about 2 months ago
CNBC Sep 24, 2026

World heads into food crises ‘blind’ as U.S. aid cuts squeeze UN food agency, experts warn

As the world grapples with growing food insecurity, the United Nations Food and Agriculture Organization (FAO) faces a critical funding shortfall worsened by the U.S. scaling back its foreign aid, particularly through cuts to USAID. Phil Hogan, a former EU trade commissioner and the frontrunner to lead the FAO, emphasized that other member nations must compensate for the reduced U.S. support to maintain vital food safety and animal disease monitoring programs. Hogan is currently meeting with Asian leaders ahead of the FAO director-general election next summer, aiming to address these financial challenges while steering the agency through a volatile global food landscape.

The consequences of funding shortages extend beyond financial strain, leading to diminished capacities for early warning and crisis prevention amid looming food emergencies. Cornell University economist Chris Barrett warned that cuts in aid and monitoring hamper the ability to support populations vulnerable to rising food prices, risking heightened hunger and civil unrest. The situation is exacerbated by geopolitical tensions such as the Middle East conflict, disruptions at the Strait of Hormuz, and the ongoing war in Ukraine, all of which are constricting global flows of fertilizer, energy, and wheat exports—vital components for agricultural productivity.

Adding to these geopolitical risks is the anticipated impact of El Niño, which could trigger severe weather disruptions further undermining food production worldwide. Hogan argued that the FAO must adapt to these harsh realities with a leaner budget, focusing efforts on deploying staff to regions most affected by hunger and enhancing collaboration with other UN entities. He also candidly acknowledged past shortcomings, particularly the FAO’s limited role in the Black Sea Grain Initiative, which sought to ensure food exports from Ukraine despite ongoing conflict but from which the FAO was notably absent.

There is some divergence in expert opinion regarding the immediacy of a catastrophic food crisis despite these stresses. While climate and conflict risks persist, analysts like Ian Mitchell of the Center for Global Development point out that global grain reserves remain robust, and market signals do not currently indicate an impending supply shortage. Nonetheless, the consensus highlights a fragile global food system ill-prepared to respond effectively if shocks intensify, stressing the urgency for sustained funding and strategic reforms at the FAO to bolster worldwide food security amid rising challenges.

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