Letter to House Panel Urges Full Funding for MAP/FMD
The NCC joined other members of the Coalition to Promote U.S. Agricultural Exports on a letter to House leadership of the Agriculture Appropriations Subcommittee urging their strong support for maintaining vital funding for USDA’s important export programs, including the Market Access Program and Foreign Market Development Program, when the Subcommittees consider the FY18 Agriculture Appropriations bill.
June 16, 2017
Honorable Robert Aderholt, Chairman
Subcommittee on Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Committee on Appropriations
U.S. House of Representatives
Washington, DC 20515
Honorable Sanford Bishop, Jr. Ranking Minority Member
Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
Committee on Appropriations
U.S. House of Representatives
Washington, DC 20515
Dear Chairman Aderholt and Ranking Member Bishop:
As members of the Coalition to Promote U.S. Agricultural Exports, we are writing to urge your strong support for maintaining vital funding for USDA’s important export programs, including the Market Access Program (MAP) and Foreign Market Development (FMD) Program, when the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies considers the FY 18 Agriculture Appropriations bill. We strongly urge that MAP and FMD be funded at no less than $200 million and $34.5 million respectively for FY 18, as authorized by the 2014 Farm Bill. MAP has been funded annually at this level since 2006 and FMD at its level since 2002. We greatly appreciate the strong support annually expressed by Congress in fully funding these vital export promotion and market development programs and urge that you strongly oppose any efforts that would either eliminate or reduce funding for them.
MAP, which is administered by USDA’s Foreign Agricultural Service (FAS), forms a highly successful partnership between non-profit U.S. agricultural trade associations, farmer cooperatives, non-profit state-regional trade groups, small businesses and USDA to share the costs of international marketing and promotional activities such as consumer promotions, market research, trade shows, and trade servicing. The FMD program benefits U.S. producers, processors, and exporters by assisting their organizations in developing new foreign markets and increasing market share in existing markets. Overseas promotions are targeted toward long term development. MAP and FMD are distinct, separate programs that address different aspects of market development and promotion and are examples of some of the most successful public-private partnerships.
American agriculture and American workers continue to face increasingly strong international competition supported by government sponsored activities. A major study completed in 2013 on behalf of several U.S. agri-food export market development organizations found that, together in 2011, twelve countries and the European Union (EU) central government alone spent an estimated $1.8 billion, including $700 million in public funds and $1.1 billion in private funds, on export promotion for agri-food products (An Analysis of Competitor Countries’ Market Development Programs, Agralytica Consulting, June 2013). For comparison, in 2011, the total U.S. export promotion public expenditure was $256 million. Compared to agricultural production value, the U.S. public spending on export market development is among the lowest relative to these twelve nations.
While real funding for MAP and FMD has been reduced by sequestration and administrative costs in recent years, the European Parliament has adopted a package to promote European agricultural products that has been approved by other EU institutions. The new agricultural promotion policy, which is now in effect, will increase EU funding from previously around 60 million EUR to 200 million EUR by 2019. Many other competitor countries have announced ambitious trade goals and are shaping export programs to target promising growth markets and bring new companies into the export arena.
Exports are a vital part of the U.S. economic engine, and agricultural exports continue to be among its strongest components. The export forecast for FY 17 is estimated to be approximately $137 billion. While this is below the all time record level of $152.3 billion set in FY 14, it is important to note that average exports over the past five years have increased to nearly four times the level of the mid 1980's. Since its creation in 1985, MAP has proven to be highly successful in helping to boost U.S. agricultural exports, protecting and creating American jobs, and increasing farm income. Today, 1.1 million Americans have full time jobs that depend on these exports. Thousands of small to medium size enterprises throughout the country, including family farms, depend on MAP and FMD for export markets.
A July 2016 econometric study1 of export demand by Informa Economics IEG, working with Texas A&M University and Oregon State University economists, showed that MAP and FMD generated a remarkable return on investment between 1977 and 2014 of $28.30 in export gains for every additional $1 spent on foreign market development, which is consistent with previous study results. In addition, the study showed the programs are responsible for 15 percent of total agricultural export revenue, equal to $309 billion, since 1977. MAP and FMD also returned an average annual increase in farm net income of $2.1 billion while creating 239,800 new full and part-time jobs between 2002 and 2014, according to study results.
MAP and FMD, it should be emphasized, are cost-share programs under which farmers and other participants are required to contribute as much as a 100 percent match of their own resources to be eligible. They have been and continue to be excellent examples of very effective public-private partnerships. While government is an important partner in this effort, industry funds are now estimated to represent about 70 percent of total annual spending on market development and promotion, up from roughly 45 percent in 1996 and less than 30 percent in 1991. Clearly, U.S. producers and industry are committed to the programs.
By any measure, MAP and FMD have been tremendously successful and extremely cost-effective in helping maintain and expand U.S. agricultural exports, protect and create American jobs, strengthen farm income and help to offset the government-supported advantages afforded international competitors. MAP and FMD are two proven tools U.S. agriculture has to compete in the international marketplace, and are even more important today as our competitors continue to use their considerable financial resources to gain market share.
We appreciate this opportunity to express our views and look forward to working with you to achieve the goals of expanding U.S. agricultural exports, increasing farm income, and protecting and creating American jobs.
