The Washington Post reported this weekend that due to soaring food prices, the US Agency for International Development was drafting plans to cut down the number of recipient nations and the amount of food provided to them. The article states:
"USAID officials said that a 41 percent surge in prices for wheat, corn, rice and other cereals over the past six months has generated a $120 million budget shortfall that will force the agency to reduce emergency operations. That deficit is projected to rise to $200 million by year's end. Prices have skyrocketed as more grains go to biofuel production or are consumed by such fast-emerging markets as China and India."
Officials are reviewing all of the agency's emergency programs to prioritize its work. USAID projects target almost 40 countries and zones including Ethiopia, Iraq, Somalia, Honduras and Sudan's Darfur region. Read the full article here