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AMI Calls For Proper Funding of MAP and FMD Programs

Wednesday, April 25, 2012

(American Meat Institute)

AMI joined a coalition of organizations  in voicing its strong support for maintaining vital funding for USDA’s important export programs, including the Market Access Program (MAP) and Foreign Market Development (FMD) Program, when the Committee on Agriculture, Nutrition and Forestry considers authorization of the new Farm Bill. 

In a letter to Committee leadership, the organizations requested that MAP and FMD be reauthorized and funded at no less than $200 million and $34.5 million annually, which are the same levels as in the current Farm Bill.  MAP has been funded annually at this level since 2006 and FMD at its level since 2002. 

“We are strongly supportive of the Administration’s commendable goal through the National Export Initiative (NEI) of doubling U.S. exports over five years.  For agriculture, MAP and FMD are key tools in making this a successful effort,” the letter stated.

The letter cited a recent study by IHS Global Insight, commissioned by USDA, which found that the increase in market development spending through MAP and FMD since 2002 substantially increased U.S. export market share, which resulted in the annual value of U.S. agricultural exports to increase by $6.1 billion.  The study also found that over the 2002-09 period export gains associated with the programs increased the average annual level of U.S. farm cash receipts by $4.4 billion and net cash farm income by $1.5 billion.  For every additional $1 expended by government and industry on market development during this period, U.S. food and agricultural exports increased by $35, a 35 to 1 return on investment.  At the same time, the study also found that U.S. domestic farm support payments were reduced by roughly $54 million annually due to higher prices from increased demand abroad, thus reducing the net cost of farm programs.

“By any measure, MAP and FMD have been tremendously successful and extremely cost-effective in helping maintain and expand U.S. agricultural exports, protect and create American jobs, strengthen farm income and help to offset the government-supported advantages afforded foreign competitors.  MAP and FMD are two proven tools U.S. agriculture has to compete in the international marketplace, and are even more important today as our competitors continue to use their considerable financial resources to gain market share,” the letter concluded.

On Friday, April 20, the Senate Agriculture Committee released a draft of a bill that extends authorization for both programs for five years and continues funding MAP at $200 million per year and FMD at $34.5 million per year.

To view the letter, go to The link to this document is: http://www.meatinstitute.org/ht/a/GetDocumentAction/i/77291.

 

 

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