Sincerely,
Coalition to Promote U.S. Agricultural Exports (See below)
cc: Members, House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
1Economic Impact of USDA Export Market Development Programs, Informa Economics, IEG, July 2016
ORGANIZATIONS SIGNING COALITION TO PROMOTE U.S. AGRICULTURAL EXPORTS LETTER TO HOUSE AGRICULTURE APPROPRIATIONS SUBCOMMITTEE
JUNE 16, 2017
Alaska Seafood Marketing Institute
Almond Alliance of California
American Cotton Shippers Association
American Cranberry Growers Association
American Feed Industry Association
American Hardwood Export Council
American Peanut Council
American Pistachio Growers
American Quarter Horse Association
American Seed Trade Association
American Sheep Industry Association
American Soybean Association
American Sweet Potato Marketing Institute
American Walnut Manufacturers Association
APA-The Engineered Wood Association
Appalachian Hardwood Manufacturers Association
Blue Diamond Growers
Brewers Association
California Agricultural Export Council
California Apple Commission
California Association of Wheat Growers
California Avocado Commission
California Blueberry Commission
California Canning Peach Association
California Cherry Export Association
California Date Commission
California Dried Plum Board
California Farm Bureau Federation
California Fig Advisory Board
California Fresh Fruit Association
California Pear Growers
California Raisin Marketing Board
California Strawberry Commission
California Table Grape Commission
California Walnut Commission
Cape Cod Cranberry Growers' Association
Cherry Marketing Institute
CoBank
Colorado Corn Growers Association
Colorado Sorghum Association
Corn Producers Association of Texas
Cranberry Institute
Distilled Spirits Council of the United States
Florida Citrus Mutual
Florida Citrus Packers Association
Florida Citrus Processors Association
Florida Department of Citrus
Florida Fruit & Vegetable Association
Florida Peanut Producers Association
Florida Tomato Exchange
Food Export Association of the Midwest USA
Food Export USA - Northeast
Georgia Poultry Federation
Ginseng Board of Wisconsin
Global Food & Nutrition, Inc.
Gulf Citrus Growers Association
Hardwood Federation
Hardwood Plywood and Veneer Association
Hardwood Manufacturers Association
Highlands County Citrus Growers Association, Inc.
Hop Growers of America, Inc.
Idaho Barley Commission
Idaho Grain Producers Association
Idaho Wheat Commission
Illinois Corn Growers Association
Illinois Farm Bureau
Indian River Citrus League
Indiana Corn Growers Association
Iowa Corn Growers Association
Kansas Association of Wheat Growers
Kansas Corn Growers Association
Kansas Grain Sorghum Producers Association
Kansas Livestock Association
Kentucky Corn Growers Association
Kentucky Distillers’ Association
Kentucky Small Grain Growers
Leather Industries of America, Inc.
Louisiana Cotton and Grain Association
Michigan Agri-Business Association
Michigan Apple Association
Michigan Bean Shippers
Michigan Corn Growers Association
Minnesota Association of Wheat Growers
Minnesota Corn Growers Association
Missouri Corn Growers Association
Missouri Forest Producers Association
Mohair Council of America
National Association of Egg Farmers
National Association of State Departments of Agriculture
National Association of Wheat Growers
National Barley Growers Association
National Cattlemen’s Beef Association
National Chicken Council
National Confectioners Association
National Corn Growers Association
National Cotton Council
National Council of Farmer Cooperatives
National Farmers Union
National Grape Cooperative Association, Inc.
National Hardwood Lumber Association
National Milk Producers Federation
National Pork Producers Council
National Potato Council
National Renderers Association
National Sorghum Producers
National Sunflower Association
National Turkey Federation
National Wood Flooring Association
Nebraska Corn Growers Association
Nebraska Grain Sorghum Board
Nebraska Grain Sorghum Producers Association
Nebraska Wheat Board
Nebraska Wheat Growers Association
New Mexico Sorghum Association
New York Corn and Soybean Growers Association
New York Wine & Grape Foundation
North American Blueberry Council
North American Meat Institute
North Dakota Corn Growers Association
Northeast Loggers Association
Northwest Horticultural Council
Northwest Wine Coalition
Ocean Spray Cranberries, Inc.
Ohio Corn and Wheat Growers Association
Oklahoma Sorghum Association
Oregon Wheat Growers League
Oregon Winegrowers Association
Organic Trade Association
Peace River Valley Citrus Growers Association
Pet Food Institute
Softwood Export Council
South Dakota Corn Growers Association
Southeastern Lumber Manufacturers Association
Southern Forest Products Association
Southern Pine Council
Southern U.S. Trade Association
Sunkist Growers
Sun Maid Growers of California
Sunsweet Growers, Inc.
Texas Cattle Feeders Association
Texas Grain Sorghum Association
Texas Wheat Producers Association
The Popcorn Institute
United Egg Association
United Egg Producers
United Fresh Produce Association
USA Dry Pea and Lentil Council
USA Poultry & Egg Export Council
USA Rice Federation
U.S. Apple Association
U.S. Apple Export Council
U.S. Cattlemen's Association
U.S. Dairy Export Council
U.S. Dry Bean Council
U.S. Hides, Skins & Leather Association
U.S. Livestock Genetics Export, Inc.
U.S. Meat Export Federation
U.S. Pecan Growers Council
U.S. Rice Producers Association
U.S. Wheat Associates, Inc.
Valley Fig Growers
Virginia Grain Producers Association
Washington Apple Commission
Washington Association of Wheat Growers
Washington State Fruit Commission
Washington State Potato Commission
Washington Winegrowers Association
Washington Wine Institute
Welch Foods Inc., A Cooperative
Western Growers
Western Hardwood Association
Western U.S. Agricultural Trade Association
West Texas Pecan Association
WineAmerica (The National Association of American Wineries)
Wine Institute
Wisconsin Corn Growers Association
Wisconsin State Cranberry Growers Association
Wood Component Manufacturers Association