
maximum level of $478 million through fiscal year 2007. 
Operated under the authority of the 1978 Agricultural Trade 
Act, the Uruguay Round Agreements Act and the Federal 
Agriculture Improvement and Reform Act of 1996, this program 
allows the USDA through the Commodity Credit Corporation to 
provide bonuses to make U.S. commodities more competitive and 
to offset the adverse effects of unfair trade practices. 
Consistent with the quantity limitations of the Uruguay Round 
Agreement on Agriculture, the program provides for limited 
allocations of certain commodities in countries impacted by 
unfair trade practices or subsidies. Eligible commodities for 
EEP include wheat, wheat flour, rice, frozen poultry, barley, 
barley malt, table eggs and vegetable oil.
Section 305. Foreign Market Development Cooperator Program
    The Foreign Market Development (Cooperator) Program uses 
CCC funds to aid in the creation and expansion of long-term 
export markets for U.S. agricultural products. The program 
functions as a trade promotion partnership between the U. S. 
Department of Agriculture's Foreign Agricultural Service and 
agricultural producers and processors who are represented by 
non-profit commodity or trade associations called Cooperators. 
Under this partnership, where industry contributions now exceed 
those from the USDA, the government and the private sector pool 
their technical and financial resources to develop foreign 
markets and remove trade barriers of all types.
    Agricultural exports are important to the overall economy 
and in fiscal year 1999 they totaled $49 billion, generating 
some 750,000 full-time jobs, and more than one million full and 
part-time jobs, relating to the production, processing and 
distribution of agricultural products for export. They are on 
average better paying jobs than those in the non-export sector.
    All regions of the country benefit from this program which 
remains underfunded in its efforts to maintain existing market 
share in established markets and to develop new markets for a 
wide range of commodities. The Committee would note proposed 
European Union guidelines on biotechnology in agriculture are 
likely inconsistent with World Trade Organization obligations 
and could result in billions of dollars of lost U.S. exports.
    The Committee believes that the Cooperator program plays an 
important and growing role in promoting US agricultural 
exports. The Committee has therefore recommended increasing 
program funding to $40 million annually through fiscal year 
2007 in part to assist such new industries as biotechnology in 
identifying and overcoming any potential tariff and non-tariff 
barriers that they may face in exporting their products.
    Program supporters point out that a minimum program level 
of $43.25 million is needed to give this program the same level 
of funding as was provided some 15 years ago in 1986.
Section 306. Export Credit Guarantee Program.
    The Export Credit Guarantee Program (sec. 211 (b)(1) of the 
Agricultural Trade Act of 1978) is reauthorized at current 
levels through 2007. In addition, CCC will continue the 
requirement that not less than 35 percent of the export credit 
guarantees issued be used to promote the export of processed or 
high-value agricultural exports.
    The Committee notes that GSM usage continues well below the 
statutory minimum of $5.5 billion in guarantees required each 
year. The export credit guarantee programs, GSM-102 and GSM-
103, were designed to facilitate sales of United States 
agricultural exports and have always enjoyed the enthusiastic 
support of the Committee.
    The ongoing negotiations in the Organization for Economic 
Cooperation and Development (OECD) raise several concerns about 
whether these programs will remain viable for supporting 
exports of United States agricultural products. This section 
provides for an annual report on the status of negotiations 
regarding export credit programs at the World Trade 
Organization and the Organization for Economic Cooperation and 
Development. The Committee would expect that any classified or 
sensitive information about these negotiations be provided in a 
classified annex to this report.
Section 307. Food for Peace (P.L. 480).
    The Committee reauthorizes the Food for Peace and the 
International Food Relief Partnership Act through 2007, 
increases the minimum level of commodities under this section 
from 2,025,000 metric tons to 2,250,000 metric tons and 
provides several additional authorities and program 
modifications including mandating of minimum and maximum 
percentage levels for the funding for transportation, storage 
and handling of P.L. 480 commodities; authority to fund multi-
country programs; greater flexibility in using any currency in 
food aid transactions; and provision for expedited and 
streamlined approval and sales procedures and for the issuance 
of implementing regulations.
    The Committee strongly encourages USAID to consult with 
private voluntary organizations and other eligible 
organizations on any proposed policy directives prior to their 
issuance by the agency. While the Committee is cognizant of the 
prerogatives of USAID to formulate U.S. policies and procedures 
with regard to the implementation and administration of U.S. 
food assistance programs, it is also important that USAID 
consult on a timely and regular basis with private voluntary 
organizations and other eligible organizations on changes to 
policies and procedures that could affect ongoing food 
assistance programs that are administered by private voluntary 
and other eligible organizations.
    The Committee authorizes the use of U.S. dollars and other 
