7. Perishable Agricultural Commodities Act: 8. This program is carried out under the Perishable Agricultural Commodities Act (PACA) and the Produce Agency Act (PAA), and is fully funded by user fees. These Acts are designed to: (1) protect producers, shippers, distributors and retailers from loss due to unfair and fraudulent practices in the marketing of perishable agricultural commodities; and (2) prevent the unwarranted destruction or dumping of farm products handled for others. Commission merchants, dealers, and brokers handling fresh and frozen fruits and vegetables in interstate and foreign commerce must obtain a PACA license and must abide by the fair trading practices established by the PACA. Traders who have been found to have committed unfair trade practices face license suspension or revocation and may be required to post surety bonds before resuming operations. To increase protection and avert financial losses to growers and licensed firms, the Perishable Agricultural Commodities Act was amended in 1984 to create a statutory trust. Sellers of fruits and vegetables who have not been paid are secured under this legislation until full payment is made. Complaints of violations are investigated and resolved through: (1) informal agreement between the two parties; (2) formal decisions involving payments to injured parties; (3) suspension or revocation of license; and (4) publication of the facts. Any interested party or group may request AMS assistance in settling disputes under the PACA. Strengthening Agricultural Markets and Producer Income (Section 32): Under Section 32 of the Act of August 24, 1935, (7 U.S.C. 612c) an appropriation equal to 30 percent of gross customs receipts collected during each preceding calendar year and unused balances up to $300 million are available for encouraging the domestic consumption and exportation of agricultural commodities. An amount equal to 30 percent of receipts collected on fishery products is transferred to the Department of Commerce. Pursuant to Section 32, AMS purchases commodities such as meats and fish, fruits and vegetables, and poultry in order to stabilize market conditions. These purchased commodities are distributed by the Food and Nutrition Service (FNS) to schools as part of the entitlement for the National School Lunch program and for other food assistance programs. AMS also provides purchasing services to FNS to supply food to recipients in Food Assistance Programs authorized by Congress. AMS is reimbursed by FNS for the administrative costs associated with purchases made for FNS Federal Food Assistance. AMS develops, coordinates, and approves federal food product descriptions and establishes quality assurance policies and procedures for the procurement of food by USDA, Department of Defense, Indian Health Service, National Institutes of Health, Bureau of Prisons, and the Department of Veterans Affairs. The primary goal of this program is to update and streamline federal food specifications to improve the cost efficiency of federal food purchasing by using commercial item descriptions whenever possible. The marketing agreements and orders program is authorized by the Agricultural Marketing Agreement Act of 1937. Marketing orders are designed to stabilize market conditions and to improve the returns for fluid milk and fruit and vegetable producers. Stabilized market conditions are accomplished by: (1) establishing minimum prices which handlers pay to dairy producers; (2) regulating the quality and quantity of fruits and vegetables sold in commercial channels; and (3) providing for market development and promotion (including paid advertising). The orders are requested by producers and handlers. Evaluations and hearings on proposed marketing orders are conducted by AMS. Proposed orders are subject to approval by producers of the regulated commodity. Once approved, the Secretary issues the marketing order and sets the effective date of the order. Section 32 funds authorized under 7 U.S.C. 612c are used by the Department for administering the marketing agreements and orders program at the national level and for public hearings and referenda to determine producer sentiment concerning new programs and proposed revisions of marketing orders already in effect. Administration at the local level is financed through handler assessments. AMS headquarters are located in Washington, D.C., with approximately 161 year-round and seasonal field offices. The peak employment period of AMS occurs during the four month period, September through December, due to the seasonal nature of the cotton, tobacco, and fruit and vegetable grading programs. Employment during the peak period averaged 5,127 during fiscal year 1998. As of September 30, 1998, there were 4,571 employees of which 2,975 were full-time employees and 1,596 were other than permanent full-time employees. Of this number, employees assigned to field office locations totaled 2,361 full-time and 1,566 other than permanent full-time employees. |