# Presentation: 548096

##  Getting Your Share of the Pot Of Gold

- Yvette Wedderburn Bomersheim
- Ingrid Mohn
- November 2003

**Notes:**
Our presentation will focus on helping you “Get Your Share of the Pot of Gold.”

## Objectives

- To help you understand:
-  Pots of money that will be available for the MY 2004/2005 Market Access Program (MAP)
- Criteria to allocate the pots of money

## FAS Plans to Allocate $150 Million

- $150 Million of New Funds
- 			+
- $?? Million of Carryover

**Notes:**
-	FAS plans to allocate $150 million in new funds plus an undetermined about of carryover funds.  
-	The amount of carryover funds that will be available for MY 2004/05 will be determined after the UES is submitted in March 2004.  
-	The carryover is calculated based on the estimate provided by MAP participants of funds you plan not to spend during the current year (MY 2003/04).

## Taking a Closer Look at the $150 Million

| MAP Funding Year | FAS 
Base 
Funds* | Industry Specific
Initiatives | Global Broad-based
Initiatives | Total |
| --- | --- | --- | --- | --- |
| 2004/2005 | $136.25 M | $10.00 M | $3.75 M | $150 M |

***_***Base funds***_* determined by division recommendation and agency formula.  *

**Notes:**
Base funds:  these are the funds FAS makes available  to the divisions to recommend for funding. 
I will discuss the various “pots of money” in greater detail. 

## Taking a Closer Look at the Industry Specific Initiatives and Global Broad-based Initiatives...

- Both directly link to FAS Global Marketing Strategy priorities
- Both are “incentive” funds
- _ISI ($10 million):_  strategic planning, broad industry representation, program coordination/cost effectiveness
- _GBI ($3.75 million)_:  common strategic opportunities/challenges cutting across product lines
- No contribution required (except for branded activities)

**Notes:**
-	Please keep in mind that ISI and GBI proposals will be evaluated based on criteria established by the agency and not by HTP. 
-	Unlike during MY 2003/04, ISI & GBI proposals will be submitted upfront as part of the UES that will be due in March 2004.    
-	Activities will only be designated as ISI after all funding amounts are determined.  
-	By designating ISI activities after all funding amounts are determined this helps to encourage the participants to explicitly identify Global Marketing Strategy priorities across all MAP activities.  

## HTP’s Share Of the Pot Of Gold

- Normally receives about 1/3 of the MAP funds FAS makes available to the divisions in a given marketing year.
- Estimate:  Approximately $45 million*
**Based on $136 million FAS will make available to divisions.*

**Notes:**
In addition to the ISI &GBI funds that you will be able to compete for, we estimate that HTP should receive about $45 million of the pot that FAS will make available to the divisions to recommend allocating among our participants.  
The estimated $45 million is up from a little over $38 million from the current year furnding.   

HTP plans to allocate the $45 million between two categories:  Base Funds and New Initiative Funds.  
HTP plans to set aside and allocate 10 percent of the pot it receives for New Initiatives.

##  The Division Pot of Gold:  ~$45 Million

**BASE FUNDS**
-      (~$40.5 Million)

**NEW INITIATIVE FUNDS**
- 	(~$4.5 Million)

**ISI & GBI will be allocated based on established agency criteria.*

**Notes:**
HTP plans to allocate the $45 million in two categories:  Base Funds and New Initiative Funds.

## Base Funds:  ~$40.5 Million

- Constitute the core (majority) MAP funds a participant will receive and supports the Priority Program Management Objective: _Results Oriented Management_
- Rigorous, fair, transparent, flexible system
- MAP participants will compete for funds based on the division’s  six evaluation criteria used in previous years
- Starting point for competing for MY 2005/2006 MAP funding
- Required to provide contribution match

**Notes:**
Base funds are the starting point for competing for MAP funds that HTP will recommend to be allocated for next year.  For example, if you received $1.5 million in base funds as MY 2003/04 (current) MAP allocation we will adjust our recommendation for next year’s base allocation according to how you fair (compete) given the criteria established by the division.

Ingrid will discuss the six evaluation criteria in more detail during her presentation.

## New Initiative Funds:  ~$4.5 Million	

- Puts Focus on DEVELOPMENT of New Opportunities in Growth Markets!
- Encourages Risk Taking, Rewards Initiative
- Supports FAS’ Global Market Strategy !
- Required to provide contribution match

**Notes:**
Once again this year, HTP plans to set aside funds to encourage groups to undertake new initiatives. 

## ISI and GBI Funds

-  ISI and GBI proposals will be allocated based on criteria established by the agency
- Majority of HTP participants should receive ISI funding
- Groups are encouraged to work with other MAP participants to develop proposals that incorporate common strategic opportunities/challenges cutting across product lines
- 	_Projects approved under MY 2003/2004_:
- GBI Crisis Management
- Food Information Center
- Fresh Cut

**Notes:**
Jeff Jones can provide you with additional details regarding the types of projects that were approved for GBI funding.  

