Study: USDA marketing reap billions in exports

Study: USDA marketing reap billions in exports    An IHS Global Insight study found the U.S. Department of Agriculture's international market development programs have significantly increased trade in U.S. agricultural goods overseas.
   The study, A Cost-Benefit Analysis of USDA's International Market Development Programs, focused specifically on the department's Market Access Program (MAP) and the Foreign Market Development Program (FMD), which are both administered by the Foreign Agricultural Service.
   IHS Global updated a larger study conducted in 2006 and focused on the period from 2002 through 2009. By 2009, the study concluded the increase in market development spending since 2002 increased U.S. export market share by 1.3 percentage points and the annual value of U.S. agricultural exports by $6.1 billion.
   'This study shows that USDA's market development partnership with industry has had a significant positive impact on U.S. agricultural exports and increased returns to our farmers and ranchers by effectively and efficiently leveraging resources from the private and public sectors,' said U.S. Agriculture Secretary Tom Vilsack, in a statement.
   Some specific findings of the study include:
   ' For every additional $1 spent by government and industry on market development, U.S. food and agricultural exports increased $35.
   ' Without the increased investment in market development since 2002, U.S. agricultural exports would have been $6.1 billion lower in 2009.
   ' Export gains related to the programs increased the average annual level of U.S. farm cash receipts by $4.4 billion and net cash farm income by $1.5 billion. At the same time, U.S. domestic support payments were reduced by roughly $54 million annually due to higher prices from increased demand abroad, thus reducing the net cost of the programs.
   Through the MAP and FMD programs, USDA provides resources to U.S. non-profit agricultural trade organizations, state regional trade groups, state agencies and cooperatives. Program activities include market research, educational and promotional activities, in-country representation and trading service, and efforts to counter access issues.