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Overview:

The Foreign Agriculture Service is the United States Department of Agriculture’s (USDA) lead agency in international activities to develop foreign markets for U.S. agriculture. FAS is primarly responsible for improving foreign market access for U.S. products by collecting and analyzing data on world agricultural production, policy, and trade competition. It also publishes information to U.S. farming and business interests on agricultural commodities in the global market.  The FAS also administers USDA’s export credit guarantee and food aid programs. The Administrator of the Foreign Agricultural Service is John Brewer.

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History:

The origins of the Foreign Agricultural Service are rooted in the Foreign Agricultural Act of 1930, signed by President Hoover. The act called for sending overseas officials from the USDA to London, Buenos Aires and Shanghai. These agricultural commissioners were granted diplomatic status and foreign attaché titles. After the passage of the Reciprocal Trade Agreement Act in 1934, the President was required to consult with the Secretary of Agriculture when negotiating tariff reductions for agriculture commodities. This task of administering these tariff negotiations fell to the Foreign Agricultural Service Division and marked its role in international trade policy. In 1938, the division was made a direct subordinate to the Agriculture Secretary, but the following year President Roosevelt ordered all diplomatic personnel transferred to the Department of State. The FAS was abolished and its staff headquarters renamed the Office of Foreign Agricultural Relations (OFAR). During the 1940’s, OFAR began administering food aid and started analyzing food availability during World War II and technical assistance to other countries after the war.

 
In 1953, Secretary of Agriculture Ezra Benson abolished the OFAR and recreated the Foreign Agricultural Service. The FAR was tasked with technical assistance to the International Cooperation Administration and worked on foreign market development for U.S. agricultural commodities. In 1945, agricultural attachés were transferred back to the FAS from the State Department. That same year, Congress passed the Food for Peace Act that became the framework for FAS’s food aid and development efforts. The Market Development Cooperator Program in1955 expanded foreign demand for U.S. agricultural products by creating cooperative agreements with groups representing American producers of certain commodities such as the National Cotton Council. In 1961, USDA’s Commodity Stabilization Service merged with the FAS, bringing the responsibilites of running export credit and food aid programs.
 
In 1980, followng the Foreign Service Act, FSA agricultural attachés were given the option of becoming Foreign Service Officers. Since 1939, ten former agricultural attachés had been confirmed as American Ambassadors. In 1994, USDA’s Office of International Cooperation and Development merged with FAS and brining back technical assistance as one of FAS’s responsibilities.
 

The Foreign Agricultural Service has its beginnings with the Foreign Agricultural Act of 1930, signed by President Hoover. It consisted of overseas officials of the USDA located in London, Buenos Aires and Shanghai. These agricultural commissioners were granted diplomatic status and the title of attaché. In 1934, Congress passed the Reciprocal Trade Agreement Act stipulating that the President must consult with the Secretary of Agriculture when negotiating tariff reductions for agriculture commodities. This task was delegated to the Foreign Agricultural Service Division and marked its role in international trade policy. In 1938, the division was made a direct subordinate to the Secretary, but the following year President Roosevelt ordered all diplomatic personnel transferred to the Department of State. The FAS was abolished and its staff headquarters renamed the Office of Foreign Agricultural Relations (OFAR). During the 1940’s, OFAR began handling food aid along with analyzing food availability during WW II and technical assistance to other countries after the war.

 

In 1953, Secretary of Agriculture Ezra Benson abolished the OFAR and recreated the Foreign Agricultural Service. It was given responsibility for technical assistance to the International Cooperation Administration and focused on foreign market development for U.S. agricultural commodities. In 1945, agricultural attachés transferred back from the State Department and Congress passed the Food for Peace Act that became the framework for FAS’s food aid and development efforts. The Market Development Cooperator Program started in 1955 to expand foreign demand by signing cooperative agreements with groups representing American producers of certain commodities such as the National Cotton Council. In 1961, USDA’s Commodity Stabilization Service merged into FAS, bringing export credit and food aid programs. The FAS was also included in the Foreign Service Act of 1980 and gave agricultural attachés the option of becoming Foreign Service Officers. Since 1939, ten former agricultural attachés had been confirmed as American Ambassadors. In 1994, USDA’s Office of International Cooperation and Development merged with FAS and brought back technical assistance to FAS’s responsibilities.

 

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What it Does:

FAS Programs

FAS is responsible for opening new markets, and increasing U.S. agriculture competitiveness overseas. FAS supports three of the USDA’s Strategic Objectives: (1) expand and maintain international export opportunities; (2) support international economic development and trade capacity building; and (3) improve the global sanitary and phytosanitary (SPS) system to facilitate agricultural trade. FAS also supports economic development through its technical and development assistance.
 
