The USDA on Oct. 24 announced it will use $1.3 billion in Commodity Credit Corp. funds to create the Regional Agricultural Promotion Program, which aims to assist agricultural groups in marketing their commodities overseas. The U.S. Grains Council thanked the agency for its action and called on congress to increase long-term funding for market development programs in the upcoming Farm Bill.&nbsp;According to the USDA, the fiscal year 2023 agricultural trade deficit is $19 billion. The agency projects that deficit will grow to $27.5 billion in fiscal year 2024 and noted U.S. producers also face increased competition in their export markets in Asia and Africa. As a result, the USDA said additional investments in market development need to be made to keep ahead of the competition.&nbsp;In its announcement, the USDA cited analysis that has shown that for every $1 invested in export market development, exports are increased by $24.50. “Increased agricultural exports means income directly back to producers,” the agency said. “Trade promotion investment helps keep existing markets open and creates access to new markets. Further, investing in non-traditional markets will help the United States diversify away from dependence on a handful of large markets.”The $1.3 billion investment in RAPP will enable exporters to break into new markets and increase market share in growth markets, according to the agency.&nbsp;The USDA in 2018 launched the Agricultural Trade Promotion Program in reaction to the trade war with China as part of its effort to help U.S. exporters diversify their markets. The funds from that program will expire next year. As a result, many exporters are already curtailing their activities. “Without being on the ground in markets, it is nearly impossible to build the trust and relationships needed to create opportunities,” the USDA said. “The RAPP will address this critical loss and ensure continuity of the relationships key to market development.”The USGC said RAPP funding—like ATF funds that were first distributed in 2019—will supplement the agency’s Market Access Program and Foreign Market Development funds that it relies on annually to help its members expand markets for grains in all forms and its international partners to serve their local consumers.&nbsp;“The U.S. Grains Council thanks Secretary Vilsack and the USDA for continuing to promote market development through providing a new program funding source,” said Ryan LeGrand, president and CEO of the USGC. “The success of the Council would not be possible without its partners in both the public and private sector, and we look forward to expanding exports of corn, sorghum, barley and their co-products with this new source of funding. However, there is still a need to increase long-term funding of the MAP and FMD programs in a new farm bill.”In addition to the $1.3 billion in RAPP funding, the USDA also announced its intent to allocate $1 billion to help address global hunger. A full copy of announcement is available on the USDA <a href="https://fas.usda.gov/newsroom/usda-bolsters-investments-international-trade-and-food-aid">website</a>.

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The USDA on Oct. 24 announced it will use $1.3 billion in Commodity Credit Corp. funds to create the Regional Agricultural Promotion Program, which aims to assist agricultural groups in marketing their commodities overseas. 

USDA launches new $1.3 billion effort to expand ag export markets

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