G8 summit pledges $20 billion to boost food output

By Paolo Biondi

L'AQUILA, Italy (Reuters) - Leaders from rich nations at the G8 summit committed $20 billion over three years to boost agricultural investment in poorer countries and fight hunger, $5 billion more than expected.

A statement after talks on Friday highlighted the new emphasis on farm aid to help poor nations feed themselves, although it said leaders at the summit were still committed to provide emergency food assistance.

The text did not make clear whether the $20 billion was all new funds, nor did it give details of individual countries' contributions, although the United States -- which championed the initiative -- said it would contribute at least $3.5 billion over three years.

Japan and the European Union are expected to step in with around $3 billion each.

The statement made no mention of a trust fund for the contributions to be managed by the World Bank, a proposal put forward by Washington in previous drafts but opposed by the EU.

It said the leaders had agreed to a "coordinated, comprehensive strategy focused on sustainable agriculture development, while keeping a strong commitment to adequate emergency food aid assistance."

They also called on all countries to remove food export restrictions and extraordinary taxes, especially for food purchased for humanitarian reasons.

The statement said the combined effect of longstanding underinvestment in agriculture, price volatility and the economic crisis had led to increased poverty and hunger in developing countries.