Agricultural Trade Development And Assistance Act

Summary of Agricultural Trade Development And Assistance Act

Known commonly as P.L. 480, a 1954 act of Congress directed at the long-term improvement of the economies of developing nations through the concessional sale or grant of American agricultural products. The act is implemented by the Foreign Agricultural Service of the U.S. Department of Agriculture through several programs: 1. Title I authorizes low-interest, long-term financing of the sale of American farm commodities to developing countries. Such sales are paid in dollars which are used in recipient countries to fund agricultural development, such as irrigation, distribution systems, and technical research and training.

2. Title II permits donation of American food products to nations that have suffered natural disasters or famines.

3. Title III is divided into two parts: (a) the Food for Peace program, which permits development schemes to be planned on a multiyear basis, and permits forgiveness of dollar obligations incurred under Title I in return for pursuit by the recipient country of defined development objectives, and (b) the Commodity Credit Corporation Export Credit Guarantee Program, also known as GSM-102, which is designed to stimulate exports of American farm products by providing payment guarantees on private financing of export sales. The guarantees are applicable on letter of credit sales to foreign buyers with terms of three years or less.

(Main Author: William J. Miller)