Omer W. Herrmann, and others who will justify estimates for the Agricultural Marketing Service. JUSTIFICATION OF THE ESTIMATES At this point on the record I should like to have pages 44 through 115 of the justifications inserted in the record. (The pages referred to follow :) 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 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 the development of practical answers to problems encountered in moving agricultural products from the farm to the consumer relating to 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) 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, and Guam for use in serving nutritious midday meals 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, and distribution of Commodity Credit Corporation donated commodities to eligible outlets authorized under section 416; (b) Administration of marketing agreements and orders relating to fruits. vegetables, and tree nuts. (Those relating to milk and other commodities are assigned to the Agricultural Stabilization and Conservation Service); (c) Cooperation with the food trade and others to encourage greater consumption of abundant foods. 6. Food stamp program.—This program, operating on a pilot basis in fiscal year 1962, 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 sections 104 (a) and (k) of Public Law 480, the Agricultural Trade Development and Assistance Act of 1954, as amended. A discussion of this activity is included in these explanatory notes under the appropriation "Salaries and expenses (special foreign currency program), Agricultural Research Service." 8. 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 over 200 cities and towns in the various States, Puerto Rico, and Canada. On November 30, 1961, there were 7,652 full-time employees, distributed about 1,276 in the District of Columbia metropolitan area and the remainder in the field. In addition, there were 1,311 part-time and intermittent employees, primarily in the field. A substantial portion of Agricultural Marketing Service employment is financed through revenue from fees, charges, or other assessments and through joint financing or other arrangements with States and private cooperators. 1 Excludes estimated supplemental of $450,000 for poultry inspection. 2 Financed through advances from Commodity Credit Corporation. The Agricultural Act of 1961 changes financing to direct appropriation beginning July 1, 1962. * Includes transfers of $45,000,000 in 1962 and 1963 from sec. 32 funds for purchase of agricultural commodities for distribution to schools participating in the national school lunch program. Appropriation act, 1962. Marketing research and service Transfer from "Removal of surplus agricultural commodities" for Transfer to "Operating expenses, Public Buildings Service, General Base for 1963-- Budget estimate, 1963. Increase. $38,039, 500 +285,000 -55, 000 38, 269, 500 40, 335, 000 +2,065, 500 SUMMARY OF INCREASES, 1963 For extending coverage, modernizing operations and strengthening the Market News Service__-. For developing new and revising existing quality standards and For strengthening supervision of grain grading under the U.S. Grain To provide for the expected increased volume of mandatory poul- For reimbursing the Federal employees' compensation funds for payments made during 1961---. For limited expansion of food management and related civil defense activities -. +232, 500 +168, 700 +165,000 +970, 000 +2, 300 For strengthening testing of seed as to variety labeling as required +50,000 +47,000 To step up the frequency of examinations of an increasing number of licensed warehouses__. Total___ +370,000 +60,000 +2,065, 500 |