With millions of people world-wide going hungry and being malnourished, it’s hard to get my arms around the reasoning CARE is using to decline $45 million a year in federal financing.

They say it hurts the people it’s supposed to help because the farmers can’t sell their products when competing with subsidized U.S. farm products. HUH?

CARE’s decision is focused on the practice of selling tons of often heavily subsidized American farm products in African countries that in some cases, it says, compete with the crops of struggling local farmers.

The charity says it will phase out its use of the practice by 2009. But it has already deeply divided the world of food aid and has spurred growing criticism of the practice as Congress considers a new farm bill.

“If someone wants to help you, they shouldn’t do it by destroying the very thing that they’re trying to promote,” said George Odo, a CARE official who grew disillusioned with the practice while supervising the sale of American wheat and vegetable oil in Nairobi, Kenya’s capital.

Under the system, the United States government buys the goods from American agribusinesses, ships them overseas, mostly on American-flagged carriers, and then donates them to the aid groups as an indirect form of financing. The groups sell the products on the market in poor countries and use the money to finance their antipoverty programs. It amounts to about $180 million a year.

But then we read this in the article:

The Christian charity World Vision and 14 other groups, which call themselves the Alliance for Food Aid, say that CARE is mistaken; they say the system works because it keeps hard currency in poor countries, can help prevent food price spikes in those countries and does not hurt their farmers. Not least, they argue, it also pays for their antipoverty programs.

And then this example of how CARE has helped people:

The experiences of Walter Otieno, a grizzled Kenyan farmer in mud-stained pants, illustrate the paradoxes of paying for rural development through sales of American farm goods.

Over the years, he had watched 4 of his 12 children die of measles, which is more often fatal for the malnourished. He has had difficulty growing enough to feed his family. “My children were skinny, and their skin was dull,” he said.

Then last year he began growing a small patch of sunflowers on a hill sloping down to Lake Victoria in the village of Malela, with help from a program that CARE finances through the sale of American farm goods here.

A CARE extension worker, Rosemary Ogala, taught him and dozens of farmers in his group where to buy sunflower seed, when to plant it, how to space the rows and when to harvest.

CARE has also connected them to a ready market: the Kenyan company Bidco Oil Refineries, whose managers say they could more than quintuple the amount of sunflower seed they buy from Kenyan farmers to process into vegetable oil.

The profit Mr. Otieno earned from the crop rescued his family from dire poverty. Now, with his new earnings, he is able to play with his sons and daughters, who are plump on eggs and milk, at the family’s general store, a tiny shack stocked with goods financed by the sunflower sales.

It appears the well-fed and well-nourished people overseeing CARE don’t see the forest for the trees and are hurting the very people they are supposed to be trying to help.