10.602: CCC's Dairy Export Incentive Program

10.602

Inactive

Foreign Agricultural Service (FAS) [USDA]

Sept. 7, 2016

Sept. 21, 2014

The major objective of the program is to develop export markets for dairy products where U.S. products are not price competitive and thereby, make sales in targeted overseas markets for the purpose of market development or where competitor countries are making subsidized sales.

C - Direct Payments for Specified Use

All sales under the DEIP are made by the private sector, not the U.S. government. An invitation for offers issued by USDA may be one of two types: those inviting exporters to submit a competitive offer for a bonus, and those inviting exporters to apply for an announced bonus. Once an invitation for offers is issued, it is up to agricultural exporters to contact prospective buyers in eligible countries and negotiate a sales contract covering price, quantity, quality, delivery, and other terms. The sale may be contingent on USDA’s approval of a bonus. Each prospective exporter submits an offer to USDA requesting a bonus that would allow the sale to take place at the agreed price. Under an invitation for competitive offers, USDA reviews all bids for the competitiveness of the bonus value requested and compares the bids with offers from other U.S. exporters and with sales of competitor countries. Under an announced bonus, compliant offers meeting all program requirements are accepted on a first-come, first-served basis. USDA has the right to reject any or all bids. Once USDA accepts a bid, the exporter and USDA’s Commodity Credit Corporation (CCC) enter into an agreement. USDA notifies exporters submitting offers of the acceptance or rejection of their offers by 10 a.m. Eastern U.S. time the next business day after the date the offers were submitted for consideration. USDA also makes the information available in a program announcement on the FAS Web site.

Who Benefits The DEIP, administered by USDA’s Foreign Agricultural Service (FAS), helps U.S. agricultural producers, processors, and exporters gain access to foreign markets. Eligible Products Commodities eligible under DEIP initiatives are milk powder, butterfat, and various cheeses. Participation An exporter interested in participating in the DEIP must provide specific information.