currencies for the monetization of commodities in recognition 
of the need to hedge against inflation and maintain the value 
of the proceeds of such sales in developing countries. In 
addition, the Committee recognizes that international financial 
transactions are increasingly negotiated using U.S. dollars and 
other hard currencies. Nevertheless, the Committee is mindful 
of the need to ensure that the proceeds of such sales are to be 
used only in the country in which the transaction is carried 
out unless otherwise authorized in the agreements executed 
between private voluntary and other eligible organizations and 
USAID.
    The Committee strongly recommends that the Department of 
Agriculture consult with USAID on best practices in the 
implementation of microfinance programs and that it participate 
in the preparation of the President's Report to Congress on 
international microfinance programs as required by P.L. 106-
309.
    The Committee understands that there may be benefits to 
monetization of emergency food commodities to help meet 
emergency humanitarian needs. The Committee encourages the 
Administrator of USAID to examine possible increases in the 
amount of emergency food commodities that are monetized, or 
sold, with the sales proceeds to be used to meet emergency 
humanitarian needs, including famine relief. The purpose of 
this approach is the stabilization of commodity prices in the 
area undergoing the emergency. The Committee expects to be 
consulted by the Agency as this policy idea develops.
    The Committee also encourages a linkage between Food Aid 
programs and HIV/AIDS programs. The global AIDS pandemic is one 
of the greatest humanitarian, economic, social and national 
security threats of our time. In particular, in addressing the 
AIDS crisis in sub-Saharan Africa and other affected regions, 
the Committee encourages a multi-sectoral and multi-faceted 
strategy that incorporates food aid programs. Despite progress 
in recent years, sub-Saharan Africa enters the new millennium 
with many of the world's poorest countries; it is an area of 
the world where hunger is both pervasive and increasing. Nearly 
half of sub-Saharan Africa's total population lives on less 
that $1 a day. One out of seven children dies before their 
fifth birthday; half of these deaths are due to malnutrition. 
Further exacerbating these challenges is the toll of HIV/AIDS 
and other diseases. As AIDS impacts the continent of Africa, 
lack of adequate nutrition also impacts the ability of people 
living with HIV/AIDS to manage their AIDS-related illnesses. 
Malnutrition is a factor which accelerates the rate of AIDS-
related complications and disease progression. The Committee 
encourages the targetting of food aid resources toward persons 
or groups affected by HIV/AIDS. The Committee also encourages 
the Administration to examine, develop, and implement long term 
agricultural strategies in the context of addressing the AIDS 
crisis. The Committee supports programming that seeks to 
incorporate HIV/AIDS nutritional support strategies.
    The Committee has included a provision that requires the 
Administrator of USAID to make a decision on program proposals 
received from private voluntary and other eligible 
organizations not later than 120 days after receipt of a 
proposal by the Administrator. Receipt of a proposal by the 
Administrator shall mean the first receipt of a proposal by 
either USAID headquarters or field missions and does not 
preclude the Administrator from consulting with field missions 
on any proposal submitted by a private voluntary or eligible 
organization whether or not such proposal was submitted to a 
USAID headquarters or field mission.
Section 308. Emerging Markets.
    The Emerging Markets Program is designed to foster growth 
in U.S. agricultural exports in low to middle income countries 
that offer viable markets for U.S. agricultural products. 
Originally authorized by the Food, Agriculture, Conservation 
and Trade Act of 1990 and the FAIR Act of 1996, the program 
supports technical assistance that U.S. agricultural 
organizations undertake to improve market access and promote a 
wide variety of U.S. agricultural products in emerging markets. 
The Committee would note the growing number of potential viable 
projects that the Program Administrator could not approve over 
the past several years. The value of these submitted proposals 
now exceeds $16 million.
    The Committee supports an increase in the funding of this 
program from the CCC from $10 to $15 million per year through 
fiscal year 2007 to address, in part, the need for the 
development of potential markets for existing and new products, 
including speciality crops. Projects should include market 
research, risk assessment and technical training and other 
activities that can remove or mitigate the full range of tariff 
and non-tariff barriers facing U.S. agricultural exports in 
emerging markets. Several success stories illustrate the value 
of this program:
    In cooperation with the Southern United States Trade 
Association (SUSTA), the Emerging Markets Program is continuing 
to fund the Export Readiness Training Program which provides 
export training for small and minority U.S. business interested 
in the export market. Approximately 30 companies have received 
training through this program. Many of them have used their 
training and are now pursuing export opportunities and 
accessing other FAS programs such as the Market Access Program 
to move and promote their products in various overseas markets. 
To date, ERT companies have entered markets in the Caribbean, 
Africa, South America and Central America.
    In both Shanghai and Southeast Asia, the U.S. Meat Export 
