While every Kansas producer’s eyes are understandably fixed on the sky and the weather forecast, groups like Kansas Wheat are closely monitoring national Farm Bill negotiations for longer-term impacts on their operations. Some of these programs — like crop insurance and disaster relief — help safeguard operations in times of need. Others, like the Market Access Program (MAP) and Foreign Market Development (FMD) program, help ensure farmers continue to have access to market opportunities at home and abroad.
“Half of the wheat grown in the United States is exported, so our producers understand the importance of trade and market development,” said Shayna DeGroot, Kansas Wheat director of membership and government affairs. “These successful economic development programs have a significant impact on the farm and the general U.S. economy.”
The MAP and FMD program are part of a public-private partnership authorized in the Farm Bill 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), which represents U.S. wheat farmers in overseas markets, is a participant in the MAP and FMD programs. Private funding for USW’s export market development activities comes from 19 state wheat commissions, including Kansas Wheat, and qualifies USW to compete for program funds.
These programs have a direct impact on exports, the farm economy and the overall macro economy, but these programs need more investment to strengthen their effectiveness.
“MAP’s authorized funding has not changed since 2006 and FMD funding has remained the same since 2002, so inflation and sequestration have significantly eroded the ability to compete with other countries who are steadily investing more in their agricultural export promotion efforts,” wrote USW and the National Association of Wheat Growers in a joint press release.
Recognizing the importance of these programs, lawmakers introduced bipartisan and bicameral legislation in both the U.S. Senate and the U.S. House of Representatives to double the funding for this pair of agricultural export market development programs administered by the USDA’s Foreign Agricultural Service (FAS).
The Expanding Agricultural Exports Act (S. 176) was originally introduced by Senators Angus King (ME), Tina Smith (MN), Joni Ernst (IA), Chuck Grassley (IA) and Susan Collins (ME). The Agriculture Export Promotion Act (H.R. 648) was originally introduced by Representatives Dan Newhouse (WA), Jim Costa (CA), Tracey Mann (KS), Kim Schrier (WA), Ashley Hinson (IA), Jimmy Panetta (CA), Brad Finstad (MN) and Chellie Pingree (ME).
A recent econometric study conducted by agricultural economists at IHS Market and Texas A&M University predicted that doubling funding for these programs would generate an additional $44.4 billion in U.S. agricultural exports over the 2024 to 2029 time period. This would directly benefit farmers, livestock producers, dairy operators and small businesses as they work to maintain and expand their global presence.
Photo credit: istock-ImagineGolf
Categories: Kansas, Crops, Wheat, Weather