[Federal Register Volume 72, Number 61 (Friday, March 30, 2007)]
[Notices]
[Pages 15586-15589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-1594]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Notice of Funds Availability: Inviting Applications for the 
Emerging Markets Program

    Announcement Type: New.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.603.

SUMMARY: The Commodity Credit Corporation (CCC) announces the 
availability of approximately $8 million in funding for the Emerging 
Markets Program (EMP) for fiscal year (FY) 2007. The intended effect of 
this notice is to solicit applications from the private sector and from 
government agencies for FY 2007 and award funds in August 2007. The EMP 
is administered by personnel of the Foreign Agricultural Service (FAS).

DATES: All proposals must be received by 5 p.m. Eastern Daylight Time, 
May 14, 2007. Applications received after this time will not be 
considered.

FOR FURTHER INFORMATION CONTACT: Entities wishing to apply for funding 
assistance should contact the Program Policy Staff, Foreign 
Agricultural Service, Portals Office Building, Suite 400, 1250 Maryland 
Avenue, SW., Washington, DC 20024, phone: (202) 720-4327, fax: (202) 
720-9361, e-mail: <a href="/cdn-cgi/l/email-protection#7101010210151c181f311710025f040215105f161e07"><span class="__cf_email__" data-cfemail="9eeeeeedfffaf3f7f0def8ffedb0ebedfaffb0f9f1e8">[email protected]</span></a>. Information is also available 
on the Foreign Agricultural Service Web site at http://www.fas.usda.gov/mos/em-markets/em-markets.asp.

SUPPLEMENTARY INFORMATION:

I. Funding Opportunity Description

    Authority: The EMP is authorized by section 1542(d)(1)(D) of the 
Food, Agriculture, Conservation and Trade Act of 1990 (The Act), as 
amended. EMF regulations appear at 7 CFR part 1486.
    1. Purpose: The EMP provides funding for technical assistance to 
assist U.S. organizations, public and private, to improve market access 
through generic, rather than branded, activities that can develop and 
promote U.S. agricultural products and/or processes in low- to middle-
income countries that offer promise of emerging market opportunities.
    Activities funded are those that primarily benefit U.S. industry as 
a whole. All agricultural products, except tobacco, are eligible for 
consideration. Proposals which include multiple commodities are also 
eligible. Only technical assistance activities are eligible for 
reimbursement.
    2. Appropriate Activities: Following are types of project 
activities that may be funded:

--Projects designed specifically to improve market access in emerging 
foreign markets. Examples: Activities intended to mitigate the impact 
of sudden political events or economic and currency crises in order to 
maintain U.S. market share; responses to time-sensitive market 
opportunities;
--Marketing and distribution of value-added products, including new 
products or uses. Examples: Food service development; market research 
on potential for consumer ready foods or new uses of a product;
--Studies of food distribution channels in emerging markets, including 
infrastructural impediments to U.S. exports; such studies should be 
specific in their focus and may include cross-commodity activities 
which address specific problems. Examples: Grain storage handling and 
inventory systems development; distribution infrastructure development;
--Projects that specifically address various constraints to U.S. 
exports, including sanitary and phytosanitary issues and other non-
tariff barriers. Examples: Seminars on U.S. food safety standards and 
regulations; assessing and addressing pest and disease problems that 
inhibit U.S. exports;
--Assessments and follow up activities designed to improve country-wide 
food and business systems, to reduce trade barriers, to increase 
prospects for U.S. trade and investment in emerging markets, and to 
determine the potential use for general export credit guarantees for 
commodities and services. Examples: Product needs assessments and 
market analysis; assessments to address infrastructural impediments;
--Projects that help foreign governments collect and use market 
information and develop free trade policies that benefit U.S. exporters 
as well as the target country or countries. Examples: Agricultural 
statistical analysis; development of market information systems; policy 
analysis; and,
--Short-term training in broad aspects of agriculture and agribusiness 
trade that will benefit U.S. exporters, including seminars and training 
at trade shows designed to expand the potential for U.S. agricultural 
exports by focusing on the trading system. Examples: Retail training; 
marketing seminars; transportation seminars; training on opening new or 
expanding existing markets. The program funds technical assistance 
activities on a project-by-project basis.


