A recent independent study led by IHS Global Insight Incorporated reveals that USDA's international market development programs have a positive and significant impact on U.S. agricultural trade. A sizeable plus to these programs is USDA's working relationships with agricultural cooperatives like the U.S. Grains Council. USGC aligns its strategies with goals outlined by USDA's Foreign Agricultural Service as part of a shared effort to increase export opportunities for U.S. producers.
According to the studyk, for every additional dollar expended by government and industry on market development, U.S. food and agricultural exports increased by $35. Without the increased investment in market development since 2002, U.S. agricultural exports would have been $6.1 billion lower in 2009. Export gains associated with the programs increased the average annual level of U.S. farm cash receipts by $4.4 billion and net cash farm income by $1.5 billion.
Mike Dwyer, director of the Trade and Biofuels Analysis Division at the Foreign Agricultural Service, says the study shows that market development works and it pushes exports to a higher level and benefits producers whether they export or not. Dwyer says the price effect associated with the export gain benefits each bushel of grain marketed in any given year, foreign or domestic, so net cash income for the farm sector increases.
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