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ARLINGTON, Va. — The latest analysis of foreign export promotion program investment shows that several competing countries and the European Union spent close to $1 billion in public funds on agricultural export promotion in 2016, outspending the United States 4 to 1. That is an increase of 70 percent in real competitive public spending since 2011. U.S. public funding for the two largest agricultural export promotion programs is about $235 million per year and its real value has declined by 12 percent since 20111. The conclusions echo results of three similar competitive studies since 2013.

“As a cooperating organization in USDA’s Foreign Agricultural Service export market development programs, we have seen a similar decline in annual funding,” said U.S. Wheat Associates President Vince Peterson. “This has forced us to cut back on activities in certain markets even though our state wheat commission members have invested more to try to minimize the loss.”

This study, “An Analysis of EU and Other Selected Foreign Export Promotion Programs,” was commissioned by Wine Institute and other agricultural associations and conducted by Informa Economics, IEG, with Market Access Program funding. With a focus on EU export development investment, Informa Economics also reviewed agricultural export promotion investment by major competitors from Australia, Chile, China, New Zealand and others.

“The total public investment alone from just the EU and four European countries are expected to exceed $550 million in 2019, which is more than twice what the U.S. government authorizes for agricultural export development under the farm bill,” said Mark Powers, president of the Northwest Horticultural Council and chairman of the Coalition to Promote U.S. Agricultural Exports.

The study showed the EU is investing about $300 million per year on wine export promotion alone. Canada and Italy doubled their total annual spending, and Brazil and China tripled their total annual export promotion budgets according to the study.

“Other governments are investing more in global food and agricultural markets while inflation, sequestration and administrative costs are chipping away at U.S. funding,” said Tom Sleight, CEO of U.S. Grains Council, which is a member of the Agribusiness Coalition for Foreign Market Development. “That also cuts into the ability of American family farmers, livestock and dairy producers, fishermen and small agri-food businesses to compete in growing export markets.”

Sleight said increasing competition is one of the reasons why organizations that participate in cost-share export programs with USDA’s Foreign Agricultural Service, as well as a number of members of Congress, are calling for more funding for U.S. programs.

He said by 2016, private funding from industry members provided 70 percent of the total annual investment in the Market Access Program (MAP) and the Foreign Market Development (FMD) program, both administered by USDA’s Foreign Agricultural Service. The remaining 30 percent from annual government funding has been stagnant at $200 million for MAP since 2006 and at $34.5 million for FMD since 2002.

Coalition members are asking that MAP and FMD funding be doubled by the last year of the new farm bill. That is also the goal called for in S.1839 and HR 2321, the “Cultivating Revitalization by Expanding American Agricultural Trade and Exports (CREAATE) Act,” introduced in 2017.

“All the members of our coalition are grateful for federal export promotion support over the years,” Powers said. “The investment has been very successful in boosting U.S. agricultural export volume and revenue at a rate that far exceeds its public expense. Because these programs also protect and create American jobs, and increase farm income2, there is no doubt they are highly successful public-private partnerships worth the increased investment.”

The executive summary of the Informa Economics competitive study, and more in-depth information about MAP and FMD programs and their outcomes, are posted online at www.AgExportsCount.org.

1An Analysis of EU and Other Selected Foreign Export Promotion Programs, Informa Economics, IEG, November 2017
2Economic Impact of USDA Export Market Development Programs, Informa Economics, IEG, July 2016

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ARLINGTON, Virginia — Several representatives from the U.S. wheat industry joined members of the Japan Flour Millers Association to help celebrate the association’s 70th anniversary in Tokyo on Jan. 23, 2018. Senior managers from U.S. Wheat Associates (USW), as well as state wheat commission representatives and farmers from Washington, Oregon, Idaho and Montana participated in events commemorating the anniversary.

Japan has purchased significantly more U.S. wheat than any other country since 1949, when the Oregon Wheat Growers League first organized a trade delegation to investigate opportunities for expanding U.S. wheat sales there.

Today, the Japanese domestic milling and wheat foods industries are highly advanced and demand consistent, high quality wheat and flour. USW Chairman Mike Miller, of Ritzville, Wash., told members of the association that U.S. farmers are very proud to supply much of that wheat every year.