[[Page 15587]]


    EMP funds may not be used to support normal operating costs of 
individual organizations, nor as a source by which to recover pre-award 
costs or prior expenses from previous or ongoing projects.
    Proposals that counter national strategies or duplicate activities 
already planned or underway by national non-profit commodity or trade 
associations (``cooperator'') organizations will not be considered.
    Ineligible activities include restaurant promotions; branded 
product promotions (including labeling and supplementing normal company 
sales activities intended to increase awareness and stimulate sales of 
branded products); advertising; administrative and operational expenses 
for trade shows; and the preparation and printing of brochures, flyers, 
posters, etc., except in connection with specific technical assistance 
activities such as training seminars. Other items excluded from funding 
are contained in the EMP Regulations.
    3. Eligible Markets: The Act defines an emerging market as any 
country that the Secretary of Agriculture determines:
    (a) Is taking steps toward a market-oriented economy through the 
food, agriculture, or rural business sectors of the economy of the 
country; and
    (b) Has the potential to provide a viable and significant market 
for United States agricultural commodities or products of United States 
agricultural commodities.
    Because funds are limited and the range of potential emerging 
market countries is worldwide, proposals for technical assistance 
activities will be considered which target those countries or regional 
groups with per capita income less than $10,725 (the current ceiling on 
upper middle income economies as determined by the World Bank [WorId 
Development Indicators; July 2006]) and populations of greater than 1 
million.
    Income limits and their calculation can change from year to year, 
with the result that a given country may qualify under the legislative 
and administrative criteria one year but not the next. Therefore, CCC 
has not established a fixed list of ``emerging market'' countries. For 
FY 2007, however, the following guidance is provided regarding country 
eligibility for the EMP:

--Eligible. All of the countries of Central and South America; most in 
the Caribbean; all of sub-Saharan Africa; some countries in the Middle 
East; and the developing economies of Asia.
--Generally Ineligible. Canada; Japan; Taiwan; Hong Kong; South Korea; 
Australia; New Zealand; all countries of Western Europe; Slovenia; 
Israel; Aruba, and Antigua and Barbuda in the Caribbean; and Saudi 
Arabia, the United Arab Emirates, and Qatar in the Middle East.

    Some markets can be more difficult to develop and sustain over a 
period of time; proposed activities in such markets should be 
considered in terms of whether they provide ``viable and significant 
markets'' for U.S. agricultural exports.
    In the case of some oil-rich countries in the Middle East, however, 
e.g., Saudi Arabia, targeted activities may be considered on a case-by-
case basis, for example, addressing technical barriers to exporting 
U.S. commodities.
    A few countries technically qualify as emerging markets, but 
because of political sensitivities may require a separate determination 
before funding can be considered.

II. Award Information

    In general, all qualified proposals received before the application 
deadline will compete for EMP funding. Priority consideration will be 
given to proposals that identify and seek to address specific problems 
or constraints to agricultural exports in emerging markets through 
technical assistance activities that are intended to expand or maintain 
U.S. agricultural exports. Priority will also be given to those 
proposals that include the willingness of the applicant to commit its 
own funds, or those of the U.S. industry, to seek export opportunities 
in an emerging market. The percentage of private funding proposed for a 
project will, therefore, be a critical factor in determining which 
proposals are funded under the EMP. Proposals will also be judged on 
their ability to provide benefits to the organization receiving EMP 
funds and to the broader industry which that organization represents.
    The limited funds and the range of emerging markets worldwide in 
which the funds may be used preclude CCC from approving large budgets 
for individual projects. While there is no minimum or maximum amount 
set for EMP-funded projects, most are funded at a level of less than 
$250,000 and for a duration of approximately one year. Multi-year 
proposals, and those requesting higher levels of funding, may be 
considered in the context of a strategic detailed plan of 
implementation. Funding in such cases is normally provided one year at 
a time, with commitments beyond the first year subject to interim 
evaluations.
    Funding for successful proposals will be provided through specific 
agreements. The CCC, through FAS, will be kept informed of the 
implementation of approved projects through the requirement to provide 
quarterly progress reports and final performance reports. Changes in 
the original project time lines and adjustments within project budgets 
must be approved by FAS.

III. Eligibility and Qualification Information

    1. Eligible Applicants. Any United States private or Government 
entity with a demonstrated role or interest in exports of U.S. 
agricultural commodities or products may apply to the program. 
Government organizations consist of Federal, State, and local agencies. 
Private organizations include non-profit trade associations, 
universities, agricultural cooperatives, state regional trade groups, 
and profit-making entities and consulting businesses. Proposals from 
research and consulting organizations will be considered if they 
provide evidence of substantial participation in and financial support 
by the U.S. industry. For-profit entities are also eligible, but may 
not use program funds to conduct private business, promote private 
self-interests, supplement the costs of normal sales activities, or 
promote their own products or services beyond specific uses approved by 
CCC in a given project.
    U.S. market development cooperators and state regional trade groups 
(SRTGs) may seek funding to address priority, market specific issues 
and to undertake activities not suitable for funding under other 
marketing programs, e.g., the Foreign Market Development Cooperator 
(Cooperator) Program and the Market Access Program (MAP). Foreign 
organizations, whether government or private, may participate as third 
parties in activities carried out by U.S. organizations, but are not 
eligible for funding assistance from the program.
    2. Cost Sharing. No private sector proposal will be considered 
without the element of cost-share from the participant and/or U.S. 
partners. The EMP is intended to complement, not supplant, the efforts 
of the U.S. private sector. There is no minimum or maximum amount of 
cost share, though the range in recent successful proposals has been 
between 35 and 75 percent. The degree of commitment to a proposed 
project, represented by the amount and type of private funding, is used 
in determining which proposals will be approved for funding. Cost-share

