Fighting world hunger: U.S. food aid policy and the food for peace program

AgExporter, Oct, 2004 by Ryan Swanson

The numbers are startling. More than 800 million people go to bed hungry each night, and nearly 50 million people currently face acute hunger as a result of war, civil strife or natural disaster. Additionally, the United Nations estimates that malnutrition is a significant factor in the deaths of 11,000 children each day

Even in the 21st century, with its technological advances, the quest for food security remains a daunting challenge. There is some reason for optimism, however, as the United States and many other countries have put in place programs to fight hunger throughout the world and significant success has been achieved. But even with these victories, there is still much work yet to be done.

Although fertile soil and proficient farmers have consistently provided for the United States' domestic food needs, U.S. leaders have long recognized that the problem of food scarcity knows no national borders. On one hand, basic humanitarianism demands that hunger elsewhere cannot be simply ignored. But also, and perhaps more practically speaking, today's international economy determines that problems rarely stay confined to one particular country or region. The reverberations of food scarcity in one country make their impact felt in food markets around the world. The U.S. government designates millions of dollars and tons of food each year for food aid.

The United States has a long history of providing assistance to needy countries around the world. Following World War I, the American Relief Administration, led by entrepreneur and soon-to-be President Herbert Hoover, distributed more than 4 million tons of food and supplies to starving people in Europe, especially the Soviet Union. The Berlin Airlift of 1948 came in response to Joseph Stalin's closure of all roads and railroads into Berlin in June 1948. For nearly one year, British and American forces responded by delivering by plane all food and other necessary materials to sustain the isolated city. The delivery of over 500,000 tons of food eventually broke Stalin's blockade.

Although food aid programs currently enjoy widespread political support, it took a war to open the eyes of many politicians regarding their importance. World War II pushed the United States to increase and formalize its food aid efforts. Throughout the years of fighting, Congress approved the donation of thousands of tons of food to European allies, especially the Soviet Union, to support both their armies and civilians. These food donations saved thousands of lives as famine spread throughout Europe. Following the war, U.S. involvement in food aid efforts continued to increase. The Marshall Plan, totaling nearly $13 billion, focused on feeding victims of the war and rebuilding the infrastructure and economy of Western Europe and Japan.

It was through this Plan, named for Secretary of State George C. Marshall, that U.S. government and military leaders first gained valuable experience in distributing food aid to destitute people. These leaders demonstrated to American politicians that a massive aid program could benefit both recipients and givers.

Chief among these rising leaders was a young army officer named Gwynn Garnett. Garnett served as the director of food and agriculture in the American zone of Germany and, on a daily basis, oversaw the procurement and distribution of extraordinary amounts of food to needy citizens. In this role, Garnett solidified an idea that changed U.S. food aid. Garnett proposed that the United States accept foreign currencies, many of which were virtually worthless outside their own borders after the war, in exchange for U.S. agricultural products. Although this approach seemed to suggest that the United States take a "loss" on its exports, Garnett focused on the larger ramifications.

The United States could use the local currency to rebuild the infrastructure and markets of war-ravaged areas that needed food. The United States could also fund the donation of food to the truly destitute. This investment would, in turn, facilitate the reopening of valuable markets for U.S. producers.

Leaders in both the Eisenhower Administration and Congress quickly embraced Garnett's plan when he presented it upon returning from Germany to serve as an American Farm Bureau official. The plan proved to be popular on two levels. It provided a structure by which the United States could meet the growing food needs of the world, and it helped put surplus U.S. agricultural production to good use.

The Foreign Agricultural Service and Food for Peace

The Agricultural Trade Development and Assistance Act of 1954 stamped Congress' approval on Garnett's plan. After the passage of EL. (Public Law) 480 in July 1954, USDA received its marching orders. The law provided the means to offer needy countries low-interest, long-term credit to purchase U.S. agricultural goods. The President delegated the concessional credit authority under that Act to the Secretary of Agriculture, who re-delegated that authority to FAS.