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Mr. WHITTEN. How is it possible at New Orleans to study how to better utilize peanuts without in turn dealing with quality?

Dr. HERRMANN. Well, they are dealing with quality in terms of trying to develop new industrial and other uses for peanuts.

Mr. WHITTEN. Improving the quality-isn't that the first start toward using something? They are not interested in quality?

Dr. HERRMANN. Yes, utilization is interested in quality but not from the viewpoint of improving grades and standards and methods and equipment for measuring market quality objectively. They are interested in quality as related to the development of a new product or an extended use. Marketing research in pursuing its responsibility for improving market quality is concerned with the effect on quality of variety, cultural practices, maturity, curing, shelling, storage conditions, handling, and residues from treatments to prevent insect damage in storage.

Mr. WHITTEN. Yet I have had a good deal of correspondence lately from cottonseed people who are very much upset. They say the Department of Agriculture stopped them from using the cottonseed oils or vegetable oils in peanut butter. I checked and found out that it was a case of labeling. The peanut butter people were told by the Food and Drug people to show a proper label.

Further, in talking to the peanut folks, they said they needed the cottonseed oil because peanut oil would tend to separate from the peanut butter, whereas the vegetable oils would keep it from separating or stabilize it I believe is the word they would use..

LOCATIONS OF PEANUT RESEARCH

Now you are not doing any work in Texas or in the southwestern region on peanuts at all?

Dr. HERRMANN. We have had one contract in Texas for a couple of years. That contract-entered into in 1961-has to do with an attempt to determine the causes of a bitter flavor in products processed from peanuts produced in the southwest area. This is a contract that is financed jointly by AMS and the Southwestern Peanut Shellers Association on a 50-50 basis.

Mr. WHITTEN. Who is doing it?

Dr. HERRMANN. The Agricultural Experiment Station at Texas A. & M. is doing the work.

The production research of ARS is rather widely scattered. As you probably heard last year, the Agricultural Research Service has a small amount of peanut harvesting work at Holland, Va. They also have some scientists there working in other lines, such as production entomology and improved varieties and cultural practices. understand that there are also a number of ARS scientists stationed in North Carolina and at Tifton, Ga., working on production problems.

I have no information regarding ARS peanut research in Texas or Oklahoma.

Mr. WHITTEN. I would like you to supply the various places where research work is going on for peanuts, either in production, quality or utilization. Also provide a description of the work at the New Orleans Laboratory.

(The information is as follows:)

Estimated obligations for USDA research on peanuts, fiscal year 1963 1

Production research:
Agricultural Research Service:

SUMMARY

Crops-production, breeding, quality, and disease investiga-
tions; weeds, nematodes; plant disease reporting and my-
cology; plant introductions; and new crop development and
stock maintenance.__.
Entomology-entomological studies of peanut insects; insect
identification; and pesticide chemicals research____
Agricultural engineering-mechanical harvesting of peanuts
and other engineering studies.

$161, 350

20, 090

Marketing research:

21, 900

Total, Agricultural Research Service---

203, 340

Economic Research Service: Farm economics research___

6, 600

Total, production research..

209, 940

Utilization research and development: Agricultural Research Service:
New and expanded uses for peanuts and peanut products---

173, 300

305, 700

79, 800 5,000

390, 500

32,000.

805, 740

Agricultural Marketing Service: Marketing quality research______ Economic Research Service: Marketing economics and economic and statistical analysis..

Farmer Cooperative Šervice: To strengthen farmer cooperatives. _

Total, marketing research

Nutrition and consumer use: Agricultural Research Service: Composition and household use of peanuts and peanut oils. -

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Alabama, Auburn: Production, disease, and quality investigations ($15,200); and control of nematodes in peanuts ($4,000) ---

Georgia:

Experiment: Peanut disease investigations, particularly stem
rot ($5,400); and evaluation disease studies ($4,200) - -
Tifton: Peanut breeding and genetics, with emphasis on
disease resistance, yield, and quality ($26,300); control of
nematodes in peanuts ($17,900); entomological studies on
peanut insects ($8,000); and pesticide residue studies
($4,700)

Total, Georgia.