The FAS is tasked with administering international aspects of the Commodity Credit Corporation, a government corporation aimed at protecting farm income and prices. Thorough FAS Export Credit Guarantee Programs, payment guarantees are given for the commercial financing of U.S. agricultural exports. These programs promote U.S. exports to international buyers in countries where credit is necessary to maintain or increase U.S. sales, but where financing may not be available without CCC guarantees. The CCC provides guarantees to facilitate the financing of goods and services exported from the United States to improve or establish agriculture-related facilities in emerging markets by eliminating constraints such as capacity to handle increased demand of U.S. agricultural products. FAS market development programs include:
 
The Market Access Program, which uses CCC funds to reimburse U.S. producers, exporters, private companies, and other trade organizations for a portion of the costs of carrying out overseas marketing and promotional activities, such as direct consumer promotions.
 
The Foreign Market Development Program, which uses CCC funds in partnership with U.S. producers and processors who are represented by non-profit trade or commodity associations called Cooperators to support overseas market development activities that are designed to remove long-term impediments to increased U.S. trade.
 
The Emerging Markets Program, which uses CCC funds to provide technical assistance that promote the export of U.S. agricultural products to emerging markets and remove long-term impediments to increase U.S. trade in all geographic areas consistent with U.S. foreign policy.
 
The Quality Samples Program which, uses CCC funding to assist private entities to furnish samples of U.S. agricultural products to foreign importers in order to overcome trade and marketing obstacles. The program provides foreign importers with a better understanding of the characteristics of U.S. agricultural products.
 
The Technical Assistance for Specialty Crops (TASC) program, which assists U.S. organizations by providing funding for projects that address sanitary, phytosanitary, and technical barriers that prohibit or threaten the export of U.S. specialty crops. Grants may cover seminars and workshops, study tours, field surveys, pest and disease research, and pre-clearance programs.
 
FAS export programs include: Export Credit Guarantee Programs, which provide export credit guarantees for commercial financing of U.S. agricultural exports; the Dairy Export Incentive Program (DEIP), which pays cash to U.S. dairy companies that export products that allow them to certain U.S. dairy products at prices lower than the exporter's costs of acquiring them; The Facility Guarantee Program that backs the financing of manufactured goods and services exported from the United States to improve or establish agriculture-related facilities in emerging markets; and the General Sales Manager Online System that enables U.S exporters and U.S. banks to submit required documentation online for CCC programs.
 
Import Programs include Sugar Import programs that put manufacturers of sugar-containing products on a level playing field in the world market and the Dairy Import Program which enforces the tariff-rate quota system for U.S. imports of international dairy products. FAS also creates the U.S. Tariff Schedule, which lists the tariffs charged for all products imported into the United States.
 
Other FAS duties include administering foreign food assistance. Public Law 480 Title I allows for the sales of U.S. agriculture commodities on concessional credit terms to governments and private entities in developing countries, while the Food for Progress program authorizes U.S. agricultural commodities to be provided to developing countries and emerging democracies that have made commitments to introduce and expand free enterprise in their agricultural economies. The Food for Progress authorizing statute provides for the use of CCC funding for commodity procurement, transportation, and associated non-commodity costs for the program.

FAS is responsible for opening new markets, and increasing U.S. agriculture competitiveness overseas. Operating on a global basis, FAS supports three of the USDA’s Strategic Objectives: (1) expand and maintain international export opportunities; (2) support international economic development and trade capacity building; and (3) improve the global sanitary and phytosanitary (SPS) system to facilitate agricultural trade. FAS also supports economic development through its technical and development assistance

 
CCC (USDA Commodity Credit Corporation) Export Credit Guarantee Programs provide payment guarantees for the commercial financing of U.S. agricultural exports. These programs encourage exports to buyers in countries where credit is necessary to maintain or increase U.S. sales, but where financing may not be available without CCC guarantees. CCC provides guarantees to facilitate the financing of goods and services exported from the United States to improve or establish agriculture-related facilities in emerging markets by eliminating constraints such as capacity to handle increased demand of U.S. agricultural products.
 
Foreign Market Development Programs
Administered in partnership with private sector cooperator organizations to support and strengthen commercial export markets for U.S. agricultural products.
 
The Market Access Program uses CCC funds to reimburse U.S. producers, exporters, private companies, and other trade organizations for a portion of the costs of carrying out overseas marketing and promotional activities, such as direct consumer promotions.
 
The Foreign Market Development (Cooperator) Program uses CCC funds in partnership with U.S. producers and processors who are represented by non-profit trade or commodity associations called Cooperators to support overseas market development activities that are designed to remove long-term impediments to increased U.S. trade.
 
