FOREIGN AGRICULTURAL SERVICE, DEPARTMENT OF AGRICULTURE
AUTHORIZATION:
The Emerging Markets Program is authorized by the Food,
Agriculture, Conservation, and Trade Act of 1990 (FACT Act), as amended by the
Federal Agriculture Improvement and Reform Act of 1996 (FAIR Act) Section 1542
(d).
The primary objective of the Emerging Markets Program is
to promote, enhance or expand the exports of U.S. agricultural commodities to
overseas emerging markets through cost-share assistance to eligible
organizations that implement an Emerging Markets Program. The program supports
the activities of U.S. agricultural and agribusiness firms--particularly those
that may need assistance in obtaining or maintaining access in overseas
markets. The program is aimed at improving market access opportunities for
agricultural products or processes in low- to middle-income countries that are
likely to emerge as promising export markets in the near to medium term.
TYPES OF ASSISTANCE:
Direct Payments for Specified Use. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Emerging Markets Program funds are authorized through project agreements that
serve as binding instruments and create a legal obligation on the part of the
Commodity Credit Corporation (CCC) to make appropriated funds available to the
participant. The agreement creates a cooperative relationship between CCC and
the implementor with each side contributing resources to support achievement
of mutual goals. Program funds help finance activities such as feasibility
studies, market research, sectorial assessments, orientation visits,
specialized training, and business workshops. The Program is not intended for
projects targeted at end-user consumers. Ineligible activities include
in-store promotions, restaurant promotions, branded product promotions,
administrative and operational expenses for trade shows and advertising,
except in connection with specific technical assistance activities such as
training seminars.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Applicants must be a: (1) U.
S. agricultural or agribusiness organization -- nonprofit, trade association,
university, consultant group (under certain conditions), (2) State Department
of Agriculture, or (3) USDA agency (or other Federal agency involved in
agricultural issues).
Beneficiary Eligibility: (1) a U. S. agricultural
or agribusiness organization -- nonprofit, trade association, university,
consultant group (under certain conditions), (2) State Department of
Agriculture, or (3) USDA agency (or other Federal agency involved in
agricultural issues).
Credentials/Documentation: All eligible
applicants must submit a written proposal in accordance with the guidelines
set forth each year in the Federal Register. 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 solicitation of
proposals is announced in the Federal Register. At that time written project
proposals should be submitted to the Director, Marketing Operations Staff,
Foreign Agricultural Service (FAS).
Award Procedure: FAS will notify each applicant
in writing of the final disposition of its application. For approvals, letters
will contain the notice of approval and any qualifications or adjustments made
to the original proposal. For rejections, letters will contain details
explaining the reasons why the proposals were not approved for funding. FAS
will send an Agreement to each approved applicant. The Agreement will specify
the terms and conditions applicable to the project, including the levels of
program funding and cost-share contribution. An applicant who accepts the
terms and conditions contained in the Agreement should so indicate by having
the appropriate authorizing officer sign the Agreement and submit it to the
Director, Marketing Operations Staff, FAS, USDA. The Agreement will become
effective when the Deputy Administrator signs the Agreement on behalf of CCC.
Deadlines: Application deadline is announced in
the Federal Register.
Range of Approval/Disapproval Time: Approximately
120 days.
Appeals: Not applicable.
Renewals: Continuation or expansion of successful
projects funded by the Program may be considered for future funding through
separate application. Funding may be considered for projects which have
already begun with the support and financial assistance of a private entity,
and for which government funding for continuation of the project is justified.
Such proposals must meet the criteria of the Emerging Markets Program,
including cost-sharing.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: All applications
must include an element of cost share. This is the amount of funding U.S.
private organizations are willing to commit from their own resources along
with those of the Program to seek export business in an emerging market.
Length and Time Phasing of Assistance: Agreements
generally include a beginning and end date. Projects are normally funded for
one year although some multi-year projects may be funded by the Program,
usually on a year-to-year basis.
POST ASSISTANCE REQUIREMENTS:
Reports: Implementors are required to submit regular
progress reports, depending upon the length and nature of the project.
