Coordinating supply and demand by Hawaii's fruit and vegetable cooperatives. 0 Cost allocation in grain and farm supply cooperatives. 0 Management controls and organization for maximum operating efficiency and elevator business management. Strategic planning in the cooperative grain industry. The role of cooperatives in price discovery. Measuring the impact of cooperative bargaining associations. Role of cooperatives in rice marketing. Evaluation of factors that adversely affect cooperative Cooperatives' potential role in the corn products industry. 6. Dairy, Livestock, and Poultry - Underway Fluid milk processing costs in cooperative-owned plants. Costs of manufacturing cheddar cheese under various Measures to evaluate the performance of dairy cooperatives. Dairy, Livestock, and Poultry - Planned 0 Regional Cooperative Marketing Agency Will the Northeast experiment work. Dairy cooperative operations in a market-oriented pricing Dairy cooperative sector model for policy analysis. An alternative structure for very large dairy cooperatives. Implications for cooperative action by livestock producers. 7. Farm Supplies Local-regional relationships in a federated system, part 2. Impact analysis model of the nitrogen fertilizer industry. Cost structure and service alternatives for serving both large 8. Development of a farm supply cooperative trade area decision making aid. The "mini-regional:" Evolution of a new cooperative Analysis of a least-cost national fertilizer distribution Feed manufacturing by cooperatives. Analysis of manufacturing costs at cooperative feed mills. Competitiveness of cooperatives in agricultural chemicals. Exports of high-value products to Pacific-Rim Countries. Marketing orders as a tool to promote exports. International Trade Planned Directory of cooperative exporters. International joint ventures. Coordinating fresh fruit exports. Impact of a free trade zone with Canada. 9. Cooperative Development - Underway Factors critical for the success or failure of emerging Key factors contributing to success and failure of Cooperative Development - Planned Development of planning guides for cooperative fresh vegetable marketing facilities. Development of programs to raise the level of awareness of the Agency's cooperative development program and services among rural resource persons. o A system for evaluating the potential for new cooperatives. FRIDAY, MARCH 18, 1988. OFFICE OF TRANSPORTATION WITNESSES KENNETH GILLES, ASSISTANT SECRETARY, MARKETING AND INSPECTION SERVICES MARTIN F. FITZPATRICK, JR., ADMINISTRATOR, OFFICE OF TRANSPORTATION WESLEY R. KRIEBEL, DEPUTY ADMINISTRATOR, OFFICE OF TRANSPORTATION KEVIN SHEA, CHIEF, PROGRAM ANALYSIS BRANCH, BUDGET AND ACCOUNTING DIVISION, ANIMAL AND PLANT HEALTH INSPECTION SERVICE STEPHEN B. DEWHURST, BUDGET OFFICER, DEPARTMENT OF AGRICULTURE OPENING REMARKS Mr. WHITTEN. We turn now to the Office of Transportation. About 35 times we've had to save the Agricultural Conservation Program. Just about that many times we've had to restore funds for this office and wholesale market development. Both have helped American cities provide transportation and market facilities which are good for the consumer and the producer. They have been especially helpful to those who produce perishable commodities for consumption in large cities. Formerly, they would send chicken, beef, and other commodities to such places as New York City and they would lie out on the sidewalk until they could be sold. While they would be controlled in transit, they would not be controlled after they got to their market destination. Not only that, but if the producer had to carry them one day longer it would eat up all the profits. He had to kill poultry for example, send it to Indianapolis, and try to sell it while it was on its way. If he had storage at some facility where he could hold it, then he could bargain, otherwise he would lose out. I think that these programs are among the finest things we have ever funded. But this committee, with the support of the Congress, has had to restore funds for these activities year after year. And it is happening again this year. Your prepared statement, which we'll include for the record, says, "The fiscal year 1989 budget proposes to eliminate the Office of Transportation by September 30, 1989." TRANSPORTATION PROBLEMS In looking at this story here you go on to say: "The physical problem is the continuing deterioration of the rural transportation system." Now this is what you tell us. Then looking further, you say, "Railroads have abandoned unprofitable lines and have instituted procedures to minimize the time rail cars are not actually carrying loads." Looking further, you say this: "Other shippers are finding that they will have to pay a large surcharge to ship by rail." Continuing, you say this: "Large bus companies are abandoning many rural lines which they view as unprofitable." Carrying it further, you say: "The proposal to institute a single commercial driver's license could place an additional burden on rural Americans.' Then you go on in the next paragraph, "The key point is that efforts to increase exports will not succeed if we cannot transport our agricultural commodities efficiently. Then this next gem, "Our major role in OT has been to raise awareness, study trends, and offer individual assistance for specific problems. Then, in the next paragraph, "We have focused our efforts on the major problems I have mentioned. We remained heavily involved in helping to find ways to fill the service gaps I spoke of earlier." Then, the next two paragraphs, "In fiscal year 1987 we continued our activities in the international arena as part of the effort to enhance exports." and "We also provided technical assistance to American exporters." In the last paragraph, you say, "Office of Transportation has developed a strong base of knowledge that will remain available for use by other Federal and State agencies and private organizations as they deal with the problems of rural and agricultural transportation.' [CLERK'S NOTE.-The prepared statement of Mr. Fitzpatrick appears on pages 588 through 593. The explanatory notes appear on pages 596 through 611.] REDUCTION JUSTIFICATION Mr. WHITTEN. Apparently, you see that the job is so big and so great that you might just as well throw up your hands and quit. Mr. FITZPATRICK. Well, it's a very big job. Mr. WHITTEN. Let the Office of Management and Budget decide that. If you have that much of a problem, have you decided you should just quit trying? Do you sense what they have in mind? Mr. FITZPATRICK. I'm not sure about the philosophy, but I do know that there- Mr. WHITTEN. You're not aware of the philosophy, but you're aware of the effect. Mr. FITZPATRICK. The budget deficit- Mr. WHITTEN. I said, you're aware of the effect. Mr. FITZPATRICK. Yes, sir. Mr. WHITTEN. What is the effect? To make it worse, isn't it? OVERALL BUDGET REQUEST Mr. WHITTEN. Please provide for the record a table showing the Office of Transportation's Fiscal Year 1989 budget request to the Assistant Secretary, the Assistant Secretary's recommendations to |