Federation, using funds from the Emerging Markets Program, has 
provided training to target retailers and merchandisers to 
provide them with the knowledge they need to overcome problems 
and difficulties encountered in day-to-day operations. This 
program has served as an important means of introducing U.S. 
meat products and techniques to the Asian market. Numerous 
individuals have been trained through this program at the 
central training location and have been able to develop their 
knowledge and spread it throughout Asia while developing ties 
to the U.S. meat industry.
Section 309. Bill Emerson Humanitarian Trust.
    The purpose of this section is to provide for a trust 
solely to meet emergency humanitarian food needs in developing 
countries. The Secretary of Agriculture is required to 
establish a trust stock of wheat, rice, corn, or sorghum, or 
any combination of the commodities totaling not more than 4 
million metric tons. The Bill Emerson Humanitarian Trust Act is 
reauthorized through 2007.
Section 310. Fee for Services.
    This section provides the Secretary of Agriculture with the 
authority to charge and retain a fee to cover the costs for 
providing persons with commercial services performed abroad 
through the Foreign Agricultural Service. Such fees would be 
deposited as an offsetting collection to a Department of 
Agriculture account, but they could only be collected and made 
available to the Secretary to the extent they are provided in 
advance in an appropriations act. The Committee believes that 
allowing the FAS to collect such limited fees could allow for a 
substantial increase in both the amount and quality in services 
provided to U.S. agricultural exporters.
    It is the Committee's intention that this authority be 
discretionary and be put in place only to supplement and not 
replace any services currently offered overseas by FAS 
personnel. It should be implemented as part of an overall 
market development plan developed by the appropriate FAS 
officer in his or her country or region and should first be put 
in place on a pilot basis in a small number of overseas posts. 
The results should be carefully monitored and evaluated to 
ensure that its implementation does not disadvantage small and 
medium sized companies, including those new-to-export 
companies.
    The fee for service authority can be used when and where 
appropriate to help match U.S. exporters with international 
buyers, distributors or other business partners. It could also 
be used, for example, to provide custom market research and for 
client facilitation services including interpretation, 
translation and courier services. The Committee would note that 
the fee for service authority is now in place for a number of 
USDA programs and activities and is used extensively by the 
Foreign and Commercial Service of the Department of Commerce.
Sec. 311. Multiyear Agricultural Trade Strategy.
    The Committee directs the Secretary to prepare a long-range 
comprehensive agricultural trade strategy and to report to the 
designated congressional Committees on its development and 
implementation 1 year after the date of enactment of this Act. 
One of the intended goals of this trade strategy exercise is to 
ensure that all the market development resources available to 
the Foreign Agriculture Service are spent in a coordinated and 
targeted way to ensure that U.S. agricultural exports find new 
and expanded markets.
    The creation of this overall strategy is intended to ensure 
that the FAS can fully address the market development 
deficiencies identified in the course of the annual FAS review 
and program analysis undertaken pursuant to the Government 
Performance and Review Act, GPRA, mandate. In light of the 
projected large increase in the funding of the Market Access 
Program, the FAS should clearly identify how these resources 
could be used to provide support to short-term market 
development and market access goals in mature markets and long 
term market penetration objectives in newer and emerging 
markets.
    Another important goal of this trade strategy exercise is 
the short term targeting of markets that are being placed at 
risk due to the EU as a result of its potentially trade 
distorting practices and large-scale ``amber box'' programs. In 
the medium and long-term, the USDA should closely coordinate 
with the U.S. Trade Representative and other relevant U.S. 
government agencies to ensure that the U.S. works with the 
members of the Cairns Group and other like-minded countries 
within the World Trade Organization to reduce the European 
agricultural export subsidies.
    The Committee would also note that the NASDA MAP Evaluation 
Project submitted by Deloitte and Touche to the National 
Association of State Departments of Agriculture concluded that 
``there are a number of global challenges that could have 
better responses. These . . . include GMOs, U.S. grades, 
standards and inspection procedures, chemical residues, and 
managing the U.S. agricultural brand image. This will require 
more effective strategic planning, and careful identification 
of emerging issues.''
Section 312. George McGovern-Robert Dole International Food for 
        Education and Child Nutrition Program.
    In December 2000, the Administration launched a pilot 
program, the Global Food for Education Initiative (GFEI), to 
significantly increase resources for school feeding programs 
with the goal of significantly reducing hunger and increasing 
educational opportunity for the world's neediest children. The 
pilot program consists of 49 projects in 38 countries to 
provide approximately 9 million children with at least one 
