OCTOBER 25, 2023:
Various agriculture organizations are responding to Tuesday’s (Oct. 24, 2023) announcement from the US Department of Agriculture that the agency is providing $2.3 billion to help American producers maintain and develop markets for their commodities and use U.S. commodities to bolster international food aid. See comments below.
American Soybean Association:
The American Soybean Association applauds the U.S. Department of Agriculture’s efforts to strengthen U.S. trade and food aid by providing funds to maintain and develop markets and address global hunger. Agriculture Secretary Tom Vilsack announced $2.3 billion will be allocated from the Commodity Credit Corporation, $1.3 billion of which will go toward the Regional Agriculture Promotion Program and diversification of specialty crop export markets, the balance toward international food assistance.
ASA President Daryl Cates, who grows soybeans in Illinois, said, “America’s soybean farmers rely on strong existing export markets and opportunities to open and build new markets. It can take decades to grow markets for our beans and only a matter of days in some cases to lose them, so having the funds to sufficiently support export promotion programs is something ASA and soy growers have consistently championed. And, as both an industry that participates in food aid programs and as human beings, we are pleased to see the administration looking for additional ways to help us address global food insecurity.”
Cates says he and others in the soy industry are happy to see USDA acknowledging the uncertainty that surrounds agriculture and challenges that arise from that unpredictability, and that the department has conveyed through its funding infusion the importance of market development programs.
“USDA has demonstrated that it recognizes the importance of market promotion programs. We are thankful USDA sees value in the collective efforts of the Foreign Agricultural Service and agriculture cooperators like the American Soybean Association, which are stewards of market development funding and bring vital aid programs and market expansion projects to life,” said Cates.
ASA remains committed to its trade and food aid efforts and will continue to push for doubling of Market Access Program and Foreign Market Development program funding in the 2023 Farm Bill reauthorization.
ASA utilizes funds from USDA to support the U.S. Soybean Export Council, which develops and expands markets for U.S. soybean farmers, and ASA’s World Initiative for Soy in Human Health, which work to find new and build emerging markets for soy.
U.S. Wheat Associates and the National Association of Wheat Growers:
U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are pleased that U.S. wheat growers now have the opportunity to increase global food assistance and expand export market access under new USDA funding programs announced Oct. 24, 2023. USW and NAWG thank Secretary of Agriculture Tom Vilsack for releasing the new funds that will directly benefit U.S. wheat farmers and their overseas customers. Additionally, we thank Senators Stabenow (D-MI) and Boozman (R-AR) for their August 28 letter to Secretary Vilsack formally requesting additional support for trade promotion and food assistance.
U.S. wheat farmers have been partners in U.S. food assistance programs for more than 60 years and take pride in sharing their harvest to address critical hunger needs around the world. Through the USDA’s Food for Progress and USAID Food for Peace programs, the American people have donated more than one million metric tons of wheat annually for the past three years.
“Additional funding for food assistance programs will help address the most urgent humanitarian needs in a generation. USW and NAWG look forward to working with USDA and other partners to ensure additional food donations generate the most benefit where it is needed most,” said NAWG President Brent Cheyne. “As NAWG works with Congress to reauthorize the Farm Bill, we continue to advocate for strengthening the in-kind commodity donation program and additional investments in the existing trade promotion programs.”
Organizations like USW that participate in USDA Foreign Agricultural Service (FAS) export market development programs were very encouraged when the Agricultural Trade Promotion (ATP) program was established in 2019 as part of a program to ease the effects of trade retaliation against U.S. farmers and exporters. Those funds originated from the Commodity Credit Corporation (CCC) and FAS awarded grants to almost 60 cooperating organizations to be invested by 2024.
“USW demonstrated that the additional funding helped us protect crucial wheat export sales in established markets and build a base for growth in new markets,” said USW Chairman and Oklahoma wheat farmer Michael Peters. “We appreciate the introduction of the new Regional Agricultural Promotion Program (RAPP), and the USW team will work very hard to use it effectively. Looking ahead, global wheat trade is increasingly competitive and market development takes time and consistency. That’s why we believe that in the long-term, increases for established Farm Bill export development programs are the best way forward.”
