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The Foreign Market Development Cooperator (FMD) Program uses funds from the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) to create, expand, and maintain long-term export markets for U.S. agricultural products. First established under the authority of Public Law 480, the FMD was re-authorized by Title VII of the Agricultural Trade Act of 1978, and is administrated by USDA’s Foreign Agricultural Service (FAS).

The program has fostered a cost-sharing trade promotion partnership between USDA and U.S. agricultural producers and processors, who are represented by nonprofit commodity or trade associations called Cooperators.  FAS enters into partnerships with those eligible non-profit U.S. trade organizations that have the broadest producer representation of the commodity being promoted.  Under this partnership, USDA and the Cooperators pool their technical and financial resources to conduct overseas market development.

How the program benefits U.S. agriculture: The FMD benefits U.S. farmers, processors, and exporters by assisting their organizations in maintaining or  increasing market share in existing markets by addressing long-term foreign market import constraints and by identifying new markets or new uses for the agricultural commodity or product in the foreign market. Overseas promotions focus on generic U.S. commodities, rather than brand-name products, and are targeted toward long-term development.

How the program works: Under the FMD, CCC funds partially reimburse cooperators for conducting approved overseas promotional activities. Preference is given to nonprofit U.S. agricultural and trade groups that represent an entire industry or are nationwide in membership and scope.

Each year USDA announces an application period for participation in the FMD program and publishes it in the Federal Register. Proposals are developed by trade organizations and may be submitted to USDA as part of the Unified Export Strategy (UES) process, which allows applicants to request funding for several USDA foreign market development programs using a single, strategically coordinated proposal. FMD regulations (7 CFR 1484) define program requirements, including cost-sharing, strategic planning, reimbursement procedures, records and reporting requirements, and evaluations.

FMD applications undergo a competitive review process. Funds are awarded to applicants that demonstrate effective performance based on a clear long-term strategic plan. Cooperators must keep an itemized list of expenses incurred during the program year and submit them to USDA for reimbursement. All expenses are subject to audits, and Cooperators are accountable for maintaining proper documentation.

For more information on the FMD program, contact the Office of Trade Programs at (202) 720-4327, or visit the following Web site at http://www.fas.usda.gov/mos/programs/fmdprogram.asp

General information about FAS programs, resources, and services is available on the Internet at the FAS home page: http://www.fas.usda.gov.

Fiscal Year 2010 Foreign Market Development Program Allocations