nutritious meal each day in a school setting. The Committee 
commends the U.S. Department of Agriculture for carrying out 
the pilot program on a very abbreviated timetable. The 
Committee also commends the private voluntary organizations, 
cooperatives, the United Nations World Food Program, the 
American farming community and commodity producers who 
responded so quickly in implementing these projects.
    The Committee has retained the discretionary nature of the 
GFEI and included a number of modifications to strengthen its 
implementation if the President decides to continue the 
program. It has designated the program as the George McGovern-
Robert Dole International Food for Education and Child 
Nutrition Program, in honor of the two former senators who 
inspired this global initiative. The Committee provides for the 
President to designate a Federal agency or agencies to carry 
out the program, allows for the purchase of any commodities, 
not just those in surplus, that would make these programs more 
effective, and to purchase commodities in non-surplus years in 
order to ensure the continuity of these school feeding 
programs. The Committee provides funds from the Commodity 
Credit Corporation (CCC) to be used for administrative costs, 
and transportation and storage of commodities in the recipient 
countries, thus confirming the action taken by the Congress on 
July 20, 2001, in the conference report to H.R. 2216, when 
additional funds were appropriated to cover these expenses for 
the pilot program. With respect to administrative costs, the 
Committee recommends that allowable administrative expenses for 
this program be determined in accord with similar food aid 
programs, such as Food for Progress, and that coverage of such 
expenses be provided equitably to all implementing entities.
    The Committee requires that elements to ensure these 
programs longevity and self- sufficiency be incorporated into 
projects from the very beginning of implementation. It is 
neither the intent nor the expectation of the Committee for 
these programs to foster dependency, but rather that they lead 
over time to local self-sufficiency and longevity.
    The Committee recognizes that the Administration is 
concluding a review of all food aid programs, including the 
GFEI. The Committee recommends that greater attention be placed 
on how the GFEI relates to and is coordinated with other 
foreign policy and development priorities--such as maternal 
child health programs, HIV/AIDS prevention and treatment, 
strengthening local agriculture, clean water, microenterprise 
and other development projects--in order to enhance the long-
term viability and economic development of communities and 
regions where the GFEI is underway.
    For long-term success, this initiative requires the 
engagement of the international community, other donor nations, 
and the private sector. The Committee is encouraged by recent 
reports that Italy, France, Canada and other nations have 
indicated concrete support for this effort through the United 
Nations World Food Program. The Committee urges the President 
to actively engage these sectors in a global effort to reduce 
hunger and increase educational opportunity among the world's 
neediest children.
    The Committee emphasizes that the GFEI is subject to 
Federal laws and requirements to ensure that Federal commodity 
purchases neither disrupt U.S. domestic markets nor adversely 
affect local farmers in recipient countries. In addition, 
requirements on the use of U.S.-flag shipping also apply to the 
GFEI.
Section 313. Farmers for Africa and Caribbean Basin Program.
    The bill establishes bilateral exchange programs where 
African-American and other American farmers and agricultural 
farming specialists provide eligible farmers in sub-Saharan and 
Caribbean countries with advice and assistance concerning 
farming practices, expansion of agricultural trade, and use of 
agricultural risk insurance.
    The Committee authorizes the President to administer the 
programs with the expectation that the President will delegate 
his authority to the USDA and USAID, given their continuing 
involvement in similar programs.
Section 314. Food Relief Reauthorization.
    This provision continues the authorization for an 
additional 5 years for the stockpiling, transportation, 
delivery, and distribution of shelf-stable prepackaged foods to 
needy individuals in foreign countries by private voluntary 
organizations and international organizations
Section 315. Technical Assistance for Speciality Crops.
    The Committee is authorizing a new program to reduce the 
export barriers faced by U.S. producers of speciality crops, 
including fruits and vegetables. Currently, these producers 
face high tariff barriers in many of their potential export 
markets and a number of other obstacles including sanitary and 
phytosanitary regulations implemented in a discriminatory 
fashion.
    The Committee is providing $3 million for the years 2002 
through 2007 to fund direct assistance as well as technical 
assistance efforts designed to increase market access for the 
export of speciality crops. Specific projects should focus on 
market development and market retention issues, risk assessment 
and technical training activities. Program activities should be 
coordinated as much as practical with any similar ongoing 
market access projects being undertaken by the Market Access 
Program.
Section 461. Hunger Fellowship Program
    In addition, the Committee ensures that the Mickey Leland 
Hunger Fellowship Program focuses the attention of the fellows 
on field work, and provided interested Members of Congress with 
oversight capability.

