Proposed changes to the Farm Bill would dramatically reduce the amount of U.S. grain exported through federal aid programs, threatening thousands of jobs in the transportation sector — including ports.
The Obama administration is pushing for the reforms, as did the Bush administration before it. If adopted, the U.S. flag vessel requirement (where 50 to 75 percent of food aid has to be shipped on U.S. vessels) will be dropped.
James Caponiti, executive director of American Maritime Congress, said, “If we get away from U.S. sourcing in the aid program, it would mean jobs lost – perhaps a permanent loss of jobs. It will have a negative impact on jobs, for sure. … We don’t see the need to permanently change the program from the way it’s currently designed where we use U.S. grain, process it in the United States, send it through our ports and ship it on U.S. flagged ships.”
“A permanent loss of cargo in the food aid program could lead to ships no longer being able to remain under U.S. flag,” says Caponiti. “We are concerned that would be a permanent loss. If we don’t have this (aid) cargo to rely on from year to year, it could result in the loss of ships.”