USDA ANNOUNCES PUBLIC LAW 480 COUNTRY ALLOCATIONS FOR FISCAL 1998 Release No. 0421.97 Tom Amontree (202) 720-4623 tamontree@usda.gov Carolyn Harris (202) 690-1851 harrisc@fas.usda.gov CORRECTION: This release was issued on November 26, 1997. On certain hard copies, the attached tables were garbled because of computer transmission problems. This correction provides an accurate set of tables. USDA ANNOUNCES PUBLIC LAW 480 COUNTRY ALLOCATIONS FOR FISCAL 1998 WASHINGTON, Dec. 2, 1997--The U.S. Department of Agriculture today announced preliminary fiscal 1998 allocations of $234 million for programs funded under Public Law (P.L.) 480, Title I. Sixteen countries are eligible to receive commodities valued at $165.0 million through the Title I concessional sales program. Of that, $10 million will be used for agreements with private entities, as authorized in the 1996 Federal Agriculture Improvement and Reform Act. The allocations for Title I-funded Food for Progress Programs total $69.0 million to five countries, including $14.0 million for agreements with private entities. The ocean freight differential (OFD) costs associated with cargo preference requirements for these allocations is estimated to be about $21.4 million. Funding for the announced commodity and OFD allocations is provided through current appropriations and funds carried forward from prior years. In addition to these announced allocations, USDA will maintain a reserve of funds to respond to unanticipated needs. 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. For further information contact: Ira D. Branson, FAS, USDA, (202) 720-3573. The list of country allocations follows. First Quarter FY 1998 Public Law 480 Title I Country and Commodity Allocations Estimated Ocean Country Total Freight Financing Wheat Rice (Mil $) (Mil $) (--000 Metric tons--) Angola a/ 20.0 3.3 49.6 11.3 Armenia a/ 10.0 2.7 46.0 -- Bolivia 10.0 -- 62.7 -- Bosnia- Herzegovina a/ 10.0 2.3 48.4 -- Cote d'Ivoire 5.0 -- -- 12.5 El Salvador 10.0 -- -- -- Eritrea 5.0 -- 31.3 -- Georgia a/ 15.0 2.3 79.6 -- Guyana 5.0 -- 31.3 -- Jamaica 5.0 -- -- 12.5 Jordan 15.0 -- 94.0 -- Moldova a/ 10.0 2.1 49.6 -- Nicaragua 10.0 -- 62.7 -- Pakistan 10.0 -- -- -- Sri Lanka 10.0 -- 62.7 -- Tanzania a/ 5.0 1.1 24.6 -- Private trade b/ 10.0 -- -- -- TOTAL 165.0 13.8 642.5 36.3 a/ Ocean freight financing is included in the total allocation estimate. b/ Commodities to be provided to private trade are undesignated at this point. First Quarter FY 1998 Public Law 480 Title I Country and Commodity Allocations Oilseed Country Veg. Oil Meal Soybeans (-------------000 Metric Tons-------------) Angola 7.7 -- -- Armenia -- -- -- Bolivia -- -- -- Bosnia-Herzegovina -- -- -- Cote d'Ivoire -- -- -- El Salvador 8.8 17.7 -- Eritrea -- -- -- Georgia -- -- -- Guyana -- -- -- Jamaica -- -- -- Jordan -- -- -- Moldova -- -- -- Nicaragua -- -- -- Pakistan -- -- 42.5 Sri Lanka -- -- -- Tanzania -- -- -- Private trade -- -- -- TOTAL 16.5 17.7 42.5 Title I Funded Food for Progress Program FY 1998 Estimated Ocean Wheat/ Country Total Freight Grant Wheat Flour Rice (Mil $) (Mil $) (000 MT) (000 MT) Albania a/ 10.0 2.1 49.6 -- Bangladesh a/ 10.0 2.0 50.1 -- Kyrgyzstan a,b/ 15.0 4.5 40.1 10.2 Mozambique a/ 10.0 1.8 25.1 10.5 Tajikistan a,b/ 10.0 3.9 38.5 -- Private trade c/ 14.0 -- -- -- TOTAL 69.0 14.3 203.4 20.7 a/ Ocean freight payment (grant) is included in the total allocation estimate. b/ Inland transportation cost is included in the total allocation estimate. c/ Commodities to be provided to private trade are undesignated at this point. P.L. 480 Title I Credits and Title I Funded Food for Progress Allocations ($Million) Allocated Financing and Grant 234.0 Ocean Freight Differential 21.4 _____ TOTAL 255.4 # 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