March 1, 2018

'US lags behind competitors in spending for agri product promotions abroad'

If a new study is to be believed, US agriculture is being "outmarketed", that is, getting outspent by competitors in promoting agricultural products overseas.

As reported by the US Grains Council (USGC), a new analysis of 2016 spending showed that several competitors and the EU spent close to $1 billion in public funds on agricultural export promotion that year, a 70% increase since 2011 in real dollars.

During that time, US public funding to help farmers, ranchers and small food businesses export their products stayed flat at $234.5 million, declining by 12% if adjusted for inflation. This amount is even less than the EU's $300 million allotted for wine export promotion alone, the USGC noted..

According to the study--commissioned by US agricultural associations with Market Access Programme (MAP) funding and conducted by Informa Economics IEG--Canada and Italy doubled their total annual spending, while Brazil and China tripled their total annual export promotion budgets.

"The annual public support for farmers from just the EU and four European countries is expected to exceed $550 million in 2019. That is more than twice the $235 million that the US government authorizes for the two largest agricultural export development programmes under the farm bill", said Mark Powers, president of the Northwest Horticultural Council and chairman of the Coalition to Promote US Agricultural Exports.

USGC CEO Tom Sleight said that while other governments are investing more for their producers, inflation, sequestration and administrative costs are chipping away at US funding. "That cuts into the ability of American family farmers, livestock and dairy producers, fishermen and small agri-food businesses to compete in growing export markets", he said.