The Emerging Markets Program uses CCC funds to provide technical assistance that promote the export of U.S. agricultural products to emerging markets and remove long-term impediments to increase U.S. trade in all geographic areas consistent with U.S. foreign policy.
 
The Quality Samples Program uses CCC funding to assist private entities to furnish samples of U.S. agricultural products to foreign importers in order to overcome trade and marketing obstacles. The program provides foreign importers with a better understanding and appreciation of the characteristics of U.S. agricultural products.
 
The Dairy Incentive Program pays cash to U.S. dairy exporters as bonuses to allow them to sell certain products at a price lower than the costs to acquire the products. The goal of the program is to develop export markets for dairy products where U.S. products are not competitive because of the presence of subsidized products from other countries.
 
The Export Enhancement Program allows U.S. farmers to remain competitive with other subsidizing countries by giving bonuses to exporters to help lower the price of U.S. agricultural products.
 
Foreign Food Assistance
Public Law 480 Title I allows for the sales of U.S. agriculture commodities on concessional credit terms to governments and private entities in developing countries.
 

Food for Progress

authorizes U.S. agricultural commodities to be provided to developing countries and emerging democracies that have made commitments to introduce and expand free enterprise in their agricultural economies. The Food for Progress authorizing statute provides for the use of CCC funding for commodity procurement, transportation, and associated non-commodity costs for the program.

 

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Where Does the Money Go:

Only a small portion ($2.3 million from 2000-2010) of the FAS budget goes towards contracting. The majority of the agency’s spending is on grants, direct payments and other aid. From 2000-2010 FAS distributed more than $1.4 billion in grants, according to a query of USAspending.gov. Top recipients and their percent of all grant spending include:

 
1. Cotton Council Intl.                     $90,684,571                 (6%) 
2. U.S. Meat Export Federation        $89,620,825                 (6%) 
3. American Soybean Association   $74,130,430                 (5%) 
4. U.S. Grains Council                     $68,209,681                 (5%) 
5. U.S. Wheat Associates                 $65,243,113                 (5%) 
 
The FAS also spent nearly $1.3 billion from 2000-2010 on other spending. The top recipients include:
1. ADM ACTI Trade Resources       $197,448,434      (15%)        
2. CFSIT                                          $161,759,443      (13%)        
3. GTR                                             $134,087,614      (10%)        
4. GDC Trading                               $115,029,852      (9%) 
5. Cargill                                          $110,450,273      (9%) 
 
Direct payments by FAS to recipients also totaled nearly $1.2 billion. Recipients include:
1. Cotton Council Intl.                     $58,683,884                 (5%) 
2. U.S. Meat Export Federation        $53,719,682                 (5%) 
3. American Grains Council            $37,641,797                 (3%) 
4. U.S. Grains Countil                      $34,666,902                 (3%) 
5. U.S. Wheat Associates                 $31,154,276                 (3%) 
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Debate:

NAFTA

The North American Free Trade Agreement (NAFTA) was signed in January 1, 1994, and was fully implemented on January 1, 2008. The agreement removed most barriers to trade and investment among the United States, Canada and Mexico. NAFTA removed all non-tariff barriers to agriculture, and tariffs were eliminated immediately or phased out over periods of 5-15 years. The treaty also protects intellectual property rights and includes the removal of investment barriers. NAFTA is a trilateral agreement in all areas except agriculture, and is negotiated bilaterally between nations. The Mexico-Canada bilateral agreement outlines the removal of agricultural tariffs except in dairy, poultry, eggs and sugar. It is the largest trade bloc in the world in terms of the members combined GDP.
 
Critiques of NAFTA
Revisiting NAFTA: Still Not Working for North America’s Workers (by Robert E. Scott, Carlos Salas, Bruce Campbell and introduction by Jeff Faux, Economic Policy Institute)
The Broken Promise of NAFTA (Joseph E. Stiglitz, New York Times)
 
The View from Mexico
Mexican farmers protest NAFTA (by Hector Tobar, Los Angeles Times)
NAFTA & Globalization is Killing Mexico’s Farmers (by Brendan M. Case, Dallas Morning News)
 
 
Central American Free Trade Agreement (CAFTA)
The Central America Free Trade Agreement-Dominican Republic (CAFTA-DR) is a comprehensive trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States. The legislation was sign by President Bush on August 2, 2005; El Salvador on March 1, 2006; Honduras and Nicaragua on April 1, 2006; Guatemala on July 1, 2006; The Dominican Republic on March 1, 2007; and Costa Rica on October 7, 2007.
 