All across its supply chain, U.S. wheat depends on the successful public-private partnership between USW’s state wheat commission members and USDA FAS export market development programs. Checkoff contributions qualify USW to apply for matching funds through programs like the Market Access Program (MAP) and the Foreign Market Development (FMD) program.
Under U.S. farm legislation, Congress apportions funding for MAP, FMD and other export programs. Annual funding for MAP has not changed from $200 million since 2006 and annual FMD funding of $34.5 million has not changed since 2002, yet other countries have significantly ramped up their export promotion spending.
“Study after study has shown that these programs consistently meet their purpose to boost agricultural export volume and revenue while supporting the entire U.S. economy, and the benefits grow with additional funding,” Peters said.
For more information about the benefits of FAS export market development programs visit www.AgExportsCount.com.
U.S. Meat Export Federation President and CEO Dan Halstrom:
USMEF thanks Secretary Vilsack and the staff at USDA for prioritizing international market development by making these funds available through the Commodity Credit Corporation. The USDA Market Access Program (MAP) and Foreign Market Development (FMD) Program have a proven track record of providing excellent, value-added returns to U.S. producers, and more recently the Agricultural Trade Promotion Program (ATP) helped U.S. agriculture overcome trade obstacles and develop new markets. With ATP funding coming to the end, new investments in foreign market development are very timely and much appreciated. We also thank Congressional leaders for their support of this program and for their continued support of MAP and FMD funding.
U.S. Grains Council:
“The U.S. Grains Council thanks Secretary Vilsack and the USDA for continuing to promote market development through providing a new program funding source,” said USGC President and CEO Ryan LeGrand. “The success of the Council would not be possible without its partners in both the public and private sector, and we look forward to expanding exports of corn, sorghum, barley and their co-products with this new source of funding, however, there is still a need to increase long-term funding of the MAP and FMD programs in a new farm bill.”
Like the Agricultural Trade Promotion (ATP) funds that were first distributed in 2019, RAPP funding from USDA’s Foreign Agricultural Service (FAS) will supplement the Market Access Program (MAP) and Foreign Market Development (FMD) funds the Council relies on annually to help its members expand markets for grains in all forms and its international partners to serve their local consumers.
National Milk Producers Federation and US Dairy Export Council:
The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) praised USDA’s announcement from the U.S. Department of Agriculture that it plans to devote $2.3 billion from the Commodity Credit Corporation to promoting better market opportunities for U.S. agricultural producers and expanding food aid to support communities in need around the world.
The expanded export support program and food aid were requested by Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, and Ranking Member Sen. John Boozman, R-AR, in late August. USDA will devote $1.3 billion to establishing a Regional Agricultural Trade Promotion Program, and $1 billion to commodity-based international food aid.
“The U.S. dairy community is grateful for the USDA’s decision to invest in supporting the cultivation of enhanced international market opportunities for America’s dairy farmers and cooperatives. We thank Senators Stabenow and Boozman for their initiative in encouraging USDA to pursue this course of action,” said NMPF president and CEO Jim Mulhern. “Now more than ever, the U.S. dairy industry relies on exports. If distributed to those sectors that are presently underfunded such as dairy, the new export promotion funding will put us in a better position to compete globally and grow our consumer base. NMPF encourages Congress to build on today’s announcement by USDA to also deliver additional funding for the Market Access Program and Foreign Market Development Program in the development of the next Farm Bill.”
NMPF, USDEC and other agricultural leaders are advocating for Congress to double funding for the Market Access Program and Foreign Market Development program – the two programs have not received a raise in over 16 years, despite offering consistent returns on investment.
“Farmers, manufacturers and workers up and down the dairy supply chain benefit from expanded trade opportunities that help the industry thrive in today’s global economy,” said USDEC president and CEO Krysta Harden. “We’re thankful that USDA is taking this important step to support American Agriculture and appreciate Senators Stabenow and Boozman elevating the importance of using CCC resources to fund programs that will strengthen the U.S. dairy industry through the creation of new markets and the promotion of nutritional dairy-containing products in food aid. We look forward to continuing to work together to level the playing field for America’s dairy farmers and producers.”
