Agriculture Secretary Tom Vilsack announced today that the U.S. Department of Agriculture (USDA) is investing in approximately 70 U.S. agricultural organizations to help expand commercial export markets for their goods.
Vilsack made the announcement during a conference call with reporters from Vietnam, where he is meeting with officials to help strengthen trade relations in the Asia Pacific region.
USDA's Foreign Agricultural Service (FAS) allocated $213 million for export promotion activities through two USDA international market development programs: the Foreign Market Development Program (FMD) and the Market Access Program (MAP). USDA's international market development programs have had a significant and positive impact on U.S. agricultural exports.
An independent study released in 2010 found that for every $1 expended by government and industry on market development, U.S. food and agricultural exports increase by $35.
Currently, the American brand of agriculture is surging in popularity worldwide. Farm exports in fiscal year 2011 reached a record high of $137.4 billion—exceeding past highs by $22.5 billion—and supported 1.15 million jobs here at home. The agricultural trade surplus stands at a record $42.9 billion. USDA also forecasts that new trade agreements with South Korea, Colombia and Panama will add an additional $2.3 billion to the farm economy and support about 20,000 American jobs.
Under FMD, FAS will allocate a total of $29.7 million to 24 trade organizations that represent U.S. agricultural producers. The organizations, which must contribute a minimum 50 percent cost share toward the program, will conduct activities that help maintain or increase demand for U.S. agricultural commodities overseas.
Under MAP, FAS will provide $183 million to 67 non-profit organizations and cooperatives. MAP participants must contribute a minimum 10 percent match for generic marketing and promotion activities and a dollar-for-dollar match for promotion of branded products by small businesses and cooperatives.
In Vietnam today, Vilsack met with representatives from some of the U.S. agricultural organizations benefitting from these programs. He also spoke with Vietnamese officials and talked with students at the Hanoi University of Agriculture.
Next he will travel to China as part of the Obama Administration's delegation for the 22nd Joint Commission on Commerce and Trade (JCCT), where he also plans to meet with additional U.S. agricultural organizations benefitting from USDA's international market development efforts.