One Big Beautiful Boost in U.S. Agricultural Trade Promotion

By Dongin Kim

Over $2 billion Increase in Agricultural Trade Promotion Funding under OBBB

On June 29, 2025, the U.S. Senate passed its version of the One Big Beautiful Bill (OBBB), bringing significant changes to the U.S. investment in agriculture. Relative to the January 2025 baseline, the bill would increase total agricultural outlays by $65.69 billion through FY2034. Savings from nutrition reforms—primarily reductions in Supplemental Nutrition Assistance Program (SNAP) spending—enabled expanded investment in the farm safety net and rural development without increasing overall agricultural spending.

The new agricultural investments are concentrated in a few key areas. Approximately $59 billion is allocated to farm safety net programs, including PLC, ARC, and crop insurance. Trade promotion emerges as one of the most significantly expanded categories within Title I, Subtitle F: Investments in Rural America, receiving $2.19 billion in new mandatory funding. This stands in contrast to reductions elsewhere, including a $1.95 billion cut to select conservation and forestry programs.

Figure 1: Change in Agricultural Outlays under OBBB (FY2025–2034)

Source: Author’s calculations based on CBO (2025a).

Trade Promotion Funding Nearly Doubled with New Supplemental Program

Funding for existing trade promotion programs has remained unchanged for decades, with $200 million annually allocated to the Market Access Program (MAP) and $35 million for the Foreign Market Development (FMD) program. MAP supports U.S. exporters in developing commercial markets abroad, and FMD works to build long-term demand for American farm products. The OBBB marks a historic shift by introducing a new agricultural trade promotion program that will begin in FY2027.

This OBBB Supplemental Agricultural Trade Promotion Program allocates between $268 million and $285 million annually, more than doubling the amount of trade promotion support. Details on implementation are pending, but the program is expected to support similar activities as MAP and FMD, including market research, consumer outreach, and trade facilitation. Combined with MAP, FMD, and other technical assistance programs (e.g., QSP, PTT, TASC), total trade promotion funding is estimated to surpass $540 million annually by FY2034. (*With the addition of the existing Food for Progress programs, annual agricultural export outlays will reach $825 million by FY2034.)

Figure 2: Annual Agricultural Trade Promotion Budget Estimate (FY2025–2034)

Source: Author’s calculations based on CBO (2025a) and CBO (2025b).

Why It Matters: Competitiveness, Resilience, and Market Reach

The expansion of trade support is timely, as U.S. agriculture faces growing challenges in global markets. American producers are facing intensifying competition from European and South American countries, where governments actively promote agricultural exports through targeted marketing support. Meanwhile, ongoing trade tensions, supply chain disruptions, and climate-related shocks continue to add volatility to global agricultural markets.The OBBB’s mandatory, long-term trade promotion funding builds on the existing MAP and FMD framework, expanding the capacity of producer groups, cooperatives, and commodity boards to:

-       Support long-term market development efforts, such as brand-building, awareness campaigns, and distribution expansion.

-       Invest in emerging markets with high export potential.

-       Support small and mid-sized exporters who lack direct access to foreign buyers.

According to IHS Markit (2022), each dollar invested in MAP/FMD yields up to $ 24.50 in export returns between 1977 and 2019, making these programs a highly effective tool for boosting U.S. farm income and global competitiveness. The OBBB Supplemental Program introduces long-term budget certainty by providing mandatory funding, rather than relying on annual appropriations. This shift enhances the resilience of U.S. agricultural exporters, enabling them to plan and adapt to rapidly changing global trade dynamics.

References

- American Farm Bureau Federation (2025). One Big Beautiful Bill Act: Agricultural Provisions. https://www.fb.org/market-intel/one-big-beautiful-bill-act-agricultural-provisions

- Congressional Budget Office (2025a). Estimated Budgetary Effects of an Amendment in the Nature of a Substitute to H.R. 1, the One Big Beautiful Bill Act, Relative to CBO's January 2025 Baseline. https://www.cbo.gov/publication/61534

- Congressional Budget Office (2025b). USDA Farm Programs Baseline 01-2025. https://www.cbo.gov/system/files/2025-01/51317-2025-01-usda.pdf

- IHS Markit (2022). Economic Impact Study of USDA Export Market Development Programs: Update of Previous 2016 “Economic Impact of USDA Market Development Programs” Study. Prepared for US Grains Council. https://www.fas.usda.gov/sites/default/files/2022-05/USGC-IHS-Markit-Cost-Benefit-Report.pdf

- U.S. Department of Agriculture (2025). USDA Announces Agricultural Trade Promotion Programs for FY 2026. https://www.usda.gov/about-usda/news/press-releases/2025/04/02/usda-announces-agricultural-trade-promotion-programs-fy-2026