Audio: MAP Funding Critical to Expanding Exports, Advancing Rural Economy
Published: Sep 18, 2012
As Congressional leaders weigh the fate of the next Farm Bill, USMEF President and CEO Philip Seng wants them to keep in mind the critical role exports play in the viability of U.S. agriculture and the health of the nation’s economy. One of the keys to expanding agricultural exports is to maintain stable funding for the USDA Market Access Program (MAP), which represents a successful partnership between USDA and nonprofit U.S. agricultural trade associations, farmer cooperatives, nonprofit state-regional trade groups and small businesses to share the costs of overseas marketing and promotional activities.
MAP has a proven track record of creating jobs and contributing to a positive agricultural balance of trade. For example:
• Since MAP was created in 1985, U.S. agricultural exports have increased more than 400 percent.
• According to an independent cost/benefit analysis, MAP funds return $35 for every $1 spent. (Source: A Cost Benefit Analysis of USDA’s International Market Development Programs, IHS Global Insight (USA), Inc., March 2010).
• According to USDA, every $1 billion in agricultural exports supports about 8,400 jobs. With ag exports projected to reach $131 billion in this fiscal year, this translates to more than 1.1 million American jobs.
• USMEF has consistently received the highest available rating for the effectiveness of its market development programs supported by MAP.
Seng also points out the importance of industry contributions in determining the allocation of MAP funds. He notes that with strong support from the beef, pork, lamb, corn and soybean industries, USMEF is particularly well-positioned to make effective use of MAP funding to expand global demand for U.S. red meat.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. As congressional leaders weigh the fate of the next Farm Bill, USMEF President and CEO, Philip Seng, wants them to keep in mind the critical role exports play in the viability of U.S. agriculture and the health of the nation’s economy. He says one of the keys to expanding agricultural exports is to maintain stable funding for the USDA Market Access Program, commonly known as MAP. Philip Seng: The United States is one of the world’s major agricultural exporters. Last year we exported about $141 billion; the current administration has talked about doubling those exports. The key program that the administration has in order to foster this is the MAP program. And this program is designed, not only to do promotion, but also its market access program, so where we had complications getting into markets, we’re able to use these dollars or whatever for example, to the U.S. Meat Export Federation to work in these markets around the world to get us more access and then also then to promote the products when we’re in those markets. It’s critical to the viability of U.S. agriculture and to the success of agriculture as we go forward.
Joe Schuele: Seng adds that industry contributions are important in determining the allocation of the MAP funds with strong support from the beef, pork, lamb, corn, and soybean industries. He says USMEF is particularly well positioned to make effective use of MAP funding.
Philip Seng: The U.S. government has a formula because there’s about 80 different organizations that are in competition, if you will, for this funding. Number one in this criteria, of course, is does the industry itself get behind these programs? And so, the amount of dollars that we receive from the beef, the pork industry from all the different nine sectors that we have in the Meat Export Federation really contribute to the award that we receive. They also look to the potential in the market, the look at the ability of the cooperator, which is MEF, to manage those funds, and they also look at the results from past performance. So, there is a real criteria for this, but I think the meat industry and the U.S. Meat Export Federation have stood very proud over the years because we’ve been one of the largest recipients and we’ve received every year over for the last five years the highest ranking as far as our marketing programs.
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report.
MAP has a proven track record of creating jobs and contributing to a positive agricultural balance of trade. For example:
• Since MAP was created in 1985, U.S. agricultural exports have increased more than 400 percent.
• According to an independent cost/benefit analysis, MAP funds return $35 for every $1 spent. (Source: A Cost Benefit Analysis of USDA’s International Market Development Programs, IHS Global Insight (USA), Inc., March 2010).
• According to USDA, every $1 billion in agricultural exports supports about 8,400 jobs. With ag exports projected to reach $131 billion in this fiscal year, this translates to more than 1.1 million American jobs.
• USMEF has consistently received the highest available rating for the effectiveness of its market development programs supported by MAP.
Seng also points out the importance of industry contributions in determining the allocation of MAP funds. He notes that with strong support from the beef, pork, lamb, corn and soybean industries, USMEF is particularly well-positioned to make effective use of MAP funding to expand global demand for U.S. red meat.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. As congressional leaders weigh the fate of the next Farm Bill, USMEF President and CEO, Philip Seng, wants them to keep in mind the critical role exports play in the viability of U.S. agriculture and the health of the nation’s economy. He says one of the keys to expanding agricultural exports is to maintain stable funding for the USDA Market Access Program, commonly known as MAP. Philip Seng: The United States is one of the world’s major agricultural exporters. Last year we exported about $141 billion; the current administration has talked about doubling those exports. The key program that the administration has in order to foster this is the MAP program. And this program is designed, not only to do promotion, but also its market access program, so where we had complications getting into markets, we’re able to use these dollars or whatever for example, to the U.S. Meat Export Federation to work in these markets around the world to get us more access and then also then to promote the products when we’re in those markets. It’s critical to the viability of U.S. agriculture and to the success of agriculture as we go forward.
Joe Schuele: Seng adds that industry contributions are important in determining the allocation of the MAP funds with strong support from the beef, pork, lamb, corn, and soybean industries. He says USMEF is particularly well positioned to make effective use of MAP funding.
Philip Seng: The U.S. government has a formula because there’s about 80 different organizations that are in competition, if you will, for this funding. Number one in this criteria, of course, is does the industry itself get behind these programs? And so, the amount of dollars that we receive from the beef, the pork industry from all the different nine sectors that we have in the Meat Export Federation really contribute to the award that we receive. They also look to the potential in the market, the look at the ability of the cooperator, which is MEF, to manage those funds, and they also look at the results from past performance. So, there is a real criteria for this, but I think the meat industry and the U.S. Meat Export Federation have stood very proud over the years because we’ve been one of the largest recipients and we’ve received every year over for the last five years the highest ranking as far as our marketing programs.
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report.