Senate, Administration Weigh $40 Million Cut to MAP Funding
Senate, Administration Weigh $40 Million Cut to MAP Funding
A $40 million cut in funding for the Market Access Program (MAP) – equal to 20 percent of the MAP budget – is being proposed by Senate Budget Committee Chairman Kent Conrad (D-N.D.) with support from the Obama Administration.
MAP funds, which are utilized to support market access efforts and promotional programs for U.S. agricultural products overseas, play a significant role in financing the programs of USMEF. MAP funds account for $16 million, or more than half of USMEF funding in the current fiscal year.
U.S. beef and pork exports alone accounted for $8.5 billion in revenue for the United States during 2008. The export of 4.5 billion pounds of pork valued at nearly $4.9 billion was a 57 percent increase in volume and a 55 percent increase in value over 2007. International markets purchased 24.4 percent all U.S. pork production last year, and that export value equated to $42.31 per head for each hog processed.
U.S. beef exports in 2008 totaled nearly 2.2 billion pounds valued at $3.6 billion – an increase of 28 percent in volume and 38 percent in value over 2007 totals. The recovery of U.S. beef exports in 2008 enabled the United States to become a net exporter of beef, with exports outweighing imports by $453 million compared to net imports of $780 million in 2007. Exports added $133.84 to the value of each U.S. steer and heifer processed in 2008.
“While the term ‘stimulus spending’ is in vogue this year, MAP funding has traditionally been viewed as providing a stimulus for U.S. exports and the balance of trade,” said Philip Seng, USMEF president and CEO. “With domestic consumption of beef and pork remaining fairly static in recent years, the U.S. beef and pork industries have become increasingly dependent on international markets to sustain production levels and employment. Pork exports have jumped from 5.6 percent of total U.S. production in 1995 to 24.4 percent last year, while beef exports, which fell to 3.6 percent of U.S. production after BSE was found in the U.S. in 2003, rebounded to 11.6 percent last year.”
Seng noted that MAP funding was designed as a tool to open, maintain and sustain access to international markets for U.S. agricultural exports, and to help overcome duties and other barriers to trade. In the current economic climate of protectionism, he believes that MAP-funded programs are more timely and critical than ever.
In a bipartisan effort in defense of MAP funding to support U.S. agriculture exports, Senators Maria Cantwell (D-WA) and Mike Crapo (R-ID) have drafted letters to President Obama seeking his support for MAP. A number of key senators have added their names in support of preserving current MAP funding levels:
John Barrasso (R-WY), Barbara Boxer (D-CA), Saxby Chambliss (R-GA), Susan Collins (R-ME), Michael Enzi (R-WY), Kirsten Gillibrand (D-NY), Johnny Isakson (R-GA), Mike Johanns (R-NE), Carl Levin (D-MI), James Risch (R-ID), Pat Roberts (R-KS), Olympia Snowe (R-ME), Debbie Stabenow (D-MI), David Vitter (R-LA) and Ron Wyden (D-OR)
“While we are acutely aware of the economic crisis that is affecting the United States as well as our trading partners around the globe, we are hopeful that our legislators will see the benefits of a vigorous international marketing program for U.S. agricultural exports,” said Seng. “It is a challenge to create new jobs in a slumping economy, so we believe MAP funds are an excellent investment in preserving jobs in the key agriculture sector and maintaining our positive balance of trade.”
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Senate, Administration Weigh $40 Million Cut to MAP Funding
A $40 million cut in funding for the Market Access Program (MAP) – equal to 20 percent of the MAP budget – is being proposed by Senate Budget Committee Chairman Kent Conrad (D-N.D.) with support from the Obama Administration.
MAP funds, which are utilized to support market access efforts and promotional programs for U.S. agricultural products overseas, play a significant role in financing the programs of USMEF. MAP funds account for $16 million, or more than half of USMEF funding in the current fiscal year.
U.S. beef and pork exports alone accounted for $8.5 billion in revenue for the United States during 2008. The export of 4.5 billion pounds of pork valued at nearly $4.9 billion was a 57 percent increase in volume and a 55 percent increase in value over 2007. International markets purchased 24.4 percent all U.S. pork production last year, and that export value equated to $42.31 per head for each hog processed.
U.S. beef exports in 2008 totaled nearly 2.2 billion pounds valued at $3.6 billion – an increase of 28 percent in volume and 38 percent in value over 2007 totals. The recovery of U.S. beef exports in 2008 enabled the United States to become a net exporter of beef, with exports outweighing imports by $453 million compared to net imports of $780 million in 2007. Exports added $133.84 to the value of each U.S. steer and heifer processed in 2008.
“While the term ‘stimulus spending’ is in vogue this year, MAP funding has traditionally been viewed as providing a stimulus for U.S. exports and the balance of trade,” said Philip Seng, USMEF president and CEO. “With domestic consumption of beef and pork remaining fairly static in recent years, the U.S. beef and pork industries have become increasingly dependent on international markets to sustain production levels and employment. Pork exports have jumped from 5.6 percent of total U.S. production in 1995 to 24.4 percent last year, while beef exports, which fell to 3.6 percent of U.S. production after BSE was found in the U.S. in 2003, rebounded to 11.6 percent last year.”
Seng noted that MAP funding was designed as a tool to open, maintain and sustain access to international markets for U.S. agricultural exports, and to help overcome duties and other barriers to trade. In the current economic climate of protectionism, he believes that MAP-funded programs are more timely and critical than ever.
In a bipartisan effort in defense of MAP funding to support U.S. agriculture exports, Senators Maria Cantwell (D-WA) and Mike Crapo (R-ID) have drafted letters to President Obama seeking his support for MAP. A number of key senators have added their names in support of preserving current MAP funding levels:
John Barrasso (R-WY), Barbara Boxer (D-CA), Saxby Chambliss (R-GA), Susan Collins (R-ME), Michael Enzi (R-WY), Kirsten Gillibrand (D-NY), Johnny Isakson (R-GA), Mike Johanns (R-NE), Carl Levin (D-MI), James Risch (R-ID), Pat Roberts (R-KS), Olympia Snowe (R-ME), Debbie Stabenow (D-MI), David Vitter (R-LA) and Ron Wyden (D-OR)
“While we are acutely aware of the economic crisis that is affecting the United States as well as our trading partners around the globe, we are hopeful that our legislators will see the benefits of a vigorous international marketing program for U.S. agricultural exports,” said Seng. “It is a challenge to create new jobs in a slumping economy, so we believe MAP funds are an excellent investment in preserving jobs in the key agriculture sector and maintaining our positive balance of trade.”
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