USDA Announces $100 Mil. in Commodity Promotion Funding

Posted on 07/19/2019 2:51 PM

First payouts under $16 billion MFP 2 package

USDA today awarded $100 million in commodity promotion funding as part of its $16 billion trade mitigation package (link).

The funding is via USDA’s Agricultural Trade Promotion (ATP) program.

The $100 million is besides the $200 million allocated in January via the $12 billion 2018 trade mitigation package (MFP 1). Link for details.

“China and other nations haven’t played by the rules for a long time and President Trump is standing up to them, sending a clear message that the United States will no longer tolerate their unfair trade practices,” USDA Secretary Sonny Perdue said. “At USDA, we are always looking to expand existing markets or open new ones and this infusion of money will do just that. American farmers are so productive that we need to continue to expand our markets wherever we can to sell the bounty of the American harvest.”

The 48 recipients are among the cooperator organizations that applied for $200 million in ATP funds in 2018 that were awarded earlier this year. As part of a new round of support for farmers “impacted by unjustified retaliation and trade disruption,” those groups had the opportunity to be considered for additional support for their work to boost exports for U.S. agriculture, food, fish, and forestry products.

Already, since the $200 million in assistance was announced in January, USDA said U.S. exporters have had significant success, including a trade mission to Pakistan that generated $10 million in projected 2019 sales of pulse crops, a new marketing program for Alaska seafood that led to more than $4 million in sales of salmon to Vietnam and Thailand, and a comprehensive marketing effort by the U.S. soybean industry that has increased exposure in more than 50 international markets. These funds will continue to generate sales and business for U.S. producers and exporters many times over as promotional activity continues for the next couple of years.

Overall, 48 organizations received ATP funding this year, with the American Soybean Association ($12.75 million) and the U.S. Meat Export Federation ($10 million) being the only two organizations to receive more than $10 million. The U.S. Grains Council received nearly $6.9 million in ATP funds, and Food Export USA Northeast and Midwest received $6.8 and $6.65 million, respectively. Cotton Council International ($6.25 million) and the Wine Institute ($6.2 million) received more than $6 million in ATP funding.

ATP was part of a three-phased approach announced in May to continue the Trump administration’s efforts to offset damage caused by trade wars with China and other countries. USDA also plans to issue $14.5 billion in direct payments to producers through the Market Facilitation Program and $1.4 billion in surplus commodity purchases through the Food Purchase and Distribution Program.

The list of ATP funding recipients is available at this link.


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