October 27, 2022

Cultivating Revitalization by Expanding American Agricultural Trade and Exports Act of 2022 introduced

Cultivating Revitalization by Expanding American Agricultural Trade and Exports Act of 2022 introduced 

By: Sydney Sheffield 

A new bill titled the Cultivating Revitalization by Expanding American Agricultural Trade and Exports Act of 2022 (CREAATE Act) has been proposed to double funding for the United States Department of Agriculture’s (USDA’s) Market Access Program (MAP) and Foreign Market Development Program (FMD). The bipartisan bill was introduced by Senators Angus King (I-ME), Joni Ernst (R-IA), Tina Smith (D-MN), and Chuck Grassley (R-IA). 

According to the authors of the bill, investment in U.S. export promotion programs has not kept pace with the foreign competition, placing the U.S. at a competitive disadvantage. MAP has remained unchanged since 2006 and a third of its funding has been lost to sequestration, inflation, and program administration. FMD has also remained static and without an increase since 2002.

“The funding for these has really been stagnant for nearly 15 years even though the value of these programs is really great. They’re designed to help producers invest in and get traction in export markets,” Tina Smith saidto Brownfield Ag News

The bill would double the mandatory annual funding of MAP to $400 million and FMD to $69 million. Both programs are critical to expanding global market access. Through MAP, USDA partners with agricultural trade associations, cooperatives, state regional trade groups, and small businesses to share the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities. Through FMD, USDA partners with U.S. nonprofit agricultural trade associations to address long-term opportunities to reduce foreign import constraints or expand export growth opportunities for U.S. agricultural commodities. 

A recent study by agricultural economists at Texas A&M University and HIS Market found that if MAP and FMD funding were to double, between 2024 and 2029, U.S. agricultural exports would increase by an additional $44.4 billion.  This would directly benefit farmers, livestock producers, dairy operators, and small businesses as they work to maintain and expand their global presence.

The National Council of Farmer Cooperatives (NCFC) released a statement supporting the CREAATE Act. “The bill would institute a long-needed increase in funding for the MAP and FMD, which help America’s farmers, ranchers, growers expand markets overseas for this country’s agricultural bounty. This is especially vital as foreign competitors continue to spend substantially more on market development and promotion of their food and ag exports than the U.S. does.”

Read the bill here