In the 2014 farm bill, Bread for the World worked to ensure that a number of reforms were added to help improve food aid. Unfortunately, there is still a provision in the law requiring a certain percentage of funds to be spent on monetization a major flaw process in which U.S. commodities are donated to NGOs, who then sell the food in recipient countries to raise money for their programs.
It is widely understood to distort markets, hurting the same smallholder farmers that agricultural projects aim to help. Moreover, monetizing food aid is an extremely inefficient way to provide development assistance.
As efforts move forward with negotiations on the next version of the farm bill, we will seek to continue to improve U.S. food aid, end the requirement to monetize food aid, and have Congress engage with all stakeholders in order to maximize efficiencies and improve the reach of U.S. international food assistance programs.
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