Developing New Markets Around the World

A gricultural export market development depends on long-standing, successful partnerships between non-profit U.S. agricultural trade associations, farmer cooperatives, non-profit state and regional trade groups, small businesses and USDA to share the costs of overseas marketing and promotional activities.

Under the MAP and the FMD programs, administered by USDA’s Foreign Agricultural Service (FAS), private-sector groups contribute an estimated $468.7 million annually, primarily from checkoff programs, into international market development and promotion. In fact, industry contributions represent more than 70% of the buying power of the programs.

Federal funding for MAP was last increased in the 2002 Farm Bill, reaching $200 million annually in 2006. Federal funding for the FMD program was last increased in the 2002 Farm Bill to $34.5 million annually.

Since these increases, the size of the foreign agricultural market MAP and FMD help develop has more than tripled to in excess of $800 billion dollars a year.

A 2016 econometric study of export demand commissioned by USDA's Foreign Agricultural Service (FAS) as required by Congress and conducted by Informa Economics IEG, working with Texas A&M University and Oregon State University economists, showed the following results between 2002 and 2014:

A return on investment by MAP and FMD of a remarkable $24 in export gains for every additional $1 spent on foreign market development, consistent with results from several previous studies.
A dramatic average annual increase in farm income of $2.1 billion because of program activities.
Creation of 239,000 new full and part-time jobs related to the programs.

From 1977 to 2014, ag export volume, prices and revenue grew due to exports.

During this time, annual export value increased by $8.2 billion. That means MAP and FMD contributed more than 15 percent of all export revenue, for a grand total of $309 billion.

A separate study commissioned by the MAP and FMD coalitions from Informa, working with Texas A&M and Oregon State University economists, showed that if MAP and FMD were doubled and private cooperator contributions increased by just 10 percent, ag export value would increase $3.4 billion per year on average, farm cash receipts would rise $2.2 billion a year on average, and 64,000 jobs would be created.