Farm Bill - Increasing Access to New Markets
Agricultural exports are significant to farmers and the U.S. economy. With the productivity of American agriculture growing rapidly, so is demand. Farmers are accessing new markets around the globe like India to sell American products many of which are grown in the San Joaquin Valley.
The Trade title (Title III) of the Farm Bill authorizes programs to expand foreign markets for U.S. farmers and food manufacturers through export market development programs and export credit guarantee programs.
Access to New Global Markets
The Market Access Program (MAP) was established in 1985 and allows agricultural trade associations, farmer cooperatives, non-profit trade groups, and small businesses to apply for either generic or brand-specific promotion funds to support exporting efforts.
The Foreign Market Development Program (FMD) was first developed in 1955 and is largely used for the promotion of bulk commodities, helping agricultural trade associations establish a permanent presence in important markets.
USDA export programs like MAP and FDMP have added an annual average of $8.15 billion to the value of American agricultural exports and added up to 239,800 full and part-time jobs, including 90,000 farm sector jobs. We must build on these efforts in the upcoming Farm Bill, that is why I introduced the Agriculture Export Promotion Actwould increase funding for these programs, and help American farmers maintain an edge in the global marketplace.
Some additional trade programs reauthorized in the Farm Bill include:
Agricultural Trade Promotion Programprovides cost-share funding to help U.S. agricultural exporters develop new markets and mitigate the adverse effects of other countries' trade barriers.
Emerging Markets Program (EMP)funds technical assistance activities to promote exports of U.S. agricultural commodities to emerging markets worldwide.
Technical Assistance for Specialty Crops (TASC)funds projects that address sanitary, phytosanitary, and technical barriers that prohibit or threaten the export of U.S. specialty crops.
Developing Export Infrastructure
In 2021, the top three markets for our pork: China, Japan, and Mexico, accounted for 63% of U.S. exports. In that same year, the top three markets for beef: Japan, South Korea, and China accounted for 60% of U.S. exports.
These facts underscore the need to maintain these trading partners and establish new markets to build a resilient supply chain for California producers. That is why, I introduced the Fortifying Refrigeration Infrastructure and Developing Global Exports (FRIDGE) Act, which would add a section in the Foreign Market Development (FMD) program to enhance infrastructure construction – including cold chain storage – in new and developing foreign markets.
Protecting U.S. Ag Exports
Common food and drink names such as parmesan, chateau, and bologna are used around the world to describe products to consumers. However, due to geographic indication of European locations, the European Union has begun using economic and political influence to implement unfair trade practices under the guise of protecting geographic indicators.
These unfair trade practices have the potential to block United States’ agriculture products from being sold in international markets. That is why, I am co-leading the bipartisan, bicameral Safeguarding American Value-Added Exports (SAVE) Act, which would amend the Agriculture Trade Act of 1978 to include and define a list of common names for ag commodities, food products, and terms used in marketing and packaging of products.
International Food Assistance Programs
The United States is the largest international food assistance donor in the world. Our country provides hunger relief and food assistance, which stimulates growth and increases stability in the poorest regions across the globe.
Food is not only a national, but global security issue. Throughout my time in Congress, I've been a staunch advocate for international food assistance programs like Food for Peace and McGovern-Dole Food for Education, because I see the positive results that these programs create around the developing world.
Today, Putin's brutal invasion of Ukraine has fueled the global hunger crisis and disrupted food supply chains. This is being felt across the globe and Congress must continue to take immediate action to address rapidly growing food insecurity by strengthening the following programs:
Bill Emerson Humanitarian Trust (BEHT)is a mandatory reserve of funds held by USDA that can empower USAID to respond and supplement FFP Title II assistance when FFP Title II alone cannot meet emergency food needs.
Food for Peace (FFP) Title II Programdonates U.S. commodities to recipients in foreign countries, which has procured over 6.2 million metric tons of food and served more than 16.4 million people.
Food for Progress Program (FPPr)helps developing countries and emerging democracies modernize and strengthen their agricultural sectors.
Local and Regional Food Aid Procurement Program (LRP Program)enables the U.S. Department of Agriculture to procure local and regional commodities for field-based projects in developing countries
McGovern-Dole International Food for Education and Child Nutrition Programhelps support education, child development, and food security in low-income, food-deficit countries around the globe.