“It is good to know that our wheat is an essential ingredient in the wonderful wheat foods the Japanese people enjoy — and an essential ingredient in the success of these flour millers,” Miller said. “I reassured them that to honor their achievements, farmers will continue to invest in trade service and technical support in Japan, and to improve the quality and wholesomeness of our wheat to meet their needs in the future.”

“It was a great pleasure to congratulate the association’s Chairman, Mr. Masayuki Kondo, President of the Japan Flour Millers Association, and the members of the association in person on their important anniversary,” said USW President Vince Peterson. “We were also able to thank our respected friend and colleague, Mr. Masaaki Kadota, who is retiring after many years serving as the association’s Executive Director.”

With support from state wheat commissions and USDA’s Foreign Agricultural Service, USW focuses on providing up-to-date market information and collaborating with Japanese industry groups to demonstrate the quality and value of U.S. wheat. The mills provide purchase specifications to Japan’s Ministry of Agriculture, Fisheries, and Forestry (MAFF) based on the strict characteristics their wheat food customers demand. Japanese grain trade organizations act as intermediaries between MAFF and overseas sellers. Then MAFF carries out all milling wheat purchases and sells the wheat to Japanese flour mills.

“It is difficult to express how much we value our partnership with Japan’s flour millers and the rest of the wheat foods industries,” Peterson said. “We have developed a deep level of trust by maintaining an open dialogue with them. That has been so important to our mutually beneficial, long-term trading relationship and we confirmed our commitment to continue our partnership in that spirit.”

U.S. farmers continue to earn the largest market share in this well-established and quality conscious wheat market. MAFF issues consistent weekly tenders for U.S. hard red spring (HRS), hard red winter (HRW) and Western White, a blend of soft white (SW) and up to 20 percent club wheat. As a result, Japan has purchased an average of 3.1 million metric tons (about 114 million bushels) of wheat annually the past five years.

Also honoring the association at events in Japan were: wheat farmers Bill Flory of Culdesac, Idaho., Walter Powell of Condon, Ore., and Darren Padget of Grass Valley, Ore.; Damon Filan, manager of Tri-Cities Grain, LLC in Pasco, Wash.; Glen Squires, chief executive officer of the Washington Grain Commission; Michelle Hennings, executive director of the Washington Association of Wheat Growers; Collin Watters, executive vice president of the Montana Wheat and Barley Committee; Mark Fowler, USW vice president of overseas operations; Mr. Wataru “Charlie” Utsunomiya, USW/Japan country director; and Ms. Sadako Ishida, USW/Japan program assistant.

U.S. Wheat Associates (USW) is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities are funded by producer checkoff dollars managed by 17 state wheat commissions and USDA Forei­gn Agricultural Service cost-share programs. For more information, visit www.uswheat.org or contact your state wheat commission.

Photo from the JFMA Anniversary event

 

PHOTO CAPTION (High resolution image posted online):
Mr. Masayuki Kondo (center), Chairman of the Japan Flour Millers Association and President of Nippon Flour Mills, accepts a gift recognizing the association’s 70th anniversary from Mike Miller (third from right), Chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash., and Vince Peterson (second from right), President of USW. Behind Mr. Kondo is Mr. Masaaki Kadota, who is retiring after many years as the association’s Executive Director. Mr. Wataru Utsunomiya (far right), USW Country Director for Japan, served as interpreter at the ceremony Jan. 23, 2018, at the association’s headquarters in Tokyo, Japan.

TOP PHOTO CAPTION (High resolution image posted online):
U.S. Wheat Associates (USW) and U.S. wheat industry representatives joined Mr. Chairman, Mr. Masayuki Kondo (holding a ceremonial gift plate), Nippon Flour Mills President and Chairman of the Japan Flour Millers Association, to celebrate the association’s 70th anniversary Jan. 23, 2018, in Tokyo, Japan.

