USDA Secretary Tom Vilsack on Tuesday highlighted the challenges facing the ag industry due to the lack of a new farm bill, budget uncertainty and the absence of a House speaker. With these uncertainties looming, Vilsack noted the possibility of a farm bill extension becomes more likely the longer the situation persists.
To address these challenges, Vilsack revealed that USDA will utilize funds from the Commodity Credit Corporation (CCC). The $2.3 billion in CCC funding from the last fiscal year will be directed towards boosting international markets for farmers, with a particular focus on specialty crop producers, many of whom operate small and mid-sized farms. High-value products like wine and whiskey will also benefit from this funding.
Additionally, $100 million will be allocated to address phytosanitary and technical trade barriers for specialty crops.
Vilsack expects this funding to be utilized over several years. He explained the funds will not be required to be spent within a single fiscal year but will remain available until fully utilized. USDA aims to establish regulations for the programs by the end of 2023 or early 2024. Furthermore, USDA plans to allocate $1 billion for international food aid, with the specifics of where the funds will be directed left to USAID’s discretion to determine where they are most needed.
To address the fiscal year 2023 agricultural trade deficit of $19 billion, which is projected to grow to $27.5 billion in fiscal year 2024, $1.3 billion will be allocated to create the Regional Agricultural Promotion Program (RAPP). RAPP will facilitate market access for exporters in both new and growth markets. It will be available to cooperators who currently receive funding from the Foreign Market Development program (FMD) and the Market Access Program (MAP). While FMD and MAP will continue to operate under appropriations, CCC funds cannot directly support these programs due to federal law restrictions.
Farm groups welcomed this move, emphasizing the importance of export market development programs in increasing farm income. However, they also stressed that while this funding is beneficial, Congress needs to take further action, including increasing long-term funding for programs like the Market Access Program (MAP) and Foreign Market Development Program (FMD) in the next farm bill. Farming organizations believe these programs are essential for expanding exports and ensuring the competitiveness of American agriculture in global markets.
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