ASA Announces Details of 1 Billion Foreign Concessional Sale and Donation Program

first_imgThe American Soybean Association (ASA) announced the details of its proposed $1 billion concessional sale and donation program for soybeans, soybean meal, soybean oil, soy flour, isolated soy protein, textured vegetable protein, functional and non-functional soy protein concentrates and textured soy protein concentrates. A comprehensive list of recipient countries, quantities, and products for concessional sales and donations was jointly presented today by ASA and the National Oilseed Processors Association (NOPA) to Secretary of Agriculture Dan Glickman.ASA President Mike Yost, a soybean producer from Murdock, Minn., said, “ASA leaders met with Secretary Glickman in Washington on March 16 to present our ideas for utilizing Commodity Credit Corporation (CCC) funds for a purchase and donation program that could help alleviate a disastrous decline in prices and soybean producer income. The Secretary showed a great deal of interest in our proposal, and asked that we provide specific recommendations for USDA to consider.”NOPA Chairman William Campbell said, “Concessional sales and donations provide needed relief today while helping build new markets for tomorrow. We are pleased to join with ASA in submitting this list of countries that can greatly benefit from these sales and donations. To provide humanitarian relief and to strengthen the soybean industry, we urge the Secretary to act quickly in moving this program forward.”With soybean prices predicted to reach a 30-year low this fall and soybean stocks projected at the highest level ever, a soy-specific purchase and donation program will assist the most needy countries in the world with much needed food aid while helping to improve prices paid to farmers for their soybeans.”We believe that decisive and prompt action must be taken by the Administration to bolster demand,” Yost said. “We believe USDA can use Commodity Credit Corporation Charter Act authority and various concessional sale and donation programs to move quickly to implement this soy initiative.”ASA and NOPA propose that this large-scale commodity assistance and market development program be initiated immediately and implemented over the next two years. The associations anticipate that this program will create viable and maintainable opportunities that government and private sector participants can continue to develop in future years. This program would be conducted using CCC Charter Act and Section 416(b) authorities, similar to the purchase and donation initiative implemented for wheat last year, and humanitarian assistance under P.L.480 (the Food for Peace Program).Yost said, “We are very aware of the potential harmful effects that large donation packages can have on U.S. commercial exports and on domestic agricultural industries in countries that receive aid packages. In developing this list, we have sought guidance from several commercial entities and industry associations, which have proposed many of the concessional and donation tonnages we are recommending. Our goal has been to craft a concessional sale and donation package that maximizes the positive impact on U.S. soybean and product prices while minimizing displacement of commercial sales.”ASA and NOPA believe the domestic and international benefits of this assistance will:Provide the United States with a unique opportunity to assist the most needy countries in the world with much needed food aid.Maintain and reconstruct markets for soybeans and soy products that were either diminished or lost as a result of the recent global financial crisis.Help develop new long-term markets for soybeans and soy products, including newly developed soy protein isolates and concentrates.Ensure political and economic stability for many of the recipient countries.Support U.S. employment and economic activity through the processing, handling, and transportation of the soy products included in the package.Support consumption of soybeans, soybean meal, and soy oil in order to assist farmers.Yost said, “We look forward to working with the Department of Agriculture, private voluntary organizations, and industry to create and implement this program of humanitarian assistance and market development.”last_img

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