                        New Advisory Committees

    H.R. 2646 does not establish or authorize any new advisory 
Committees.

                    Congressional Accountability Act

    H.R. 2646 does not apply to the legislative branch.

                            Federal Mandates

    H.R.2646 provides no Federal mandates.

         Changes in Existing Law Made by the Bill, as Reported

    The bill was referred to the Committee on Agriculture, and 
sequentially to the Committee on International Relations, for a 
period ending not later than September 7, 2001, for 
consideration of such provisions as fall within the 
jurisdiction of that Committee pursuant to clause 1(j), rule X.
    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
that portion of the bill within the jurisdiction of the 
Committee on Agriculture, as reported, are shown in part 2 of 
this report and changes in existing law made by that portion of 
the bill within the jurisdiction of the Committee on 
International Relations, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italics, existing law in 
which no change is proposed is shown in roman):

                     AGRICULTURAL TRADE ACT OF 1978



           *       *       *       *       *       *       *
                 TITLE II--AGRICULTURAL EXPORT PROGRAMS

Subtitle A--Programs

           *       *       *       *       *       *       *


SEC. 202. EXPORT CREDIT GUARANTEE PROGRAM.

    (a)  * * *

           *       *       *       *       *       *       *

    (k) Processed and High-Value Products.--
            (1) In general.--In issuing export credit 
        guarantees under this section, the Commodity Credit 
        Corporation shall, subject to paragraph (2), ensure 
        that not less than 25 percent for each of fiscal years 
        1996 and 1997, 30 percent for each of fiscal years 1998 
        and 1999, and 35 percent for each of fiscal years 
        2000[, 2001, and 2002] through 2007, of the total 
        amount of credit guarantees issued for a fiscal year is 
        issued to promote the export of processed or high-value 
        agricultural products and that the balance is issued to 
        promote the export of bulk or raw agricultural 
        commodities.

           *       *       *       *       *       *       *


                       Subtitle B--Implementation

SEC. 211. FUNDING LEVELS.

    (a)  * * *
    (b) Export Credit Guarantee Programs.--
            (1) Export credit guarantees.--The Commodity Credit 
        Corporation shall make available for each of fiscal 
        years 1996 through [2002] 2007 not less than 
        $5,500,000,000 in credit guarantees under subsections 
        (a) and (b) of section 202.

           *       *       *       *       *       *       *

    (c) Market Access Programs.--The Commodity Credit 
Corporation or the Secretary shall make available for market 
access activities authorized to be carried out by the Commodity 
Credit Corporation under section 203--
            (1) in addition to any funds that may be 
        specifically appropriated to implement a market access 
        program, not less than $200,000,000 for each of the 
        fiscal years 1991 through 1993, not less than 
        $110,000,000 for each of the fiscal years 1994 through 
        1995, [and not more] not more than $90,000,000 for each 
        of fiscal years 1996 through [2002,] 2001, and not more 
        than $180,000,000 for each of fiscal years 2002 through 
        2007, of the funds of, or an equal value of commodities 
        owned by, the Commodity Credit Corporation; and

           *       *       *       *       *       *       *

    (d) Report on Agricultural Export Credit Programs.--
            (1) In general.--Not later than one year after the 
        date of the enactment of the Farm Security Act of 2001, 
        and annually thereafter, the Secretary shall prepare 
        and submit to the designated congressional committees a 
        report on the status of multilateral negotiations 
        regarding agricultural export credit programs at the 
        World Trade Organization and the Organization of 
        Economic Cooperation and Development in fulfillment of 
        Article 10.2 of the Agreement on Agriculture (as 
        described in section 101(d)(2) of the Uruguay Round 
        Agreements Act). The report submitted under this 
        paragraph shall be submitted in unclassified form, but 
        may contain a classified annex.
            (2) Definition.--In this section, the term 
        ``designated congressional committees'' means the 
        Committee on Agriculture and the Committee on 
        International Relations of the House of Representatives 
        and the Committee on Agriculture, Nutrition and 
        Forestry of the Senate.

           *       *       *       *       *       *       *


TITLE III--EXPORT ENHANCEMENT PROGRAM

           *       *       *       *       *       *       *


SEC. 301. EXPORT ENHANCEMENT PROGRAM.

    (a)  * * *

           *       *       *       *       *       *       *

    (e) Funding Levels.--
            (1) In general.--The Commodity Credit Corporation 
        shall make available to carry out the program 
        established under this section not more than--
                    (A)  * * *

           *       *       *       *       *       *       *

                    (G) $478,000,000 for fiscal year 2002 and 
                for each fiscal year thereafter through fiscal 
                year 2007.

           *       *       *       *       *       *       *


TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

           *       *       *       *       *       *       *


SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Report to Congress.--
            (1) In general.--The Secretary shall report 
        annually to the appropriate congressional committees 
        the amount of funding provided, types of programs 
        funded, the value added products that have been 
        targeted, and the foreign markets for those products 
        that have been developed.
            (2) Definition.--In this subsection, the term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Agriculture and the 
                Committee on International Relations of the 
                House of Representatives; and
                    (B) the Committee on Agriculture, Nutrition 
                and Forestry and the Committee on Foreign 
                Relations of the Senate.

SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

    (a) Prior Years.--There are authorized to be appropriated 
to carry out this title such sums as may be necessary for each 
of fiscal years 1996 through [2002] 2001.
    (b) Fiscal 2002 and Later.--For each of fiscal years 2002 
through 2007 there are authorized to be appropriated such sums 
as may be necessary to carry out this title, and, in addition 
to any sums so appropriated, the Secretary shall use 
$40,000,000 of the funds of, or an equal value of the 
commodities of, the Commodity Credit Corporation to carry out 
this title.

