Is U.S. food aid simply surplus disposal?
No. Title II food aid (the main part of U.S. Government food aid) is entirely within budget. It is an additional expense, and the food is purchased on the open, competitive market. The amount of food aid procured has no link to increased production. Food aid is surplus in the sense that it is available on the open market. Food aid is also counter-cyclical, meaning that more food is available during times of increased production, not as a result of subsidies, but because the augmented purchasing power of the budget allows for buying more food. Public Law 480 (PL480) is the Agricultural Trade Development Assistance Act. Originally passed in 1954, PL480 is the law that established the primary food aid program of the United States. Title II refers to food aid meant for humanitarian aid. WV uses Title II food aid.
