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Great work and thanks for your leadership! David

From: Rick Leach [mailto:RLeach@wfpusa.org]
Sent: Monday, April 30, 2012 12:03 PM
To: Amelia Shister <ashister@bipartisanpolicy.org>; Anne Marie Person <amperson@rosemontseneca.com>; Barbara Belmont <barbara.belmont@gmail.com>; Bonnie Raquet <beraquet@aol.com>; Brittany Schmidt <bellisschmidt@ofwlaw.com>; Carl Stern <carl.stern@gs.com>; Dan Glickman <dglickman@bipartisanpolicy.org>; Novak, David; Hughes, Donna; Dr. Derek Yach <derek.yach@pepsico.com>; Dr. Marsha Dubrow <madubrow@comcast.net>; Frank Corso <fmcjrsba@aol.com>; George Economy <george.economy@gmail.com>; Hunter Biden <hbiden@rosemontseneca.com>; Joan Power <Joan.Power@edelman.com>; Blum, Jonathan; Josie Kummer <josie.kummer@pepsico.com>; Kathryn Johnson <kej1@comcast.net>; Khaliah Ali <diversitybykali@aol.com>; Schmid, Kimberly; Laura Huber <lhuber@albrightstonebridge.com>; Marshall Matz <mmatz@ofwlaw.com>; Matthew J. Harrington <matthew.harrington@edelman.com>; Rachel Reeve <rreeve@russellgroupdc.com>; Randy Russell <rrussell@russellgroupdc.com>; Rick Leach <RLeach@wfpusa.org>; Samuel "Sandy" Berger <sberger@albrightstonebridge.com>; Shannon Hiskey <SHiskey@wfpusa.org>; Victor Latino <victor.latino@gs.com>
Subject: Update

TO: Board of Directors
FR: Rick Leach
DT: April 30, 2012
RE: Update

Last week, the United States Senate took important steps to alleviate global hunger. These steps are the culmination of on-going efforts targeting the appropriations and agriculture committees, as follows:

The Farm Bill
As you know, we developed several provisions to enhance the efficiency and effectiveness of US food assistance programs that are within the jurisdiction of the Farm Bill and, during the last 6-8 months, we worked closely with the bipartisan leadership of the Senate Agriculture Committee to help ensure that these provisions were included in the bill. The Farm Bill passed by the Senate Agriculture Committee last week included these provisions, as follows:

· Increasing the sustainability of the school feeding program by linking it to the local purchase of food

o The McGovern-Dole Program provides US commodities for use in school feeding programs. We recommended that the Committee continue a pilot program that was authorized in the last Farm Bill that allowed for the local and regional purchase of food (LRP) and link this program to the McGovern-Dole Program. Linking school feeding operations to the local purchase of food increases the sustainability of these programs and enhances the process of graduating the programs to local government control and management.

o The annual funding level authorized for the LRP program was increased from $25 million to $40 million (these funds would supplement the annual appropriation for the McGovern-Dole Program). WFP receives approximately 40% of McGovern-Dole Program resources.

· Integrating US food security programs and bolstering resiliency in the Horn of Africa

o As you know, there are a range of programs across USG agencies and departments that promote food security. Greater coordination among these programs – especially among emergency and long term development operations – can increase efficiency and help communities build resilience to societal shocks thereby reducing the negative impacts of natural disasters and civil conflicts. Almost half of all USG funds to address emergency needs are used in the Horn of Africa each year.

o We proposed that a pilot program be established to foster coordination of food security programs in the Horn of Africa. The program, named after Representative Donald Payne, provides $10 million annually for integrated operations that foster resiliency and for evaluation of the steps taken to promote interagency coordination. It is intended to provide a model that can be expanded or replicated.

· Enhancing the Nutritional Quality of Food Assistance

o To enhance the nutritional quality of food aid, we recommended that the Committee expand the authority of USAID to evaluate and approve new nutritional products and to develop guidance for the use of these products in food assistance programs. These provisions will help USAID implement the recommendations from the May 2011 GAO Report and 2010 Tufts Food Aid Quality Review.

· Reaching a Compromise on the “Safe Box� and monetization

o The “Safe Box�, included in the last Farm Bill, earmarked an increasing amount of Title II food aid for development purposes. This year, $450 million was earmarked for the safe box. Title II food aid is the primary source of USG assistance to address emergency needs (WFP receives over $1 billion annually through this account). The safe box earmark threatens the USG’s ability to respond to crises and is not consistent with the trend towards increased cash for food assistance programs through the foreign operations accounts (with corresponding decreases in commodity-based food aid). In addition, 70% of safe box food aid is monetized – thereby using 24-42% of the total aid to cover the cost of monetization.

o We worked with the Committee and members of the NGO community to develop a compromise that would provide a transition from the safe box and monetization. The compromise provides that 15-30% of Title II resources will be used for development purposes (with a $275 million floor). This will provide USAID with needed flexibility to address emergencies and ensure continuity of funding over the next five years for the development programs – while also supporting the trend towards a more varied and efficient tool box to promote food security. The compromise also requires a cost recovery rate of at least 70% on monetization.
Our Statement in Support of the Senate Farm Bill is attached.

Appropriations
Last week, the Agricultural Appropriations Subcommittee passed its 2013 funding bill. The subcommittee funded both the Title II Program and the McGovern-Dole Program at the levels provided last year. As you know, these two accounts comprise the majority of resources that WFP receives from the USG (other funds to promote food security are provided in the foreign operations appropriations). In light of the financial challenges faced by Congress and the country, it was a significant success.

· Title II - $1.466 billion ($66 million more than the administration request). In addition, the bill also provides the authority for USAID to waive the requirements of the safe box, as circumstances require.

· McGovern-Dole International Food for Education - $184 million
We continued to work closely with the appropriations subcommittee in developing the justification for the funding levels (and the need for the waiver). In that regard, it is important to note the excellent coordination with Allan Jury and the WFP-DC team in developing the funding justification and in our other public policy advocacy efforts.

George McGovern 90th Birthday Celebration – July 19th
On July 19th, we will be hosting a birthday celebration in honor of George McGovern’s 90th birthday. It is likely that the celebration will be co-hosted by Members of Congress. Please save the date; more details will be provided.


Thank you very much for your continued commitment and dedication to the mission of WFP and WFPUSA. Your support and generous donation of time and energy is greatly appreciated.

All the Best,
Rick


Richard Leach
President & CEO

World Food Program USA
1819 L Street NW, Suite 900
Washington, DC 20036
T 202.530.1694
F 202.530.1698
rleach@wfpusa.org<mailto:jcorum@wfpusa.org>


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