Farm Bill Primer: Trade and Export Promotion Programs

Farm Bill Primer: Trade and Export Promotion Programs

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Updated January 30, 2024
Farm Bill Primer: Trade and Export Promotion Programs
Agricultural exports are significant to farmers and the U.S.
Figure 1. Value of U.S. Agricultural Trade
economy. With the productivity of U.S. agriculture growing
faster than domestic demand, farmers and agriculturally
oriented firms rely heavily on export markets to sustain
prices and revenue. The trade title of the 2018 farm bill
(P.L. 115-334) authorized programs from FY2019 to
FY2023 to expand foreign markets for U.S. farmers and
food manufacturers through export market development
programs and export credit guarantee programs. Congress
extended the authorization and funding for these programs
through FY2024 (P.L. 118-22, Division B, §102). These
market expansion programs derive their statutory
authorities from the Agricultural Trade Act (P.L. 95-501).
For more information about USDA’s export promotion
programs, see CRS Report R46760, U.S. Agricultural
Export Programs: Background and Issues. The trade title of
the 2018 farm bill also includes international food
assistance programs and international science and technical
exchange programs and provisions, which are not addressed

in this In Focus.
Source: CRS from USDA’s Global Agricultural Trade System data
(BICO-10). Data are not adjusted for inflation. Trade balance
Trade Situation Overview
constructed as imports subtracted from exports.
U.S. food and agricultural exports totaled $196 billion, and
The U.S. agricultural trade surplus peaked at $40.1 billion
U.S. imports totaled nearly $198 billion in 2022, resulting
in 2011. It has since fallen and became a trade deficit in
in a trade deficit of more than $2 billion (Figure 1),
2019 and 2022. Many attribute the rise in U.S. food and
according to U.S. Department of Agriculture (USDA) data.
agricultural imports to increasing domestic demand for
Bulk commodities, such as soybeans, corn, cotton, wheat,
imported, consumer-oriented goods such as fruits,
and rice, are the leading U.S. farm exports. Leading
vegetables, alcoholic beverages, beef, and coffee products.
consumer-oriented exports include dairy, meat and poultry,
tree nuts, fruits, and vegetables. Over 60% of U.S.
As the margin of exports over imports has narrowed, some
agricultural exports by value were destined for China,
producer groups have sought enhanced export promotion
Mexico, Canada, Japan, and the European Union in 2022.
and market development. Some U.S. government officials
and industry representatives have expressed interest in
addressing certain policies of some U.S. trading partners
that may be impeding U.S. food and agricultural exports.
The Office of the U.S. Trade Representative (USTR) in its
annual National Trade Estimate Report on Foreign Trade
Barriers highlights a range of tariff and nontariff concerns,
including sanitary and phytosanitary (SPS) and technical
trade barriers. These and other potential issues for Congress
are discussed below.
Trade Provisions in the 2018 Farm Bill
The 2018 farm bill reauthorized several export market
development programs and export credit guarantee
programs, administered by USDA’s Foreign Agricultural
Service. The 2018 farm bill included other trade and export
promotion provisions aimed at developing overseas markets
and addressing nontariff barriers.
Export Market Development Programs
The 2018 farm bill consolidated four existing USDA export
promotion programs under a single Agricultural Trade
Promotion and Facilitation program and created the Priority
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Farm Bill Primer: Trade and Export Promotion Programs
Trade Fund, with mandatory funding of $255 million
on U.S. trade missions to increase the inclusion of tribal
annually through FY2023 (7 U.S.C. §5623).
food products in trade-related activities (7 U.S.C. §5608).
• Market Access Program (MAP) provides cost-sharing
Administrative Action
of overseas marketing and promotional activities that
In November 2023, USDA announced funding availability
help build commercial markets for U.S. agricultural
of $1.2 billion over five years for a new export promotion
exports ($200 million per year).
program called the Regional Agricultural Promotion
• Foreign Market Development (FMD) Cooperator
Program (RAPP). RAPP is modeled after MAP and the
Program funds projects that address long-term
temporary Agricultural Trade Promotion Program that was
opportunities to reduce foreign import constraints or
created in 2018 in response to foreign retaliatory tariffs and
expand export growth opportunities ($34.5 million per
trade disruptions. The first-year tranche of $300 million in
year).
funding emphasizes markets in Africa, Latin America, the
•
Caribbean, and South and Southeast Asia. RAPP is
E. (Kika) de la Garza Emerging Markets Program
authorized and funded by the CCC Charter Act (15 U.S.C.
provides cost-sharing for technical assistance to support
§714c(f)).
generic U.S. agricultural exports ($8 million per year).
