|U.S. Wheat Associates (USW) is supported by a highly successful partnership between our state wheat commission members and cost-share funding from the USDA’s Foreign Agricultural Service.
USW does not receive direct funding from any commercial source.
- Wheat producers contribute a portion of their wheat sales (either by bushel or by production value) to their state wheat commission, called a checkoff.
- State wheat commissions in 18 states contribute a portion of their checkoff dollars to USW.
- On average, U.S. wheat farmers contribute about one quarter of a penny per bushel ($0.0028) to USW.
- USDA matches checkoff dollars with export market development funding through two programs: the Market Access Program (MAP) and the Foreign Market Development (FMD) program.
- While the specific contribution varies each year, USDA has matched about $2.00 for every $1 in state funding.
- MAP and FMD are good government programs that have a positive and significant impact on U.S. agricultural exports. That includes:
- Excellent returns to farmers, the grain industry and the general economy
- Proven potential to create jobs and help the rural economy grow
- Efficient, effective administration
- Direct contributions that improve conditions for the private sector to increase exports
- Benefits to the entire wheat supply chain from farmers to the longshoremen who load wheat on vessels for export
Excellent Return on Investment
An independent study conducted by IHS Global Insight, Inc., for USDA in 2010 found that between 2002 and 2009 the incremental investment in market development increased U.S. export market share by 1.3 percentage points and the annual value of U.S. agricultural exports by $6.1 billion.
For every additional $1 expended by government and industry on market development, U.S. food and agricultural exports increased by $35.
These results are consistent with the conclusions of a January 2016 economic analysis of wheat export promotion showing U.S. wheat farmers received $45 in net revenue for every $1 they invested in export promotion between 2007 and 2014.
The study also showed that every $1 invested by U.S. wheat farmers and the government returned about $149 in gross revenue to the U.S. economy during that time.
||Export Market Development:
A Vital Partnership with U.S. Wheat
Export success is a key price determinant. That is why wheat farmers contribute millions of dollars and time and talent every year to support export development. Because they make this annual commitment, wheat farmers qualify for federal funds administered by USDA's Foreign Agricultural Service.
Together the funding yields a tremendous return on investment: $149 in gross revenue to the wheat industry – and the U.S. economy – for every $1 invested. Yet in the current federal budget debate, funding for export development programs like the Market Access Program and the Foreign Market Development program are at risk.