Title II Programmatic Monetization Guidelines for Fiscal Year 2000

AGENCY FOR INTERNATIONAL DEVELOPMENT

Title II Programmatic Monetization Guidelines for Fiscal Year

2000

Pursuant to the Agricultural trade Development and Assistance Act

of 1954, as amended (Pub. L. 480), notice is hereby given that the

following guidelines are available to interested parties for the

required thirty (30) day comment period.

Programmatic Guideline Being Applied by the Bureau for Humanitarian

Response, Office of Food for peace (BHR/FFP) in Review of Fiscal Year

(FY) 2000 Public Law (Pub. L.) 480 Title II Commodity Monetization

Activities:

Background: The following programmatic principles concerning the

monetization of agricultural commodities being made available to

eligible organizations under the PL 480 Title II Program were

enunciated by the Deputy Assistant Administrator of USAID's Bureau of

Humanitarian Response (BHR) Leonard Rogers to the Food Aid Consultative

Group (FACG) at its Semi-Annual Consultation in Washington, DC on March

25, 1999. They reflect discussions by USAID/BHR, USDA, FACG members,

Congressional staff and those of the U.S. food export and processing

industries between December 1998 and March 1999. These guidelines will

be used in a pilot program over approximately the next two years in

conjunction with BHR/FFP's Modernization Field manual, Pub. L. 480

Title II Programs, and the Development Activity Proposal (DAP) and

Previously Approved Activity (PAA) Guidelines released on October 16

and December 8, 1998 respectively, in review of cooperating sponsor

monetization activities proposed in Title II-assisted development

interventions:

1. In general, Title II Monetization activities will not be

undertaken where they would disrupt commercial markets for U.S.--

produced agricultural commodities;

2. Proposals advocating the monetization of value-added (i.e.

processed, fortified, bagged, or refined) Title II commodities and

sales designed and executed in consultation with the U.S. food export

and processing trade will receive priority;

3. BHR/FFP will give priority to monetization in the recipient

country;

4. Priority will also be given to monetizations supporting or

complementing the direct distribution of value-added Title II

commodities and/or resulting in benefits directly linked to the

reduction of hunger;

5. Development interventions entirely based on the monetization of

Title II commodities will also continue to be considered by BHR/FFP so

long as their benefits can be directly linked to reduction of food

insecurity and where the U.S. food itself has a clear benefit to hungry

people.

6. If there are compelling reasons that preclude in-country

monetization, consideration will be given to monetization in an

adjacent (i.e. a closely neighboring) country following consultations

with U.S. commercial interests in all instances. Regional monetization

beyond adjacent countries will be considered only on an exception basis

and only after full consultations.

In an effort to determine whether these guidelines should be

permanently used in allocating Pub. L. Title II resources for

monetization activities by eligible organizations, they will be

assessed by USAID/BHR/FFP together with the Food Aid Consultative

Group, Congressional oversight committees, the Department of

Agriculture, representatives of the U.S. food export and processing

trade, and others concerned.

Individuals who have questions or comments on these guidelines

should contact David R. Nelson at (202) 712-1828, Office of Food for

Peace, Agency for International Development, RRB 7.06-120, 1300

Pennsylvania Avenue, Washington, DC 20523-0809.

The thirty day comment period will begin on the date that this

announcement is published in the Federal Register.

Dated: May 14, 1999.

William T. Oliver,

Director, Office of Food for Peace Bureau for Humanitarian Response.

[FR Doc. 99-12807 Filed 5-21-99; 8:45 am]

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