Trends in U.S. Agricultural Export Credit Guarantee Programs and P.L. 480, Title I, FY1992-FY2002

Publication Date: March 2004

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Trade

Type:

Abstract:

Export credit guarantee programs operated by the Commodity Credit Corporation (CCC) and P.L. 480, Title I, supported 7% or $3.7 billion of total agricultural exports of $53 billion in FY2002. Over the 11-year period from FY1992 to FY2002, CCC export credit guarantee programs and P.L. 480, Title I food aid programs have been used to finance agricultural commodity exports to over 100 countries. In FY2002, funding for export credit guarantee programs was $3.4 billion and funding for P.L. 480, Title I, was $102 million. Export credit guarantee programs are used to encourage, increase, and maintain U.S. exports in countries where credit is used, but such exports would not be feasible without a guarantee. P.L. 480, Title I, uses long term credit agreements to facilitate government-togovernment purchases of agricultural commodities by developing countries with the potential to become commercial markets.

Export credit guarantee programs include the short-term Export Credit Guarantee Program (GSM-102), the Intermediate Export Credit Guarantee Program (GSM-103), the Supplier Credit Guarantee Program (SCGP), and the Facilities Financing Guarantee Program (FGP). P.L. 480, Title I, is also included because it provides long term credit for government-to-government agricultural sales. Export credit guarantee programs are part of a broad range of agricultural export programs that include export subsidy programs and market promotion programs, although these programs are not covered in this report.

Among other things, this report shows that funding for export credit guarantee programs varies from year to year; funding for export credit guarantee programs increased from FY1999 to FY2002; funding for Title I decreased from FY2000 to FY2002; more agricultural commodities have been exported using GSM-102 than GSM-103; the commodity mix varies annually but the broad commodity categories remain similar; countries' use of government credit export programs and P.L. 480, Title I, vary annually depending upon each country's preference and ability to use and pay off credit; and export credit guarantee programs and P.L. 480, Title I, as a percent of total agricultural exports increased from FY2000 to FY2002.

This report provides tables and graphs on the composition of U.S. export credit guarantee programs. Data is restricted to U.S. Department of Agriculture (USDA) data that includes commodity value. This report will be updated as circumstances warrant.