           *       *       *       *       *       *       *

                              ----------                              


             SECTION 1110 OF THE FOOD SECURITY ACT OF 1985

    Sec. 1110. (a) * * *

           *       *       *       *       *       *       *

    (e)(1) * * *
    (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 in carrying out this section with 
respect to commodities made available under that Act, and 
subsection (g) does not apply to such commodities furnished on 
a grant basis or on credit terms under title I of the 
Agricultural Trade Development and Assistance Act of 1954.
    (f)(1) * * *

           *       *       *       *       *       *       *

    (3) No funds of the Commodity Credit Corporation in excess 
of [$30,000,000] $40,000,000 (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] 2007 to 
carry out this section with respect to commodities made 
available under section 416(b) of the Agricultural Act of 1949 
unless authorized in advance in appropriation Acts.

           *       *       *       *       *       *       *

    (g) Not more than [500,000] 1,000,000 metric tons of 
commodities may be furnished under this section in each of the 
fiscal years 1986 through [2002] 2007.

           *       *       *       *       *       *       *

    (j) In carrying out this section, the President [may] is 
encouraged, on request and subject to the availability of 
commodities, to 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) This section shall be effective during the period 
beginning October 1, 1985, and ending December 31, [2002] 2007.
    (l)(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] 2002 through 2007, 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)] $15,000,000 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.

           *       *       *       *       *       *       *

    (3) The President may use the assistance provided under 
this subsection and [local currencies] proceeds 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.

           *       *       *       *       *       *       *

    (p) The Secretary is encouraged to finalize program 
agreements and resource requests for programs under this 
section before the beginning of the relevant fiscal year. By 
November 1 of the relevant fiscal year, the Secretary shall 
provide to the Committee on Agriculture and the Committee on 
International Relations of the House of Representatives, and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a list of approved programs, countries, and commodities, 
and the total amounts of funds approved for transportation and 
administrative costs, under this section.
                              ----------                              


              SECTION 416 OF THE AGRICULTURAL ACT OF 1949

    Sec. 416. (a) * * *
    (b)(1) * * *

           *       *       *       *       *       *       *

    (7) Eligible commodities furnished under this subsection 
may be sold or bartered only with the approval of the Secretary 
and solely as follows:
            (A) * * *

           *       *       *       *       *       *       *

            (D)(i) Sales of commodities and products furnished 
        to nonprofit and voluntary agencies, or cooperatives, 
        for food assistance under agreements that provide for 
        the use, by the agency or cooperative, of [foreign 
        currency] proceeds generated from such sale of 
        commodities or products for the purposes established in 
        clause (ii) of this subparagraph.
            (ii) [Foreign currencies] Proceeds generated from 
        partial or full sales or barter of commodities by a 
        nonprofit and voluntary agency or cooperative shall be 
        used--
                    (I) * * *

           *       *       *       *       *       *       *

        In addition, [foreign currency] proceeds generated in 
        Poland may also be used by governmental and 
        nongovernmental agencies or cooperatives for eligible 
        activities approved by the joint commission established 
        pursuant to section 2226 of the American Aid to Poland 
        Act of 1988 and by the United States chief of 
        diplomatic mission in Poland that would improve the 
        quality of life of the Polish people and would 
        strengthen and support the activities of governmental 
        or private, nongovernmental independent institutions in 
        Poland. Activities eligible under the preceding 
        sentence include--
            (I) * * *

           *       *       *       *       *       *       *

            (iii) Except as otherwise provided in clause (v), 
        such agreements, taken together for each fiscal year, 
        shall provide for sales of commodities and products for 
        [foreign currency] proceeds in amounts that are, in the 
        aggregate, not less than 10 percent of the aggregate 
        value of all commodities and products furnished, or the 
        minimum tonnage required, whichever is greater, for 
        carrying out programs of assistance under this 
        subsection in such fiscal year. The minimum allocation 
        requirements of this clause apply with respect to 
        commodities and products made available under this 
        subsection for carrying out programs of assistance 
        under titles II and III of the Agricultural Trade 
        Development and Assistance Act of 1954, and not with 
        respect to commodities and products made available to 
        carry out the Food for Progress Act of 1985.
            (iv) [Foreign currency proceeds] Proceeds generated 
        from the sale of commodities or products under this 
        subparagraph shall be expended within the country of 
        origin within a reasonable length of time, as 
        determined by the Secretary, except that the Secretary 
        may permit the use of proceeds in a country other than 
        the [country of origin--
                    [(I) as necessary to expedite] country of 
                origin as necessary to expedite the 
                transportation of commodities and products 
                furnished under this subsection[; or].
                    [(II) if the proceeds are generated in a 
                currency generally accepted in the other 
                country.]

           *       *       *       *       *       *       *

    (8)(A)(i) To the maximum extent practicable, expedited 
procedures shall be used in the implementation of this 
subsection.
    (ii) The Secretary shall publish in the Federal Register, 
not later than October 31 of each fiscal year, an estimate of 
the commodities that shall be available under this section for 
that fiscal year.
    (iii) The Secretary is encouraged to finalize program 
agreements under this section not later than December 31 of 
each fiscal year.

