U.S. could add $770 million in food aid

President Bush's proposal to provide an additional $770 million in international food and development aid is winning praise from Congress and charities, but they say more needs to be done.

The president's request Thursday follows his April 15 decision to raise $200 million in food aid by selling off stockpiles of wheat reserved for international emergencies. In addition, $350 million in aid is pending before Congress.

"We're sending a clear message to the world: that America will lead the fight against hunger for years to come," he said.

The efforts are designed to soften the blow of a 45% increase in world food prices in the past nine months that has pushed staples such as rice and wheat out of reach for millions.

The dramatic price increases are due to a number of factors, including surging demand in emerging economies like China and India; bad weather in some top exporting nations, including Australia; smaller increases in crop yields in recent years; and the growing push for biofuels, which has diverted crops to fuel.

The World Bank has warned of food riots and unrest in 33 nations. World leaders are concerned the situation could spark political tensions. The Food and Agriculture Organization of the United Nations will hold an international summit June 3-5 in Rome.

The proposal would be combined with $178 billion that Bush wants for the Iraq and Afghanistan wars. The defense money is controversial in Congress, but there is growing consensus for increased food aid.

Democrats may add even more. "While the president's request is an important first step, we need a comprehensive strategy," said Sen. Joseph Biden, D-Del., chairman of the Foreign Relations Committee. "America has the opportunity here to … restore its moral leadership in the world."

The money, which won't be available until October, includes $395 million in food aid and $225 million in disaster aid for such things as food, cash or seeds for farmers in affected nations. Another $150 million would help those nations improve domestic food production. Africa would be the top recipient.

"We probably want to see even more of that long-term development assistance," said Joy Portella of Mercy Corps.

With the aid, the U.S. government would spend nearly $5 billion over two years to fight global hunger. Congress and the White House also are working to increase food assistance in the USA.

Joseph Glauber, chief economist at the Agriculture Department, told Congress on Thursday that domestic food prices could jump 5% this year after a 4.5% increase in 2007. Prices had been rising at a 2.5% pace.

Congress is trying to wrap up a five-year farm bill that increases domestic nutrition aid. The White House has opposed the bill, saying it delivers big crop subsidies to wealthy farmers.

House Speaker Nancy Pelosi, D-Calif., said Bush "must work with Congress and sign the farm bill."