OCTOBER 24, 2023:
Agriculture Secretary Tom Vilsack announced (Oct. 24, 2023) that the U.S. Department of Agriculture (USDA) is providing $2.3 billion to help American producers maintain and develop markets for their commodities and use U.S. commodities to bolster international food aid.
Consistent with a bipartisan request from the Senate Committee on Agriculture, Nutrition, and Forestry, USDA is utilizing funds from the Commodity Credit Corporation (CCC) to address challenges related to trade and food insecurity impacting U.S. farmers and the international community. USDA will use:
- $1.3 billion for the Regional Agricultural Promotion Program and support for specialty crop industries to diversify export markets.
- $1 billion to help address global hunger.
“The Commodity Credit Corporation continues to address the needs of American producers as significant and unpredictable challenges arise, including impacts to international commodities markets and global food insecurity in the wake of ongoing conflict and a changing climate,” said Secretary Vilsack. “The Commodity Credit Corporation and USDA’s market development and aid programs are critically important at this time, and with this additional support we can strengthen U.S agriculture’s presence in existing markets, open up new market opportunities, and build on our relationships and connections to ensure that high-quality American agriculture and food products reach where they are needed in the world.”
Secretary Vilsack made today’s announcement as part of the World Food Prize’s Borlaug Dialogue that is held in Des Moines, Iowa each October and brings together world leaders and experts to address global food security issues. This announcement comes on the heels of the 90th anniversary of the CCC, which was incorporated on October 17, 1933 in response to the Great Depression and the Dust Bowl’s devastation on producers and their operations. For 90 years, the CCC has stabilized markets, supported farm income and prices, and enhanced the ability of farmers to market their commodities.
Regional Agricultural Promotion Program
The FY23 agricultural trade deficit is $19 billion, and USDA has projected that it will grow to $27.5 billion in FY24. There is also increased competition in our export markets in Asia and Africa. Therefore, additional investments in market development need to be made to keep ahead of the competition. Analysis has shown that for every $1 invested in export market development, exports are increased by $24.50. Increased agricultural exports means income directly back to producers. Trade promotion investment helps keep existing markets open and creates access to new markets. Further, investing in non-traditional markets will help the United States diversify away from dependence on a handful of large markets.
The new $1.3 billion investment in a Regional Agricultural Promotion Program, or RAPP, will enable exporters to break into new markets and increase market share in growth markets. Further, an investment in providing targeted technical assistance to the specialty crops industry will help it enter and expand markets that often impose onerous non-tariff barriers on their products. Five years ago, in reaction to the trade war with China, USDA developed the Agricultural Trade Promotion Program (ATP) to help exporters diversify their markets. The funds from ATP will expire next year and with that, many exporters are already curtailing their activities. Without being on the ground in markets, it is nearly impossible to build the trust and relationships needed to create opportunities. The RAPP will address this critical loss and ensure continuity of the relationships key to market development.
International Food Aid
Recent challenges to supply chains and on-going conflicts have exacerbated what was already a dire situation of increased numbers of people experiencing food insecurity globally. An estimated 205 million people need life-saving food assistance, and some 768 million people are facing chronic hunger, according to the Global Report on Food Crises and FAO. American agriculture is well positioned to help fill these gaps. The United States produces more commodities than are consumed, and therefore has the opportunity to extend this food, via a USDA donation, to those who are in need.
USDA will purchase commodities and work with USAID, who is the lead federal agency on international emergency food aid programs, to ensure they reach those most in need around the world. The $1 billion donation will bolster ongoing efforts to address global hunger, as well as support U.S. agriculture through the purchase of surplus commodities. U.S. agriculture stakeholders are eager to assist in addressing hunger that continues in some areas of the world due to conflict, droughts and other challenges. Given the exceptionally high food needs around the world at this time, these additional commodities will fill critical resource gaps.
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