Export promotion funds hold steady at $200 million

The Packer
January 27, 2010

Email this page

Market Access Program funds are holding steady in fiscal year 2010 at $200 million — about $40 million directly to specialty crop commodity boards — but the deepening federal deficit may make it harder to hold on to those promotion dollars in future years.

The USDA announced the MAP allocation to 70 U.S. trade organizations to help promote agricultural exports through market research, consumer promotions for retail products, educational seminars for overseas buyers and other uses.

MAP funds go to dozens of specialty crop trade/commodity boards, including perennial recipients Washington Apple Commission, California Strawberry Association, Florida Department of Citrus and Sunkist Growers Inc. Other organizations, including the Southern U.S. Trade Association and Food Export USA — Northeast, promote specialty crops and other agricultural exports.

In making the Jan. 26 announcement, Agriculture Secretary Tom Vilsack called the programs “more important than ever” considering the global financial crisis, increasing global production and the aggressive use of export promotion by other countries.

Although fiscal year 2010 funding for the MAP program is stable at $200 million at the mandatory levels set in the 2008 farm bill, Kam Quarles, vice president of government relations and legislative affairs for the United Fresh Produce Association, Washington, D.C., said it and other programs may be targeted for cuts by lawmakers looking to stem the flow of red ink from the federal budget for fiscal year 2011 and beyond.

“Last year the administration’s budget proposed a reduction in MAP, we’ll see what the budget (this year) says,” Quarles said, referring to plans to cut $20 million from the program. The Obama administration announced a freeze in discretionary spending on Jan. 25. Although MAP is not discretionary spending, the dire budget challenges could make the program vulnerable in future years.

“There are going to be some pretty Draconian proposals on both discretionary and mandatory programs, not only for this upcoming fiscal year but also for succeeding fiscal years,” Quarles said. “We will be fighting these battles to maintain funding for essential programs and looking to increase funding in the next farm bill.”

Stephanie Chan, spokeswoman for the U.S. Department of Agriculture’s Office of Communications, said that MAP funding was increased to $200 million in 2006 and the 2008 farm bill kept allocations stable at that level. Chan said MAP funds are generally allocated once a year.

Chan said the USDA Foreign Agricultural Service administers the program and considers a variety of factors in making changes. The quality of the application, management capabilities of the applicant, industry contributions, previous funding and expenditure levels, prior export promotion experience and other factors are considered.

Among those industry groups receiving large MAP allocations, The Washington Apple Commission was allocated $4.76 million for fiscal year 2010.

The commission relies on MAP funds almost entirely for international promotion activities, said Rebecca Baerveldt, export marketing manager for the apple commission, Wenatchee, Wash.

“We are very pleased with our MAP allocation in light of the challenging budget year,” she said in an e-mail. “We feel that we have a strong program in our international markets to promote Washington apples, and we appreciate the support that we receive from FAS and their recognition of our strategic direction and tactics.”

Jeff Correa, international marketing director for the Pear Bureau Northwest, Milwaukie, Ore., said the group’s $2.9 million MAP allocation is “hugely important,” but pear growers also contribute about half of the cash value for export promotions.

The USDA has a complete list of the MAP funds on its Web site.

NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving this information for research and educational purposes.

Subscribe via rss

Global Food Challenge
IATP explains the policies that have caused the food crisis and the solutions we need.

Green Chemistry
The Green Chemistry revolution is making safer products and protecting human health and the environment.

Local Foods
IATP analyzes the key policy and marketplace issues driving local food systems.

NAFTA
NAFTA leaves a huge footprint on the U.S. and the world. As Washington gears up for the debate, IATP analyzes what's at stake.

Water
From ethanol to privatization, water is a hot issue in trade and agriculture worldwide. Trade Observatory has document and headline collections dedicated to water issues.

Think Forward
by IATP staff

Profiles of over 90 agribusiness companies, including their products, management, corporate geneaology and profit margins.