April 2006

Who We Are

April 2006 Who We Are USDA’s Foreign Agricultural Service Chartered in 1953 Part of USDA’s Farm and Foreign Agricultural Services (FFAS) mission area

April 2006 USDA’s Foreign Agricultural Service Plays crucial role in promoting the prosperity of the U.S. food and agriculture sector Shares mission area with sister agencies Farm Service Agency (FSA) and Risk Management Agency (RMA) Supports international economic development and trade capacity Who We Are

April 2006 Who We Are USDA’s Foreign Agricultural Service A small agency with a global mission and a global presence Agency budget of $152 million supports USDA programs worth $6.3 billion

April 2006 Who We Are USDA’s Foreign Agricultural Service Staff includes about 750 people stationed in Washington, DC, and more than 100 people at U.S. embassies and trade offices covering more than 140 countries around the world

April 2006 What We Do

April 2006 What We Do Represent U.S. agriculture abroad to preserve, develop and expand markets for U.S. agricultural exports

April 2006 What We Do Collect and analyze production and trade data, and prepare forecasts that assess export marketing opportunities

April 2006 What We Do Foster long-term economic growth and food security in lower-income nations

April 2006 What We Do Consult and collaborate with USTR to negotiate the agricultural portions of trade agreements with trading partners

April 2006 What We Do Monitor and enforce trade agreements

April 2006 What We Do Provide food aid through various programs to help needy people around the world

April 2006 What We Do Support international science and technology capacity building and other research collaboration among countries

April 2006 What We Do (IICA) Protect and advance U.S. agricultural interests by keeping U.S. policy views before the international community in organizations, such as the Food and Agriculture Organization of the United Nations (FAO) and the Inter-American Institute for Cooperation on Agriculture (IICA)

April 2006 What We Do Build the trade capacity of developing trading partners to enhance local, regional and global trade

April 2006 What We Do Assist with reconstruction in nations recovering from disasters (e.g., Tsunami disaster) or conflict and civil strife (e.g., Serbia, Afghanistan, Iraq)

April 2006 How We Do It

April 2006 How We Do It We do it by placing personnel in overseas embassies By serving as U.S. agriculture’s “eyes and ears” overseas

April 2006 How We Do It We do it by generating reports on a variety of subjects, from production and trade data to export niche opportunities, which are widely available on-line

April 2006 How We Do It We do it by analyzing trade policies to gauge market impact

April 2006 How We Do It We do it by partnering with the private sector, universities, other U.S. Government agencies, foreign governments and institutions, and multilateral organizations By administering a range of cooperative marketing and promotion programs

April 2006 How We Do It We do it by implementing USDA programs such as: Title I, P.L. 480, concessional sales to developing countries McGovern-Dole International Food for Education and Child Nutrition Program Market Access Programs through cooperative marketing and credit guarantees

April 2006 How We Do It We do it by building the capacity of trading partners, because their ability to trade provides opportunities for growth of U.S. exports We do it by helping nations develop agricultural institutions, human capacity and policies that promote investment and economic growth

April 2006 How We Do It We do it by operating five FAS program areas: Foreign Agricultural Affairs Foreign Agricultural Affairs International Cooperation and Development International Cooperation and Development International Trade Policy International Trade Policy Commodity Marketing Programs Commodity Marketing Programs Export Credits Export Credits

April 2006 How We Do It Foreign Agricultural Affairs Maintains our overseas presence Supports a team of agricultural counselors, attachés and trade officers who gather information and make trade contacts for U.S. agricultural exports in target markets

April 2006 How We Do It International Cooperation & Development Conducts international training, technical assistance and other collaborative activities with developing and transitional countries to promote economic growth, trade, food security and sustainable rural development

April 2006 How We Do It International Trade Policy Coordinates USDA’s role in the policy element of international trade Works closely with USTR to reduce trade barriers that hinder U.S. agricultural products Develops the agricultural strategy to support U.S. participation in multilateral and bilateral trade organizations

April 2006 How We Do It Commodity & Marketing Programs Promotes U.S. agricultural products by sharing the cost with U.S. exporters to develop and maintain target markets for hundreds of food and agricultural products Analyzes production and marketing statistics to guide U.S. export penetration

April 2006 How We Do It Export Credits Provides U.S. exporters with commercial financing support through export credit guarantee programs Coordinates food aid programs

April 2006 How We Do It In order to increase the Agency’s effectiveness, and to comply with the goals of President Bush’s management agenda, FAS has proposed a comprehensive reorganization, which would realign the Agency into three key areas: Policy functions Policy functions Program functions Program functions Operational functions Operational functions

April 2006 How We Do It Policy Under the Policy function, there would be four major organizational components: Scientific and Technical Affairs Scientific and Technical Affairs Country and Regional Affairs Country and Regional Affairs Trade Policy, Negotiations and Agreements Trade Policy, Negotiations and Agreements Policy and Program Analysis Policy and Program Analysis

April 2006 How We Do It Program Under the Program function, there would be two major organizational components: Trade Capacity and Development Trade Capacity and Development Export and Import Programs Export and Import Programs

April 2006 How We Do It Operational Under the Operational function, there would be two major organizational components: Foreign Service Operations Foreign Service Operations Administration Operations, including Legislative and Public Affairs Administration Operations, including Legislative and Public Affairs

April 2006 Why We Do It

April 2006 Why We Do It Because access to growing markets is critical to profitability of the U.S. farm sector Exports contribute to farm cash income Exports heavily influence asset values and balance sheet

April 2006 Why We Do It Because consistent and science-based international regulations facilitate global trade Because a top priority for the United States is helping to cut in half the number of undernourished people by 2015 Because sustainable rural economic development and reconstruction lead to global prosperity and stability Because poor people make poor customers

April 2006 Why We Do It Because U.S. agricultural productivity is increasing about 2 percent per year, but U.S. demand is increasing only 0.8 percent per year In the next 20 years, the world will gain another 1.4 billion people – a 25-percent increase in global population

April 2006 Why We Do It Because the demand for agricultural goods will soar The U.S. is well-equipped to meet the demand

April 2006 Why We Do It Because farm exports support nearly one million jobs Every $1 billion in exports creates more than 15,000 jobs Exports support one-third of all jobs in rural communities Because many jobs are on the farm, as well as in trade and transportation, services, food processing and other manufacturing sectors U.S. agriculture is twice as reliant on trade as the overall U.S. economy

April 2006 Why We Do It Because in U.S. exports of a record $62.4 billion will create an additional $99.2 billion in support services to harvest, process, package, store, transport and market products High-value products generate even more additional economic activity - $1.70 for every $1.00 exported

April 2006 Why We Do It Because overall exports account for more than one-quarter of total agricultural sales 67 percent of U.S. almonds are exported 66 percent of U.S. cotton is exported 52 percent of U.S. rice is exported 51 percent of U.S. wheat is exported 43 percent of U.S. walnuts are exported 37 percent of U.S. soybeans are exported 5 percent of U.S. grain/oilseed production in the form of livestock products is exported

April 2006 The major services of FAS are expected to gain in importance in the years ahead, as we work to meet world food security challenges, and help U.S. agricultural exporters overcome international barriers and succeed in world markets. Challenges for the Future