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Priorities and Preferences in the Allocation of Mpp Branded Funds to Agribusiness Firms

In 1993, legislation was passed that required the USDA to give priority in the allocation of its Market Promotion Program (MPP) branded funds to small firms, new-to-export firms, and firms facing exporting problems in foreign markets. However, the MPP is still criticized in the popular press and by the General Accounting Office as favoring large and existing exporting firms that do not face exporting problems. Using a unique firm-level data set, the effectiveness of the 1993 legislation is evaluated by analyzing the allocation of MPP funds according to firm characteristics and the priorities set in the 1993 legislation.