EXPLANATION OF PROGRAM The programs of the Office of Transportation are carried out under the authority of the (1) Agricultural Marketing Act of 1946, (2) Agricultural Adjustment Act of 1938, (3) Rural Development Act of 1972, and (4) Agricultural Trade and Assistance Act of 1954. These activities are designed to assure that the transportation system will adequately serve the agricultural and rural areas of the United States and will provide the services necessary to assure the residents of these areas adequate facilities for the movement of agricultural commodities and people. The main areas of responsibility are providing technical assistance to shippers and carriers, technological research, development, and demonstrations in agricultural transport equipment, participation in transportation regulatory actions before various Federal agencies, and providing economic analyses to enable the Department of Agriculture to develop policy recommendations for addressing current or anticipated problems in domestic and international agricultural transportation. JUSTIFICATION OF INCREASES AND DECREASES (1) A net decrease of $2,000 for transportation activities consisting of: (b) A decrease of $9,000 for reduced costs of printing periodicals and (c) A decrease of $86,000 to reflect completion of evaluations of the impact on agriculture of deregulation in the transportation industry ($86,000 available in FY 1982). Need for Change. In FY 1981, the Rail and Motor Carrier Act was passed Status of Program Current Activities: The primary objective of the Office of Transportation is to enhance and improve the transportation system for agriculture and rural areas in the United States. There are several major areas of responsibility: Technical research and development activities are performed by a staff of transportation specialists, engineers, and economists. This staff develops better ways of transporting agricultural products to domestic and overseas destinations by extending the newest technological innovations to the needs of the agriculture and transportation industries and consumers. Transportation rate and service analyses assure farmers and agricultural shippers fair and effective representation before various regulatory agencies. These regulatory agencies determine rate and service charges for the transportation of agricultural commodities. Economic analyses are performed to enable the Department of Agriculture to develop policy recommendations for addressing current or anticipated problems in agricultural transportation and to assist agricultural shippers and receivers to obtain adequate transportation services. Performance of the above duties will help assure that U.S. agriculture continues to have effective access to domestic and international markets for its products and that transportation resources are used efficiently. Selected Examples of Recent Progress: Initiated a major inter-Departmental effort to assess the impact on agriculture of rail and motor carrier regulatory reform. Issues analyzed included rail treatment of the "captive" agricultural shipper and receiver, branchline abandonment, rail ratemaking flexibility and new freedoms for motor carriers serving agricultural and rural areas. At the request of U.S. and Mexican government officials and industry, the Office was called upon to provide a massive technical assistance effort when purchasing of agricultural commodities by Mexico more than doubled in less than a year. Completed a major study performed at the request of 21 regional cooperatives to help them reduce the physical distribution costs of providing farm inputs to their farm members. Personnel in the Office completed or initiated 31 economic and research studies and handled over 4,000 "one-on-one" requests for assistance from every facet of the agricultural, rural and transportation sectors. Completed agricultural transportation technology research studies on reducing transportation and handling costs of fresh fruit and vegetable shipments to overseas military installations; safer and less costly means to export livestock by both ship and airplane; improved transportation and handling methods to reduce quality losses in soybeans; and updated the "Export Handbook" which describes the most recent innovations in how to handle and transport agricultural commodities for overseas shipment. Obligations by State: Following is a distribution of obligations by State for the Office of Transportation FY 1981 FY 1982 FY 1983 TUESDAY, MARCH 16, 1982. PACKERS AND STOCKYARDS ADMINISTRATION WITNESSES C. W. McMILLAN, ASSISTANT SECRETARY FOR MARKETING AND INSPECTION SERVICES B. H. (BILL) JONES, ADMINISTRATOR, PACKERS AND STOCKYARDS ADMINISTRATION JAMES L. SMITH, DEPUTY ADMINISTRATOR CALVIN W. WATKINS, ASSISTANT TO THE ADMINISTRATOR