U.S. Agriculture Secretary Tom Vilsack recently announced plans to utilize Commodity Credit Corporation funding to bolster support for agricultural exports. Over the next five years, USDA’s new Regional Agricultural Promotion Program is set to provide $1.2 billion to support eligible projects aimed at expanding exports into new markets and increasing market share in growth markets. The first tranche of RAPP funding, which is expected to be activated in June 2024, will provide up to $300 million.
Because diversification is a key goal of RAPP, some large export markets will be ineligible for the first tranche of funding: China (including Hong Kong and Macau), Canada, Mexico and the European Union. All other markets are eligible, except for those in which sanctions or other legal barriers are in place.
Three regions have been identified for special emphasis in the first tranche of RAPP funding: Latin America/Caribbean, South/Southeast Asia and Africa. In fact, USDA has specifically set aside $25 million from the first tranche to fund activities in Africa.
According to U.S. Meat Export Federation President and CEO Dan Halstrom, diversification has always been a high priority for USMEF and its members, as the red meat industry seeks to expand the global footprint of U.S. red meat.
“USMEF often gets questions about emerging markets and the regions that hold promise for future growth, because producers and other stakeholders understand the importance of reaching a broad range of export destinations,” Halstrom explained. “Developing these markets requires time, patience and resources, so we are excited to see USDA make such a strong commitment to market diversification. For U.S. pork, this is especially critical for enhancing the value of every cut and variety meat item and, in turn, maximizing the return on every head slaughtered.”
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