DEPARTMENT OF AGRICULTURE APPROPRIATIONS FOR 1964 TUESDAY, MARCH 5, 1963. ECONOMIC RESEARCH SERVICE WITNESSES NATHAN M. KOFFSKY, ADMINISTRATOR, ECONOMIC RESEARCH SERVICE SHERMAN E. JOHNSON, DEPUTY ADMINISTRATOR, FOREIGN ECONOMICS, ECONOMIC RESEARCH SERVICE CARL P. HEISIG, DEPUTY ADMINISTRATOR, AGRICULTURAL ECONOMICS, ECONOMIC RESEARCH SERVICE HARRY A. STEELE, DIRECTOR, RESOURCE DEVELOPMENT ECONOMICS DIVISION, ECONOMIC RESEARCH SERVICE CHARLES F. KIEFER, DIRECTOR, OFFICE OF MANAGEMENT SERVICES JOHN J. KAMINSKI, CHIEF, DIVISION OF BUDGET AND FINANCE, OFFICE OF MANAGEMENT SERVICES GEORGE WALDMAN, CHIEF, BUDGET BRANCH, DIVISION OF BUDGET AND FINANCE, OFFICE OF MANAGEMENT SERVICES CHARLES L. GRANT, DIRECTOR OF FINANCE AND BUDGET OFFICER, DEPARTMENT OF AGRICULTURE Mr. WHITTEN. Gentlemen, the committee will come to order. We have with us today Mr. Nathan M. Koffsky, Administrator of the Economic Research Service, and his associates. We are indeed glad to have you with us today, Mr. Koffsky. JUSTIFICATION OF THE ESTIMATES At this point we should like to have pages 1 through 5, 30, and 31, volume II, of the justifications included in the record. (The material referred to follows:) PURPOSE STATEMENT The Economic Research Service was established by Secretary's Memorandum No. 1446, Supplement No. 1, of April 3, 1961, under Reorganization Plan No. 2 of 1953 and other authorities. The Service develops and carries out a program of economic research designed to benefit farmers and the general public. The findings of this research are made available to farmers and others through research reports and through economic outlook and situation reports on major commodities, the national economy, and the international economy. The Service carries out the following major activities: 1. Farm economics research consists of a nationwide program of research dealing with the economic problems of agricultural production and resource use to measure, appraise, and analyze on a continuing basis, the current and prospective changes that occur in agriculture, and to evaluate the adjustments which farmers and the industry can make feasibly to meet these changing conditions. 2. Marketing economics research, including economic and cost analyses and research relating to the marketing of specific agricultural commodities; the organizational structure and practices of commodity markets; costs and margins involved in the marketing of agricultural products; farmers' bargaining power; the economics of product quality and grade; market potentials, distribution, and merchandising of agricultural products; and the economics of transportation. 3. Domestic and foreign economic analysis: Domestic economic analysis consists of economic and statistical research on agricultural prices, farm income, commodity outlook and situation, the supply and consumption of farm products, farm population and rural life, and agricultural history. Foreign economic analysis includes economic studies of supply of, demand for, and trade in farm products in foreign countries and their effect on prospects for U.S. exports, analysis of farm export programs, progress in economic development and its relationship to sales of farm products; assembly and analysis of agricultural trade statistics; and analysis of international financial monetary programs and policies, as they affect the competitive position of U.S. farm products. 4. Research under sections 104 (a) and (k) of Public Law 480: Economic analyses and research projects beneficial to the United States which can be advantageously conducted overseas by foreign research institutions and universities are financed with foreign currencies through contracts and grants. Professional personnel carefully review and appraise for technical adequacy these projects prior to carrying on the negotiations leading to contract execution. During the course of the work, the Service periodically appraises progress and methods used in the contract or grant, and reviews reports produced as a part of the project. The explanatory notes under the appropriations for the Foreign Agricultural Service and the Agricultural Research Service contain discussions of 104 (a) and (k) activities. 5. Work performed for others: The Economic Research Service performs research services for other Federal, State, and private agencies on a reimbursable or advance payment basis. These include special studies of agricultural economics of foreign countries, the AID foreign visitor training program, special economic studies on water and land conservation programs and practices, appraisals of price-support and production control programs, and various types of marketing studies. The Economic Research Service functions through a central office in Washington, D.C., and through a field organization which is involved chiefly in farm and marketing economic research. Much of the research is carried on in cooperation with State experiment stations, State departments of agriculture or marketing, and other State institutions. As of November 30, 1962, there were 1,007 full-time employees of whom 208 were in the field. In addition, there were 34 part-time and intermittent employees, chiefly in the field. Salaries and expenses: Estimated available, 1963. Appropriated funds PROPOSED TRANSFER IN THE 1964 BUDGET ESTIMATES $9,528, 400 10, 301, 000 The budget estimates reflect a transfer in the 1964 estimates of $328,600 from the Economic Research Service to the Farmer Cooperative Service. For several years funds appropriated to the Economic Research Service have been transferred to the Farmer Cooperative Service for economic and marketing research for farmer cooperatives. The 1964 budget proposes that such funds for this type of research be included in the budget for the Farmer Cooperative Service. Appropriation Act, 1963_. Salaries and expenses Activities transferred in the 1964 estimates to "Salaries and expenses, Base for 1964. Budget estimate, 1964___ Increase__ SUMMARY OF INCREASES AND DECREASES, 1964 To develop estimates of national and regional land requirements to guide land-use adjustments and to determine the productivity and economic returns of land in alternative uses-Reduction in marketing economics to provide funds for higher priority items__. $9,500,000 -328, 600 357, 000 9, 528, 400 10,301, 000 +772,600 +209, 800 To develop basic information on longer range prospects for foreign supply, demand, and trade in farm products-- To expand research on Common Market trade in farm products and impacts of changes in trading arrangements on U.S. agricultural