U.S. food aid to Ukraine could be coming
Sources tell us the U.S. could be planning to donate around 400,000 MT of emergency food aid to Ukraine, potentially as part of President Joe Biden's trip to Europe to meet with European leaders later this week.
The food aid is likely to be wheat, which would likely be paid for either via PL 480 Title II for emergency donation, but the money to buy the emergency grain could come from USDA's Commodity Credit Corp. (CCC) funding.
PL 480 Title II grants fund emergency and development food aid programs authorized under Title II of the Food for Peace Act (PL 83-480). Funding for Title II is appropriated to USDA and is administered by the U.S. Agency for International Development (USAID). The budget provides $1.57 billion for PL 480 Title II.
International Food Aid Assistance provided under the authority of PL 480 is a primary means by which the United States provides foreign food assistance. Title I provides for sales of U.S. agricultural commodities governments and private entities of developing countries through concessional financing agreements, however, new Title I agreements are no longer utilized. PL 480 Title II provides emergency and development food assistance in foreign countries.
Another option is the The Bill Emerson Humanitarian Trust, which is a commodity and/or monetary reserve designed to ensure that the United States can meet its international food assistance commitments under PL 480 Title II. The Trust’s assets can be released any time the Administrator of the United States Agency for International Development (USAID) determines that P.L. 480 Title II funding for emergency needs is inadequate to meet those needs in any fiscal year. When a release from the trust is authorized, the trust’s assets (whether commodities or funds) cover all commodity costs associated with the release. All non-commodity costs, including ocean freight charges; internal transportation, storage, and handling overseas; and certain administrative costs are paid for by CCC. As of Dec. 31, 2020, the Trust held $282 million of cash and no commodities.
Whatever the means of financing, it appears the U.S. will make an emergency food aid (likely wheat) donation to Ukraine of around 400,000 MT.
