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USDA FAS explains GSM-102 export credit guarantees and market-development tools
Summary
USDA Foreign Agricultural Service (FAS) senior specialist Dee Hale outlined the GSM-102 letter-of-credit guarantee, eligibility (Schedule B agricultural commodities), the facilities guarantee program, a $2.5 billion CCC allocation breakdown by region, and program mechanics including up to an 18-month credit term and a 98% guarantee.
Dee Hale, senior specialist in global programs for the Foreign Agricultural Service (USDA FAS), gave a detailed presentation on the GSM-102 export-credit guarantee program and complementary facilities-guarantee work.
Hale described GSM-102 as focused on supporting commodity-based transactions to developing markets and said the program covers eligible agricultural products listed on Schedule B (notably excluding fertilizers and other non-agricultural inputs). She said the program is letter-of-credit driven and supports credit terms typically up to 18 months. Hale also explained the facilities guarantee program, which targets infrastructure such as cold storage and other distribution assets that support U.S. agricultural exports.
On funding, Hale presented the program allocation figure of $2,500,000,000 (Community Commodity Credit Corporation allocation) organized by region and noted that Latin America has been the largest user of the program. She said GSM-102 provides a high level of payment protection for U.S. exporters and that financial institutions on both sides of the transaction must be vetted; she cited a 98% guarantee level for covered defaults.
Hale walked attendees through the transaction mechanics: U.S. exporter and foreign importer establish a firm sales contract; an importer’s foreign financial institution issues a letter of credit; the exporter assigns the guarantee to a vetted U.S. bank; and the exporter is paid once contract and documentation conditions are met. She also described FAS market-development tools — trade missions, USDA-endorsed trade shows, cooperator cost-share programs (MAP, RAP), GAIN market reports and country-level market intelligence — that can work alongside export finance to open markets for Wisconsin products.
Hale offered to share slides and flyers in PDF format and to field follow-up questions from council members.