Members of the U.S. delegation included (front row, left to right): Glen Squires (third from left), Washington Grain Commission CEO; Vince Peterson (fourth from left), USW President; Mike Miller (sixth from left), USW Chairman and a wheat farmer from Ritzville, Wash. (Back row, left to right): Walter Powell (fifth from left), a wheat farmer from Condon, Ore.; Collin Watters, Montana Wheat and Barley Committee Executive Vice President; Bill Flory, a wheat farmer from Culdesac, Idaho; Darren Padget, a wheat farmer from Grass Valley, Ore.; Michelle Hennings, Washington Association of Wheat Growers Executive Director; and Damon Filan, manager of Tri-Cities Grain, LLC in Pasco, Wash. Not pictured, Mark Fowler, USW Vice President of Overseas Operations, and Ms. Sadako Ishida, USW/Japan Program Director.

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Nondiscrimination and Alternate Means of Communications
USW prohibits discrimination in all its programs and activities based on race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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ARLINGTON, Virginia — Continuing a strategic effort to increase resources in wheat import market segments with the best potential for growth and returns for the farmers it represents, U.S. Wheat Associates (USW) has announced it will close its office in Cairo, Egypt, on December 1, 2017. USW is the export market development organization for the U.S. wheat industry with funding from 17 state wheat commissions and USDA’s Foreign Agricultural Service.

“Closing our Cairo office was a difficult decision because it affects four colleagues who have been very dedicated to our mission for many years,” said USW President Vince Peterson. “The closure is most certainly not a reflection of our very good staff, as they have remained committed and hardworking even though the market dynamics of the region have changed. Everyone in our organization thanks them for their service and wishes them all the best in the future. USW is now working through the process to help with these transitions.”

Peterson said USW saw a need to begin adjusting its activities in the Middle East and North Africa several years ago as the supply of significantly lower priced wheat from Russia increased. The organization eliminated a Cairo-based marketing position in 2014. This allowed USW to add an experienced technical specialist in its Casablanca, Morocco, office. In 2016, USW shifted regional management for the Middle East operations to its office in Rotterdam, The Netherlands.

Peterson noted that USW will continue to provide trade service to government wheat buyers in Egypt, Iraq, Saudi Arabia and other countries in the region on a targeted basis.

“Our colleagues in Rotterdam and Casablanca will also promote U.S. high performance hard wheat classes and soft wheat classes in specific markets. This includes private buyers, millers and food companies that serve a growing demand for higher value bread products, cakes and confectionary products in the Middle East,” Peterson said. “In addition, these changes will help us increase future marketing capabilities in higher value Asian and Latin American markets.”

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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WASHINGTON, D.C. — On July 19, 2017, the Trump Administration announced a declaration of intent to nominate Ted McKinney for Under Secretary for Trade and Foreign Agricultural Affairs at the U.S. Department of Agriculture (USDA). In May, the USDA created the new Under Secretary for Trade and Foreign Agricultural Affairs position, as directed by the 2014 Farm Bill.

“McKinney’s leadership experience as Indiana’s Agriculture Director and longstanding background in trade make him an ideal candidate for this position,” said David Schemm, president of the National Association of Wheat Growers (NAWG) and a wheat farmer from Sharon Springs, Kansas. “The U.S. wheat industry applauds the Administration’s choice and calls for a quick confirmation hearing in the Senate.”

Indiana Agriculture Director Ted McKinney spent over 30 years in various roles with Dow AgroSciences and Elanco, a subsidiary of Eli Lilly and Company.

“McKinney has been a champion for U.S. agriculture throughout his career and clearly understands the importance of access to foreign markets,” said Mike Miller, chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash. “We look forward to working with him and his team at USDA to expand trade opportunities for U.S. farmers.”

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Arlington, Virginia — U.S. Wheat Associates (USW) strongly supports President Trump’s nomination of Gregg Doud to become Chief Agricultural Negotiator, with the rank of Ambassador, in the Office of the U.S. Trade Representative (USTR).

“We are thrilled with Gregg’s appointment,” said USW President Alan Tracy. “He has deep ties to U.S. wheat, served as our market analyst and has remained a friend and ally ever since, especially when working for Senator Roberts. He has the background and the energy to excel as USTR’s agricultural trade negotiator, a position of great importance to our industry.”

