USDA Opens Applications for $300 Million to Help Exporters Break Into New Markets
USDA Announces $300 Million Funding to Aid U.S. Agricultural Exporters
The U.S. Department of Agriculture (USDA) has revealed plans to start accepting applications for an initial $300 million in funding. This funding aims to assist U.S. agricultural exporters in gaining access to new markets outside of China, Canada, Mexico, and the European Union.
Launch of the Regional Agricultural Promotion Program (RAPP)
This announcement was made during a meeting of the President’s Export Council at the White House by Agriculture Secretary Tom Vilsack. The funding marks the initiation of the first year of the Regional Agricultural Promotion Program (RAPP), established by the USDA in October.
Details of the RAPP Program
The RAPP program, spanning five years, will provide a total of $1.2 billion to non-profit U.S. agricultural trade groups, State Regional Trade Groups (SRTGs), U.S. agricultural cooperatives, and other state agencies. The aim is to support these entities in tapping into new markets and expanding their market share.
Secretary Vilsack’s Statement
Agriculture Secretary Tom Vilsack expressed the significance of this initiative, stating, “It takes significant investment to open and develop new export markets, and this new fund will be dedicated to helping provide that start-up capital so that American exporters can diversify their markets and create new opportunities.”
Market Expansion and Potential Growth
Vilsack emphasized the growing middle class in various regions, such as South and Southeast Asia, Latin America, the Middle East, and Africa, driving the demand for high-quality products. He highlighted the need to capture these markets from competitors by establishing a strong presence and addressing barriers.
Focus on Diversification
USDA outlined its diversification strategy, focusing on three regions in the first phase of the program – Africa; Latin America and the Caribbean; and South and Southeast Asia. Notably, $25 million has been allocated specifically for work in Africa.
Upcoming Trade Missions
Additionally, USDA announced plans to host trade missions to various countries in 2024, including South Korea, India, Colombia, Vietnam, and Morocco. These missions aim to further expand U.S. agricultural export opportunities.
