USDA Awards $200 Million to Export Market Development Programs11/16/2016
Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) is awarding $200 million to more than 70 U.S. agricultural organizations to help expand export markets for U.S. farm and food products through the Market Access Program (MAP) and the Foreign Market Development (FMD) Program.
“USDA and the U.S. agricultural industry work together in a unique public-private partnership to open and grow markets around the world for high-quality, American-made farm and food products,” Vilsack said. “The federal investment in these programs is multiplied by industry matching funds, not only boosting agricultural export revenue and volume, but also supporting farm income and enhancing the overall U.S. economy.”
Under MAP, FAS will provide $173.5 million in fiscal year 2017 funding to 70 nonprofit organizations and cooperatives. The organizations use the funds to help U.S. agricultural producers promote their products to consumers around the globe through activities such as market research, technical assistance, and support for participation in trade fairs and exhibits. MAP participants contribute an average 137 percent match for generic marketing and promotion activities and a dollar-for-dollar match for promotion of branded products by small businesses and cooperatives.
Under FMD, FAS will allocate $26.6 million in fiscal year 2017 funds to 26 trade organizations that represent U.S. agricultural producers. FMD focuses on generic promotion of U.S. commodities, rather than consumer-oriented promotion of branded products, and preference is given to organizations that represent an entire industry or are nationwide in membership and scope. The organizations, which contribute an average 130 percent cost share, conduct activities that help maintain or increase demand for U.S. agricultural commodities overseas.
A new study conducted by noted land grant university economists shows that MAP and FMD contributed $309 billion to farm export revenue between 1977 and 2014, an average of $8.2 billion per year. From 2002 through 2014, the programs boosted average annual farm cash income by $2.1 billion, annual U.S. economic output by $39.3 billion, annual gross domestic product (GDP) by $16.9 billion, and annual labor income by $9.8 billion. In addition, the programs generated economic activity that directly created 239,000 new jobs, including 90,000 farm sector jobs. To learn more about the Economic Impact of USDA Export Market Development Program study, visit www.fas.usda.gov/sites/default/files/2016-10/2016econimpactsstudy.pdf.
A list of fiscal year 2017 MAP funding recipients is available at: http://go.usa.gov/x8qRF and more information about the program is available at: www.fas.usda.gov/programs/market-access-program-map
A list of fiscal year 2017 FMD funding recipients is available at: http://go.usa.gov/x8qRs and more information about the program is available at: www.fas.usda.gov/programs/foreign-market-development-program-fmd.
USDA works to strengthen and support American agriculture, an industry that supports one in 11 American jobs, provides American consumers with more than 80 percent of the food we consume, ensures that Americans spend less of their paychecks at the grocery store than most people in other countries, and supports markets for homegrown renewable energy and materials.
Since 2009, USDA has provided $5.6 billion in disaster relief to farmers and ranchers; expanded risk management tools with products like Whole Farm Revenue Protection; and helped farm businesses grow with $36 billion in farm credit. The Department has engaged its resources to support a strong next generation of farmers and ranchers by improving access to land and capital; building new markets and market opportunities; and extending new conservation opportunities.
USDA has developed new markets for rural-made products, including more than 2,700 biobased products through USDA’s BioPreferred program; and invested $64 billion in infrastructure and community facilities to help improve the quality of life in rural America. For more information, visit www.usda.gov/results.