The U.S. Department of Agriculture’s Foreign Agricultural Service has awarded fiscal year 2016 funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for their members’ goods.
The U.S. Department of Agriculture’s Foreign Agricultural Service has awarded fiscal year 2016 funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for their members’ goods.
The Market Access Program (MAP) focuses on consumer promotion, including brand promotion for small companies and cooperatives, and is used mostly by trade groups promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities. The Foreign Market Development (FMD) program, on the other hand, focuses on trade servicing and capacity building to create, expand and maintain long-term export markets for U.S. agricultural products.
Under MAP, the Foreign Agricultural Service will provide $172.8 million for fiscal year 2016 to 62 nonprofit organizations and cooperatives. Activities can include 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,” USDA said.
Some of the largest MAP recipients for fiscal year 2016 include the Cotton Council International at $13,324,436; U.S. Meat Export Federation at $12,514,967; Food Export Association Midwest USA at $10,621,710; Food Export USA Northeast at $8,610,352; American Hardwood Export Council, APA-The Engineered Wood Association, Softwood Export Council, and Southern Forest Products Association at $7,458,918; Southern United States Trade Association at $6,025,047.
Through FMD, the Foreign Agricultural Service will allocate $27.5 million for fiscal year 2016 to 23 trade organizations that represent U.S. agricultural producers. “The program focuses on generic promotion of U.S. commodities, rather than consumer–oriented promotion of branded products. Preference is given to organizations that represent an entire industry or are nationwide in membership and scope. The organizations, which contribute an average 184 percent cost share, will conduct activities that help maintain or increase demand for U.S. agricultural commodities overseas,” USDA noted.
Some of the largest FMD recipients for fiscal year 2016 include the American Soybean Association at $6,230,839; U.S. Wheat Associates at $3,976,631; Cotton Council International at $3,858,735; American Hardwood Export Council, APA-The Engineered Wood Association, Softwood Export Council, and Southern Forest Products Association at $3,262,296; and U.S. Grains Council at $2,825,178.
USDA said these programs benefit U.S. agricultural exports, citing a 2010 study that found trade promotional programs like MAP and FMD provide $35 in economic benefit for every one dollar spent.
In fiscal year 2015, USDA said American farmers and ranchers exported $139.7 billion of food and agricultural goods to consumers worldwide – the third highest level ever.
Ag trade groups get 2016 USDA export promotion funds
