WEDNESDAY, MARCH 6, 1963. AGRICULTURAL MARKETING SERVICE WITNESSES S. R. SMITH, ADMINISTRATOR ROY W. LENNARTSON, ASSOCIATE ADMINISTRATOR OMER W. HERRMANN, DEPUTY ADMINISTRATOR, MARKETING RESEARCH GEORGE R. GRANGE, DEPUTY ADMINISTRATOR, MARKETING SERVICES CLARENCE H. GIRARD, DEPUTY ADMINISTRATOR, REGULATORY PROGRAMS HENRY G. HERRELL, DEPUTY ADMINISTRATOR, MANAGEMENT ARTHUR J. HOLMAAS, DIRECTOR, BUDGET AND FINANCE DIVISION GEORGE GOLDSBOROUGH, DIRECTOR, MATCHED FUND PROGRAM HOWARD P. DAVIS, DIRECTOR, FOOD DISTRIBUTION DIVISION MRS. K. L. McALEXANDER, CHIEF, BUDGET BRANCH, BUDGET AND FINANCE DIVISION CHARLES L. GRANT, DIRECTOR OF FINANCE AND BUDGET OFFICER, DEPARTMENT OF AGRICULTURE Mr. WHITTEN. Gentlemen, the committee will turn now to the Agricultural Marketing Service. In that connection, I should like to have pages 50 through 57, 99, 101, 106, 112, 121 through 123, 140, 146, and 147 included in the record. (The material requested follows:). 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 primarily 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) Other 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, American Samoa and Guam for use in serving nutritious lunches 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. Thes a ctivities 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; distribution of Commodity Credit Corporation donated commodities to eligible outlets authorized under section 416; and cooperation with the food trade and others to encourage greater consumption of abundant foods; (b) Formulation and administration of marketing agreements and orders. 6. Food stamp program.-This program, operating on a pilot basis in fiscal year 1963, i aimed at increasing domestic consumption of agricultural commodities by provi ing 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. discussion of this activity is included in these explanatory notes under the appropriation "Salaries and expenses (special foreign currency program), Agricultural Research Service." A 8. Food management preparedness.-Pursuant to Executive Order 10998 delegating certain defense responsibilities to the Department, the Agricultural Marketing Service is assigned preemergency preparedness and emergency operations relating to management of food supplies. This involves developing standby plans and programs for the management of the Nation's food supply from the farm through wholesale channels, including coordination with other agencies assigned separate but closely related functions. To the extent possible, this work is integrated with other day-to-day operations through the part-time efforts of employees regularly assigned to the agency programs. These efforts are coordinated by a few full-time personnel. Part of this full-time staff is financed by funds allocated from the Office of Emergency Planning. 9. 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 tle program of the Agricultural Marketing Service is carried on through field branch offices of the several Washington commodity and functional divisions in about 225 cities and towns in the various States, Puerto Rico, and Canada. On November 30, 1962, there were 8,004 full-time employees, distributed 1,354 in the District of Columbia metropolitaɛ area and the remainder in the field. In addition, there were 1,206 part-time and intermittent employees, primarily in the field. Further, on December 23, 1962, there were transferred to the Agricultural Marketing Service from Agricultural Stabilization and Conservation Service, pursuant to Secretary's Memorandum No. 1520, dated November 15, 1962, 1,232 full-time employees, including 1,121 in the offices of the Milk Market Administrators. This transfer placed all marketing agreements and orders work in the Agricultural Marketing Service. 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 $5,000,000 estimated unobligated balance proposed for transfer to other appropriations for increased pay costs. Includes transfers of $45,000,000 in 1963 and 1964 from sec. 32 funds for purchase of agricultural commodities for distribution to schools participating in the national school lunch program, Summary of appropriations, 1963, and estimates, 1964 1 Excludes $5.000.000 estimated unobligated balance proposed for transfer to other appropriations for increased pay costs. Includes $45,000,000 transfer from "Removal of surplus agricultural commodities" in fiscal years 1963 and 1964 respectively. Excludes transfers out of $53,188,342 and $53,317,000 in 1963 and 1964 respectively. In addition, an unobligated 1962 balance of $300,000,000 is available in fiscal year 1963 and $300,000,000 is estimated to be carried forward into 1964. In addition, an unobligated balance of $173,579 is available in fiscal year 1963, and $53,579, is estimated to be carried forward in 1964. In addition the 1964 budget includes proposed legislation which would provide a direct appropriation of $25 million in 1964 for the food stamp program. PROPOSED TRANSFER IN THE 1964 BUDGET ESTIMATES The budget estimates for 1964 under the appropriation, "Marketing research and service" reflect a proposed transfer in the estimates of $123,400 to the Farmer Cooperative Service in 1964. This is the amount of the transfer which Agricultural Marketing Service has budgeted in 1963 to finance, in Farmer Cooperative Service, marketing research to improve the efficiency of operations of agricultural cooperatives. Farmer Cooperative Service has participated in the work authorized by the Agricultural Marketing Act (RMA title II) from its inception. Since the establishment of Agricultural Marketing Service, Farmer Cooperative Service has continued this marketing activity through yearly fund advances. This proposed transfer in the estimate will simplify budgetary control and administration of the activity, and provide for review of work with cooperatives at one point in the budget. Appropriation Act, 1963_.. Base for 1964_. Budget estimate, 1964.. Increase.. SUMMARY OF INCREASES AND DECREASES, 1964 For providing for an increasing volume of poultry products inspection__._ For mandatory reimbursement to the employees compensation fund for payments made during fiscal year 1962... For strengthening the administration of the U.S. Warehouse Act__ For postal costs pursuant to Public Law 87-793- +350, 000 +19, 700 +155, 900 - 116, 700 +163, 000 +1, 369, 000 +1, 940, 900 95910-63-pt. 3--13 |