Maryland: Beltsville: Evaluation of peanut germ plasm and physiology of the peanut plant ($31,100); evaluation of herbicides for control of weeds in peanuts ($1,430); nematology ($4,060); taxonomy of fungi attacking peanuts ($1,230); and pesticides in plants and soil related to peanuts ($3,000); plant introduction ($4,450); and new crop development ($1,370); executive direction, printing, biometrics, and other central services located at Beltsville, Md., Washington, D.C.; and the 4 field administrative divisions ($28,540).

19, 200

9, 600

56, 900

66, 500

75, 180

New Jersey, Moorestown: Taxonomy studies of insects having
actual or potential importance in peanut production _ _
North Dakota, Fargo: Behavior and metabolism of pesticides in
plants and soils related to peanut production____.
Oklahoma, Stillwater: Cooperative research on peanut variety
evaluation....

100

860

500

Texas, Stephensville: Peanut variety evaluation studies.

200

1 Excludes obligations under Federal grant funds administered by the USDA's Cooperative State Experiment Station Service. For such obligations, see the table "Estimated obligations for State research on Peanuts," Federal grant and non-Federal funds, fiscal year 1963" which appears below.

Estimated obligations for USDA research on peanuts, fiscal year 19631-Continued
Production research-Continued

Virginia, Holland: Reseach on peanut disease, particularly stem
rot, pod rot, and virus diseases ($18,700); and mechanization
research directed toward harvesting, curing, and drying of
peanuts ($18,400).

Washington, D.C.: Taxonomic studies of insects having actual or
potential importance in peanut production ($3,700) cost and
return survey on cotton-peanut farms in the Southeastern
States, including applicable administrative costs ($6,600) -----

Total, production research...

Utilization research and development:

Louisiana, New Orleans: Investigations of the constituents and
their modification by processing that influence nutritive prop-
erties and consumer acceptance of processed peanut products;
development of hydrogenation techniques related to peanut oil;
and investigation of protein content of peanuts and peanut prod-
ucts.

Washington, D.C.: Executive direction, printing, biometrics, and
other central services___-

Total, utilization research and development_--

Marketing research:
Georgia:

Bainbridge (employees stationed at Albany): Development
of improved methods, equipment, and facilities for aerating,
drying, and handling farmers' stock peanuts in commercial
facilities

$37, 100

10, 300

209, 940

157, 500

15, 800

173, 300

13, 200

Dawson (employees stationed at Albany): Development of
improved methods, techniques, and equipment for cleaning
and shelling farmers' stock peanuts...

48, 450

Savannah: Insecticide evaluations specifically related to pea-
nut insect problems. ---

50, 000

46, 270

Tifton: Practical methods to protect farmers' stock peanuts
from insect damage during storage, including residue studies
on promising chemical treatments_

Total, Georgia_ _ _

Maryland, Beltsville: Market quality evaluation research, including development of instruments to improve grading of peanuts-North Carolina, Raleigh: Curing studies on Virginia peanuts, methods and equipment for grading all types of peanuts, and development of sample cleaner ($49,000); economic evaluation of commercial utilization patterns for peanuts at the sheller level ($14,700) - - .

Washington, D.C.: Design new and improved layouts and structures for conditioning, handling, and storing farmers' stock and shelled peanuts, including administrative costs ($73,780); sheller margins and market patterns for peanuts; marketing margins and costs for peanuts and peanut butter; costs and practices of peanut shellers; situation and outlook on supplies, demands, prices, marketing, and utilization of peanuts; and related administrative costs ($65,100); and strengthening of farmer cooperatives ($5,000)

Total, marketing research

Nutrition and consumer use: Maryland, Beltsville: Investigations on composition and household use of peanuts and peanut oil, including applicable executive direction, printing, biometrics, and other central services_.

Total, peanut research...

157, 920

25,000

63, 700

143, 880

390, 500

32, 000

805, 740

RESEARCH ON PEANUTS-CONDUCTED BY INDUSTRY AND BY USDA AGENCIES IN COOPERATION WITH INDUSTRY

Cooperative research work with industry

Some of the Department's research work is conducted in cooperation with industry. Most industry support is given in the form of material and facilities and personnel assistance rather than cash contributions. For example, the peanut mechanization research at Holland, Va., is conducted by the Agricultural Research Service with equipment furnished by the peanut industry; and, in some instances, chemicals are supplied by industry to supplement our research on the control of insects.

