U.S. to send more food aid overseas after Russia, Ukraine cut off exports

Published 9:06 am Thursday, April 28, 2022

The Biden administration plans to provide $670 million in U.S. wheat and other food aid to countries left in the lurch after Russia and Ukraine stopped exporting their crops.

Those two nations, now locked in a months-long war, were major suppliers of wheat to the Middle East and North Africa.

USDA and the U.S. Agency for International Development will purchase domestic wheat and other commodities to help feed people in Ethiopia, Kenya, Somalia, Sudan, South Sudan and Yemen experiencing food insecurity.

“Russia’s unprovoked war on Ukraine, a fellow major agricultural export country, is driving food and energy costs higher for people around the world,” said Secretary of Agriculture Tom Vilsack in a press release.

 “Today’s drawdown of the Bill Emerson Humanitarian Trust will help us respond to the unprecedented needs in countries around the world that are facing historic food insecurity,” USAID Administrator Samantha Power said in a statement.

The BEHT is used to respond to unanticipated food crises abroad when other resources are not available.

“The need is there. That’s the biggest concern, obviously, when people are struggling,” said Steve Mercer, vice president of communications for U.S. Wheat Associates.

“There’s no doubt the conflict in Ukraine is the source of significant and unexpected higher prices for wheat,” Mercer said. “The industry does expect that to lead to more food insecurity.” 

U.S. wheat prices are among the highest in the world, which has had a “chilling” effect on exports, Mercer said.

“Right now, we are basically priced out of the market, specifically in countries that are not the core purchasers” for U.S. wheat, Mercer said.

Ukraine was previously a major contributor to food aid programs, said Jake Westlin, National Association of Wheat Growers vice president of policy and communications.

“Even preceding the invasion of Ukraine, we were facing an unprecedented time in history, with a lot of increased food insecurity through regional conflicts and environmental concerns, where food production wasn’t quite at the level it needed to be to meet the demand,” Westlin said.

It was not immediately clear how much of the food aid will be wheat, Westlin said.

He estimated it could take several months for donated wheat to reach its destinations.

The food assistance is comprised of $282 million from the BEHT, with USDA providing $388 million through the Commodity Credit Corporation to cover transportation costs.

The cost of shipping wheat for food aid can be higher than shipping to regular overseas customers. Under the Cargo Preference Act of 1954, at least 50% of the gross tonnage of U.S. government-financed cargo must be shipped on U.S.-flag vessels.

The latest donation demonstrates the transportation costs involved, Westlin said.

NAWG has asked Congress to address the high costs of providing food aid.

NAWG will continue conversations about improving the food aid program and replenishing funding for the trust, Westlin said.

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