USDA REVISES PUBLIC LAW 480 COUNTRY ALLOCATIONS FOR FISCAL YEAR 1997 Release No.0249.97 Laura Trivers (202) 720-4623 laura.trivers@usda.gov Carolyn Harris (202)690-1851 charris@fas.usda.gov USDA REVISES PUBLIC LAW 480 COUNTRY ALLOCATIONS FOR FISCAL YEAR 1997 WASHINGTON, July 25, 1997--The U.S. Department of Agriculture today announced allocations of $224.9 million for 21 countries covering commodity financing extended under P.L. 480 Title I and commodity grants under the Food for Progress Program funded by Title I appropriations. Since the third quarter fiscal year 1997 announcement on April 28, 1997, agreements have been signed with Bolivia, Georgia, Pakistan and Suriname. Situations can develop that cause a change in allocations during the fiscal year. So these allocations do not necessarily represent final U.S. commitments with participating governments or private entities. Since the proposal to rescind $50 million from the FY 1997 Title I appropriation was not enacted, the full appropriation of $240.8 million is available for allocation. In addition, the availability of prior year unobligated funds and adjustments for the transfer of authorized funding for the Farmer-to-Farmer program brings the total amount available for Title I to $266.6 million. Further country program allocations are being developed now that final action has been taken by Congress. Title I of the Food for Peace Program is a concessional sales program to promote exports of agricultural commodities from the United States and to foster broad-based sustainable development in recipient countries. The program provides export financing over payment periods of up to 30 years, low interest rates, and maximum grace periods on payments of principal of up to 5 years. Private entities, including agricultural trade organizations, are authorized to participate in the program. Countries eligible for the Title I program are those developing countries experiencing a shortage of foreign exchange earnings and difficulty meeting all of their food needs through commercial channels. The factors that determine priorities for country allocations include food needs, potential for becoming a commercial U.S. market, and likely improvement of food security through agricultural projects and economic measures. The allocations take into account changing economic and foreign policy situations, market development opportunities, existence of adequate storage facilities, and possible disincentives to local production. The Food for Progress program is an independently authorized program that may be funded with Title I monies. It is used to support countries that have made commitments to introduce or expand free enterprise elements in their agricultural economies. These changes involve commodity pricing, marketing, input availability, distribution, and private sector involvement. Kyrgyzstan, Mongolia, and Tajikistan are the countries currently expected to receive commodity donations through this program. For further information contact: Ira D. Branson, FAS, USDA, (202)720-3573. The list of country allocations follows. Fourth Quarter FY 1997 Public Law 480 Title I Country and Commodity Allocations Estimated Ocean Country Total Freight Financing Wheat Rice (Mil $) (Mil $) (--000 Metric tons--) Angola a/ 10.0 1.7 27.5 4.8 Armenia b/ 15.0 3.9 61.9 -- Bolivia 5.0 -- 35.1 -- Congo 5.0 -- -- 8.0 Cote d'Ivoire 5.0 -- -- 13.4 El Salvador 10.0 -- -- -- Georgia a/ 20.0 3.9 113.2 -- Guatemala 5.0 -- -- -- Guyana 9.0 -- 63.2 -- Jamaica 10.0 -- -- 26.8 Jordan 20.9 -- 115.5 -- Lithuania 10.0 -- -- -- Moldova a/ 10.0 1.7 58.2 -- Pakistan c/ 30.0 -- 140.5 -- Philippines 5.0 -- -- -- Sri Lanka 10.0 -- 65.0 -- Suriname 5.0 -- 17.6 -- Ukraine a/ 10.0 2.4 -- -- _____ _____ _____ _____ TOTAL 194.9 13.6 697.7 53.0 a/ Ocean freight financing is included in the total allocation estimate. b/ Ocean freight financing and inland transportation are included in the total allocation estimate for Armenia. c/ A $10 million agreement was signed with Pakistan on June 30, 1997. An amendment to increase the agreement by $20 million is in formal negotiations. The total program level for Pakistan is $30 million. Fourth Quarter FY 1997 Public Law 480 Title I Country and Commodity Allocations Oilseed Country Feed Grains Veg. Oil Meal Tallow Cotton (--------------------000 Metric Tons---------------------) Angola -- 5.0 -- -- -- Armenia -- -- -- -- -- Bolivia -- -- -- -- -- Congo -- 3.9 -- -- -- Cote d'Ivoire -- -- -- -- -- El Salvador -- 5.5 20.8 2.4 -- Georgia -- -- -- -- -- Guatemala 23.7 4.9 -- -- -- Guyana -- -- -- -- -- Jamaica -- -- -- -- -- Jordan -- -- -- -- -- Lithuania -- -- 34.4 -- -- Moldova -- -- -- -- -- Pakistan -- -- 30.1 -- -- Philippines -- -- 15.1 -- -- Sri Lanka -- -- -- -- -- Suriname -- 4.9 -- -- -- Ukraine -- -- -- -- 21.8 _____ _____ _____ _____ _____ TOTAL 23.7 24.2 100.4 2.4 21.8 Title I Funded Food for Progress Program FY 1997 Estimated Ocean Wheat/ Country Total Freight Grant Wheat Flour (Mil $) (Mil $) (000 MT) Kyrgyzstan a/ 15.0 6.2 61.9 Mongolia a/ 5.0 2.5 9.3 Tajikistan a/ 10.0 4.1 41.3 _____ _____ _____ TOTAL 30.0 12.8 112.5 a/ Food for Progress Title I funded program totals for Kyrgyzstan, Mongolia, and Tajikistan include inland transportation costs. PL 480 Title I Credits and Title I Funded Food for Progress Program Level ($Million) Allocated Financing and Grant 224.9 Unallocated Reserve 27.9 _____ Total Available for Programs 252.8 Ocean Freight Differential 13.8 _____ TOTAL 266.6 # NOTE: USDA news releases and media advisories are available on the Internet. Access the USDA Home Page on the World Wide Web at http://www.usda.gov