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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 ecoromics 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.

Appropriated funds
Salaries and expenses :
Estimated available, 1963.

$9, 528, 400 Budget estimates, 1964.

10, 301, 000

PROPOSED TRANSFER IN THE 1964 BUDGET ESTIMATES

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 Fears 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.

Salaries and expenses Appropriation Act, 1963_

$9, 500,000 Activities transferred in the 1964 estimates to "Salaries and expenses,

Farmer Cooperative Service," for economic research for farmer cooperatives (includes $12,000 for increased pay costs)

-328, 600 Proposed transfer, 1963, for increased pay costs-

357, 000 Base for 1964

9, 528, 400 Budget estimate, 1964...

10, 301, 000

Increase

+772, 600

+209, 800

- 200,000

+125, 500

+90,000

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.To strengthen current commodity outlook and situation reports and

related analyses of alternative farm program proposals--To expand work on estimates of farm income and production and

increase other economic research. To expand research on Common Market trade in farm products and impacts of changes in trading arrangements on C.s. agricul

tural exports---To develop basic information on longer range prospects for foreign

supply, demand, and trade in farm products--Reduction to reflect estimated savings due to the installation of a

centralized data processing operation (MODE) for personnel and payroll data----For postal costs pursuant to Public Law 87-793_ For pay act costs pursuant to Public Law 87-793_

Net increase--

+93, 300

+110,000

-8,000 +17, 000 +335, 000

+772, 600

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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 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.

Appropriated funds
Salaries and expenses :
Estimated available, 1963_,

$9, 528, 400 Budget estimates, 1964.

10, 301, 000

PROPOSED TRANSFER IN THE 1964 BUDGET ESTIMATES 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.

Salaries and erpenses Appropriation Act, 1963_

$9, 500,000 Activities transferred in the 1964 estimates to "Salaries and expenses,

Farmer Cooperative Service," for economic research for farmer cooperatives (includes $12,000 for increased pay costs)-

-328, 600 Proposed transfer, 1963, for increased pay costs..

357, 000 Base for 1964.

9, 528, 400 Budget estimate, 1964--

10, 301, 000

Increase

+772, 600

SUMMARY OF INCREASES AND DECREASES, 1964

+209, 800

-200, 000

+125, 500

+90,000

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. To strengthen current commodity outlook and situation reports and

related analyses of alternative farm program proposals.To expand work on estimates of farm income and production and

increase other economic research.. To expand research on Common Market trade in farm products and impacts of changes in trading arrangements on U.S. agricul

tural exports---To develop basic information on longer range prospects for foreign

supply, demand, and trade in farm products-Reduction to reflect estimated savings due to the installation of a

centralized data processing operation (MODE) for personnel and payroll data----For postal costs pursuant to Public Law 87-793_ For pay act costs pursuant to Public Law 87-793_

+93, 300

+110,000

- 8,000 +17, 000 +335, 000

Vet increase..

+772, 600

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1. Farm economics...

$3,311, 073 $3,465, 400 +$127, 600 +$206, 800 $3,798, 800 2. Marketing economics.

3, 118, 557 3, 236, 400 +107, 600 -200,000 3, 144,000 3. Domestic and foreign economic analysis. 2, 631, 217

2, 826, 600 +116,800 +414, 800 3,358, 200 Subtotal 1.

9,060, 847 9,528, 400 +352,000 +420, 600 | 10, 301, 000 Unobligated balance.

32, 553 Total increased costs (Public Law 87–793): Pay costs..

(345, 000)| (+335, 000) (+29,000) (709, 000) Postal costs

(4,000) (+13,000) (-

(17,000) Total available or estimate

19,093, 400: 9,528, 400 Transfer in 1963 estimates from “Salaries

+352,000 +420, 600 10,301, 000 and expenses, Farmers Home Administration

-50,000 Transfer in 1964 estimates to "Salaries and

expenses, Farmer Cooperative Service". +316, 600 +328, 600 Transferred from “Reimbursement to

Commodity Credit Corporation for special milk program" for increased pay costs...

-357,000 Total appropriation or estimate.... 9, 360,000 9,500,000

1 Represents obligations. Applied costs for 1962 are $8,980,113. The difference of $80,734 reflects, primarily, orders for printing and equipment placed in 1962 over such services and equipment used in that year.

? Includes $4,700 estimated to be transferred to “Salaries and expenses, General Administration," during fiscal year 1963 for the Office of the Inspector General.

Statement of obligations under allotments and other funds [Includes only those amounts which, by Nov. 30, 1962, were actually received or programed for 1963 or

1964. Since work for other agencies is performed on a service basis, at the request of those agencies and for their benefit, it is not practicable to estimate in advance the amounts to be received in some cases]

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Mr. WHITTEN. We shall be glad to have your statement now.

Mr. KOFFSKY. Mr. Chairman, the new members we have with us at this time are Mr. Harry Steele, who is the Director of the Resource Development Economics Division, and Mr. George Waldman, who is Chief of the Budget Branch. We will supply brief biographical sketches for the record.

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