## Pots of Money Available For MY 2004/2005 MAP

- Base funds
- New Initiatives
- ISI
- GBI

**Notes:**
I would like to quickly remind you of the pots of money that you will be eligible to compete for under the MY 2004/2005 MAP.  
The Base and New Initiative funds will be allocated based on division recommendation and agency formula.
ISI & GBI will be allocated based on criteria established by FAS and not HTP. 

## Unified Export Strategy

- Market Access Program (MAP)
- Foreign Market Development (FMD)
- Technical Assistance for Specialty Crops (TASC)
- Emerging Markets Program (EMP)
- Cochran Program
- Quality Samples Program (QSP)
- Supplier Credit Guarantee & GSM-102

**Notes:**
This afternoon we have focused on how to get your share of the pot of gold FAS will make available during MY 2004/05.  
However, I want to remind you that the UES is not simply your request for MAP funding, even though our presentation this afternoon focused on MAP. The Unified Export Strategy should incorporate all the market development tools that are key to helping your industry to expand its exports.

At this point, I will yield the floor to Ingrid, who will discuss the criteria that will be used to evaluate your proposals for the various pots of money.

## Each MAP Pot Has it’s Own Evaluation Criteria

- Base Fund
- New Initiative
- ISI
- GBI

**Notes:**
I’ll discuss each of these

## MAP Base Fund Rating Criteria--$ 40 Million for HTP

- UES application
- Budget to export ratio
- Contribution rate
- Admin rating
- CPR
- 4-year average annual export growth rate

**Notes:**
Each of these criteria are equally weighted-the higher score means a higher percentage increase 
I’ll discuss “UES application” and “Admin Rating” in a minute.
Rest of these are self-explanatory.
Average budget-export ratio for division was .862 percent—overfunded groups get less money.
“Contribution rate” you commit to matching funds when you sign your agreement letter. The division average this year was 101 percent.
“CPR” needs to be a clear review of what you learned and what changes you made as a result of what you  learned.

## UES Application Score

- US and world market situation
- UES tables
- Market assessment
- Long term strategy
- Past performance and evaluation (CPR)
- Export goals
- Export strategy (constraints and PMs)

**Notes:**
Common mistakes:  not matching export information and not making each country a stand-alone document

## Admin Rating Score

- Responds to marketing specialists in timely manner
- Notifies division of UES changes (new countries, new constraints, moving money)
- UES submitted on time (draft sent for review before deadline)
- Communicates with Posts
- Attends USAEDC Annual Workshop

## Each MAP Pot Has it’s Own Evaluation Criteria

- Base Fund
- New Initiative
- ISI
- GBI

## New Initiative Rating Criteria--$4.5 Million for HTP

- New market/new constraint—highest score
- --Uncharted Territory
- New emphasis or niche in market, same or new constraint
- --New approach to current constraint
- New Activity in existing market and constraint
- Strategy
- --Fits well in overall plan

## Each MAP Pot Has it’s Own Evaluation Criteria

- Base Fund
- New Initiative
- ISI
- GBI

## ISI Rating Criteria

- Three Step Process for HTP:
- Assess each group’s ability to manage additional funds
- Score each group by 3 criteria. High scores mean high ISI budgets--low scores may mean no ISI budget
-  Approve specific ISI activities--these must meet GMS criteria

## 3 Criteria for ISI Score

- Comprehensive global long-term strategic plan
- Broadest representation for each product
- Leveraging of resources through program collaboration and coordination

**Notes:**

--do you have a strategic plan in place that covers domestic and int’l, beyond the UES
--how much of the industry do you represent
--using USDA programs for marketing and collaboration with other groups

## GMS Criteria for ISI Activities 			(must meet one)

- Market access and unfair competition
- Biotech/SPS/Food safety
- Best growth markets*
- High-value products*
- Capacity building
- Food security and trade financing
- *most likely match with MAP activities

**Notes:**
--supports the removal or prevention of barriers to trade
--educate or support development & acceptance of science-based policies
--target priority opportunities and constraints
--promote sales of high-value products
--development of country’s infrastructure
--support USDA food assistance programs

## Each MAP Pot Has it’s Own Evaluation Criteria

- Base Fund
- New Initiative
- ISI
- GBI

## GBI Rating Criteria

- Effectiveness and impact through collaboration
- Project scope and representation
- Overall project quality
- Minimize duplication

**Notes:**

Proposals that cut across multiple indusrty lines and multiple markets
Projects with the greatest number of participants and/or industries involved
Creative and unique projects get the highest score
Highest score given to projects that do not duplicate any on-going activity under the MAP or other programs
Make sure you work with the Posts to get their input and buy-in

## Smile, Nod and Say “Yes, this is all perfectly clear.”