Currently, the important dispute cases against China’s trade distorting domestic wheat support and its tariff rate quota obligations on imported wheat need to move forward, and the renegotiation of the North American Free Trade Agreement is looming. USW joins the National Association of Wheat Growers in urging an expedited review and confirmation so Doud can get to work at USTR as soon as possible.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Arlington, Virginia — U.S. Wheat Associates is very disappointed that the Administration’s proposed FY 2018 budget eliminates funding for the USDA’s Foreign Agricultural Service Market Access Program (MAP) and Foreign Market Development (FMD) program and severely cuts funding for food aid programs. These cuts and other proposed cuts to the farm safety net would be devastating to wheat farmers who are already facing severely challenging economic conditions.

“These are the wrong proposals at the wrong time for the wheat farmers we represent,” said USW President Alan Tracy. “Agriculture is truly a global industry and export demand determines the prices U.S. wheat farmers receive. Without funding from MAP and FMD, we would not be able to continue the training, technical assistance and service that is needed to promote this incredibly complex food crop. Our competitors would swoop in to take those markets and the potential effect on wheat prices is obvious.”

In addition, a major econometric study led by Texas A&M agricultural economists in 2016 on the effectiveness of MAP and FMD showed that eliminating these programs would result in an annual average loss of $14.7 billion in export value, which would hurt almost every farmer in the country.

“It is very short-sighted to cut out programs that are vital to the health of the entire U.S. agricultural economy,” said Jason Scott, USW Chairman and a wheat farmer from Easton, Md. “Farmers, livestock producers, small businesses and the U.S. government have seen an amazing return on the investment in these highly successful programs. Our farmer leaders agree with the National Association of Wheat Growers President David Schemm who believes MAP and FMD merit an increase in federal funding, not elimination as proposed in this budget.”

In addition, time-honored U.S. food aid programs have been engines of peace, food security and local capacity building in countless countries around the world. Wheat makes up 40 percent of of all in-kind food aid and because almost all food aid recipients are wheat-import dependent, particularly in Africa, wheat donations do not distort local markets. It is not a good time to diminish our ability to promote better lives around the world.”

For more information about MAP, FMD and the essential role they play in building a more productive agricultural economy, please visit www.AgExportsCount.org.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

Joint Statement from U.S. Wheat Associates and the National Association of Wheat Growers

WASHINGTON, D.C. — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the U.S. Senate’s confirmation of Robert Lighthizer today as the next U.S. Trade Representative. Fair access to international markets is crucial for America’s productive wheat farmers. Our organizations believe Ambassador Lighthizer fully understands that a strong agricultural economy depends on improving free trade opportunities and rules.

“We look forward to working with Amb. Lighthizer to help build new export opportunities for the farmers we represent,” said David Schemm, NAWG President and a wheat farmer from Sharon Springs, KS. “To that end, we also encourage him to quickly name a new U.S. Agricultural Trade Ambassador to represent agricultural interests in the upcoming re-negotiation of the North American Free Trade Agreement and trade negotiations with Asia-Pacific nations.”

During his confirmation process, Amb. Lighthizer said “ensuring that our trading partners meet international trade obligations, especially those of the World Trade Organization, is a core foundation for fairer and freer trade.”

“We wholeheartedly agree,” said Jason Scott, USW Chairman and a wheat farmer from Easton, MD. “A good example is the U.S. dispute case against China’s excessive domestic wheat subsidies that violate its WTO membership agreement. The case recognizes that China’s policy restrains wheat trade and costs farmers in exporting countries billions of dollars every year. It is the kind of enforcement that we think must and will continue under Amb. Lighthizer.”

With the full support of Amb. Lighthizer, his negotiating team and the new interagency Task Force on Agriculture and Rural Prosperity led by Secretary of Agriculture Sonny Perdue, USW and NAWG believe we can overcome trade distorting policies and other barriers to help American farmers compete fairly for the increasing global demand for high quality wheat and other agricultural products.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

NAWG is a federation of 22 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, DC, NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability. For more information, visit our website at www.wheatworld.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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ARLINGTON, Virginia — U.S. Wheat Associates (USW) joins the National Association of Wheat Growers (NAWG) in applauding U.S. Secretary of Agriculture Sonny Perdue’s announcement today creating a new undersecretary for trade and foreign agricultural affairs. USW also joins NAWG in commending the Administration for recognizing the value of American agricultural products to international markets.

