To create, maintain and expand long-term export markets
for U.S. agricultural products through cost-share assistance and the
opportunity to work closely with FAS and its overseas offices.
TYPES OF ASSISTANCE:
Direct Payments for Specified Use. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Cooperator funds are authorized through program agreements with nonprofit U.S.
trade associations called Cooperators, that provide for partial reimbursement
of generic promotional activities in a Unified Export Strategy application
approved by the Foreign Agricultural Service (FAS), the agency which
administers the program for the Commodity Credit Corporation (CCC). In
general, Cooperator funds may be used only in direct support of activities
conducted outside the United States. Types of activities that may be funded
include trade servicing, market research, and technical assistance to actual
or potential foreign purchasers of U.S. commodities.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Cooperative Credit
Corporation (CCC) enters into agreements with those nonprofit U.S. trade
organizations that have the broadest possible producer representation of the
commodity being promoted. To be approved, an applicant's proposal must
indicate how it can effectively contribute to the creation, expansion, or
maintenance of markets abroad. FAS considers a number of factors when
reviewing proposed projects. These factors include: (1) The applicant's
willingness to contribute resources including cash and goods and services of
the U.S. industry and foreign third party; (2) the ability of the organization
to provide an experienced U.S.-based staff and with technical and
international trade expertise to ensure adequate development, supervision and
execution of the proposed project; (3) the degree to which the proposed
project is likely to contribute to the development, expansion, or maintenance
of foreign markets; and (4) the degree to which the strategic plan is
coordinated with other private or U.S. government-funded market development
projects.
Beneficiary Eligibility: Preference is given to
nonprofit U.S. trade organizations which are nationwide in membership and
scope.
Credentials/Documentation: U.S. applicants must
prove the ability to provide a competent experienced staff and other resources
to assure adequate development, supervision, and execution of promotional
activities. Applicants must submit a written export strategy which provides a
brief discussion of the commodity for which an agreement is being requested
and a description of proposed activities including the foreign countries in
which they will be conducted. Applicants must also submit their Internal
Revenue Service tax exempt identification number, a description of the
membership of the applicant organization, a description of the organizations
management and administrative capability, the degree to which membership
represents national production, an estimate of the level of Government funds
required, and the extent to which industry resources are available to match
Government expenditures. This program is excluded from coverage under OMB
Circular No. A-87.
Pre-application Coordination: None. This program is
excluded from coverage under E.O. 12372 and OMB Circular No. A-102.
Application Procedure: Each year the availability
of funds is announced in a Federal Register notice. At this time a written
export strategy should be submitted to the Director, Marketing Operations
Staff, FAS. This program is excluded from coverage under OMB Circular No.
A-110.
Award Procedure: Applications are reviewed
against the allocation criteria and factors set forth in 7 CFR part 1484 and
the Federal Register program announcement. CCC notifies each applicant of the
final disposition of its application and also issues a public announcement
concerning the allocation of resources among the applicant organizations. Each
approved applicant receives a program agreement and an allocation/marketing
plan approval letter which specifies any special terms and conditions
applicable to a cooperator's program. Final agreement occurs when both the
participating organization and the Administrator of FAS in the Administrator's
capacity as Vice President, CCC, sign the program agreement.
Deadlines: Application deadline is announced in
the form of a Federal Register notice.
Range of Approval/Disapproval Time: Approximately
90 days.
Appeals: Not applicable.
Renewals: Not applicable. Program commitments are
made on a program year basis.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: A cooperator's
contribution requirement will be specified in the export strategy approval
letter. Cooperators must contribute at least 50 percent of the value of
resources provided by CCC for activities conducted under the project
agreement. Such contribution may be in the form of cash, goods or services.
Length and Time Phasing of Assistance: Agreements
generally include a twelve-month promotional effort and a provision for
program evaluation by an independent third party. Funds awarded in any given
fiscal year are typically available for two additional years.
POST ASSISTANCE REQUIREMENTS:
Reports: Expense reports are submitted to claim
reimbursement for expenses incurred. Trip reports are submitted within 45 days
of completion of travel. A summary of expenses by country and cost code as
well as contributions are submitted no later than January 31 following the end
of the marketing plan year.
Audits: Cooperator accounts are reviewed
periodically, but normally at least every two years, by representatives of the
Compliance Review Staff, FAS. Audits and reviews are also conducted
sporadically by representatives of the Office of Inspector General and
Government Accounting Office. Accounts and records must be available for
inspection or audit at any reasonable time. This program is excluded from
coverage under OMB Circular No. A-133.
Records: Records must be maintained for not less
than 3 years after completion or termination of the agreement or not less than
5 full calendar years following the year of the transaction that is evidenced
by such an account or record that took place, whichever is sooner.
FINANCIAL INFORMATION:
Account Identification: 12-4336-0-3-999.
Obligations: (Direct payments) FY 01 $27,500,000;
FY 02 est $27,500,000; and FY 03 est $27,500,000.
Range and Average of Financial Assistance:
$11,000 to $7,000,000; Average: $1,243,000.
For fiscal year 2001, FAS participated with 25 cooperators including support
of 10 cooperator offices overseas, to promote nearly 100 agricultural
commodities and products in more than 100 foreign countries. Example: After
trade sanctions against Sudan were lifted, U.S. Wheat Associates, using FMD
funds, sent a team of experts to educate Sudanese millers on how to purchase
U.S. wheat. As a direct result of those efforts, one miller bought the first
commercial shipment (31,000 tons) of U.S. wheat since 1997.
REGULATIONS, GUIDELINES, AND LITERATURE:
7 CFR Part 1484.
INFORMATION CONTACTS:
Regional or Local Office: Not applicable.
Headquarters Office: Deputy Administrator,
Commodity and Marketing Programs, Foreign Agricultural Service, Department of
Agriculture, Washington, DC 20250. Telephone: (202) 720-4761.
Web Site Address: http://www.fas.usda.gov/mos/programs/fmd.html.
EXAMPLES OF FUNDED PROJECTS:
(1) Promotion of U.S. soybeans through soymeal livestock feeding trials
worldwide, and production and distribution of technical and trade publications
throughout South America and South Asia directed towards institutional users;
(2) promotion of U.S. forest products through trade exhibits in the United
Kingdom, participation in the deliberations of international codes and
standards organizations, and trade seminars worldwide demonstrating American
building techniques; (3) promotion of U.S. seed through participation in
international regulatory organizations to mitigate both tariff and nontariff
barriers to U.S. seed exports; and (4) promotion of U.S. poultry through trade
seminars in Mexico.
CRITERIA FOR SELECTING PROPOSALS:
Allocations are made in a manner that effectively support the strategic
decision-making initiatives of the Government Performance and Results Act (GPRA)
of 1993. In assessing whether the applicant will effectively create, expand or
maintain foreign markets, the following factors are considered: (1)
effectiveness of program management; (2) past and present contribution levels;
(3) soundness of the strategic plan; (4) past export performance; and (5) past
demand expansion performance (6) future demand expansion goals; and (7)
accuracy of past demand expansion projections.
