According to the U.S. Department of Agriculture's (USDA's) Economic Research Service (ERS), agricultural exports have exceeded agricultural imports in every year since 1960 ( Table A-1 ). The value of agricultural exports has exceeded imports by a wide margin in recent years, but this trend reversed course in FY2015, with the positive balance expected to narrow further in FY2016 ( Figure 1 ). The agency expects U.S. exports to recede to $125 billion while imports climb to $118.5 billion, resulting in a substantially smaller farm trade surplus of $6.5 billion in FY2016 and marking what would be the smallest surplus since FY2006. Foreign markets represent the largest outlet for a number of U.S. farm commodities while providing a substantial market for many other agricultural products. Another factor influencing U.S. agricultural trade is the value of the U.S. dollar relative to foreign currencies. To this end, FAS administers several export programs designed to improve the competitive position of U.S. agricultural goods in the world marketplace with the objective of facilitating export sales and improving foreign market access for U.S. farm products. The trade title of the 2014 farm bill, the Agricultural Act of 2014 (Title III of P.L. Export market development programs, 2. Export credit guarantee programs, and 3. The 2014 farm bill made several changes to Title III but left intact most programs that facilitate overseas market development and sales. Key changes include alterations to the Export Credit Guarantee Program to align it with WTO rulings concerning its use in facilitating exports of U.S. cotton and the elimination of the Dairy Export Incentive Program (DEIP), which effectively curtailed the use of direct export subsidies. The bill also directs the Secretary of Agriculture to establish the position of Under Secretary of Agriculture for Trade and International Affairs as part of a reorganization of the agency's trade functions. Market Development Programs

FAS supports U.S. industry efforts to build, maintain, and expand overseas markets for U.S. food and agricultural products. FAS administers five market development programs:
1. Foreign Market Development Program (FMDP), 3. Quality Samples Program (QSP), and 5. Technical Assistance for Specialty Crops Program (TASC). Emerging Markets Program (EMP)25

EMP assists U.S. entities in developing, maintaining, and expanding the exports of U.S. agricultural commodities and products by providing partial funding for technical assistance activities that promote U.S. agricultural exports to emerging markets. Export Credit Guarantees

For FY2014 through FY2018, the 2014 farm bill reauthorized USDA-operated export credit guarantee programs, which were first established in the Agricultural Trade Act of 1978 ( P.L. Under these programs, private U.S. financial institutions extend financing at prevailing market interest rates to countries that want to purchase U.S. agricultural exports with a CCC guarantee that the loans will be repaid. Under the 2014 farm bill, funding for the GSM-102 program is reauthorized. Issues for Congress

		U.S. Thereafter, U.S. farm exports receded to $139 billion in FY2015, and USDA projects that exports will decline further to $125 billion in FY2016, which would mark the lowest ebb for farm exports since FY2010 ( Table A-1 ). Considering the sharp fall in net cash farm income in recent years—to a forecast $91 billion in 2016 from a peak of $135 billion in 2012 and 2013—Congress might consider the possible advantages and potential downsides of addressing opportunities and market circumstances that could contribute to an increase in U.S. agricultural exports, which could include the following three. Trans-Pacific Partnership Agreement (TPP)

TPP, a regional FTA that the U.S. government has concluded with 11 other Pacific-facing countries, would, in part, provide improved access to these markets for agricultural products—through a reduction in tariff rates and expanded tariff-rate quotas—for a broad range of U.S. agricultural products (see "U.S. In a March 2016 report, the U.S. International Trade Commission concluded that U.S. agricultural exports to Cuba could post significant gains if U.S. restrictions on trade were removed. Considering that both of these functions currently fall within the purview of the Under Secretary for Farm and Foreign Agricultural Services—and in view of the importance of these program activities to the agricultural sector—Congress might have a keen interest in considering the Secretary's plan and in overseeing the subsequent reorganization effort. An amendment to repeal MAP ( H.Amdt.
U.S. agricultural exports have long been a bright spot in the U.S. balance of trade, with exports exceeding imports in every year since 1960. But the trend of recent years—increasing export sales and a wider agricultural trade surplus—was reversed in FY2015, and the reversal is expected to be more pronounced in FY2016. After climbing to a record $152.3 billion in FY2014, U.S. farm exports declined to $139.7 billion in FY2015, and the U.S. Department of Agriculture (USDA) projects a further reduction to $125 billion in FY2016. Meanwhile, the value of U.S. agricultural imports has continued to climb: In consequence, the U.S. agricultural trade surplus fell to $25.7 billion in FY2015 from a peak of $43.1 billion in FY2014, and it is projected to narrow further to $6.5 billion in FY2016. Exports are a major outlet for many farm commodities, representing about 20% of the value of farm production, making exports an important contributor to farm income.
Among the key variables affecting the value of U.S. agricultural exports are commodity prices, the value of the U.S. dollar vis-a-vis currencies of trading partners, and the pace of economic growth—particularly in developing and emerging countries. According to USDA, factors contributing to a continued downturn in U.S. farm exports in FY2016 include low commodity prices, a strong U.S. dollar, relatively weak importer demand, and strong foreign competition.
The United States operates a number of programs aimed at developing overseas markets for U.S. agricultural products and facilitating exports. The Agricultural Act of 2014, P.L. 113-79, extended most programs from FY2014 through FY2018. The trade title (Title III) of the 2014 farm bill authorized, amended, and repealed three main types of agricultural export programs:
1. Export market development programs. The Foreign Agricultural Service (FAS) of USDA administers five market development programs that aim to assist U.S. industry efforts to build, maintain, and expand overseas markets for U.S. agricultural products. The five are the Market Access Program (MAP), the Foreign Market Development Program (FMDP), the Emerging Markets Program (EMP), the Quality Samples Program (QSP), and the Technical Assistance for Specialty Crops Program (TASC). 2. Export credit guarantee programs. Through the GSM-102 Program and the Facility Guarantee Program, USDA's Commodity Credit Corporation (CCC) guarantees loans so that private U.S. financial institutions will extend financing to buyers in emerging markets that want to purchase U.S. agricultural products. The 2014 farm bill shortened the loan term on which export credit guarantees would be made available to conform to U.S. commitments in the World Trade Organization (WTO). 3. Direct export subsidy programs. The 2014 farm bill terminated the Dairy Export Incentive Program (DEIP), which had been inactive for several years.
The 2014 farm bill also directed the Secretary of Agriculture to reorganize USDA's export and import activities and create a new Under Secretary of Agriculture position to oversee trade-related sanitary and phytosanitary issues affecting agriculture, as well as non-tariff trade barriers.
In view of the more challenging market environment for U.S. farm exports, Congress could weigh possible opportunities to expand foreign markets and remove impediments to farm exports. For example, the Trans-Pacific Partnership Agreement (TPP), if implemented, would lower many tariffs that Japan and other TPP nations impose on U.S. farm and food exports. Also, numerous U.S. agricultural interests assert that U.S. farm exports to Cuba could increase if Congress were to repeal statutory restrictions on this trade. In addition, U.S. farm groups and lawmakers have identified foreign subsidies as distorting trade and displacing U.S. farm exports. Another possible issue for Congress involves overseeing plans to reorganize USDA's trade functions.