POLITICAL ECONOMY

USDA Announces Market Development Programme Investments For Fiscal Year 2024

By Godson Umejiego, Bureau Chief, The Americas

The US Department of Agriculture’s Foreign Agricultural Service (FAS) is awarding more than US$203 million to nearly 70 agricultural organizations to help expand export markets for US food and agricultural products via the Market Access Programme (MAP) and Foreign Market Development (FMD) programme.

“Over the years we have seen the tremendous impact both MAP and FMD have on expanding US exports to markets across the globe,” said FAS Administrator Daniel B. Whitley. “For each US$1 invested in export market development, US agricultural exports have increased by more than US$24. These programmes provide a significant boost to the US agricultural industry, which in turn helps strengthen the economy not just in rural communities, but across the entire United States.”

Through MAP, FAS will provide US$174.3 million for fiscal year 2024 to 68 nonprofit organizations and cooperatives. These organizations use the funds on consumer promotion, including brand promotion for small companies and cooperatives, and the funding is used extensively by organizations promoting fruits, vegetables, nuts, processed products and bulk and intermediate commodities. The average MAP participant provides more than US$2.50 in contributions for every US$1 in federal funding it receives through the programme.

Under the FMD programme, FAS will allocate US$27 million for fiscal year 2024 to 20 trade organizations that represent US agricultural producers. The programme focuses on generic promotion of US commodities, rather than consumer–oriented promotion of branded products. Preference is given to organizations that represent an entire industry or are nationwide in membership and scope. The organizations, which contribute on average more than US$2.50 for every US$1 in federal funding they receive through the programme, will conduct activities that help maintain or increase demand for US agricultural commodities overseas.

USDA has published the list of organizations that will receive fiscal year 2024 MAP awards and FMD awards.

Late last year, USDA also announced a new fund that complements the fiscal year 2024 funds being announced today. The new Regional Agricultural Promotion Programme (RAPP) will provide US$1.2 billion to help exporters reach non-traditional markets and ensure continuity of relationships and trust in existing markets. RAPP complements MAP and FMD by encouraging exporters to establish, build and grow their presence in markets with increased demand for US products and growing middle classes. Applications for the first tranche of RAPP funding, US$300 million, are being accepted through February 2, 2024. Applicants will be able to apply for projects that last up to five years.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. USDA is an equal opportunity provider, employer, and lender.       

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