The Emerging Markets Program is a market access program that provides funding for technical assistance activities intended to promote exports of U.S. agricultural commodities and products to emerging markets in all geographic regions, consistent with U.S. foreign policy.  The program is authorized by the Food, Agriculture, Conservation, and Trade Act of 1990, as amended by the Federal Agriculture Improvement and Reform Act of 1996 and the Farm Security and Rural Investment Act of 2002.  Funding is set at $10 million each fiscal year from the Commodity Credit Corporation from now through the end of the current Farm Bill (2007).

The Emerging Markets Program is a generic program.  Its resources may be used to support exports of U.S. agricultural commodities and products only through generic activities.  Projects that endorse or promote branded products are not eligible for the Program.

Funding is provided through three channels:  (1) the Central Fund, the principle means of funding, made available through a public announcement; (2) the Technical Issues Resolution Fund, to address technical barriers to exports; and (3) the Quick Response Marketing Fund, to assist in resolving short-term time-sensitive market access issues.  

What is an Emerging Market?  The legislation defines an emerging market as any country that "is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of the economy of the country," and "has the potential to provide a viable and significant market for United States commodities or products of United States agricultural commodities."

There is no fixed list of "emerging market" countries.  Because funds are limited and the range of emerging markets is worldwide, the Program uses certain administrative criteria, in addition to the legal definition above, to determine whether a country is considered an emerging market:

1) Per capita income of less than $11,115, the current ceiling on upper middle income economies as determined by the World Bank.

2) Population greater than 1 million (may encompass regional groupings, such as the islands of the Caribbean Basin).

Guidance on qualified emerging markets is provided each year in the Program’s application announcement.

Program Priorities.  The principal purpose of the program is to assist U.S. organizations, public and private, to improve market access by developing, maintaining, or enhancing U.S. exports to low- and middle-income countries which have or are developing market-oriented economies, and which can be viable markets for these products.  The underlying premise is that emerging agricultural markets have distinctive characteristics that benefit from U.S. governmental assistance before the private sector moves to develop these markets through normal trade promotional activities.  All agricultural commodities except tobacco are eligible for consideration.

Cost-share, the funding U.S. private organizations are willing to commit from their own resources to seek export business in an emerging market, is one of the requirements needed in an application in order to qualify for funding assistance under the Emerging Markets Program.  Justification for federal funding is also required.

Types of Projects and Activities.  Funding is on a project-by-project basis.  Many types of technical assistance activities that promote markets for U.S. agricultural products may be eligible for funding.  Examples include 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 (including labeling and supplementing normal company sales activities designed to increase awareness and stimulate sales of branded products); equipment purchases; costs of new product development; administrative and operational expenses for trade shows; advertising; preparation and printing of brochures, flyers, posters, etc., except in connection with specific technical assistance activities such as training seminars; and design of development of Internet Web sites.

 The program complements other FAS marketing programs. Once a market access issue has been addressed by the Emerging Markets Program, further market development activities may be considered under other FAS programs.

Eligible Organizations.  Any U. S. agricultural or agribusiness organization, university, state department of agriculture, or USDA agency (or other federal agency involved in agricultural issues) is eligible to participate in the Emerging Markets Program. Preference will be given to proposals indicating significant support and involvement by private industry. Proposals will be considered from research and consulting organizations only as long as they can demonstrate evidence of substantial participation by U.S. industry.  For-profit entities are also eligible, but may not use program funds to conduct private business, promote private self-interests, supplement the costs of normal sales activities, or promote their own products or services beyond specific uses approved for a given project.  USDA market development cooperators may seek funding to address priority, market-specific issues or to undertake activities not already serviced by or unsuitable for funding under other FAS marketing programs, such as the Foreign Market Development Program and Market Access Program.

The opportunity for applying to the Emerging Markets Program during the annual open solicitation period, usually winter to early spring, is announced in the Federal Register and on the FAS Internet Web site.

Advisory Committee on Emerging Markets.  A private sector advisory committee provides information and advice to help USDA develop strategies for providing technical assistance and enhancing markets for U.S. agricultural products in developing market economies. More specifically, Committee members review from a business perspective qualified proposals submitted to the Program for funding assistance.  The Secretary of Agriculture appoints members to the committee for 2-year terms.

More Information.  Further details on the Emerging Markets Program, including the funding options under the program (the Central Fund, the Technical Issues Resolution Fund, and the Quick Response Marketing Fund), additional qualification requirements, the application and proposal review process, and administrative policies and procedures are contained in the Program Regulations, available by mail or on the FAS Internet site (see below).  For additional information, contact: