The American Soybean Association (ASA) is encouraged by yesterday’s announcement from Secretary of Agriculture Dan Glickman that provides for $61 million in soybean, soymeal and soyoil shipments under the Public Law (P.L.) 480, Title I program. "Since May of this year, the American Soybean Association has stressed to Congress and the Administration the critical need to expand export credit and foreign food assistance programs to include soybeans and products," said ASA President Mike Yost, a soybean farmer from Murdock, Minnesota. "These P.L. 480 allocations are appreciated, and they will benefit U.S. soybean farmers during this time of low prices, but they fall short of opportunities identified by ASA for soybean and soybean product shipments under these programs."

Yesterday’s announcement by Secretary Glickman included fourteen countries that are eligible to receive commodities valued at $166.0 million through the Food for Peace program including soybeans, vegetable oil and oilseed meal valued at $45.4 million. In total, 77,100 metric tons of soybeans, 26,700 metric tons of vegetable oil, and 100,800 metric tons of oilseed meal were authorized for delivery during fiscal 1999.

Title I of the P.L. 480 Food for Peace Program is a concessional sales program to promote exports of U.S. agricultural commodities and to foster broad-based sustainable development in recipient countries. The program provides export financing over payment periods of up to 30 years, low interest rates, and maximum grace periods of up to 5 years repayment of principal. Private entities, including agricultural trade organizations, are authorized to participate in the program.

Countries eligible for the Title I program are developing countries experiencing a shortage of foreign exchange earnings and difficulty meeting their food needs through commercial channels. The factors that determine priorities for country allocations include food needs, potential for becoming a commercial U.S. market, and likely improvement of food security through agricultural projects and economic measures. The allocations take into account changing economic and foreign policy situations, market development opportunities, existence of adequate storage facilities, and possible disincentives to local production.

The announced allocations under the Food for Progress program total $35.0 million to three countries, including more than $15.8 million of soybean meal and vegetable oil. Bosnia-Herzegovina received an allocation of 6,000 metric tons of vegetable oil, Russia is to receive 74,300 metric tons of soybean meal, and the former Soviet Republic of Kyrgyzstan was allocated 15,000 metric tons of soybean meal.

The Food for Progress program is an independently authorized program that may be funded with Title I monies. It is used to support countries that have made commitments to introduce or expand free enterprise elements in their agricultural economies. These changes involve commodity pricing, marketing, input availability, distribution, and private sector involvement.

"It’s ASA’s view that these allocations represent less than 34 percent of the existing opportunities for utilizing Humanitarian Assistance and Food for Progress Monetization program funding," Yost added. Last month, ASA and the National Oilseed Processors Association (NOPA) provided to Secretary Glickman a detailed list of identified needs by country and product that totaled 270,000 metric tons of soybeans, 172,000 metric tons of soybean oil and 195,000 metric tons of soybean meal. Those amounts are valued at roughly $180 million or three times the soybean and oilseed product allocations announced yesterday. This level of program utilization could support soybean prices paid to farmers by up to 13 cents per bushel."

"We appreciate USDA including $15 million of soybeans to Pakistan in the P.L. 480 allocations. Even more opportunities like this would be available to soybean farmers if the government would eliminate trade sanctions restricting U.S. agricultural exports to Cuba, Iran, North Korea, and Iraq. The American Soybean Association estimates that, due to sanctions, U.S. soybean farmers have lost exports of $71.8 million to Cuba, $53.8 million to Iran, $14.4 million to North Korea, and $4.7 million dollars to Iraq. That’s more than $144 million of lost opportunities in these countries alone," commented Yost.