MAP, FMD Funding Pass First Test

MAP, FMD Funding Pass First Test

There are early signs of optimism that funding for the Market Access Program (MAP) and the Foreign Market Development (FMD) program will be fully funded at levels authorized in the 2008 Farm Bill., Congressional insiders warn, however, that MAP funding has been included on a list of programs identified by House Republican leaders as areas where federal spending could be reduced.

“These programs are critical to funding not only USMEF’s overseas activities, but also many of our operational costs,” said Thad Lively, USMEF senior vice president for policy, planning and research. “The MAP and FMD programs have a lot of support on Capitol Hill, and are recognized for being very successful in helping many agricultural industries meet their export objectives.”

The House Appropriations Committee has marked up and approved the FY 10 Agriculture Appropriations bill, funding MAP at $200 million and FMD at $34.5 million. The full House is expected to consider the bill after the Fourth of July recess, which is also when the Senate is expected to take up these issues at the committee level. While these programs have been treated very favorable so far in the budget process, Lively cautioned that in previous years floor amendments have been offered to either eliminate or reduce program funding.

“We feel that any concerns raised about MAP or FMD in floor debate can be adequately addressed by the strong proponents these programs have in Congress,” he said. “Nevertheless, we think this is going to be one of the tougher years we’ve faced in maintaining funding for these programs.”

To fortify support in Congress, USMEF is part of the Coalition to Promote U.S. Agricultural Exports that has provided legislators with information outlining the benefits to the U.S. economy of agricultural exports. The coalition notes that since MAP’s creation in 1985, U.S. agricultural exports have increased by nearly 300 percent, and today more than 1.2 million Americans have jobs that depend on these exports. A study commissioned by USDA prior to the 2008 Farm Bill debate showed that farm net cash income increased considerably as a result of market development activities.

MAP funding has facilitated an effective public/private partnership that has maximized the return on investment of federal funds. Designed as a cost-share program under which farmers and other participants are required to contribute as much as a 50 percent match of their own resources to be eligible, the program utilized an estimated 30 percent of industry funds in 1991. That total grew to about 45 percent in 1996, and now non-government funds account for an estimated 60 percent of total annual spending on market development and promotion, demonstrating the commitment of U.S. producers and industry to the program.

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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

MAP, FMD Funding Pass First Test

There are early signs of optimism that funding for the Market Access Program (MAP) and the Foreign Market Development (FMD) program will be fully funded at levels authorized in the 2008 Farm Bill., Congressional insiders warn, however, that MAP funding has been included on a list of programs identified by House Republican leaders as areas where federal spending could be reduced.

“These programs are critical to funding not only USMEF’s overseas activities, but also many of our operational costs,” said Thad Lively, USMEF senior vice president for policy, planning and research. “The MAP and FMD programs have a lot of support on Capitol Hill, and are recognized for being very successful in helping many agricultural industries meet their export objectives.”

The House Appropriations Committee has marked up and approved the FY 10 Agriculture Appropriations bill, funding MAP at $200 million and FMD at $34.5 million. The full House is expected to consider the bill after the Fourth of July recess, which is also when the Senate is expected to take up these issues at the committee level. While these programs have been treated very favorable so far in the budget process, Lively cautioned that in previous years floor amendments have been offered to either eliminate or reduce program funding.

“We feel that any concerns raised about MAP or FMD in floor debate can be adequately addressed by the strong proponents these programs have in Congress,” he said. “Nevertheless, we think this is going to be one of the tougher years we’ve faced in maintaining funding for these programs.”

To fortify support in Congress, USMEF is part of the Coalition to Promote U.S. Agricultural Exports that has provided legislators with information outlining the benefits to the U.S. economy of agricultural exports. The coalition notes that since MAP’s creation in 1985, U.S. agricultural exports have increased by nearly 300 percent, and today more than 1.2 million Americans have jobs that depend on these exports. A study commissioned by USDA prior to the 2008 Farm Bill debate showed that farm net cash income increased considerably as a result of market development activities.

MAP funding has facilitated an effective public/private partnership that has maximized the return on investment of federal funds. Designed as a cost-share program under which farmers and other participants are required to contribute as much as a 50 percent match of their own resources to be eligible, the program utilized an estimated 30 percent of industry funds in 1991. That total grew to about 45 percent in 1996, and now non-government funds account for an estimated 60 percent of total annual spending on market development and promotion, demonstrating the commitment of U.S. producers and industry to the program.

# # #

The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.