The Obama administration is consider implementing major changes to the way the State Department handles foreign food aid.

American food aid, which has been implemented primarily through the Food for Peace program created in 1954, has remained largely unchanged since the Cold War. The program served two main purposes; to advance American foreign policy interests through international aid, and to boost the US farm economy.

The program, which sends American farm products overseas (while also mandating that 75 percent of all food aid must travel on US flagged vessels), has more or less served as a federal farm subsidy, offering farmers a steady flow of federal money.

Food aid reformers, however, argue that the current program is inefficient. Sending food through US vessels, for example, can unnecessarily boost costs. Sending food staples, like rice, oil, flour, dried milk, etc., is also less efficient than encouraging aid recipients to purchase locally grown produce.

While it has not made any concrete announcements, it appears that the Obama administration may be considering implementing major changes to US food aid programs. In particular, it is considering lower overall spending for food aid and transforming the program into one that dispenses cash directly to aid recipients, rather than sending food shipments.

To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmloans.com.

Follow us on: Twitter

Written by: Justin Ellison / Farm Plus Staff Writer