REGINALD J. HALEY, BUDGET ANALYST, AGRICULTURAL MARKETING SERVICE STEPHEN B. DEWHURST, BUDGET OFFICER, DEPARTMENT OF AGRICULTURE OPENING REMARKS Mr. WHITTEN. The Committee will come to order. We have Mr. McMillan with us again today. Is the whole Department under you, Mr. McMillan? Mr. MCMILLAN. It appears that way, doesn't it, Mr. Chairman. Mr. WHITTEN. I think so sometimes. We are glad to have you back with us. The Packers and Stockyards Act has been a Department operation for many, many years. It got to the point a while back where we got lots of complaints from those dealing with the Packers and Stockyards people that they could not find the person who actually made decisions because there were two or three layers between the Packers and Stockyards head and the Secretary, and two or three more layers below that. At our insistence, Mr. Freeman to let it be a separate unit so that the folks who decide the problems would get the work rather than the public having to go to someone else. I thought it worked rather well. The Secretary, this last four years, decided to put it back the way it was, and we made no complaint. So we are experienced with both structures. The Packers and Stockyards Administration for a long time had a very limited number of employees, because we had to wait until the need was fully understood. We waited and I think now it renders great service to the country's yards. It was a long time before we funded much Federal activity, because it shouldn't be done until the public is ready. It has been some time since I have had any complaints about its operation. For a long time it was a matter of some complaint that they operated through cease and desist orders. Somebody would accept an order to cease and desist when they didn't really think there was anything to cease and desist from, but they did it to avoid the courts. I had one man in my area, and he told me he was ready to go to court; he wasn't going to have his reputation damaged by any cease and desist order. He met them head-on and they backed off. We want to be sure the act is carried out, but we want it done from a practical standpoint. We feel like that is what we now have. Mr. McMillan, why don't you present those who are new here? We will include biographical sketches in the record. INTRODUCTION OF WITNESSES Mr. MCMILLAN. Thank you very much, Mr. Chairman. I am delighted to be back before the Subcommittee again. You probably will heave a sigh of relief when you find that the last two agencies that report to me will be heard this afternoon before the Subcommittee, so this will wrap it up. Mr. WHITTEN. You will get like some of the other witnesses. You ask them a question, and they talk all day but never get to the point. Mr. MCMILLAN. I also thank you for your comments about the Packers and Stockyards Administration. Upon becoming Assistant Secretary, I felt very strongly that Packers and Stockyards should be removed from the Agricultural Marketing Service as a regulatory agency and once again established as a separate agency. So your background and your basic endorsement of the Packers and Stockyards Administration is most appreciated. Accompanying me today is Bill Jones, the administrator of the Packers and Stockyards Administration; Jim Smith, who is the Deputy Administrator of the Packers and Stockyards Administration; Cal Watkins, Assistant to the Administrator, Packers and Stockyards Administration; Reginald Haley, Budget Analyst, Agricultural Marketing Service; and Steve Dewhurst, who is the Department's Budget Officer. Presenting the budget for P&SA is Mr. Jones. Mr. WHITTEN. I don't know whether Mr. Dewhurst is here to help us or whether he reports on what you all say. He's a good man. [The biographical sketches follow:] B. H. (BILL) JONES B. H. (Bill) Jones is currently the Administrator of the Packers and Stockyards Administration, U.S. Department of Agriculture. He is a native of Colorado and spent his early years ranching and farming in Western Colorado. He attended Colorado State University where he received his B.S. in Animal Husbandry and he received his M.S. in Agricultural Economics from the University of Illinois, Urbana. Mr. Jones was Vice President of the National Cattlemen's Association from 1977 until he joined P&SA in October 1981. From 1971 to 1977, he was Executive Vice President of the National Livestock Feeders Assn. Prior to that, from 1961 to 1967, he was Assistant Director of the Nebraska Department of Agriculture. JAMES L. SMITH James Smith is currently the Deputy Administrator of the Packers and Stockyards Administration, U.S. Department of Agriculture. He is a native of Geary, Oklahoma and grew up on a livestock and grain farm. He attended Oklahoma State university and received his B.S. in Animal Husbandry. |