Press Releases

Maine food businesses and industry groups are cheering legislation Congresswoman Chellie Pingree (D-ME) introduced last week with Congressman Dan Newhouse (R-WA) to help grow exports for fishermen, farmers, and food manufacturers in Maine and across the country. H.R. 2321, the Cultivating Revitalization by Expanding American Agricultural Trade and Exports (CREAATE) Act would double funding for two federal programs that have been instrumental in helping more Maine food get to foreign markets—U.S. Department of Agriculture’s Market Access Program (MAP) and Foreign Market Development Program (FMDP). 

“These programs are vital to helping iconic Maine foods—like lobster, potatoes and wild blueberries—and many other value-added food products reach the world market,” said Pingree. “The Market Access Program and the Foreign Market Development Program at USDA have been extremely successful in helping farmers, fishermen and food businesses in Maine export products when supply exceeds the local market’s capacity. But these programs are currently underfunded, meaning that Maine businesses are losing out on opportunities to grow their sales and create jobs. Increased funding for these two programs would provide vital support to Maine industries that want to reach new markets abroad.”
 
“The Market Access Program has been invaluable in supporting Maine’s specialty food, agriculture, and seafood companies’ ability to compete in a global marketplace. Maine companies are able to attend international trade events, trade missions, and meet one on one with interested buyers and distributors,” said Jeffrey Bennett, Senior Trade Specialist at the Maine International Trade Center. “Last year alone, Maine companies reported actual export sales of over $156 million through activities funded by the MAP program. As Maine exports continue to grow, creating jobs and fueling our state’s economy, funding programs like the Market Access Program are critical.”  

"The demand for Maine craft beer overseas is strong so our brewers are increasingly exploring opportunities to expand into foreign markets. Efforts like the CREAATE Act will give Maine's small brewers the resources they need to leverage the collaborative spirit of our industry in a way that ensures success," said Sean Sullivan, Executive Director of the Maine Brewers’ Guild.  "It's not only Maine brewers that are eyeing overseas markets for their products: As American craft beer becomes internationally renowned, Maine's hop farmers, barley growers, and maltsters are also beginning to find new customers in foreign markets. The CREAATE Act is exactly what is needed to coalesce our industry's efforts in a way that benefits all stakeholders."

“I am thrilled Congresswoman Pingree has introduced the CREAATE Act. The Market Access Program is a vital funding source for the Maine lobster industry,” said Emily Lane, International Sales Director for Calendar Island Lobster Company. “The Maine lobster industry is part of a global market and this program helps lobster fishermen and products in Maine expand into new markets abroad.” 

“H.R. 2321 is a strong statement of the priority that Congresswoman Pingree and the other co-sponsors place on the international competitiveness of the U.S. potato industry and American agriculture,” said Don Flannery, Executive Director of the Maine Potato Board. “The Market Access Program’s funding has been steadily losing value for over a decade due to budgetary reductions and inflation, while foreign governments have been increasing their competing programs.  H.R. 2321’s goal to restore and enhance resources for American farmers is vital for accessing challenging export markets and sincerely appreciated by the potato industry.”

“Maine’s iconic wild blueberry industry has benefited from MAP funding for nearly 10 years,” said Nancy McBrady, Executive Director of the Wild Blueberry Commission of Maine. “MAP funding has been essential to establishing a successful foothold in Asian and Southeast Asian markets and creating new customers and end users of Maine wild blueberries.  We support the ongoing funding of these vital USDA export promotion programs.” 

Reps. Newhouse and Pingree were joined in introducing the CREAATE Act by Reps. Cheri Bustos (D-IL), Roger Marshall (R-KS), Jimmy Panetta (D-CA), and Thomas Rooney (R-FL). 

Background

For decades, USDA export promotion programs have helped American farmers and food businesses create, expand, and maintain access to foreign markets. Throughout their history, these successful public/private partnerships have cultivated hundreds of billions of dollars in exports and created millions of American jobs, both in the agriculture sector and in support industries. Without these programs, it is very likely that the United States would not be the net agricultural exporter that it is today.
 
Two of the most impactful USDA export promotion programs are the Market Access Program (MAP) and the Foreign Market Development Program (FMDP). MAP, first created in 1985, allows agricultural trade associations, farmer cooperatives, non-profit trade groups, and small businesses to apply for either generic or brand-specific promotion funds supporting trade shows, market research, consumer product promotion, technical assistance, and other efforts vital to supporting export efforts. If generic commodity funds are sought, there is a 10 percent minimum funding match; the match is at least 50 percent for brand-specific efforts.
 
FMDP was first developed in 1955 and is also used for consumer promotion, technical assistance, market research, and other export-oriented activities. FMDP is largely used for promotion of generic, bulk commodities, and it helps agricultural trade associations maintain a permanent presence in consumer nations so that these commodities have full-time representation in important markets. FMDP also carries a fund match requirement. 

Benefits 

•    A 2016 study of USDA export promotion programs conducted by researchers at Texas A&M University and other universities found many benefits to the programs. A few of the findings include:

•    Between 1977 and 2014, USDA export promotion programs have generated a net return of $28.30 for every dollar invested, and have added an annual average of $8.15 billion to the value of American agricultural exports, and $8.7 billion to farm cash receipts;

•    Between 2002 and 2014, USDA export promotion programs have added up to 239,800 full and part-time jobs across the economy under a less than full employment scenario; and

•    Doubling public funding for MAP and FMDP, coupled with increasing private contributions from 10 to 50 percent, would result in average annual gains in GDP of $4.5 to $6.0 billion under a less than full employment scenario.

•    Food Export USA – Northeast (FENE) is a current MAP participant dedicated to supporting U.S. suppliers of food and agriculture products, and works directly with U.S. companies in the Northeastern United States that wish to participate in MAP.  FENE helps those just getting started and those that are already exporting to expand their sales opportunities into foreign markets. Last year alone, FENE received over $9 million in MAP funding. 

The Problem 

Statutory funding for MAP and FMDP has been static since the 2002 Farm Bill. Practically, those funds have been eroded in recent years by inflation, administrative costs, and sequestration. The programs have only been sustained through support and resolve from the private sector partners, whose contributions have grown to 70 percent of available funds in 2014, a level that far exceeds program requirements.
 
Meanwhile, America’s competitors have ramped up their own export promotion. For example, the European Union spends more for the promotion of wine ($255.36 million for 2017) than the U.S. spends for the promotion of all commodities through MAP and FMDP. If this trend continues, American producers will be severely disadvantaged in the global marketplace.