           *       *       *       *       *       *       *

                              ----------                              


       AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954



           *       *       *       *       *       *       *
SEC. 2. 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 enhancing the food security of the developing 
world through the use of agricultural commodities and local 
currencies accruing under this Act to--
            (1) combat world hunger and malnutrition and their 
        causes;
            [(2) promote broad-based, equitable, and 
        sustainable development, including agricultural 
        development;]
            (2) promote broad-based, equitable, and sustainable 
        development, including agricultural development as well 
        as conflict prevention;

           *       *       *       *       *       *       *


TITLE II--EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS

           *       *       *       *       *       *       *


SEC. 202. PROVISION OF AGRICULTURAL COMMODITIES.

    (a) * * *

           *       *       *       *       *       *       *

    (e) Support for Eligible Organizations.--
            (1) In general.--Of the funds made available in 
        each fiscal year under this title to the Administrator, 
        [not less than $10,000,000, and not more than 
        $28,000,000] not less than 5 percent and not more than 
        10 percent of such funds, shall be made available in 
        each fiscal year to eligible organizations described in 
        subsection (d), to assist the organizations in--
                    (A) * * *

           *       *       *       *       *       *       *


SEC. 203. GENERATION AND USE OF FOREIGN CURRENCIES BY PRIVATE VOLUNTARY 
                    ORGANIZATIONS AND COOPERATIVES.

    (a) Local Sale and Barter of Commodities.--An agreement 
entered into between the Administrator and a private voluntary 
organization or cooperative to provide food assistance through 
such organization or cooperative under this title may provide 
for the sale or barter in [the recipient country, or in a 
country] one or more recipient countries, or one or more 
countries in the same region, of the commodities to be provided 
under such agreement.

           *       *       *       *       *       *       *

    (c) Description of Intended Uses.--A private voluntary 
organization or cooperative submitting a proposal to enter into 
a non-emergency food assistance agreement under this title 
shall include in such proposal a description of the intended 
uses of any [foreign currency] proceeds that may be generated 
through the sale, in [the recipient country, or in a country] 
one or more recipient countries, or one or more countries in 
the same region, of any commodities provided under an agreement 
entered into between the Administrator and the organization or 
cooperative.
    (d) Use.--[Foreign currencies] Proceeds generated from any 
partial or full sale or barter of commodities by a private 
voluntary organization or cooperative under a non-emergency 
food assistance agreement under this title may--
            (1) * * *
            (2) be used to implement [income generating] 
        income-generating, community development, health, 
        nutrition, cooperative development, agricultural, and 
        other developmental activities within [the recipient 
        country or within a country] one or more recipient 
        countries, or one or more countries in the same region; 
        or
            (3) be invested, and any interest earned on such 
        investment may be used, for the purposes for which the 
        assistance was provided to that organization, without 
        further appropriation by Congress.

SEC. 204. LEVELS OF ASSISTANCE.

    (a) Minimum Levels.--
            (1) Minimum assistance.--Except as provided in 
        paragraph (3), the Administrator shall make 
        agricultural commodities available for food 
        distribution under this title in an amount that for 
        each of fiscal years [1996 through 2002] 2002 through 
        2007 is not less than [2,025,000] 2,250,000 metric 
        tons.

           *       *       *       *       *       *       *


SEC. 205. FOOD AID CONSULTATIVE GROUP.

    (a) * * *

           *       *       *       *       *       *       *

    (f) Termination.--The Group shall terminate on December 31, 
[2002] 2007.

           *       *       *       *       *       *       *


SEC. 207. ADMINISTRATION.

    (a) Proposals.--
            [(1) Time for decision.--Not later than 45 days 
        after the receipt by the Administrator of a proposal 
        submitted--
                    [(A) by an eligible organization, with the 
                concurrence of the appropriate United States 
                field mission, for commodities; or
                    [(B) by a United States field mission to 
                make commodities available to an eligible 
                organization;
        under this title, the Administrator shall make a 
        decision concerning such proposal.]
            (1) Recipient countries.--A proposal to enter into 
        a non-emergency food assistance agreement under this 
        title shall identify the recipient country or countries 
        subject to the agreement.
            (2) Time for decision.--Not later than 120 days 
        after receipt by the Administrator of a proposal 
        submitted by an eligible organization under this title, 
        the Administrator shall make a decision concerning such 
        proposal.
            [(2)] (3) Denial.--If a proposal under paragraph 
        (1) is denied, the response shall specify the reasons 
        for denial and the conditions that must be met for the 
        approval of such proposal.

           *       *       *       *       *       *       *


SEC. 208. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
                    DELIVERY, AND DISTRIBUTION OF SHELF-STABLE 
                    PREPACKAGED FOODS.