Support for CAFTA:
Four Reasons to Support CAFTA (Democratic Leadership Council)
NCC Producer Leaders Attend Pro-CAFTA Rally (by T. Cotton Nelson, National Cotton Coucil)
 
Critiques of CAFTA:
Will CAFTA be a boon to farmers and the food industry? (by Robert E. Scott, Economic Policy Institute)
Environmental Impacts of CAFTA (by Deborah James, Global Exchange)
Senate backs CAFTA sellout (Right Democratic)
DR-CAFTA Falls Short on Worker’s Rights (by Carol Pier, Human Rights Watch)
Costa Rica: Why We Reject CAFTA (by Eva Carazo Vargas, Americas Program)

NAFTA

The North American Free Trade Agreement (NAFTA) began in January 1, 1994 and removed most barriers to trade and investment among the United States, Canada and Mexico. NAFTA removed all non-tariff barriers to agriculture and tariffs were eliminated immediately or phased out over periods of 5-15 years. The treaty also protects intellectual property rights and includes the removal of investment barriers. NAFTA is a trilateral agreement in all areas except agriculture and is negotiated bilaterally between nations. The U.S.-Canada Free Trade Agreement agricultural provisions of 1989 were incorporated and plan the removal of all agricultural tariffs by January 1998. The U.S.-Mexico pact is also aimed at liberalization and the phase out of most tariffs. The Mexico-Canada bilateral agreement outlines the removal of agricultural tariffs except in dairy, poultry, eggs and sugar. It is the largest trade bloc in the world in terms of the members combined GDP. On January 1, 2008, NAFTA went into full implementation.
 
Support
 
Critique
Revisiting NAFTA: Still Not Working for North America’s Workers (by Robert E. Scott, Carlos Salas, Bruce Campbell and introduction by Jeff Faux, Economic Policy Institute)
Top Democrats ponder changing NAFTA (by Ian Swanson, The Hill)
The Broken Promise of NAFTA (Joseph E. Stiglitz, New York Times)
 
The View from Mexico
Mexican farmers protest NAFTA (by Hector Tobar, Los Angeles Times)
NAFTA & Globalization is Killing Mexico’s Farmers (by Brendan M. Case, Dallas Morning News)
 
Central America Free Trade Agreement-Dominican Republic (CAFTA-DR) is a comprehensive trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States. The legislation was sign by President Bush on August 2, 2005; El Salvador on March 1, 2006; Honduras and Nicaragua on April 1, 2006; Guatemala on July 1, 2006; The Dominican Republic on March 1, 2007; and Costa Rica on October 7, 2007.
 
Support
Fifteen Reasons to Support DR-CAFTA (U.S. Chamber of Commerce)
Four Reasons to Support CAFTA (Democratic Leadership Council)
NCC Producer Leaders Attend Pro-CAFTA Rally (by T. Cotton Nelson, National Cotton Coucil)
 
Critique
Environmental Impacts of CAFTA (by Deborah James, Global Exchange)
Senate backs CAFTA sellout (Right Democratic)
DR-CAFTA Falls Short on Worker’s Rights (by Carol Pier, Human Rights Watch)
Costa Rica: Why We Reject CAFTA (by Eva Carazo Vargas, Americas Program)
Democrats for CAFTA (by John Nichols, The Nation)
 
Recognizing the importance of FSA and its benefits to the U.S. and the World

Problems with food aid and biotechnology

(PDF)

 

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Former Directors:

Michael V. Michener, 2009

Michael V. Michener, a native of New London, Iowa, was educated at the University of Maryland in Europe while serving with the U.S. Army. Michener had worked at the United States Agency for International Development (USAID) in Kosovo, Montenegro, and Bosnia and Herzegovina, spending time overseas promoting post-conflict stability operations, economic development and human rights.
 
From 2005 to 2007, he served as the lead Iraq policy officer for the State Department’s Bureau of Democracy, Human Rights and Labor, managing nearly $400 million in assistance programs promoting democracy and human rights in that country. He later served as the Senior Democracy and Governance Advisor and Lead Planning Officer for the U.S. State Department’s Office of the Coordinator for Reconstruction and Stabilization.
 
The same year he was appointed Administrator of FAS, Michener was reassigned by Agriculture Secretary Tom Vilsack to the position of special representative in the U.S. embassy to the United Nations food agencies in Rome.
 
