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SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONSOMENT
HOUSE OF REPRESENTATIVES

EIGHTY-EIGHTH CONGRESS

FIRST SESSION

SUBCOMMITTEE ON DEPARTMENT OF AGRICULTURE AND RELATED

AGENCIES APPROPRIATIONS

JAMIE L. WHITTEN, Mississippi, Chairman WILLIAM H. NATCHER, Kentucky

WALT HORAN, Washington
JOSEPH P. ADDABBO, New York

ROBERT H. MICHEL, Illinois
Ross P. POPE, Staff Assistant to the Subcommittee

PART 3

(Pages 1089 to 2151)
AGRICULTURAL MARKETING SERVICE
COMMODITY EXCHANGE AUTHORITY
ECONOMIC RESEARCH SERVICE
FOREIGN AGRICULTURAL SERVICE
AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE
STATISTICAL REPORTING SERVICE

Printed for the use of the Committee on Appropriations

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1968

95910

COMMITTEE ON APPROPRIATIONS

GEORGE W.MON, Texas

CLARENCE CANNON, Missouri, Chairman

BEN F. JENSEN, Iowa
HARRY RUTEPPARD, California

WALT HORAN, Washington
ALBERT THOMAS, Texas

GERALD R. FORD, JR., Michigan
MICHAEL J. KIRWAN, Ohio

HAROLD C. OSTERTAG, New York
JAMIE L. WHITTEN, Mississippi

FRANK T. BOW, Ohio
GEORGE W. ANDREWS, Alabama

CHARLES RAPER JONAS, North Carolina
JOHN J. ROONEY, New York

MELVIN R. LAIRD, Wisconsin
J. VAUGHAN GARY, Virginia

ELFORD A. CEDERBERG, Michigan
JOHN E. FOGARTY, Rhode Island

GLENARD P. LIPSCOMB, California
ROBERT L. F. SIKES, Florida

JOHN J. RHODES, Arizona
OTTO E. PASSMAN, Louisiana

JOHN R. PILLION, New York
JOE L. EVINS, Tennessee

WILLIAM E. MINSHALL, Ohio
JOHN F. SHELLEY, California

ROBERT H. MICHEL, Illinois
EDWARD P. BOLAND, Massachusetts SILVIO O. CONTE, Massachusetts
WILLIAM H. NATCHER, Kentucky WILLIAM H. MILLIKEN, JR., Pennsylvania
DANIEL J. FLOOD, Pennsylvania

EARL WILSON, Indiana
WINFIELD K. DENTON, Indiana

ODIN LANGEN, Minnesota
TOM STEED, Oklahoma

WILLIAM HENRY HARRISON, Wyoming
JOSEPH M. MONTOYA, New Mexico BEN REIFEL, South Dakota
GEORGE E. SHIPLEY, Illinois

LOUIS C. WYMAN, New Hampshire
JOHN M. SLACK, JR., West Virginia
JOHN LESINSKI, Michigan
JOHN J. FLYNT, Georgia
NEAL SMITH, Iowa
KOBERT N. GIAIMO, Connecticut
JULIA BUTLER HANSEN, Washington
EDWARD R. FINNEGAN, Illinois
CHARLES S. JOELSON, New Jersey
JOSEPH P. ADDABBO, New York

KENNETH SPRANKLE, Clerk and Staf Director

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 ECO

NOMICS, ECONOMIC RESEARCH SERVICE CARL P. HEISIG, DEPUTY ADMINISTRATOR, AGRICULTURAL ECO

NOMICS, ECONOMIC RESEARCH SERVICE HARRY A. STEELE, DIRECTOR, RESOURCE DEVELOPMENT ECO

NOMICS 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

SALARIES AND EXPENSES

Object classification
[In thousands of dollars)

[graphic]

Total personnel compensation. 12 Personnel benefits.. 21 Travel and transportation of persons. 22 Transportation of things.. 23 Rent, communications, and utilities. 24 Printing and reproduction.. 25 Other services..

Services of other agencies. 26 Supplies and materials. 31 Equipment

Total obligations

6, 548

487 433

26 113 181 718 320

62 173

7,537

570 322

11 107

70 449 243 65 49

8, 350

626 350

10 124 170 366 245 65 45

9,061

9,523

10, 351

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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 Seryice 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 ad. vantageously 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

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