USDA releases funds for ag export promotion programs

The department awarded funds to more than 60 U.S. agricultural organizations to help expand the export of their products abroad.

   The U.S. Department of Agriculture’s Foreign Agricultural Service on Wednesday awarded funds to more than 60 U.S. agricultural organizations to help expand the export of their products abroad.
   The funds are dispersed through the Market Access and Foreign Market Development programs. 
   Through the Market Access Program (MAP), the Foreign Agricultural Service works with U.S. agricultural trade associations, cooperatives, state-regional trade groups and small businesses to share the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities. 
   MAP, which focuses on consumer promotion, including brand promotion for small companies and cooperatives, is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities. 
   Through the program, the Foreign Agricultural Service will provide $173.2 million to 62 nonprofit organizations and cooperatives. “Participants contribute an average 214-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. 
   The Foreign Market Development (FMD) program focuses on trade servicing and capacity-building by helping to create, expand and maintain long-term export markets for U.S. agricultural products. Under FMD, also known as the Cooperator Program, the Foreign Agricultural Service will allocate $26.7 million to 22 trade organizations that represent U.S. agricultural producers. 
   “The organizations [participating in FMD], which on average contribute nearly triple the amount they receive in federal resources, will conduct activities that help maintain or increase the demand for U.S. agricultural commodities overseas,” USDA said.
   An independent study released in 2010 found that trade promotion programs like USDA’s MAP and FMD provide $35 in economic benefits for every dollar spent by government and industry on market development. 
   “The past six years represent the strongest period for U.S. agricultural exports in the history of the United States. Farm exports in fiscal year 2014 reached a record $152.5 billion and supported 1 million jobs in the United States,” USDA said.