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USDA announces $300 million in additional grants through regional agricultural promotion program to diversify U.S. agricultural export markets

USDA announces 0 million in additional grants through regional agricultural promotion program to diversify U.S. agricultural export markets

 


U.S. Department of Agriculture Secretary Tom Vilsack today announced the second round of Regional Agricultural Promotion Program (RAPP) grants, which are expected to award $300 million to 67 partners.

WASHINGTON, December 19, 2024 U.S. Department of Agriculture Secretary Tom Vilsack today announced the second round of Regional Agricultural Promotion Program (RAPP) grants, which are expected to award $300 million to 67 partners once that all legal and administrative requirements will be met, thereby expanding the American economy. food and agricultural exports to emerging global markets. This latest investment brings total RAPP funding to $600 million in 2024.

New subsidies aim to diversify export markets in regions where consumer demand and purchasing power are growing, including Africa, Latin America/Caribbean and South and Southeast Asia . These regions offer significant opportunities for U.S. producers looking to expand their presence into dynamic and growing markets.

RAPP is a critical tool to help U.S. food producers and businesses remain competitive in today's global trade environment, said Secretary Vilsack. The Biden-Harris approach to trade is delivering results for U.S. agriculture through record exports and improved relationships with current and future trading partners, and this investment supports actions that build on global demand of high quality American agricultural products.

Under the Biden-Harris administration, U.S. agricultural exports have increased significantly, posting the highest three years in history in 2021, 2022 and 2023, with a record of nearly $196 billion in 2022 and nearly $175 billion in 2023. USDA and U.S. Trade and Commerce (USTR) have helped secure more than $26.7 billion in agricultural market access since the start of the Biden-Harris administration.

In fiscal year 2024, USDA Foreign Agricultural Service actions helped preserve $8.8 billion in total U.S. agricultural exports. Since 2022, USDA has issued $9.4 billion in loan repayment guarantees to facilitate the diversification of U.S. agricultural export markets. USDA also leveraged $2.3 billion in Commodity Credit Corporation (CCC) funds in 2024 to support efforts to develop the U.S. agricultural export market and combat global food insecurity. In addition to RAPP, $100 million has been targeted to help address the unique challenges faced by specialty crop producers seeking to improve market growth opportunities through exporting. Additionally, USDA is using $1 billion in CCC funds to support international food aid programs and strengthen global food security, benefiting U.S. agricultural producers.

Market diversification and new opportunities

This second round of funding reinforces USDA's commitment to diversification, with a $25 million set aside for projects focused on Africa. Proposals for this round exceeded available funding, with eligible entities submitting more than $1 billion in project requests. The first $300 million from RAPP, announced in May 2024, has already helped U.S. producers exploit new opportunities overseas. The RAPP builds on the success of the Agricultural Trade Promotion Program (ATP), launched in 2018 to mitigate the risks of over-reliance on a few large markets.

Applications for the second round of funding opened in August 2024, and USDA received proposals from agricultural trade organizations, state regional trade groups, agricultural cooperatives, and state agencies. These projects will play a critical role in creating new market opportunities and maintaining existing ones for U.S. producers.

Context of the RAPP

Secretary Vilsack announced in October 2023 that USDA would use $1.2 billion from the Commodity Credit Corporation to create RAPP, with a focus on diversifying international demand for U.S. agricultural exports beyond established markets such as China, Mexico and Canada, which collectively account for nearly 50% of U.S. agricultural exports. percent of current export sales. RAPP focuses on regions of the world where the middle class is growing and the desire for high-quality food and agricultural products is increasing, but where U.S. exporters may not yet have an established presence or a solid anchorage.

Scholarships are subject to compliance with legal and administrative requirements related to the grant. For more information on the regional agricultural promotion program, visit the FAS website.

USDA touches the lives of all Americans in many positive ways every day. Under the Biden-Harris Administration, USDA is transforming the U.S. food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe food , healthy and nutritious food in all communities and creating new markets and income streams for farmers and producers using climate-smart food and forestry practices. USDA is making historic investments in clean energy infrastructure and capacity in rural America and is committed to equity across the department by removing systemic barriers and creating a hand -work more representative of America. To learn more, visit www.usda.gov.

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USDA is an equal opportunity provider, employer, and lender.

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