Threat to Export Market Development Programs a Threat to Producers
Wheat groups fighting to keep funding for MAP and FMD programs.
Compiled by staff
Published: Jun 8, 2011
U.S. Wheat Associates has released a new video presentation that highlights the importance of funding for the Market Access Program and Foreign Market Development program.
About half of the wheat produced by U.S. farmers is exported each year. Through MAP and FMD the federal government shares costs with U.S. farmers to help them compete in a growing, very competitive global market. But in the current budget climate these programs are at risk. U.S. Wheat President Alan Tracy says the long-term impact on global demand for U.S. wheat and farm income would be devastating if Congress fails to fund these programs.
"Without the Foreign Market Development and the Market Access Programs U.S. Wheat would not be able to continue our work overseas," Tracy said. "The result is that our competitors, Canada, Australia, Russia, would be ready to swoop in and take those markets and you know once you lose them they don't come back very quickly."
A dependable agricultural export market supports almost a million farm and non-farm jobs and supports domestic wheat prices. Without exports, National Association of Wheat Growers CEO Dana Peterson says U.S. wheat prices would be lower than they are today and might lead farmers to choose to plant less wheat. Peterson says the nation's wheat farmers can make a difference in the debate about export promotion funding.
"The trade promotion programs that support our efforts overseas in building relationships with those customers are authorized in the Farm Bill," Peterson said. "They are appropriated every year, so every year we have a discussion with the government on what sort of an investment they are going to make. There is an opportunity to become involved in that process. Talking to your Congressional representative, make sure they know that you believe export promotion is important to your business."
Both programs help fund the overseas offices of U.S. Wheat Associates, where Tracy says the group strives to increase demand by building a loyal customer base for U.S. wheat in more than 100 countries.
"We provide a lot of training and technical assistance to them," Tracy said. "We bring them to the United States so they can learn and understand our export system so they can understand the different types of qualities of wheat that we have available at any given point in time. We help them to introduce new products in their own markets, whatever it takes to expand the export opportunities for U.S. wheat abroad."
Because wheat growers contribute about $13 million USW qualifies for about $13 million in funding from the two programs. Washington wheat grower and USW Vice Chairman Randy Suess says it's a relatively small investment that has an excellent return for not just wheat growers, but the U.S. economy.
"For every one dollar that not only farmers use but we use in conjunction with these USDA dollars we receive $115 in benefit back," Suess said. "That isn't just sent to the farmers, but it's also for industry people, and for people in the entire United States. We've got a great success story that benefits everyone."
To check out the video presentation "Export Market Development: A Vital Partnership with U.S. Wheat" visit the U.S. Wheat Associates Web site at www.uswheat.org. The video is also posted on YouTube at www.youtube.com/USWheatAssociates.
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Tagged: wheat, farm, U.S. Wheat Associates, usda, farm bill
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