Food for Peace Modernization Act This bill amends the Food for Peace Act to revise the Food for Peace program under the U.S. Agency for International Development, which provides assistance, including agricultural commodities, overseas. The bill expands food security assistance authorities. The bill recognizes that American farmers play an integral role in U.S. food assistance and agricultural development programs overseas. Assistance shall be directed toward areas of greatest need, coordinated with indigenous organizations and beneficiary groups. The bill extends authorities under the Act for (1) prepositioning agricultural commodities, (2) the micronutrient fortification program, and (3) the farmer-to-farmer training program. It removes provisions setting minimum levels for purchase of U.S. agricultural commodities and for nonemergency assistance.