Farm Bill Title III: Agricultural Trade and Food Assistance Programs – Food, Drugs, Health Care, Life Sciences


United States: Farm Bill Title III: Agricultural Trade and Food Assistance Programs

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Farm Bill Blog Series (Part 3 of 5)

The $428 billion Farming Improvement Act of 2018 (Pub. L. 115-334), or more commonly known as the Farm Bill of 2018, is set to expire on September 30, 2023, impacting virtually every sector of the industry agricultural. Data from the United States Department of Agriculture (USDA) indicates that U.S. agricultural exports totaled $177 billion in 2021, an increase of 18% from 2020.

As U.S. food and agricultural producers increasingly depend on exports for their income — more than 20% of U.S. food and agricultural production is exported each year — Congress will have discussions on how trade assistance programs of the 2023 Farm Bill can create new market opportunities for American farmers and producers and fight food insecurity around the world.

The Trade Title (Title III) of the Farm Bill includes a series of programs designed to alleviate hunger and improve global food security, and to facilitate exports of American food and agricultural products.

Export credit guarantee programs provide important financing tools that facilitate foreign purchases of US food and agricultural products. In addition, export market development programs fund a range of activities aimed at opening and expanding foreign markets for U.S. food and agricultural products, while trade missions connect U.S. producers and exporters with importers and distributors in the main foreign markets.

Advocating for the reauthorization of these programs during the Farm Bill 2023 negotiations, currently underway, can ensure their availability in the years to come.

What’s in the Farm Bill business title?

The Farm Bill business title aims to achieve several goals. First, it authorizes US international food assistance programs that aim to reduce poverty and improve global food security. These programs provide much-needed nutrition to food-insecure populations, build goodwill in those countries, and can pave the way for U.S. exports as developing countries become emerging markets.

Second, Title III provides important financial tools to facilitate US exports of food and agricultural products. Many US exporters are eager to enter emerging markets, but may be weary of extending credit to foreign importers. The Title III Export Credit Guarantee Program, known as GSM-102, reduces risk for U.S. private lenders and exporters, while the Facility Guarantee Program facilitates financing for the purchase of US goods and services to establish or improve agriculture-related infrastructure in emerging markets.

Third, Title III includes programs that provide assistance with foreign marketing and promotional activities, address foreign import constraints or expand export opportunities for U.S. agricultural products, facilitate technical assistance that supports exports of generic U.S. agricultural products and products and addresses sanitary, phytosanitary, and technical barriers. US fruit and vegetable exports.

Fourth, Title III funding for international science and technology programs facilitates technical exchanges that advance the understanding and use of conservation techniques and agricultural biotechnology, promote food security and economic growth, and provide technical assistance. and training.

Finally, Title III directs the USDA Secretary to “increase the inclusion and reporting of tribal agricultural and food products in trade-related activities.”

Why should Title III reauthorization interest you?

The aforementioned programs include Farm Bill efforts to facilitate U.S. exports of food and agricultural products while simultaneously improving global food security. These efforts operate on a continuum – from helping food-insecure populations to loan guarantees and other financial tools that reduce risk for US exporters. Food and agricultural producers should voice their support for and use Title III programs that open and expand foreign markets. Lenders can expand their business with food and agricultural producers by participating in Farm Bill credit guarantee programs.

As such, stakeholders should not only advocate for the reauthorization of these programs, but also demand that Congress take full ownership of the programs and that the administration implement the programs in a way that creates strong markets. abroad.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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