USW works with farmers and USDA’s Foreign Agricultural Service to fulfill its mission to “develop, maintain and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” The Market Access Program (MAP) and the Foreign Market Development (FMD) program remain a crucial part of that mission, and USW believes this new position has the potential to increase support for the significant return agricultural export market development brings to the entire U.S. economy. More information is available at www.AgExportsCount.org.

USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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ARLINGTON, Virginia — Agricultural export market development programs funded through the Farm Bill have contributed an average of $8.2 billion per year, a total of more than $309 billion, to farm export revenue between 1977 and 2014 according to a new study conducted by noted land grant university economists.

“In other words, these programs have accounted for 15 percent of all the revenue generated by exports for U.S. agriculture over that time. To me, such a positive result is just stunning,” said Dr. Gary Williams, professor of agricultural economics and co-director of the Agribusiness, Food, and Consumer Economics Research Center at Texas A & M University, who led the study.

The study examined the effectiveness of USDA’s Market Access Program (MAP) and the Foreign Market Development (FMD) program. They are part of a public-private partnership that provides competitive grants for export development and promotion activities to non-profit farm and ranch organizations that contribute funds from checkoff programs and industry support.

U.S. Wheat Associates (USW) represents U.S. wheat farmers in overseas markets and is a participant in the MAP and FMD programs. Private funding for USW’s export market development activities comes from 19 state wheat commissions and qualifies USW to compete for program funds. For every $1 wheat farmers contribute, they earn an additional $2 in MAP and FMD funding. A recent, separate study showed that between 2010 and 2014, every $1 wheat farmers invested in the program generated an additional $149 in U.S. wheat exports and returned $45 in net revenue back to farmers from the increased export demand.

The 2016 study measuring the general effectiveness of total MAP and FMD funding showed that average annual farm cash income was $2.1 billion higher, and annual average farm asset value was $1.1 billion higher over 2002 through 2014. The programs increased total average annual U.S. economic output by $39.3 billion, GDP by $16.9 billion and labor income by $9.8 billion over the same time. The study results also showed that the economic lift created by these programs directly created 239,000 new jobs, including 90,000 farm sector jobs.

By testing what would happen if federal MAP and FMD funding were eliminated, the study showed that average annual agricultural export revenue would be lower by $14.7 billion, with corresponding annual average declines in farm cash income of $2.5 billion and significant drops in GDP and jobs.

“I would say these are very successful economic development programs based on their impact to the farm and general U.S. economy,” Dr. Williams concluded.

The non-profit agricultural organizations that participate in MAP and FMD contributed about $470 million dollars per year to the programs in 2014. That was more than 70 percent of total funding. The federal budget for MAP has been fixed at $200 million per year since 2006 and FMD’s $34.5 million annual budget has not changed since 2002. The Commodity Credit Corporation programs are administered by USDA’s Foreign Agricultural Service (FAS), which is required to report to Congress periodically on program effectiveness.

This is the third study of FAS export promotion programs since 2007 but the first to use an export demand analysis to measure their effectiveness. MAP and FMD participating organizations USW, USA Poultry & Egg Export Council and Pear Bureau Northwest sponsored the new study, which was funded by USDA FAS. Informa Economics IEG assembled data to support the study, recruited the team of five agricultural economists from Texas A & M, Oregon State University and Cornell University, interviewed dozens of MAP and FMD participants and reported on results.

The new study identified a return on investment from these programs between 1977 and 2014 of 28 to one, which Dr. Williams considers quite strong and is consistent with results from the two previous MAP and FMD cost-benefit studies.

“The average return on investment, or benefit to cost ratio, for 27 previous industry specific export promotion studies is just under 11 to one,” Dr. Williams said. “So I was, frankly, quite surprised that the return was this high. The previous MAP and FMD studies showed returns of 25 to one in 2007 and 35 to one in 2010.”

Informa’s report concluded that no matter what type of analysis is used or what time period is considered, “the results of this study and previous studies all demonstrate the importance and effectiveness of market promotion funding on exports, the farm economy and the overall macro economy.”

The entire study results, a separate Executive Summary (posted below) and more information is posted online here.