Utilization research on peanuts at the Southern Utilization Research Laboratory at New Orleans, La., includes cooperative work with industry as follows:

Last year a 2-day industry conference was held at the Southern Utilization Research and Development Division to discuss problems in the peanut industry and opportunities afforded by utilization research to aid the industry. In attendance were 48 representatives of peanut growers, shellers, and manufacturers. With increased funds provided in fiscal year 1963, a new project has been initiated to determine the influence of processing methods on the properties of peanut products, an area of research recommended by the industry. Also, a contract is being negotiated on another project recommended by the industry to isolate, identify, and characterize constituents of processed peanut products to form the basis for producing improved peanut products of greater consumer acceptability.

A considerable amount of consulting work on the production of peanut butter is provided, particularly from small processors.

The Southern Laboratory has cooperated with the medical profession in New Orleans, La., on the preparation of a peanut flour for treatment of hemophilia. Cooperation was extended to a peanut processor in the preparation of 20,00030,000 pounds for this purpose.

Similarly, the Agricultural Marketing Service conducts some of its research on peanuts in cooperation with industry, as follows:

The Southwestern Peanut Shellers Association is contributing $30,000 (one-half the total cost) of a contract between Agricultural Marketing Service and Texas Agricultural Experiment Station for research to determine the influence of variety, stage of maturity, and curing practices of raw peanuts on the market quality of processed peanut products.

The Georgia-Florida Peanut Association made available to Agricultural Marketing Service a peanut facility at Bainbridge, Ga., for use in conducting tests and experiments in developing improved methods, techniques, and equipment for handling, cleaning, and drying farmers' stock peanuts at commercial storages and other off-farm facilities.

The Columbian Peanut Co. furnishes cleaned farmers' stock peanuts and common labor for use in carrying out handling and drying studies.

The Tom Huston Peanut Co. provides space for Agricultural Marketing Service to install, operate, and demonstrate experimental aeration systems. The company also provides labor, electric power, electric wiring, and related equipment, and predetermined types and quantities of farmers' stock peanuts. Under an agreement with the Agricultural Marketing Service, the Stevens Industries, Inc., furnishes experienced labor for use in carrying out peanut shelling and handling studies, for which the Agricultural Marketing Service reimburses the cooperator in an amount not to exceed $5,000.

Research conducted by industry

There is no information available as to the extent of research on peanuts that industry is conducting. It has been roughly estimated that industry devotes approximately 30 man-years to research on peanuts, mostly on harvesting equipment and peanut processing and processing equipment. Using $25,000-$30,000 per man-year, this would amount to approximately $750,000-$900,000 invested in peanut research.

In addition to amounts invested in research directly by industry, some portion of the non-Federal funds used at State agricultural experiment stations is contributed by industry. Information as to how much of such non-Federal funds from industry is devoted for research on peanuts is not available.

95910-63-pt. 3- -15

Estimated obligations for State research on peanuts, Federal-grant and non-Federal funds, fiscal year 1963

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In addition there is a non-Federal research project in Oklahoma which covers more than 1 commodity. There is no information available as to amount of funds applied to this research on peanuts.

DESCRIPTION OF PROGRAMS

Breeding, quality, and cultural practices

Breeding for superior types and evaluation of fertilization and cultural practices. (Florida, Oklahoma, and Texas.)

Fertilization of peanuts with major and minor elements, studies on the development of rancidity, new varieties, use of supplemental irrigation in growing peanuts, characterization of substances in peanuts responsible for flavor and aroma, and effect of treatments on keeping quality. (Georgia.)

Breeding for variety improvement including the use of radiation techniques, influence of plant nutrition on productivity, and the productivity of peanut soils as influenced by crop sequence. (North Carolina.)

Soil-plant nutrient relationships. (Virginia.)

Diseases and insects

Research on soil-borne and other diseases of peanuts (Alabama, Georgia, North Carolina, Texas, Virginia); entomological studies on insects affecting peanuts (Virginia).

Engineering and other production research

Handling of peanuts during harvesting, curing, drying, and storage. (Georgia, Virgilia.)

Farm economics

Effect of Federal price support programs for peanuts on farm land values. (Virginia.)

Marketing

Chemical and physical properties during storage and their effect on market value, and fermentation products produced by fungi growing on a peanut sub(Alabama.)

strate.

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