Charting the Success of MAP

Every year since 1985, the U.S. Congress has voted to invest American tax dollars to promote U.S. agricultural products abroad under the U.S. Department of Agriculture's Market Access Program (MAP).

U.S. agricultural exports have more than doubled since the 1985 farm law initiated the MAP. U.S. exports reached $59.8 billion in fiscal year 1996--nearly $6 billion higher than the previous record set in 1995.

Since 1985, nearly 1,000 U.S. companies, cooperatives and trade associations have received cost-sharing funds thanks to MAP and its predecessors, the Targeted Export Assistance Program and the Market Promotion Program.

Over the years, the name of the program has changed but the principal goal remains simple--to increase exports of U.S. agricultural products.

Most MAP funding promotes exports of high-value, consumer-oriented and value-added products--the fastest growing component of the world's agricultural trade. U.S. exports of high-value products reached a record $34 billion in 1996. This category now accounts for over 50 percent of U.S. agricultural exports, up from 12 percent in 1980.

Jobs are another benefit of the MAP program. Every billion dollars in U.S. agricultural exports creates as many as 17,000 new jobs in the U.S. economy; more than 500,000 jobs have been created since 1985, thanks in part to MAP and related export programs.

Before 1985, U.S. agricultural exports were stagnant. MAP began as a part of the 1985 farm bill--enacted in large part with the aim of reversing declines in U.S. agriculture's global competitiveness. The act contained many new market-oriented farm policies and export programs.

U.S. Wine Exports Surge

With help of MAP funds, the U.S. wine industry has evolved as an exporter to markets around the world. Over the past 10 years, total U.S. sales have increased over ninefold, reaching a record $320 million in 1996.

Before inception of the MAP program, less than 20 U.S. companies were exporting wine. Today, there are a record 125 companies from across the country participating. The industry estimates that an additional 7,500 full-time jobs and about 5,000 part-time jobs have been created by exporting wine.

Export activities under MAP and its predecessors have contributed mightily to the dramatic comeback of U.S. exports over the last 11 plus years.

Whether it be cotton, timber or seafood, American products are finding new markets throughout the world--markets opened and developed by the innovative ideas of American farmers, ranchers, cooperatives and small businesses, in partnership with a solid government export program that works.

The GATT Uruguay Round Agreement, the North American Free Trade Agreement, and other trade accords have provided U.S. agricultural exporters plenty of new opportunities to sell their products. But opportunities alone do not guarantee sales and U.S. farmers and producers continue to face tough competition abroad.

Trade agreements have not prevented the use of trade barriers and export subsidies; they only reduced them. Further, they allow competitor nations to continue to engage in extensive activities to promote their exports.

For example, the European Union (EU) and its member states appropriated nearly $500 million to promote exports in 1995/96.

In comparison, the Federal Agriculture Improvement and Reform Act of 1996 set MAP funding at $90 million annually for fiscal years 1996 through 2002--a fraction of what foreign competitors spend.

Tropical Plants Find Opportunity in Japan

In December 1995, the Western United States Agricultural Trade Association (WUSATA) funded a test shipment of tropical plants from Hawaii to Japan using MAP funds, to see how the new potted material would hold in the customs approval process.

The shipment was approved. Thanks to MAP, today Hawaii growers are increasing production to meet the Japanese market demand, creating jobs within the state.

Today, thanks in part to MAP and other export programs, not only is the United States the world's largest agricultural exporter, but since 1985, the U.S. share of world agricultural trade has grown more than that of any other exporter.

The international market for agricultural products is growing three times faster than the domestic market.

MAP is a cost-sharing program. Under MAP, the U.S. Department of Agriculture enters into agreements with nonprofit trade organizations, state groups and cooperatives to share the costs of overseas marketing and promotional activities.

Program participants work closely with FAS marketing specialists, agricultural attaches and trade officers to develop marketing plans and strategies to increase exports and develop new markets.

The Dean Company

The exporting of our products has become the engine which pulls the train. Without exports, quite simply, we would not be in business today. Because of exports, we employ some 35 more West Virginians in our operation and feel much more secure in our future.

