Jan 31, 2019

USDA awards Agricultural Trade Promotion Program funding

U.S. Secretary of Agriculture Sonny Perdue said Jan. 31 the USDA has awarded $200 million to 57 organizations through the Agricultural Trade Promotion Program (ATP) to help U.S. farmers and ranchers identify and access new export markets. The ATP is one of three USDA programs created to mitigate the effects of unjustified trade retaliation against U.S. farmers and exporters. USDA’s Foreign Agricultural Service (FAS) accepted ATP applications between Sept. 4 and Nov. 2 – totaling nearly $600 million – from U.S. trade associations, cooperatives, and other industry-affiliated organizations. USDA has released a list of the ATP funding recipients.

President Donald J. Trump authorized up to $12 billion in programs to provide assistance to U.S. agriculture through a trade mitigation package announced by Secretary Perdue on Sept. 4, 2018. In addition to the $200 million allocated to the ATP, the package also included the Market Facilitation Program to provide payments to farmers harmed by retaliatory tariffs, and a food purchase and distribution program to assist producers of targeted commodities.

“At USDA, we are always looking to expand existing markets or open new ones, so we are proud to make good on the third leg of the president’s promise to America’s farmers,” said Secretary Perdue. “This infusion will help us develop other markets and move us away from being dependent on one large customer for our agricultural products. This is seed money, leveraged by hundreds of millions of dollars from the private sector, that will help to increase our agricultural exports.”

All sectors of U.S. agriculture, including fish and forest product producers, were eligible to apply for cost-share assistance under the ATP. FAS evaluated applications according to criteria that included the potential for export growth in the target market, direct injury from the imposed retaliatory tariffs, and the likelihood that the proposed project or activity will have a near-term impact on agricultural exports.

“We were pleased to see the large demand for participation in the program, and truly got some out-of-the-box ideas that we are hopeful will expand our global footprint,” Perdue said. “We examined all applications carefully, considered our ranking criteria, and awarded the funds in order to make the best use of taxpayer dollars in growing agricultural trade.”

Many specialty crop interests received funding through the program.

The Washington Apple Commission, for example, will be receiving $8,457,600 through the ATP funding. The ATP program, funded at $200 million, will develop and grow export markets to mitigate adverse effects of trade conflicts with foreign countries.

“We appreciate the USDA’s support of the apple industry and their understanding of the challenges we are facing due to retaliatory tariffs in our export markets. This funding will be key to building markets and reducing the impact on Washington apple producers,” said Washington Apple Commission President Todd Fryhover. “We are thankful for the work and diligence from the USDA Foreign Agriculture Service in assessing and determining funding.”

The ATP funds allocated by the USDA Foreign Agricultural Service to various agriculture commodity groups will be used to increase promotional efforts and alleviate the impact of additional costs and challenges in export markets during trade disruptions.

Washington state exports one-third of its fresh apple crop and 90% of U.S. apple exports originate from Washington. 40 percent of the state’s apple exports are shipped to Mexico and China, where they face retaliatory tariffs of 20 percent and 40 percent respectively. India is another top market that is currently threatening a 25 percent tariff on U.S. apples.

The Washington Apple Commission is a promotional organization dedicated to serving the Washington apple industry by increasing consumer demand through innovative marketing and promotions in international markets.

For more information on the Washington Apple Commission, visit our website www.bestapples.com.

The Washington State Fruit Commission, which was founded in 1947 as a nonprofit organization funded by grower assessments for the purpose of promotion, market development, research and education of soft fruits grown in Washington state, received $709,203 in ATP funds.