exports-- To strengthen current commodity outlook and situation reports and -200, 000 +125, 500 +90,000 +93, 300 For postal costs pursuant to Public Law 87-793. Reduction to reflect estimated savings due to the installation of a centralized data processing operation (MODE) for personnel and payroll data____ For pay act costs pursuant to Public Law 87-793-- Net increase__ Mr. WHITTEN. Gentlemen, the committee will come to order. We have with us today Mr. Nathan M. Koffsky, Administrator of the Economic Research Service, and his associates. We are indeed glad to have you with us today, Mr. Koffsky. JUSTIFICATION OF THE ESTIMATES At this point we should like to have pages 1 through 5, 30, and 31, volume II, of the justifications included in the record. (The material referred to follows:) PURPOSE STATEMENT The Economic Research Service was established by Secretary's Memorandum No. 1446, Supplement No. 1, of April 3, 1961, under Reorganization Plan No. 2 of 1953 and other authorities. The Service develops and carries out a program of economic research designed to benefit farmers and the general public. The findings of this research are made available to farmers and others through research reports and through economic outlook and situation reports on major commodities, the national economy, and the international economy. The Service carries out the following major activities: 1. Farm economics research consists of a nationwide program of research dealing with the economic problems of agricultural production and resource use to measure, appraise, and analyze on a continuing basis, the current and prospective changes that occur in agriculture, and to evaluate the adjustments which farmers and the industry can make feasibly to meet these changing conditions. 2. Marketing economics research, including economic and cost analyses and research relating to the marketing of specific agricultural commodities; the organizational structure and practices of commodity markets; costs and margins involved in the marketing of agricultural products; farmers' bargaining power; the economics of product quality and grade; market potentials, distribution, and merchandising of agricultural products; and the economics of transportation. 3. Domestic and foreign economic analysis: Domestic economic analysis consists of economic and statistical research on agricultural prices, farm income, commodity outlook and situation, the supply and consumption of farm products, farm population and rural life, and agricultural history. Foreign economic analysis includes economic studies of supply of, demand for, and trade in farm products in foreign countries and their effect on prospects for U.S. exports, analysis of farm export programs, progress in economic development and its relationship to sales of farm products; assembly and analysis of agricultural trade statistics; and analysis of international financial monetary programs and policies, as they affect the competitive position of U.S. farm products. 4. Research under sections 104 (a) and (k) of Public Law 480: Economic analyses and research projects beneficial to the United States which can be advantageously conducted overseas by foreign research institutions and universities are financed with foreign currencies through contracts and grants. Professional personnel carefully review and appraise for technical adequacy these projects prior to carrying on the negotiations leading to contract execution. During the course of the work, the Service periodically appraises progress and methods used in the contract or grant, and reviews reports produced as a part of the project. The explanatory notes under the appropriations for the Foreign Agricultural Service and the Agricultural Research Service contain discussions of 104 (a) and (k) activities. 5. Work performed for others: The Economic Research Service performs research services for other Federal, State, and private agencies on a reimbursable or advance payment basis. These include special studies of agricultural economics of foreign countries, the AID foreign visitor training program, special economic studies on water and land conservation programs and practices, appraisals of price-support and production control programs, and various types of marketing studies. The Economic Research Service functions through a central office in Washington, D.C., and through a field organization which is involved chiefly in farm and marketing economic research. Much of the research is carried on in cooperation with State experiment stations, State departments of agriculture or marketing, and other State institutions. As of November 30, 1962, there were 1,007 full-time employees of whom 208 were in the field. In addition, there were 34 part-time and intermittent em ployees, chiefly in the field. Salaries and expenses: Appropriated funds PROPOSED TRANSFER IN THE 1964 BUDGET ESTIMATES $9,528, 400 10, 301, 000 The budget estimates reflect a transfer in the 1964 estimates of $328,600 from the Economic Research Service to the Farmer Cooperative Service. For several years funds appropriated to the Economic Research Service have been transferred to the Farmer Cooperative Service for economic and marketing research for farmer cooperatives. The 1964 budget proposes that such funds for this type of research be included in the budget for the Farmer Cooperative Service. Appropriation Act, 1963. Salaries and expenses Activities transferred in the 1964 estimates to "Salaries and expenses, Base for 1964 Budget estimate, 1964 Increase_-_ SUMMARY OF INCREASES AND DECREASES, 1964 To develop estimates of national and regional land requirements to guide land-use adjustments and to determine the productivity and economic returns of land in alternative uses.. Reduction in marketing economics to provide funds for higher priority items_____ $9,500,000 -328, 600 357, 000 9, 528, 400 10, 301, 000 +772,600 +209, 800 Reduction to reflect estimated savings due to the installation of a centralized data processing operation (MODE) for personnel and payroll data_____ To develop basic information on longer range prospects for foreign supply, demand, and trade in farm products-- To expand research on Common Market trade in farm products and impacts of changes in trading arrangements on U.S. agricultural exports--. To strengthen current commodity outlook and situation reports and -200, 000 +125, 500 +90,000 +93, 300 +110,000 -8,000 For postal costs pursuant to Public Law 87-793. For pay act costs pursuant to Public Law 87-793__. Net increase__. +17,000 +335,000 +772, 600 |