Foreign Market Development Cooperator Program
Published on AidPage by IDILOGIC
on Jun 24, 2005
Purpose of this program:
To create, maintain and expand long-term export markets for U.S. agricultural products through cost-share assistance and the opportunity to work closely with FAS and its overseas offices.
Possible uses and use restrictions...
Cooperator funds are authorized through program agreements with nonprofit U.S. trade associations called Cooperators, that provide for partial reimbursement of generic promotional activities in a Unified Export Strategy application approved by the Foreign Agricultural Service (FAS), the agency which administers the program for the Commodity Credit Corporation (CCC). In general, Cooperator funds may be used only in direct support of activities conducted outside the United States. Types of activities that may be funded include trade servicing, market research, and technical assistance to actual or potential foreign purchasers of U.S. commodities.
Who is eligible to apply...
Cooperative Credit Corporation (CCC) enters into agreements with those nonprofit U.S. trade organizations that have the broadest possible producer representation of the commodity being promoted. To be approved, an applicant's proposal must indicate how it can effectively contribute to the creation, expansion, or maintenance of markets abroad. FAS considers a number of factors when reviewing proposed projects. These factors include: (1) The applicant's willingness to contribute resources including cash and goods and services of the U.S. industry and foreign third party; (2) the ability of the organization to provide an experienced U.S.-based staff and with technical and international trade expertise to ensure adequate development, supervision and execution of the proposed project; (3) the degree to which the proposed project is likely to contribute to the development, expansion, or maintenance of foreign markets; and (4) the degree to which the strategic plan is coordinated with other private or U.S. government-funded market development projects.
U.S. applicants must prove the ability to provide a competent experienced staff and other resources to assure adequate development, supervision, and execution of promotional activities. Applicants must submit a written export strategy which provides a brief discussion of the commodity for which an agreement is being requested and a description of proposed activities including the foreign countries in which they will be conducted. Applicants must also submit their Internal Revenue Service tax exempt identification number, a description of the membership of the applicant organization, a description of the organizations management and administrative capability, the degree to which membership represents national production, an estimate of the level of Government funds required, and the extent to which industry resources are available to match Government expenditures. This program is excluded from coverage under OMB Circular No. A-87.
Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.
About this section:
This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy.
For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree,
3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible.
Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they
Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications
are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs,
the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.
How to apply...
Each year the availability of funds is announced in a Federal Register notice. At this time a written export strategy should be submitted to the Director, Marketing Operations Staff, FAS. This program is excluded from coverage under OMB Circular No. A-110.
Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.
Applications are reviewed against the allocation criteria and factors set forth in 7 CFR part 1484 and the Federal Register program announcement. CCC notifies each applicant of the final disposition of its application and also issues a public announcement concerning the allocation of resources among the applicant organizations. Each approved applicant receives a program agreement and an allocation/marketing plan approval letter which specifies any special terms and conditions applicable to a cooperator's program. Final agreement occurs when both the participating organization and the Administrator of FAS in the Administrator's capacity as Vice President, CCC, sign the program agreement.
Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check.
Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office,
or by an authorized county office. The assistance may pass through the initial applicant for further distribution by
intermediate level applicants to groups or individuals in the private sector.
Deadlines and process...
Application deadline is announced in the form of a Federal Register notice.
When available, this section indicates the deadlines for applications to the funding agency which will
be stated in terms of the date(s) or between what dates the application should be received.
When not available, applicants should contact the funding agency for deadline information.
Range of Approval/Disapproval Time
Approximately 90 days.
None. This program is excluded from coverage under E.O. 12372 and OMB Circular No. A-102.
This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units
prior to the submission of a formal application to the federal funding agency.
In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission
of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or
applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).
Not applicable. Program commitments are made on a program year basis.
In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.
Who can benefit...
Preference is given to nonprofit U.S. trade organizations which are nationwide in membership and scope.
About this section:
This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.
What types of assistance...
Direct Payments for Specified Use
Financial assistance from the Federal government provided directly to individuals, private firms, and other private institutions to encourage or subsidize a particular activity by conditioning the receipt of the assistance on a particular performance by the recipient. This does not include solicited contracts for the procurement of goods and services for the Federal government.
How much financial aid...
Range and Average of Financial Assistance
$11,000 to $7,000,000; $1,243,000.
This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.
(Direct payments) FY 03 $34,500,000; FY 04 $34,500,000; and FY 05 est $34,500,000
The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.
Note: This 11-digit budget account identification code represents the account which funds a particular program.
This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.
Examples of funded projects...
(1) Promotion of U.S. soybeans through soymeal livestock feeding trials worldwide, and production and distribution of technical and trade publications throughout South America and South Asia directed towards institutional users; (2) promotion of U.S. forest products through trade exhibits in the United Kingdom, participation in the deliberations of international codes and standards organizations, and trade seminars worldwide demonstrating American building techniques; (3) promotion of U.S. seed through participation in international regulatory organizations to mitigate both tariff and nontariff barriers to U.S. seed exports; and (4) promotion of U.S. poultry through trade seminars in Mexico.
About this section
This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.
For fiscal year 2003, FAS participated with 23 cooperators including support of 10 cooperator offices overseas, to promote nearly 100 agricultural commodities and products in more than 100 foreign countries. Example: Using FMD funds, the American Soybean Association has worked closely with the Indonesian feed milling industry to develop a preference for U.S. de-hulled soybean meal. As a direct result of these efforts, commercial sales of U.S. soybean meal to Indonesia have grown from $1.7 million to $166 million over a three-year period.
Criteria for selecting proposals...
Allocations are made in a manner that effectively support the strategic decision-making initiatives of the Government Performance and Results Act (GPRA) of 1993. In assessing whether the applicant will effectively create, expand or maintain foreign markets, the following factors are considered: (1) effectiveness of program management; (2) past and present contribution levels; (3) soundness of the strategic plan; (4) past export performance; and (5) past demand expansion performance (6) future demand expansion goals; and (7) accuracy of past demand expansion projections.
Length and Time Phasing of Assistance
Agreements generally include a twelve-month promotional effort and a provision for program evaluation by an independent third party. Funds awarded in any given fiscal year are typically available for two additional years.
Formula and Matching Requirements
A cooperator's contribution requirement will be specified in the export strategy approval letter. Cooperators must contribute at least 50 percent of the value of resources provided by CCC for activities conducted under the project agreement. Such contribution may be in the form of cash, goods or services.
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.
Post assistance requirements...
Expense reports are submitted to claim reimbursement for expenses incurred. Trip reports are submitted within 45 days of completion of travel. A summary of expenses by country and cost code as well as contributions are submitted no later than January 31 following the end of the marketing plan year.
This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.
Cooperator accounts are reviewed periodically, but normally at least every two years, by representatives of the Compliance Review Staff, FAS. Audits and reviews are also conducted sporadically by representatives of the Office of Inspector General and Government Accounting Office. Accounts and records must be available for inspection or audit at any reasonable time. This program is excluded from coverage under OMB Circular No. A-133.
This section discusses audits required by the Federal agency.
The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133.
These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year,
as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period,
rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).
Records must be maintained for not less than 3 years after completion or termination of the agreement or not less than 5 full calendar years following the year of the transaction that is evidenced by such an account or record that took place, whichever is sooner.
This section indicates the record retention requirements and the type of records the Federal agency may require.
Not included are the normally imposed requirements of the General Accounting Office.
For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C.
For other programs, record retention is governed by the funding agency's requirements.
Agricultural Trade Act of 1978, Title VII, 7 U.S.C. 5721, et seq.
This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
Regulations, Guidelines, And Literature
7 CFR Part 1484.