    (a)  * * *

           *       *       *       *       *       *       *

    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to the Administrator to carry out this 
section, in addition to amounts otherwise available to carry 
out this section, $3,000,000 for each of fiscal years [2001 and 
2002] 2001 through 2007, to remain available until expended.

           *       *       *       *       *       *       *


TITLE IV--GENERAL AUTHORITIES AND REQUIREMENTS

           *       *       *       *       *       *       *


SEC. 403. GENERAL PROVISIONS.

    (a) * * *

           *       *       *       *       *       *       *

    (l) Sales Procedures.--Subsections (b) and (h) shall apply 
to sales of commodities to generate proceeds for titles II and 
III of this Act, section 416(b) of the Agricultural Act of 
1949, and section 1110 of the Food and Security Act of 1985. 
Such sales transactions may be in United States dollars and 
other currencies.

           *       *       *       *       *       *       *


SEC. 407. ADMINISTRATIVE PROVISIONS.

    (a)  * * *

           *       *       *       *       *       *       *

    (c) Title II and III Program.--
            (1)  * * *

           *       *       *       *       *       *       *

            (4) Prepositioning.--Funds made available for 
        [fiscal years 2001 and 2002] each of fiscal years 2001 
        through 2007 to carry out titles II and III may be used 
        by the Administrator to procure, transport, and store 
        agricultural commodities for prepositioning within the 
        United States and in foreign countries, except that for 
        each such fiscal year not more than $2,000,000 of such 
        funds may be used to store agricultural commodities for 
        prepositioning in foreign countries.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 1542 OF THE FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 
                                  1990

SEC. 1542. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.

    (a) Funding.--The Commodity Credit Corporation shall make 
available for fiscal years 1996 through [2002] 2007 not less 
than $1,000,000,000 of direct credits or export credit 
guarantees for exports to emerging markets under section 201 or 
202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 
5622), in addition to the amounts acquired or authorized under 
section 211 of the Act (7 U.S.C. 5641) for the program.

           *       *       *       *       *       *       *

  (d) E (Kika) de la Garza Agricultural Fellowship Program.--
The Secretary of Agriculture (hereafter in this section 
referred to as the ``Secretary'') shall establish a program, to 
be known as the ``E (Kika) de la Garza Agricultural Fellowship 
Program'', to develop agricultural markets in emerging markets 
and to promote cooperation and exchange of information between 
agricultural institutions and agribusinesses in the United 
States and emerging markets, as follows:
            (1) Development of agricultural systems.--
                    (A) In general.--
                            (i) Establishment of program.--For 
                        each of the fiscal years 1991 through 
                        [2002] 2007, the Secretary of 
                        Agriculture (hereafter in this section 
                        referred to as the ``Secretary''), in 
                        order to develop, maintain, or expand 
                        markets for United States agricultural 
                        exports, is directed to make available 
                        to emerging markets the expertise of 
                        the United States to make assessments 
                        of the food and rural business systems 
                        needs of such democracies, make 
                        recommendations on measures necessary 
                        to enhance the effectiveness of the 
                        systems, including potential reductions 
                        in trade barriers, and identify and 
                        carry out specific opportunities and 
                        projects to enhance the effectiveness 
                        of those systems.

           *       *       *       *       *       *       *

                    (H) Level of assistance.--The Secretary 
                shall provide assistance under this paragraph 
                of not more than [$10,000,000 in any fiscal 
                year] $15,000,000 for each of fiscal years 2002 
                through 2007.

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                              ----------                              


         SECTION 302 OF THE BILL EMERSON HUMANITARIAN TRUST ACT

SEC. 302. ESTABLISHMENT OF COMMODITY TRUST.

    (a)  * * *
    (b) Commodities or Funds in Trust.--
            (1)  * * *
            (2) Replenishment of trust.--
                    (A)  * * *
                    (B) Funds.--Any funds used to acquire 
                eligible commodities through purchases from 
                producers or in the market to replenish the 
                trust shall be derived--
                            (i) with respect to fiscal years 
                        2000 through [2002] 2007 from funds 
                        made available to carry out the 
                        Agricultural Trade Development and 
                        Assistance Act of 1954 (7 U.S.C. 1691 
                        et seq.) that are used to repay or 
                        reimburse the Commodity Credit 
                        Corporation for the release of eligible 
                        commodities under subsections (c)(2) 
                        and (f )(2), except that, of such 
                        funds, not more than $20,000,000 may be 
                        expended for this purpose in each of 
                        the fiscal years 2000 through [2002] 
                        2007; and

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    (h) Termination of Authority.--
            (1) In general.--The authority to replenish stocks 
        of eligible commodities to maintain the trust 
        established under this section shall terminate on 
        September 30, [2002] 2007.
            (2) Disposal of eligible commodities.--Eligible 
        commodities remaining in the trust after September 30, 
        [2002] 2007, shall be disposed of by release for use in 
        providing for emergency humanitarian food needs in 
        developing countries as provided in this section.

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