Emerging Markets Program
Published on AidPage by IDILOGIC
on Jun 24, 2005
Purpose of this program:
The primary objective of the Emerging Markets Program is to promote, enhance or expand the exports of U.S. agricultural commodities to overseas emerging markets through cost-share assistance to eligible organizations that implement an Emerging Markets Program. The program supports the activities of U.S. agricultural and agribusiness firms--particularly those that may need assistance in obtaining or maintaining access in overseas markets. The program is aimed at improving market access opportunities for agricultural products or processes in low- to middle-income countries that are likely to emerge as promising export markets in the near to medium term.
Possible uses and use restrictions...
Emerging Markets Program funds are authorized through project agreements that serve as binding instruments and create a legal obligation on the part of the Commodity Credit Corporation (CCC) to make appropriated funds available to the participant. The agreement creates a cooperative relationship between CCC and the implementor with each side contributing resources to support achievement of mutual goals. Program funds help finance activities such as 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, administrative and operational expenses for trade shows and advertising, except in connection with specific technical assistance activities such as training seminars.
Who is eligible to apply...
Applicants must be a: (1) U. S. agricultural or agribusiness organization -- nonprofit, trade association, university, consultant group (under certain conditions), (2) State Department of Agriculture, or (3) USDA agency (or other Federal agency involved in agricultural issues).
All eligible applicants must submit a written proposal in accordance with the guidelines set forth each year in the Federal Register. 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 solicitation of proposals is announced in the Federal Register. At that time written project proposals should be submitted to the Director, Marketing Operations Staff, Foreign Agricultural Service (FAS).
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.
FAS will notify each applicant in writing of the final disposition of its application. For approvals, letters will contain the notice of approval and any qualifications or adjustments made to the original proposal. For rejections, letters will contain details explaining the reasons why the proposals were not approved for funding. FAS will send an Agreement to each approved applicant. The Agreement will specify the terms and conditions applicable to the project, including the levels of program funding and cost-share contribution. An applicant who accepts the terms and conditions contained in the Agreement should so indicate by having the appropriate authorizing officer sign the Agreement and submit it to the Director, Marketing Operations Staff, FAS, USDA. The Agreement will become effective when the Deputy Administrator signs the Agreement on behalf of CCC.
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 Federal Register.
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 120 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).
Continuation or expansion of successful projects funded by the Program may be considered for future funding through separate application. Funding may be considered for projects which have already begun with the support and financial assistance of a private entity, and for which government funding for continuation of the project is justified. Such proposals must meet the criteria of the Emerging Markets Program, including cost-sharing.
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...
(1) a U. S. agricultural or agribusiness organization -- nonprofit, trade association, university, consultant group (under certain conditions), (2) State Department of Agriculture, or (3) USDA agency (or other Federal agency involved in agricultural issues).
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
Projects are funded on a project by project basis and generally range from $5,000 to $500,000.
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 $10,000,000; FY 04 $10,000,000; FY 05 est $10,000,000.
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) Supply Chain Management Program for Supermarket China's Chain Stores, (2) Development of Baking Industry: Sunstainable Market for U.S. Ingredients, (3) Market Development for U.S. Cranberries in China, (4) Market Development for Florida Citrus Products in India, and (5) Dairy Herd Improvement Project in Poland.
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.
EMP receives a large number of project proposals, from both government and private organizations, for funding each year, well beyond the amount of funding available. The Program has also seen significant increases in the level of private participant?s cost share. In order to operate more efficiently and ease the application and reimbursement process for participants, EMP has converted these functions into an online system. EMP is also in the process of developing regulations for the program and plans to have them successfully completed for the 2004 application period. For fiscal year 2003, EMP funded 62 out of 96 private sector proposals. Approved activities ranged from market research and training to addressing technical barriers such as in biotechnology and in promoting direct sales. For example, in fiscal year 2003 approval was given to a project to promote contacts between Chinese firms and Wisconsin businesses that builds upon previous funding from the EMP that resulted in over $2 million in direct sales to Wisconsin firms. Also, Hawaii will undertake, with support from the EMP, a feasibility study to export specialty products to China in a continuing effort to diversify Hawaii?s agricultural base. For other USDA agencies, the EMP has provided support to ongoing training of Mexican inspectors to facilitate U.S. exports into Mexico, and to study Brazil?s venture of expanding soybean production into the savannah. For fiscal year 2004, EMP again anticipates high demand for use of its program funds and expects to allocate the entire $10 million to new projects.
Criteria for selecting proposals...
There are two elements that every private sector proposal must contain in order to be considered for funding under the Program: 1. Cost-share. This is the amount of funding U.S. private organizations are willing to commit from their own resources along with those of the Program to seek export business in an emerging market. No proposal will be considered without the element of cost-sharing, regardless of the underlying value of a proposal (the Emerging Markets Program complements, not supplants, export efforts of the U.S. private sector). A minimum or maximum amount of cost share is not specified. Rather, the degree of commitment to a proposed project represented by the percentage and type of private funding is a critical factor in determining which proposals will be funded under the Program. The type of cost-sharing is also not specified. It may be professional time of staff assigned to the project, or actual cash investment. Cost-sharing is not needed for government proposals, but it is required from private organizations who are party to a joint government/private proposal. 2. Justification for Federal Funding. What other sources of funding might be available? Why is funding from the Program required? What specifically could not be accomplished if funding were not provided?
Length and Time Phasing of Assistance
Agreements generally include a beginning and end date. Projects are normally funded for one year although some multi-year projects may befunded by the Program, usually on a year-to-year basis.
Formula and Matching Requirements
All applications must include an element of cost share. This is the amount of funding U.S. private organizations are willing to commit from their own resources along with those of the Program to seek export business in an emerging market.
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...
Implementors are required to submit regular progress reports, depending upon the length and nature of the project. Progress reports are required for all projects with a duration of at least six months. Final reports are to be submitted 60 days after completion of the project, both on diskette and in hard copy.
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.
Participant projects are reviewed as needed, but normally at least every two years, by representatives of the Compliance Review Staff (CRS) of FAS. Audits and reviews are also conducted sporadically by representatives of the Office of the Inspector General and the General Accounting Office. Accounts and records must be available for inspection or audit at any reasonable time.
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 at least three years after completion or termination of the Agreement or not more than five 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.
The Emerging Markets Program is authorized by the Food, Agriculture, Conservation, and Trade Act of 1990 (FACT Act), as amended by the Federal Agriculture Improvement and Reform Act of 1996 (FAIR Act) Section 1542 (d).
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
The Program currently operates under guidelines. Regulations are being developed for 2004.