7 U.S.C. § 1727b — Grant programs

Page 986 TITLE 7—AGRICULTURE § 1727a Executive Documents IMPLEMENTATION OF PROGRAM Program under this subchapter to provide for dona- tion of agricultural commodities to least developed countries to be implemented by Administrator of the Agency for International Development, see Ex. Ord. No. 12752, § 1(c), Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title. § 1727a. Eligible countries (a) Least developed countries A country shall be considered to be a least de- veloped country and eligible for the donation of agricultural commodities under this subchapter if— (1) such country meets the poverty criteria established by the International Bank for Re- construction and Development for Civil Works Preference for providing financial assistance; or (2) such country is a food deficit country and is characterized by high levels of malnutrition among significant numbers of its population, as determined by the Administrator under subsection (b). (b) Indicators of food deficit countries To make a finding under subsection (a)(2) that a country is a food deficit country and is charac- terized by high levels of malnutrition, the Ad- ministrator must determine that the country meets all of the following indicators of national food deficit and malnutrition: (1) Calorie consumption That the daily per capita calorie consump- tion of the country is less than 2300 calories. (2) Food security requirements That the country cannot meet its food secu- rity requirements through domestic produc- tion or imports due to a shortage of foreign exchange earnings. (3) Child mortality rate That the mortality rate of children under 5 years of age in the country is in excess of 100 per 1000 births. (c) Priority In determining whether and to what extent ag- ricultural commodities shall be made available to least developed countries under this sub- chapter, the Administrator shall give priority to countries that— (1) demonstrate the greatest need for food; (2) demonstrate the capacity to use food as- sistance effectively; (3) have demonstrated a commitment to policies to promote food security, including policies to reduce measurably hunger and mal- nutrition through efforts such as establishing and institutionalizing supplemental nutrition programs targeted to reach those who are nu- tritionally at risk; and (4) have a long-term plan for broad-based, equitable, and sustainable development. (July 10, 1954, ch. 469, title III, § 302, as added Pub. L. 95–88, title II, § 211(a)(2), Aug. 3, 1977, 91 Stat. 549; amended Pub. L. 96–53, title II, § 205, Aug. 14, 1979, 93 Stat. 369; Pub. L. 99–83, title X, § 1004(b), Aug. 8, 1985, 99 Stat. 271; Pub. L. 99–198, title XI, § 1108, Dec. 23, 1985, 99 Stat. 1467; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3642.) Editorial Notes PRIOR PROVISIONS A prior section 302 of act July 10, 1954, ch. 469, title III, 68 Stat. 458, which amended section 1431 of this title, was renumbered section 309 by Pub. L. 95–88, title II, § 211(a)(1), Aug. 3, 1977, 91 Stat. 548. AMENDMENTS 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions setting out criteria for eligibility of developing countries for dis- tribution of commodities, minimum aggregate value of agreements for such distribution, waiver of minimum, and participatory requirements. 1985—Subsec. (c)(1)(C). Pub. L. 99–198 substituted ‘‘10’’ for ‘‘15’’ percent. Subsec. (c)(4). Pub. L. 99–83 inserted ‘‘and of United States nonprofit voluntary agencies and cooperatives’’. 1979—Subsec. (c)(4). Pub. L. 96–53 added par. (4). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under sec- tion 2151–1 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE Section effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as an Effective Date of 1977 Amend- ment note under section 1702 of this title. § 1727b. Grant programs To carry out the policies and accomplish the objectives described in section 1691 of this title, the Administrator may negotiate and execute agreements with least developed countries to provide commodities to such countries on a grant basis either through the Commodity Cred- it Corporation or through private trade chan- nels. (July 10, 1954, ch. 469, title III, § 303, as added Pub. L. 95–88, title II, § 211(a)(2), Aug. 3, 1977, 91 Stat. 550; amended Pub. L. 96–53, title II, § 204(c), Aug. 14, 1979, 93 Stat. 369; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3642.) Editorial Notes PRIOR PROVISIONS A prior section 303 of act July 10, 1954, ch. 469, title III, 68 Stat. 459, which enacted section 1692 of this title, was renumbered section 310 by Pub. L. 95–88, title II, § 211(a)(1), Aug. 3, 1977, 91 Stat. 548. AMENDMENTS 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions relating to a Page 987 TITLE 7—AGRICULTURE § 1727d multiyear utilization proposal regarding value and amount of commodities proposed to be distributed, in- tegration with other forms of development assistance, and non-replacement of other programs. 