The U.S. Department of Agriculture (USDA) has announced the second round of Regional Agricultural Promotion Program (RAPP) grants, allocating $300 million to diversifying American agricultural exports. This funding, part of the Biden-Harris administration’s larger strategy to boost U.S. agricultural exports, aims to establish presence and increase competitiveness in growing global markets.
According to USDA Secretary Tom Vilsack, the RAPP grants represent a significant investment to help U.S. producers and agribusinesses maintain their competitiveness in today's global trading environment. Vilsack stated, "RAPP is a critically tool for helping U.S. producers and agribusinesses stay competitive in today’s global trading environment." Under this program, USDA has focused on regions such as Africa, Latin America, and Southeast Asia, where rising consumer demand and purchasing power present key opportunities.
These regions have shown promise for U.S. farms and food manufacturers, where substantial market growth is expected. With the current market focus, USDA recorded three substantial years of agricultural exports, logging nearly $196 billion in 2022 and approximately $175 billion as of 2023. These figures indicate growing global demand for high-quality American agricultural products amid increased budgetary measurements.
To date, the USDA has successfully secured over $26.7 billion in agricultural market access, which has been pivotal since the onset of the Biden-Harris administration. Important to note, fiscal year 2024 has already shown actions preserving $8.8 billion of total U.S. agricultural exports thanks to these proactive initiatives.
Part of the RAPP initiative encourages project submissions targeting Africa, with approximately $25 million set aside for economically targeted proposals. Vilsack's announcement also covered historical overreliance on populous markets such as China, Mexico, and Canada, which make up almost 50% of current U.S. agricultural export sales. Through RAPP, the USDA aims to expand outreach beyond these traditional channels, enhancing U.S. presence where the middle class is growing.
The USDA's emphasis on diversification is also echoed by industry leaders. Constance Cullman, president and CEO of the American Feed Industry Association (AFIA), commented on receiving $1 million through RAPP. She stated, "This funding underlines our shared commitment to a strong U.S. agricultural economy by building strong relationships with foreign buyers." AFIA plays a significant role, noting its contribution to overall U.S. agriculture with exports of feed and ingredients totaling to $13.4 billion, showcasing the importance of animal food industry exports.
Adding to the significance of these new financial measures, the U.S. Dairy Export Council (USDEC) received $9.7 million as part of RAPP. USDEC President Krysta Harden expressed gratitude, stating, “During limited budgets and increased demands, this additional funding will enable us to expand on the work we’ve started with the first RAPP tranche.” This investment allows for market intelligence assessments and new market expansion activities across various regions, from Africa to Southeast Asia.
Timber exports, particularly logs sent from the U.S. to China, have increased significantly, presenting another area of growth. Recent data reveals exports of logs increased by 33% year-on-year to 137.2 thousand tons, with the price also rising by 28%. This trend aligns with the broader theme of U.S. exports demonstrating strength across different sectors.
Statements from industry associations like the U.S. Agricultural Export Development Council (USAEDC) reflect widespread enthusiasm about the financial allocations for agricultural exporters. Greg Tyler, chair of USAEDC, remarked, “These new grants will help pave the way for progress in food security, sustainability, innovation and economic growth around the world.” He views the funding as beneficial, emphasizing the idea of connecting first-class U.S. products to new consumers.
Tyler’s sentiments are echoed by the USAEDC's executive director, Steve Sothmann, who expressed gratitude for USDA and congressional support. The allocation of these funds recognizes the sustained level of investment needed to cultivate relationships and navigate trade barriers, which are key for diversifying U.S. agricultural markets.
The groundwork laid by the USDA through these initiatives is expected to have lasting impacts on the American agricultural industry. By fostering competitive relationships and enhancing market access, U.S. producers can expect to thrive, amid global shifts and striving to maintain relevance within new economies worldwide.
