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AGRICULTURAL MARKETING SERVICE

PURPOSE STATEMENT

The Agricultural Marketing Service was established November 2, 1953, under authority of section 161, Revised Statutes (5 U.S.C. 22), Reorganization Plan No. 2 of 1953, and other authorities. The Service aids in advancing the orderly and efficient marketing and the effective distribution of products from the Nation's farms. The domestic marketing and distribution functions of the Department are centered primarily in this Service.

The Agricultural Marketing Service carries on the following principal programs: 1. Marketing Research and Service.-These activities contribute to the efficient and orderly marketing of agricultural commodities and include:

(a) Marketing research directed toward increasing efficiency and reducing costs in moving agricultural products from the farm to the consumer through improved product quality and improved equipment and facilities;

(b) Market news service to provide timely and reliable market reports on all major agricultural commodities to help farmers determine when, where, and at what price to sell their products;

(c) Poultry inspection to assure that all poultry products moving in interstate and foreign commerce are wholesome;

(d) Other inspection, grading, classing, and standardization services to develop standards of quality and condition for agricultural commodities and to use them in providing an impartial inspection, classing, and grading service;

(e) Regulatory activities covering administration of laws aimed at protecting farmers and others from financial loss resulting from deceptive, careless, and fraudulent marketing practices, and to provide assistance in obtaining and maintaining equitable transportation rates and services on farm supplies and products.

2. Payments to States.-The Service administers the matched fund program for marketing activities carried out through cooperative arrangements by State Departments of Agriculture, Bureaus of Markets, and similar State agencies.

3. Special milk program.-Assistance is provided to States for making reimbursement payments to eligible schools and child-care institutions which inaugurate or expand milk service in order to increase the consumption of fluid milk by children.

4. School lunch program.-Federal assistance is provided to States, Puerto Rico, Virgin Islands, American Samoa, and Guam for use in serving nutritious lunches to children attending schools of high school grades or under in order to improve the health and well-being of the Nation's children, and broaden the market for agricultural food commodities.

5. Removal of surplus agricultural commodities and marketing agreements and orders. These activities directly or indirectly tend to maintain prices received by farmers and establish and maintain orderly marketing conditions through

(a) Removing from the market surplus agricultural commodities through purchase and donation to eligible recipients, export and diversion payments; distribution of Commodity Credit Corporation donated commodities to eligible domestic outlets authorized under section 416; and cooperation with the food trade and others to encourage greater consumption of abundant foods;

(b) Formulation and administration of marketing agreements and orders. 6. Food stamp program. -This program, operating on a pilot basis in fiscal year 1964, is aimed at increasing domestic consumption of agricultural commodities by providing increased purchasing power to needy persons through issuance of food coupons.

7. Research under section 104 (a) and (k) of Public Law 480.-The Service reviews and appraises for technical adequacy agricultural marketing research projects beneficial to the United States which can be advantageously conducted overseas through grants and contracts with foreign research institutions and universities. These projects are carried out through the Agricultural Research Service under the authority of section 104 (a) and (k) of Public Law 480, the Agricultural Trade Development and Assistance Act of 1954, as amended. discussion of this activity is included in these "Explanatory Notes" under the appropriation "Salaries and expenses (special foreign currency program), Agricultural Research Service."

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8. Food management preparedness.—Pursuant to Executive Order 10998 delegating certain defense responsibilities to the Department, the Agricultural Market

ing Service is assigned preemergency preparedness and emergency operations relating to management of food supplies. This involves developing standby plans and programs for the management of the Nation's food supply from the farm through wholesale channels, including coordination with other agencies assigned separate but closely related functions. To the extent possible this work is integrated with other day-to-day operations through the part-time efforts of employees regularly assigned to the agency programs. These efforts are coordinated by a few full-time personnel. Part of this full-time staff is financed by reimbursements from the Office of Emergency Planning.

9. Work performed for others.-The Agricultural Marketing Service also performs other services for Federal, State, and private agencies, on a reimbursable or advance payment basis. These include, among others, the Agency for International Development sponsored foreign visitor training program.

A large part of the program of the Agricultural Marketing Service is carried on through field branch offices of the several Washington commodity and functional divisions in about 240 cities and towns in the various States, Puerto Rico, and Canada.

In the Agricultural Marketing Service, including the offices of the milk market administrators, over 80 percent of the full-time employees and most of the parttime and intermittent employees are located in the field. A substantial portion of this employment is financed through revenue from fees, charges, or other assessments and through joint financing or other arrangement with States and private cooperators.

Available funds and man-years, 1963 and estimated, 1964 and 1965

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Obligations under other USDA appro-
priations:

Agricultural Stabilization and Con-
servation Service for operation of
commodity teletype, data on wheat
exports by classes, grain storage re-
search, and miscellaneous services..
Agricultural Research Service, for
meat inspection, cotton and cordage
fiber and spinning tests, and mis-
cellaneous services.
Statistical Reporting Service, for beef
steer and heifer data.

Commodity Credit Corporation for
cotton classing, tobacco grading,
and grain storage research..
Foreign Agricultural Service, for
grain and rice prices for export pay-
ment rate determinations.
Miscellaneous reimbursements for
data and duplicating and printing
services...

Total, other USDA appropriations.

Total, agricultural appropriation
bill..

Obligations under permanent appropriations: Perishable Agricultural Commodities Act fund.

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266, 670, 394 4, 554

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SUMMARY OF INCREASES AND DECREASES, 1965

For expanding urgently needed marketing research on insect control.
For completing the modernization of the market news leased wire
service and to cover the cost of increased teletype rates..
To provide for the expected increased volume of mandatory poultry
inspection_..

To cover the cost of reclassifying nonveterinarian poultry inspector
positions resulting from revised classification standards by the
Civil Service Commission...

For mandatory reimbursement to the employees compensation fund.

For increased pay act costs (Public Law 87–793) – .

Reduction in funds for transportation and facilities research on

market facility planning and on wholesaling and retailing opera-

tions and reduce research on certain other phases of the physical

handling of farm products in marketing channels...

To withdraw Federal funds from certain market news services to
conform with the long-range market news plan............

Net increase_

+200, 000

+135, 000

+652, 000

+665, 000

-50, 000

+1, 741, 025

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