1979—Subsec. (a). Pub. L. 96–53 struck out ‘‘for each year such funds are to be disbursed’’ after ‘‘on an an- nual basis’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE Section effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as an Effective Date of 1977 Amend- ment note under section 1702 of this title. § 1727c. Direct uses or sales of commodities Agricultural commodities provided to a least developed country under this section— (1) may be used in such country for— (A) direct feeding programs, including pro- grams that include activities that deal di- rectly with the special health needs of chil- dren and mothers consistent with section 2151b(c)(2) of title 22, relating to the Child Survival Fund; or (B) the development of emergency food re- serves; or (2) may be sold in such country by the gov- ernment of the country or the Administrator (or their designees) as provided in the agree- ment, and the proceeds of such sale used in ac- cordance with this subchapter. (July 10, 1954, ch. 469, title III, § 304, as added Pub. L. 95–88, title II, § 211(a)(2), Aug. 3, 1977, 91 Stat. 550; amended Pub. L. 95–424, title II, § 202, Oct. 6, 1978, 92 Stat. 955; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3642.) Editorial Notes PRIOR PROVISIONS A prior section 304 of act July 10, 1954, ch. 469, title III, 68 Stat. 459, enacted section 1693 of this title, prior to repeal by Pub. L. 89–808, § 2(D), Nov. 11, 1966, 80 Stat. 1535. AMENDMENTS 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions relating to furnishing of credit by Commodity Credit Corporation to participating country for purchase of commodities, payment by recipient government, waiver of require- ments to meet humanitarian or developmental objec- tives, and payment of freight charges of relatively least developed countries. 1978—Subsec. (d). Pub. L. 95–424 added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–424 effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE Section effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as an Effective Date of 1977 Amend- ment note under section 1702 of this title. § 1727d. Local currency accounts (a) Retention of proceeds To the extent determined to be appropriate by the Administrator, revenues generated from the sale, under section 1727c(2) of this title, of agri- cultural commodities provided under this sub- chapter shall be deposited into a separate ac- count (that may be interest bearing) in the re- cipient country to be disbursed for the benefit of such country in accordance with local currency agreements entered into between the recipient country and the Administrator. The Adminis- trator may determine not to deposit such reve- nues in a separate account if— (1) local currencies are to be programmed for specific economic development purposes listed in section 1727e(a) of this title; and (2) the recipient country programs an equiv- alent amount of money for such purposes as specified in an agreement entered into by the Administrator and the recipient country. (b) Ownership and programming of accounts The proceeds of sales pursuant to section 1727c(2) of this title shall be the property of the recipient country or the United States, as speci- fied in the applicable agreement. Such proceeds shall be utilized for the benefit of the recipient country, shall be jointly programmed by the Ad- ministrator and the government of the recipient country, and shall be disbursed for the benefit of such country in accordance with local currency agreements between the Administrator and that government. (c) Overall development strategy The Administrator shall consider the local currency proceeds as an integral part of the overall development strategy of the Agency for International Development and the recipient country. (July 10, 1954, ch. 469, title III, § 305, as added Pub. L. 95–88, title II, § 211(a)(2), Aug. 3, 1977, 91 Stat. 550; amended Pub. L. 95–424, title II, § 203, Oct. 6, 1978, 92 Stat. 955; Pub. L. 96–53, title II, §§ 204(b), 206, Aug. 14, 1979, 93 Stat. 369; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3643.) Editorial Notes PRIOR PROVISIONS A prior section 305 of act July 10, 1954, ch. 469, title III, 68 Stat. 459, enacted section 1694 of this title, prior to repeal by Pub. L. 89–808, § 2(D), Nov. 11, 1966, 80 Stat. 1535. AMENDMENTS 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions authorizing deposit of funds generated from sale of commodities