[[Page 15588]]

may be actual cash invested or professional time of staff assigned to 
the project. Proposals for which private industry is willing to commit 
cash, rather than in-kind contributions such as staff resources, will 
be given priority consideration.
    Cost-sharing is not required for proposals from U.S. Government 
agencies, but is mandatory for all other eligible entities, even when 
they may be party to a joint proposal with a U.S. Government agency. 
Contributions from USDA or other U.S. Government agencies or programs 
may not be counted toward the stated cost share requirement. Similarly, 
contributions from foreign (non-U.S.) organizations may not be counted 
toward the cost share requirement, but may be counted in the total cost 
of the project.
    3. Other. Proposals should include a justification for funding 
assistance from the program--an explanation as to what specifically 
could not be accomplished without federal funding assistance and why 
the participating organization(s) would be unlikely to carry out the 
project without such assistance. Applicants may submit more than one 
proposal.

IV. Application and Submission Information

    1. Address to Request Application Package. EMP applicants have the 
opportunity to utilize the Unified Export Strategy (UES) application 
process, an online system which provides a means for interested 
applicants to submit a consolidated and strategically coordinated 
single proposal that incorporates funding requests for any or all of 
the market development programs administered by FAS.
    Applicants are not required to use the UES, but are strongly 
encouraged to do so because it reduces paperwork and expedites the FAS 
processing and review cycle. Applicants planning to use the on-line 
system must contact the Program Policy Staff at (202) 720-4327 to 
obtain site access information including a user id and password. The 
Internet-based application, including step-by-step instructions for its 
use, is located at the following URL address: http://www.fas.usda.gov/cooperators.html. A Help file is available to assist applicants with 
the process. Applicants using the online system should also provide, 
promptly after the deadline for submitting the on-line application, a 
printed or e-mailed version of each proposal (using Word or compatible 
format) to one of the following addresses:
    Hand Delivery (including FedEx, DHL, UPS, etc.): U.S. Department of 
Agriculture, Foreign Agricultural Service, Program Policy Staff, 
Portals Office Building, Suite 400, 1250 Maryland Avenue, SW., 
Washington, DC 20024.
    U.S. Postal Delivery: U.S. Department of Agriculture, Foreign 
Agricultural Service, Program Policy Staff, STOP 1042, 1400 
Independence Ave., SW., Washington, DC 20250-1042.
    Applicants electing not to use the on-line system must submit both 
(1) a printed copy of their application to the addresses above and (2) 
an electronic version to the e-mail address above.
    2. Content and Form of Application Submission. It is highly 
recommended that any organization considering applying to the program 
first obtain a copy of the EMP Regulations. The regulations contain 
information on requirements that a proposal must include in order to be 
considered for funding under the program, along with other important 
information. EMP regulations and additional information may be obtained 
from the Program Policy Staff at the address above. The regulations are 
also available at the following URL address: http://www.fas.usda.gov/mos/em-markets/em-markets.asp.
    In addition, in accordance with the Office of Management and 
Budget's policy directive regarding the use of a universal identifier 
for all Federal grants or cooperative agreements, all applicants must 
submit a Dun and Bradstreet Data Universal Numbering System (DUNS) 
number prior to submitting applications. An applicant may request a 
DUNS number at no cost by calling the dedicated toll-free DUNS number 
request line on 1-866-705-5711.
    Applications should be no longer than ten (10) pages and include 
the following information:
    (a) Date of proposal;
    (b) Name of organization submitting proposal;
    (c) Organization address, telephone and fax numbers;
    (d) Tax ID number;
    (e) DUNS number;
    (f) Primary contact person;
    (g) Full title of proposal;
    (h) Target market(s);
    (i) Current conditions in the target market(s) affecting the 
intended commodity or product;
    (j) Description of problem(s), i.e., constraint(s), to be addressed 
by the project, such as inadequate knowledge of the market, 
insufficient trade contacts, lack of awareness by foreign officials of 
U.S. products and business practices, impediments (inftastructure, 
financing, regulatory or other non-tariff barriers), etc.;
    (k) Project objectives;
    (1) Performance measures: benchmarks for quantifying progress in 
meeting the objectives;
    (m) Rationale: Explanation of the underlying reasons for the 
project proposal and its approach, the anticipated benefits, and any 
additional pertinent analysis;
    (n) Clear demonstration that successful implementation will benefit 
a particular industry as a whole, not just the applicant(s);
    (o) Explanation as to what specifically could not be accomplished 
without federal funding assistance and why the participating 
organization(s) would be unlikely to carry out the project without such 
assistance;
    (p) Specific description of activity/activities to be undertaken;
    (q) Time line(s) for implementation of activity, including start 
and end dates (start date should be no earlier than September 2007);
    (r) Information on whether similar activities are or have 
previously been funded with USDA sources in target country/countries 
(e.g., under MAP and/or FMD programs); and
    (s) Detailed line item activity budget. Cost items should be 
allocated separately to each participating organization. Expense items 
constituting a proposed activity's overall budget (e.g., salaries, 
travel expenses, consultant fees, administrative costs, etc.), with a 
line item cost for each, should be listed, clearly indicating:
    (1) Which items are to be covered by EMP funding;
    (2) Which by the participating U.S. organization(s); and
    (3) Which by foreign third parties (if applicable). Cost items for 
individual consultant fees should show calculation of daily rate and 
number of days. Cost items for travel expenses should show number of 
trips, destinations, cost, and objective for each trip. Qualifications 
of applicant(s) should be included as an attachment.
    3. Submission Dates and Times. All proposals must be received by 5 
p.m. Eastern Daylight Time on May 14, 2007, in the PPS office, either 
electronically, hand delivered, or by mail. Proposals received after 
this date and time will not be reviewed or considered for program 
funding.
    4. Funding Restrictions. Certain types of expenses are not eligible 
for reimbursement by the program, and there are limits on other 
categories of expenses such as indirect overhead charges, travel 
expenses and consulting fees. CCC will not reimburse