Progress reports are required for all projects with a duration of at least six
months. Final reports are to be submitted 60 days after completion of the
project, both on diskette and in hard copy.
Audits: Participant projects are reviewed as
needed, but normally at least every two years, by representatives of the
Compliance Review Staff (CRS) of FAS. Audits and reviews are also conducted
sporadically by representatives of the Office of the Inspector General and the
General Accounting Office. Accounts and records must be available for
inspection or audit at any reasonable time.
Records: Records must be maintained for at least
three years after completion or termination of the Agreement or not more than
five 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 $10,000,000;
FY 02 est $10,000,000; and FY 03 est Not available.
Range and Average of Financial Assistance:
Projects are funded on a project by project basis and generally range from
$5,000 to $500,000.
EMP receives record numbers of project proposals desiring funding each year.
The Program has also seen significant increases in the level of Participant's
cost share. In order to operate more efficiently and ease the application and
reimbursement process for participants, EMP has converted these functions into
an online system. EMP is also in the process of developing regulations for the
program and plans to have them successfully completed for the 2003 application
period. EMP has funded 75 out of 119 project proposals received for fiscal
year 2001. For fiscal year 2002, EMP anticipates record demand for use of its
program's funds and plans to allocate the entire $10 million to new projects.
Example: EMP funded an activity in China which included conducting Market
Analysis, Economic Forecasting, Commodity Reporting, and Training in
Statistics. This activity provided an unprecedented opportunity to analyze
China's first agricultural census (which occurred in 1997) and the basic
structure and operations of its agricultural economy, resulting in significant
improvements in both short-term and long-term forecasting of China's supply,
demand and trade. In addition, joint preparation and release of a series of
commodity situation and outlook reports on production, consumption and trade
(in rice, cotton, pork and corn) were the first official reports of this
nature released in China, synthesizing analyses from all major domestic
agencies involved in agriculture. The improved market information and
intelligence available as a result of these activities are expected to reduce
China's agricultural trade instability and the negative consequences of that
instability for U.S. agricultural producers.
REGULATIONS, GUIDELINES, AND LITERATURE:
The Program currently operates under guidelines. Regulations are being
developed for 2003.
INFORMATION CONTACTS:
Regional or Local Office: Not applicable.
Headquarters Office: Director, Marketing
Operations Staff, Foreign Agricultural Service, Department of Agriculture,
Washington, DC 20250. Telephone (202) 720-4327.
Web Site Address: http://www.fas.usda.gov/mos/em-markets/em-markets.html.
EXAMPLES OF FUNDED PROJECTS:
(1) Supply Chain Management Program for Supermarket China's Chain Stores, (2)
Development of Baking Industry: Sunstainable Market for U.S. Ingredients, (3)
Market Development for U.S. Cranberries in China, (4) Market Development for
Florida Citrus Products in India, and (5) Dairy Herd Improvement Project in
Poland.
CRITERIA FOR SELECTING PROPOSALS:
There are three things that every private sector proposal must contain in
order to be considered for funding under the Program: 1. Cost-share. This is
the amount of funding U.S. private organizations are willing to commit from
their own resources along with those of the Program to seek export business in
an emerging market. No proposal will be considered without the element of
cost-sharing, regardless of the underlying value of a proposal (the Emerging
Markets Program complements, not supplants, export efforts of the U.S. private
sector). A minimum or maximum amount of cost share is not specified. Rather,
the degree of commitment to a proposed project represented by the percentage
and type of private funding is a critical factor in determining which
proposals will be funded under the Program. The type of cost-sharing is also
not specified. It may be professional time of staff assigned to the project,
or actual cash investment. Cost-sharing is not needed for government
proposals, but it is required from private organizations who are party to a
joint government/private proposal. 2. Market Analysis and Statement of
Specific Benefit(s) to U.S. Exports. This is a brief underlying analysis of
the target market which supports the objectives of the proposed project and
the benefits that can be expected to accrue to U.S. commodity exports as a
result of successful completion of the project. 3. Justification for Federal
Funding. What other sources of funding might be available? Why is funding from
the Program required? What specifically could not be accomplished if the
funding were not provided?