2016 USDA Export Market Development Program Study Contributors

Dr. Gary Williams is Professor of Agricultural Economics and Co-Director of the Agribusiness, Food, and Consumer Economics Research Center (AFCERC) at Texas A&M University, College Station, Tex. He is the AFCERC chief operations officer responsible for managing the research program of the Center and leads AFCERC research and outreach projects relating to commodity and agribusiness markets and policy and international trade and policy. He is also an Associate Faculty Member of the Department of International Affairs in the Bush School of Government and Public Service at Texas A&M University. His areas of teaching and research emphases include commodity promotion programs, international agricultural trade and development, agricultural policy, and marketing and price analysis. Dr. Williams was raised in Lubbock, Texas and holds a Ph.D. and an M.S. degree in Agricultural Economics from Purdue University and a B.S. in Economics from Brigham Young University. Prior to joining the faculty at Texas A&M University in 1988, he gained experience as a professor and Assistant Coordinator of the Meat Export Research Center at Iowa State University, Senior Economist at Chase Econometrics, agricultural economist for the USDA, and Special Assistant to the U.S. Deputy Under Secretary of Agriculture for International Affairs and Commodity Programs at USDA. In recent years, he has become particularly well known for his research on the economic effectiveness of commodity checkoff programs, including those for soybeans, cotton, lamb, dairy, Florida orange juice, Texas citrus, Texas pecans, and others. He is also well known for his research on U.S. and world oilseed and oilseed product markets and the U.S. livestock industry including issues related to sheep and lamb markets and the effects of concentration in the beef packing industry. He recently served as Chair of a National Academy of Science Committee on the Status and Economic Performance of the U.S. Sheep and Lamb Industry. He also recently served as a member of a National Academy of Science Committee on the Future of Animal Science Research.

Dr. Jeff Reimer, Associate Professor, College of Agricultural Sciences, Oregon State University, Corvallis, Ore. Dr. Reimer has been with Oregon State University since 2005. His research program concerns topics in international trade, the economics of food and agriculture, and general equilibrium modeling. Dr. Reimer teaches courses in agricultural price and market analysis, micro-economic theory, and international trade. Dr. Reimer grew up on a farm in Illinois before receiving a bachelor’s degree from the University of Illinois and spending three years working in agricultural development in rural Bangladesh. After completing his doctorate in Agricultural Economics from Purdue University in 2003, he spent two years as a research associate at the University of Wisconsin-Madison. At Oregon State University he has been major advisor for 10 graduate students and been the recipient of more than a dozen grants and contracts. He has published more than 30 journal articles and book chapters, including in the Journal of International Economics, Economic Inquiry, and the American Journal of Agricultural Economics.

Dr. Rebekka M. Dudensing, Assistant Professor and Extension Specialist, Department of Agricultural Economics, Texas A&M University. Dr. Dudensing’s responsibilities include the analysis of economic and fiscal impacts. She also studies economic responses to natural disasters and the roles of business and social structures in community economic development. She has done extensive economic impact modeling including IMPLAN I-O approaches. Much of her research is driven by the concerns of Extension clientele with objectives to find solutions to those local concerns and to project these issues to a wider audience though applied research and methodological improvements. Dr. Dudensing is particularly interested in the sustainability of agriculture- and natural resource-dependent rural communities.

Dr. Bruce A. McCarl, University Distinguished Professor and Regents Professor of Agricultural Economics at Texas A&M University. He received his B.S. in Business Statistics at the University of Colorado and Ph.D. in Management Science from Pennsylvania State University. His recent research efforts have largely involved policy analysis (mainly in climate change, climate change mitigation, water economics, and biosecurity) as well as the proper application of quantitative methods to such analyses. He teaches graduate courses in applied mathematical programming and applied risk analysis. He was part of the 2007 Nobel Peace Prize winning Intergovernmental Panel on Climate Change.

Dr. Harry M. Kaiser, Gellert Family Professor of Applied Economics and Management, Cornell University, Ithaca, N.Y. Dr. Kaiser teaches and conducts research in the areas of price analysis, marketing, and quantitative methods. Professor Kaiser has written 114 refereed journal articles, four books, 17 book chapters, over 150 research bulletins, and received $8 million in research grants in these areas. Since 1994, Professor Kaiser has been the director of the Cornell Commodity Promotion Research Program. Much of his research focuses on the market-wide economic effects of commodity advertising and promotion programs. Currently, Professor Kaiser and his staff annually conduct the economic analysis required by the U.S. Congress for the national dairy and fluid milk processor advertising programs.