[[Page 15589]]

expenditures made prior to approval of a proposal or unreasonable 
expenditures. Full details are available in the EMP regulations.

Application Review Information

    1. Criteria. Key criteria used in judging proposals include:

--Appropriateness of the activities for the targeted market(s), and the 
extent to which the project identifies market barriers, e.g., a 
fundamental deficiency in the market, and/or a recent change in market 
conditions;
--Potential of the project to expand U.S. market share, increase U.S. 
exports or sales, and/or improve awareness of U.S. agricultural 
commodities and products;
--Quality of the project's performance measures, and the degree to 
which they relate to the objectives, proposed approach and activities, 
and deliverables;
--Justification for federal funding;
--Budget: overall cost and the amount of funding provided by 
applicants, the U.S. private sector and partners, if any; and
--Evidence that the organization has the knowledge, expertise, ability, 
and resources to successfully implement the project.

    2. Review and Selection Process. All applications undergo a multi-
phase review within FAS, by appropriate FAS field offices, and by the 
private sector Advisory Committee on Emerging Markets to determine 
qualifications, quality and appropriateness of projects, and 
reasonableness of project budgets.
    3. Anticipated Announcement Date. Announcements of funding 
decisions for the EMP are anticipated in August 2007.

VI. Award Administration Information

    1. Award Notices. FAS will notify applicants in writing of the 
final disposition of each application. FAS will send an approval letter 
and project agreement to each approved applicant. The approval letter 
and agreement will specify the terms and conditions applicable to the 
project, including the levels of EMP funding and cost-share 
contribution requirements.
    2. Administrative and National Policy Requirements. Interested 
parties should review the EMP regulations which are available at the 
following URL address: http://www.fas.usda.gov/mos/em-markets/em-markets.asp. Printed copies may be obtained by contacting PPS at (202) 
720-4327.
    3. Reporting. Quarterly progress reports for all programs one year 
or longer in duration are required. Projects of less than one year 
generally require a mid-term progress report. Final performance reports 
are due 90 days after completion of each project. Content for both 
types of reports is contained in the Project Agreement. Final financial 
reports are also due 90 days after completion of each project, as 
attachments to the final reports.

VII. Agency Contact(s)

    For additional information and assistance, contact the Program 
Policy Staff, Foreign Agricultural Service, U.S. Department of 
Agriculture, Portals Office Building, Suite 400, Stop 1042, 1250 
Maryland Avenue, SW., Washington, DC 20024, phone: (202) 720-4327, fax: 
(202) 720-9361, e-mail: <a href="/cdn-cgi/l/email-protection#3848484b595c555156785e594b164d4b5c59165f574e"><span class="__cf_email__" data-cfemail="b2c2c2c1d3d6dfdbdcf2d4d3c19cc7c1d6d39cd5ddc4">[email protected]</span></a>.

W. Kirk Miller,
Administrator, Foreign Agricultural Service and Vice President, 
Commodity Credit Corporation.
[FR Doc. 07-1594 Filed 3-29-07; 8:45 am]
BILLING CODE 3410-10-M


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