The importance of strengthening the commodity provisions in the next farm bill has been discussed on multiple Thursdays in Southern Ag Today. The steady decline in the U.S. share of exports of major commodities (Figure 1) along with projected prices and the realities of high input costs are expected to exacerbate the current cost-price squeeze producers are enduring. In addition to meaningful enhancements in commodity programs, many stakeholders are calling for increased funding for trade promotion programs that stimulate the demand for and reduce barriers to imports of U.S. products, specifically, the Foreign Market Development Program (FMD) and the Market Access Program (MAP).
Both programs help to develop foreign markets for agricultural commodities. MAP offers cost-sharing for a variety of consumer-oriented activities designed to increase demand for U.S. agricultural commodities. The FMD program partners with organizations that represent the broader agricultural industry with projects that aim to reduce trade barriers and expand export opportunities by identifying new markets or uses for a commodity or improving processing capabilities.
The last increase in FMD and MAP trade promotion programs was included in the 2002 Farm Bill with MAP at $200 million and FMD at $34.5 million. Thus far in this farm bill process, the bill passed by the House Agriculture Committee on May 24th (the Farm, Food, and National Security Act of 2024) as well as the Senate Republican-drafted farm bill framework, would double MAP and FMD funding. While farm bills tend to focus on commodity programs, market development activities are also important because they can stimulate demand for U.S. agricultural products, helping all of U.S. agriculture in the process.
Outlaw, Joe, and Bart L. Fischer. “Trade Policy Also Important in Next Farm Bill.” Southern Ag Today 4(29.4). July 18, 2024. Permalink