Mary T. Chambliss, 2001-2002
A. Ellen Terpstra, 2002–2006
Michael W. Yost, 2006–2009
Suzanne K. Hale, 2009
 
 
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Founded: 1953
Annual Budget: $2.6 billion (FY 2011 proposed)
Employees: 714
Official Website: http://www.fas.usda.gov/
Foreign Agricultural Service
Heinen, Suzanne
Acting Administrator

Appointed acting administrator on May 15, 2011, Suzanne Heinen has served more than 25 years with the Foreign Agricultural Service (FAS), the lead agency in international activities to develop foreign markets for U.S. agriculture. FAS is primarily responsible for helping American food producers increase their sales in foreign markets by collecting, analyzing and publishing data on world agricultural production, prices, policy, and trade competition and administering USDA’s export credit guarantee and food aid programs, which basically pay other countries to buy U.S. food products.

 
Born in July 1953 in Michigan, Heinen earned a B.S. in Forest Management from the University of Michigan circa 1975 and an M.S. in Resource Development and Economics from Michigan State University.
 
In her quarter-century as a Foreign Service officer, Heinen has served at FAS posts around the world, including Guatemala, Russia, China and Mexico. She served as Minister-Counselor for Agriculture at the U.S. Mission to the United Nations Agencies for Food and Agriculture in Rome, Italy, starting in 2008. The forced resignation of FAS Administrator Michael Michener in December 2009 led to Michener being given Heinen’s job in Rome, while she returned to Washington in January 2010 and was assigned to the Office of Global Food Security until being named FAS general sales manager and associate administrator on February 1, 2011.
 
In Washington, she has also served as FAS Deputy Administrator for International Cooperation and Development, as Assistant Deputy Administrator for Foreign Agricultural Affairs, and in various positions in international trade policy, working on multilateral and bilateral issues, particularly sanitary and phytosanitary agreements.
 
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Brewer, John
Previous Administrator

John D. Brewer was selected to lead the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) after morale plummeted under the previous administrator. He took over as acting administrator on January 1, 2010, and as administrator on January 27.  Although Brewer’s specialty has been security and threat assessment, it is now his responsibility to get the FAS back on track and focused on its mission of promoting American farm goods throughout the world.

 
A native of Florence, South Carolina, Brewer attended Morehouse College in Atlanta, earning bachelor’s degrees in history and English (1989) before receiving his master’s in diplomatic history from the London School of Economics and Political Science in the United Kingdom.
 
Brewer’s career has spanned the public and private sectors. He worked for more than a decade in the federal government, serving in the State Department’s Bureau of Intelligence and Research, the Department of Defense’s Office of Counternarcotics and for the Department of the Treasury’s Financial Crimes Enforcement Network . His areas of expertise included U.S. policy towards Latin America and the Caribbean, counter-narcotics policy, and anti-money laundering/counter-terrorist financing programs. His regional experience included Latin America, Africa and the Middle East.
 
His work outside government included serving as American International Group’s (AIG) assistant editor for the Executive Briefing Book (EBB), a strategic analysis of global risk provided to CEOs and risk managers, and leading the working group that developed the company’s Threat Assessment Center (TAC) which handled information regarding a threat or incident involving any AIG facility worldwide.
 
Brewer later became a senior analyst in AIG’s Office of Global Risk Assessments making him responsible for providing analysis on business risks and global threats that could impact the company’s businesses in Latin America, Eastern Europe, India, Africa and the Middle East.
 
Before joining the FAS, he worked at the consulting firm Booz Allen Hamilton, where he was an associate on the Global Security/Threat Finance Team. Brewer handled intelligence and finance-related projects for firm clients, including the departments of Defense, Justice, Homeland Security and Treasury, as well as private-sector financial institutions such as Bank of America and Wachovia.
 
During the 2008 Democratic contest for president, Brewer worked on the short-lived campaign of Tom Vilsack, former governor of Iowa who later was tabbed by President Barack Obama to be his secretary of agriculture.
 
Brewer joined the FAS in July 2009 as associate administrator, and the following month he also took on the role of general sales manager.
 
Last December, Vilsack decided FAS needed a shakeup at the top of its leadership, reassigning administrator Michael Michener to become special representative at the U.S. Mission to the United Nations Agencies in Rome. Brewer then was elevated to acting administrator on January 1, and permanent administrator a few weeks later.
 
Michener was reportedly moved after an FAS personnel survey indicated morale was suffering under his watch. Both current and retired FAS officers had criticized Michener for paying too much attention to agricultural development projects in Afghanistan, while neglecting the agency’s traditional mission of analyzing foreign agricultural production and promoting the sale of U.S. agricultural products.
-Noel Brinkerhoff

Head of Foreign Agricultural Service Reassigned (by Jerry Hagstrom, Government Executive)
Vilsack Names John D. Brewer as General Sales Manager of FAS (National Association of State Departments of Agriculture)
 
 
 
 
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