The editorial ”Stop subsidizing food ads overseas” (July 9) is correct to suggest that U.S. Department of Agriculture export programs can be improved, but wrong to support the House Appropriations Committee action to cut USDA`s Market Promotion Program from $200 million to $75 million.
Now is the time to make USDA export programs better, not to cut them back. The Market Promotion Program has proven to be a sound investment in international trade that pays big dividends to the U.S. economy. The program includes hundreds of different U.S. agricultural products and more than 60 different commodity groups and associations. With all its diversity, the program works. Here`s just one example:
With a program investment of $13 million this past year, U.S. meat exports hit a record $2.6 billion, up 108 percent from when the industry received its first program funds in 1987. For the meat sector, that`s 135,000 full-time, taxpaying jobs directly related to exports-a government investment of $8 per month per job. These export gains would not have been possible without the program.
Despite its success, the program can be improved to maximize the return on the public`s investment in foreign markets: Put more emphasis on the sale of value-added products which have the greatest impact on the U.S. economy;
encourage higher levels of private sector investment in foreign markets; and preclude funds from being used as a substitute for normal U.S. company expenditures.
Our ability to compete in world markets is paramount. The fact is that American products are being sold with help from the program. And in some cases, they are being sold as branded products to signify quality and stimulate demand.
This demand benefits everyone in the production chain. In the case of the meat industry, the value of fed cattle increased $53.25 per head as a result of beef exports in 1991. Similar demand for U.S. pork in foreign markets added another $2.96 per head to hogs-not to mention the $332 million in corn and soybeans used to produce these products for export.
This is an excellent opportunity for our elected officials in Washington to do something for the American economy by moving to strengthen, not to undercut, USDA export programs.