While our efforts have been very instrumental in our exporting success, without question, USDA's Foreign Agricultural Service (FAS) has also played a key role in those successes. In particular, the Market Access Program (MAP) has educate the world about the availability, quality and sustainability of American wood products. New markets worldwide have been opened to us because of this promotional program.

A. H. "Herb" McClaugherty
The Dean Company
Princeton, West Virginia

Over the years, the program has been strengthened to ensure that program participants and FAS are able to measure its effectiveness, making the program more accountable to taxpayers.

Activities under MAP include consumer promotions, market research, technical assistance and trade servicing for a wide variety of products ranging from almonds to avocados; peaches to pistachios; grapes to feed grains; wheat to wood; sunflower seeds to seafood; and beef to beans.

Both generic and branded products may be promoted through MAP. This year, approximately 72 percent of MAP funding goes to promote exports of generic products.

MAP Means Business to Cotton

75 countries in the world produce cotton, 57 countries export cotton and 65 countries export cotton yarn and fabric. In this competitive environment, the MAP, along with funds invested by the U.S. cotton industry in the COTTON USA Export Promotion Program, have strengthened cotton and cotton product exports.

Consumers do not buy cotton per se; they buy products made of cotton. Consumers do not buy jeans or towels or knitwear; they select particular brands of products.

Success in building U.S. cotton and cotton product exports requires linking consumer awareness, preferences and purchases of cotton products to brands made with U.S. cotton. With the help of MAP, COTTON USA has been established as the trademark that represents quality consumer products made of U.S. cotton.

In the Omnibus Budget Reconciliation Act of 1993, Congress amended MAP to give priority assistance to small businesses for the promotion of branded products.

In 1997, only 28 percent of the total MAP funding is allocated to promote branded products, while nearly 84 percent of this amount will assist agricultural cooperatives and small-sized companies.

MAP helps many American farmers and agribusinesses get into the exporting business and grow into successful exporters.

Seafood Companies Cast Net

The Southern U.S. Trade Association (SUSTA) in cooperation with the Virginia Marine Products Board sponsored an exhibit in the U.S. Pavilion at the 1997 European Seafood Exposition held in Brussels, Belgium. Thanks to funding assistance from MAP, SUSTA helped four companies participate in the exposition--representing a diverse range of seafood and aquaculture products from the SUSTA region.

This show generated 235 trade leads, $440,000 in immediate sales, and another $3.3 million in anticipated sales.

For generic marketing activities, each MAP recipient must contribute at least 30 cents for each dollar of federal assistance received. On average, U.S. groups contribute more than twice this amount. For branded programs, companies must match federal funds received dollar for dollar.

To qualify for MAP funding, a prospective participant first submits an application that contains a 3-year strategic plan to USDA. FAS reviews all program applications thoroughly for eligibility and completeness. Meritorious proposals are then subjected to a competitive, performance-based formula. The competitive process allocates funding based on contribution levels, past performance and the potential success for increasing exports of U.S. agricultural products.

Calico Cottage Candies, Inc.

When we discovered the Market Access Program, we had almost negligible export sales. We asked ourselves, why is FAS giving away all this money? With a couple of minutes of thought, we came to the conclusion they were trying to stimulate domestic manufacturers to look beyond their traditional USA customer base.

No doubt about it, the MAP program provided the push we needed to jump start our non-existent export program. Canada was our first export market and within about four years we were able to succeed in the market to the extent that it now contributes about 12 percent of our total sales with a 26-percent increase over the last two years.

Without question, it was the seed money from MAP that gave us the support we needed to get our export program started.

Katheleen Malloy
Calico Cottage Candies, Inc.
Mineola, New York

When audited, participating organizations must certify and demonstrate that any MAP funds received are in addition to what would have been spent in the absence of MAP. Participants are reimbursed for the costs of approved, eligible promotional expenditures. All funds received under the program are subject to audit by the U.S. Government.

To submit a MAP proposal or to find out how to do so, contact the Marketing Operations Staff on (202) 720-5521 or at AG BOX 1042, USDA, Washington DC 20250-1042.