Under the Food for Progress Act of 1985, U.S. agriculture commodities are provided to developing countries and emerging democracies committed to introducing and expanding free enterprise in the agricultural sector.  Commodities are currently provided on a donation basis to foreign governments, private voluntary organizations, non-profit organizations, cooperatives, or intergovernmental organizations.

The implementing organizations request commodities and USDA purchases those commodities from the U.S. market. USDA donates the commodities to the implementing organizations and pays for the freight to move the commodity to the recipient country.

USDA announces it is seeking FFPr proposals from private voluntary organizations (PVOs), foreign governments, and the United Nations World Food Program (WFP) for the coming fiscal year through the FAS website, the Food Assistance Consultative Group (FACG), and other avenues. Generally, proposals are due to USDA in the summer and those chosen are announced the following January.

USDA considers proposals for all developing countries and territories that meet the requirements of the Food for Progress Act of 1985. Priority consideration is given to proposals for countries with:

• per capita income at lower or lower-middle income standards (using World Bank statistics);

• greater than 20-percent prevalence of undernourishment as a proportion of the total population (World Health Organization (WHO) of the United Nations data); and

• positive movement toward freedom, including political rights and civil liberties (as defined by Freedom House).

USDA also uses FFPr to target countries in transition, either politically or economically. Program priorities, including targeted countries, are announced publicly through the FAS website and the FACG.

Proposals should focus on private sector development of agricultural sectors such as improved agricultural techniques, marketing systems, farmer education and cooperative development, expanded use of processing capacity, and development of agriculturally related businesses. Each proposal is analyzed to ensure that:

• commercial markets are not disrupted;

• tangible benefits exist for the country’s agricultural sector;

• tangible, quantifiable outcomes are defined;

• it is well developed and articulated;

• it identifies appropriate commodities and tonnages for the target country; and

• the organization’s capability and experience to carry it out is demonstrated.

Depending on the agreement, the commodities donated through FFPr may be sold in the recipient country, and the proceeds used to support agricultural, economic, or infrastructure development programs. Assistance is provided through foreign governments, PVOs, nonprofit organizations, cooperatives, and intergovernmental organizations. The program is limited by statute to pay no more than $40 million annually for freight costs. USDA supports about 15-20 projects each year that impact more than a million people.

One example of how this programs works is the FFPr agreement between USDA and FINCA International that provided more than $3.5 million in commodities for use in Nicaragua.  FINCA sold the commodities and used the funds to:

• increase loan capital and micro-finance services to micro-entrepreneurs in agriculture-related businesses;

• develop a specialized agriculture lending product to address the unique financial needs of agricultural clients; and

• establish an impact assessment protocol to maximize micro-lending effectiveness in agriculture-related businesses.

By disbursing more than 1,100 loans, FINCA's Food for Progress Project has enabled 800 agricultural entrepreneurs to increase their profits.  More than 31,000 community members will benefit as the program continues to expand.

Food for Progress Program Resources

Questions or comments can be directed to the Food Assistance Division at 202-720-4221
or via e-mail at PPDED@fas.usda.gov.