[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)] [Notices] [Pages 27006-27007] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-12836] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Foreign Agricultural Service Criteria for Evaluating Market Development Proposals for Participation in the Foreign Market Development Cooperator Program AGENCY: Foreign Agricultural Service, USDA. ACTION: Notice and request for comments. ----------------------------------------------------------------------- SUMMARY: The Foreign Agricultural Service (FAS) has developed approval criteria and weighting factors for allocating funds on a competitive basis under the Foreign Market Development Cooperator Program. FAS invites suggestions and comments regarding these proposed factors. DATES: In order to be considered, written comments must be received by June 16, 1997. ADDRESSES: Send comments to U.S. Department of Agriculture, Foreign Agricultural Service, Marketing Operations Staff, STOP 1042, 1400 Independence Ave., SW., Washington, DC 20250-1042. FOR FURTHER INFORMATION CONTACT: The Marketing Operations Staff at (202) 720-4327. SUPPLEMENTARY INFORMATION: Background The Foreign Market Development Cooperator (Cooperator) Program is authorized by Title VII of the Agricultural Trade Act of 1978, 7 U.S.C. 5721, et seq. The program is intended to create, expand and maintain foreign markets for United States agricultural commodities and products. The Foreign Agricultural Service (FAS) administers the Cooperator Program and provides cost share assistance to eligible trade organizations to carry out approved market development activities. Program regulations appear at 7 CFR part 1550. Under the Cooperator Program, FAS enters into Market Development Project Agreements with nonprofit U.S. trade organizations or associations of State Departments of Agriculture. FAS enters into agreements with those nonprofit U.S. trade organizations that have the broadest possible producer representation of the commodity being promoted and gives priority to those organizations that are nationwide in membership and scope. Program participants may not, during the term of their agreement with FAS, make export sales of the agricultural commodity being promoted or charge fees for facilitating an export sale if promotional activities designed to result in that specific sale are supported by Cooperator program funds. Market Development Project Agreements involve the promotion of agricultural commodities on a generic basis and, therefore, do not involve activities targeted directly toward individual consumers. Approved activities contribute to the maintenance or growth of demand for the agricultural commodities and generally address long-term foreign import constraints by focusing on matters such as: --Reducing infra-structural or historical market impediments; --Improving processing capabilities; --Modifying codes and standards; and --Identifying new markets or new applications or uses for the agricultural commodity or product in the foreign market. Approval Criteria FAS allocates funds in a manner that effectively supports the strategic decision-making initiatives of the Government Performance and Results Act (GPRA) of 1993. In deciding whether a proposed project will contribute to the effective creation, expansion or maintenance of foreign markets, FAS seeks to identify a clear, long-term agricultural trade strategy by market or product and a program effectiveness time line against which results can be measured at specific intervals using quantifiable product or country goals. These performance indicators are part of FAS's resource allocation strategy to fund applicants which can demonstrate performance based on a long-term strategic plan, consistent with the strategic objectives of the United States Department of Agriculture's Long-term Agricultural Trade Strategy, and address the performance measurement objectives of the GPRA. FAS considers a number of factors when reviewing proposed projects. These factors include: --The ability of the organization to provide an experienced U.S.- based staff with technical and international trade expertise to ensure adequate development, supervision and execution of the proposed project; --The organization's willingness to contribute resources including cash and goods and services of the U.S. industry and foreign third parties; --The conditions or constraints affecting the level of U.S. exports and market share for the agricultural commodities and products; --The degree to which the proposed project is likely to contribute to the creation, expansion, or maintenance of foreign markets; and --The degree to which the strategic plan is coordinated with other private or U.S. government-funded market development projects. Allocation Criteria The purpose of this notice is to obtain comments from interested parties regarding a proposed method of evaluating the relative merits of different proposals for the purpose of determining an appropriate funding level for each proposed project. Meritorious proposals will compete for funds on the basis of the following allocation criteria (the numbers in parentheses represent a percentage weight factor). Data used in the calculations for contribution levels, past export performance and past demand expansion performance will cover not more than a 6-year period, to the extent such data is available. (a) Contribution Level (40)The applicant's 6-year average share of all contributions (contributions may include cash and goods and services provided by U.S. entities in support of foreign market development activities) compared to The applicant's 6-year average share of all Cooperator marketing plan budgets. (b) Past Export Performance (20) The 6-year average share of the value of exports promoted by the applicant across Cooperator Program targeted markets compared to The applicant's 6-year average share of all Cooperator marketing plan budgets plus a 6-year average share of Market Access Program (MAP) program ceiling levels and a 6-year average share of foreign overhead provided for co-location within a U.S. agricultural trade office in those targeted markets. (c) Past Demand Expansion Performance (20) The 6-year average share of the total value of world imports of the commodities promoted by the applicant across Cooperator Program targeted markets compared to [[Page 27007]] The applicant's 6-year average share of all Cooperator marketing plan budgets plus a 6-year average share of MAP program ceiling levels and a 6-year average share of foreign overhead provided for co-location within a U.S. agricultural trade office in those targeted markets. (d) Future Demand Expansion Goals (20) (This criterion will receive a weight of 10 beginning with the year 2000 program) The total dollar value of the applicant's projected world imports of the commodities being promoted by the applicant for the year 2003 across all Cooperator Program targeted markets compared to The applicant's requested funding level. (e) Accuracy of Past Demand Expansion Projections (Since the information is not currently available, this criterion will be used beginning with the year 2000 program and will receive a weight of 10) The actual dollar value share of world imports of the commodities being promoted by the applicant for the year 1998 across all Cooperator Program targeted markets compared to The applicant's past projected share of world imports of the commodities being promoted by the applicant for the year 1998, as specified in the 1998 Cooperator Program application. The Commodity Division's recommended program levels for each applicant are converted to a percent of the total Cooperator Program funds available and multiplied by the total weight factor to determine the amount of funds allocated to each applicant. Dated: May 6, 1997. Timothy J. Galvin, Acting Administrator, Foreign Agricultural Service. [FR Doc. 97-12836 Filed 5-15-97; 8:45 am] BILLING CODE 3410-10-M