USC Subchapter II

in effect

7 U.S.C. § 1701 Economic assistance and food security

(a) In generalThe President shall establish a program under this subchapter to provide for the sale of agricultural commodities to developing countries and private entities for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this subchapter. Such program shall be implemented by the Secretary. (b) General authorityTo carry out the policies and accomplish the objectives described in section 1691 of this title, the Secretary may negotiate and execute agreements with developing countries and private entities to finance the sale and exportation of agricultural commodities to such countries and entities.

7 U.S.C. § 1702 Agreements regarding eligible countries and private entities

(a) PriorityIn selecting agreements to be entered into under this subchapter, the Secretary shall give priority to agreements providing for the export of agricultural commodities to developing countries that—(1) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and (2) demonstrate the greatest need for food. (b) Private entitiesAn agreement entered into under this subchapter with a private entity shall require such security, or such other provisions as the Secretary determines necessary, to provide reasonable and adequate assurance of repayment of the financing extended to the private entity.

7 U.S.C. § 1703 Terms and conditions of sales

(a) Payment(1) DollarsExcept as provided in paragraph (2), agreements under this subchapter shall require that payment for agricultural commodities be made in dollars. (2) Local currencies(A) In generalThe Secretary may permit payment under an agreement under this subchapter in the local currency of the appropriate country in order to use the proceeds from such payments to carry out activities under section 1704 of this title. (B) Rates of exchangePayments in local currency shall be at rates of exchange that are no less favorable than the highest exchange rate legally obtainable in the country and that are no less favorable than the highest exchange rate obtainable by any other country. (b) InterestSuch agreements shall provide that interest accrue on the payment deferred under such agreement at a concessional rate as determined appropriate by the Secretary. (c) DurationPayments required under such agreements may be made in reasonable annual amounts over the period (not more than 30 years from the date of the last delivery of commodities in each year under such agreement) specified in the agreement. (d) Deferral of paymentsThe Secretary may defer the date on which the developing country or private entity is required to begin making payment, under such agreements, for a period of not in excess of 5 years after the date of the last delivery of commodities in each year under the agreement, and interest shall be computed from the date of such last delivery. (e) Delivery of commoditiesDelivery of the commodities shall be made in accordance with the terms of the agreement.

7 U.S.C. § 1704 Use of local currency payment

(a) In generalAgreements under this subchapter may provide that the Secretary shall use payments made in local currencies by the developing country or private entity in accordance with this section. (b) Special accountForeign currencies received by the Secretary under this subchapter shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section. (c) ActivitiesThe proceeds from the payments referred to in subsection (a) may be used in the appropriate developing country, through agreements with recipient governments, private voluntary organizations, and cooperatives, for the following:(1) Agricultural developmentTo support—(A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management; (B) credit policies for private-sector agriculture development; (C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services; (D) programs to control rodents, insects, weeds, and other animal or plant pests; and (E) the improvement of the trade capacity of the recipient country. (2) Agricultural business development loansTo make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for development of agricultural businesses and agricultural trade capacity in such appropriate developing countries. (3) Agricultural facilities loansTo make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of agricultural products. (4) Trade promotionTo promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs to promote agricultural products produced in appropriate developing countries) that the Secretary determines to be appropriate. (5) Private sector agricultural trade developmentTo conduct private sector agricultural trade development activities in the appropriate developing country, as determined appropriate by the Secretary. (6) ResearchTo conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the appropriate developing country. (7) United States obligationsTo make payments of United States obligations (including obligations entered into pursuant to other laws). (8) Safe water and sanitationTo provide assistance under section 2152h 11 See References in Text note below. of title 22 to promote good health, economic development, poverty reduction, women’s empowerment, conflict prevention, and environmental sustainability by increasing affordable and equitable access to safe water and sanitation. (d) Fiscal requirements regarding use of local currencies(1) ExemptionSection 1306 of title 31 shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c). (2) Use of currencies by other agenciesAny department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used.

7 U.S.C. § 1704a Agreements for use of foreign currencies; reports to Congress

Within sixty days after any agreement is entered into for the use of any foreign currencies, a full report thereon shall be made to the Senate and the House of Representatives of the United States and to the Committees on Agriculture and Appropriations thereof.

7 U.S.C. § 1704c Payments by Secretary of Defense in liquidation of amount due for foreign currencies

The Secretary of Defense shall pay to the Commodity Credit Corporation an amount not to exceed $6,000,000 per year until the amount due for foreign currencies used for housing constructed or acquired under title II of the Food for Peace Act (7 U.S.C. 1721–1726) has been liquidated.