Joe Somers, Vice President, Informa IEG, Washington, D.C. Somers is responsible for economic analyses and agricultural policy consultancy work. He brought to Informa more than 25 years of experience with USDA’s Foreign Agricultural Service (FAS) as a Foreign Service officer and has been a member of Informa’s staff since 2002. While at FAS, he served in Brazil and Argentina and traveled on official USDA fact-finding trips. In Washington, D.C., he supervised and conducted world supply/demand and trade policy analyses for a wide range of commodities and managed publication of several analytic circulars. He also was director of research and marketing for the GIC Group, Alexandria, Virginia, where he was responsible for business development and economic and market analyses. He received his bachelor’s degree in political science from Northeastern University, Boston and master’s in agricultural economics from the University of Massachusetts, Amherst.

For additional information:

https://www.fas.usda.gov/programs/market-access-program-map

https://www.fas.usda.gov/programs/foreign-market-development-program-fmd

https://bit.ly/1UsGNU5

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” The activities of USW are made possible by producer checkoff dollars managed by 19 state wheat commissions and through cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit www.uswheat.org or contact your state wheat commission.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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ARLINGTON, Virginia — U.S. wheat producers invested an average of $4.9 million in checkoff funds per year to promote their milling wheat overseas between 2010 and 2014, and for every one of those dollars they received up to $45 back in increased net revenue. That is a principal conclusion of a new economic analysis of wheat export promotion released today by U.S. Wheat Associates (USW).

USW commissioned the study with funding from the USDA/Foreign Agricultural Service (FAS) Market Access Program. Dr. Harry M. Kaiser, the Gellert Family Professor of Applied Economics and Management at Cornell and director of the Cornell Commodity Promotion Research Program (CCPRP), designed and conducted the research using established methods from his 30 years of research experience.

“The study showed that investing in U.S. wheat export promotion had a large and beneficial impact for producers and the economy that far exceeded its cost,” Dr. Kaiser said. “The econometric models we used showed that between 2010 and 2014 the total investment in wheat export promotion by farmers and the government increased total annual gross revenue by $2.0 billion to $3.0 billion. So for every $1 farmers and the government invested, the estimated return in gross revenue was between $112 and $179.” Dr. Kaiser added that the most likely annual return is about $149 for each dollar spent based on USDA supply elasticity studies.

Dr. Kaiser quantified the impact of wheat export promotion through models that account for several factors affecting commodity export demand such as prices and exchange rates. The study determined that cutting promotion by 50 percent between 2010 and 2014 would have significantly reduced wheat exports by about 15 percent. That represents a total potential export loss equal to nearly 161.5 million bushels per year. The value of that loss was determined, then compared to total wheat export promotion cost to calculate a series of benefit-to-cost ratios (BCR).

The BCR from the total promotion cost averaged 14.9 to 1. Because producers contributed about one-third of the total producer and FAS investment through state checkoff program, the BCR for their investment averaged about three times the total, or about 45 to 1. Assuming farmers get ten percent of the total revenue, Dr. Kaiser said the study shows wheat export promotion increased net revenue for farmers by more than $247 million per year. The impact of in-kind contributions from state commissions was not considered in this study.

“Our organization is accountable to wheat farmers and other taxpayers who fund the market development work we do,” USW President Alan Tracy said. “Dr. Kaiser’s research methods are well respected, and the conclusions echo previous studies in 2004 and 2009, so we can very confidently say that the money farmers provide for export promotion is well worth the investment. In fact, the study predicts that increasing the promotion investment has the potential for even greater returns to wheat farmers, the wheat supply chain and the U.S. economy.”

USW will use additional results from the study to help plan and manage its future activities. The organization has posted full study results on its website, www.uswheat.org.

U.S. Wheat Associates is the industry’s market development organization working in more than 100 countries on behalf of America’s wheat producers. The activities of USW are made possible by producer checkoff dollars managed by 18 state wheat commissions, in-kind support, and cost-share funding provided by USDA’s Foreign Agricultural Service. To qualify for federal funds, USW is required to prepare and submit an annual, comprehensive Unified Export Strategy that details specific market development plans for every country and region. For more information, visit www.uswheat.org or contact your state wheat commission.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.