• Technical Assistance for Specialty Crops funds
USDA uses the same CCC authority to fund the Quality
projects addressing SPS and technical trade barriers to
Samples Program (QSP), which promotes U.S. agricultural
U.S. specialty crop exports ($9 million per year).
products. QSP is annually funded at $2.5 million.
• Priority Trade Fund supports activities to access,
Issues and Options
develop, maintain, and expand markets for U.S.
As Congress considers issues related to U.S. agricultural
agricultural exports ($3.5 million per year).
exports, it may evaluate, reauthorize, modify, or end
The 2018 farm bill also allowed USDA to fund MAP and
existing programs or establish new programs and initiatives.
FMD activities in Cuba, which was otherwise prohibited (7
U.S.C. §5623(f)(4)).
During the run-up to the 2014 and 2018 farm bills, deficit
reduction proposals targeted MAP for cuts or elimination.
Export Credit Guarantee Programs
Critics claimed export promotion programs provide federal
The 2018 farm bill reauthorized $1 billion annually through
support for activities that private firms could and would
FY2023 in export credit guarantees for exports to emerging
otherwise fund. Supporters of the programs claimed these
markets (7 U.S.C. §5622 note). Additionally, $5.5 billion is
programs keep U.S. agricultural products competitive
available annually with no funding expiration date (7
overseas, diversify market opportunities, help generate
U.S.C. §5641(b)). Export credit guarantees are carried out
additional farm income, and increase jobs in the farm and
under two programs.
food sector.
• GSM-102 Program provides credit guarantees to
In the 118th Congress, Members introduced bills addressing
finance commercial U.S. agricultural exports mainly to
MAP and FMD. Some bills would increase annual funding
developing countries. For FY2024, USDA announced
for MAP and FMD to $400 million and $69 million,
the availability of $2.5 billion in credit guarantees.
respectively (H.R. 648/S. 176), and other bills would
• Facility Guarantee Program (FGP) provides payment
authorize $1 million annually for FMD to focus on
guarantees to improve or establish agriculture-related
technical assistance to improve the infrastructure in foreign
facilities in emerging markets. FY2024 FGP credit
markets (H.R. 4612/S. 2570).
guarantee availability is estimated at $500 million.
Other bills introduced in the 118th Congress would address
Under these programs, the Commodity Credit Corporation
trade barriers by directing USDA and USTR to negotiate
(CCC) provides payment guarantees on commercial
with foreign governments to ensure the right to use
financing and assumes the risk of default on payments by
common names for U.S. agricultural and food products in
the foreign purchasers on loans to facilitate U.S. exports.
foreign markets that may otherwise be prohibited due to
geographical indication protections (H.R. 3423/S. 1652).
Other Export-Related Provisions
Some bills propose modifying a congressionally mandated
The 2018 farm bill reauthorized the Biotechnology and
annual U.S. specialty crops trade issues report (7 U.S.C.
Agricultural Trade Program (7 U.S.C. §5679) and
§5623(e)(7)) to explicitly include USTR, public, and
authorized $2 million in annual appropriations through
industry participation and require specific information on
FY2023 to fund grants for public and private sector projects
actions taken to resolve trade barriers (H.R. 6399/S. 3300).
that provide “quick response intervention” and develop
protocols as part of bilateral negotiations with other
Other trade-related issues often outside the context of the
countries. Trade concerns pertain to nontariff regulatory
farm bill—but debated in view of lower farm export sales in
barriers to U.S. exports produced with agricultural
recent years—may include various multilateral and bilateral
biotechnology and other new technologies and requirements
trade negotiations that U.S. farm groups generally support.
involving food safety, plant and animal disease, or other
Congress also may review the implications of retaliatory
SPS measures.
trade tariffs that remain in effect and/or are under
consideration, including retaliatory tariffs imposed on U.S.
The 2018 farm bill also directed USDA, coordinating with
other federal agencies, to work with tribal representations
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Farm Bill Primer: Trade and Export Promotion Programs
exports limiting certain U.S. food and agricultural exports
that are “vulnerable to dispute settlement” under trade
in response to U.S. Section 232 steel and aluminum duties.
agreements and for enforcing trade agreement violations
with a particular focus on India’s agricultural subsidies
Congress may also debate policy issues related to U.S.
(H.R. 5790/S. 2992).
agricultural trade and involvement within the World Trade
Organization and other trade agreements. Some bills call
Benjamin Tsui, Analyst in Agricultural Policy
for establishing an interagency agricultural trade
enforcement task force to identify agricultural trade barriers
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