Year 1983. The cost of the equipment is estimated to be in the range of $25,000 to $30,000. LIMITATION ON ADMINISTRATIVE EXPENSES Mr. WHITTEN. The Fiscal Year 1982 Appropriations Bill contains a limitation of $23,000,000, from fees collected, on the amount that can be obligated for administrative expenses. How much do you anticipate collecting during fiscal year 1982? Mrs. THYMIAN. We currently estimate that we will collect approximately $29.2 million from our warehouse examination and cotton, tobacco, and naval stores grading programs. Of this amount approximately $22.8 million in revenues will be subject to the $23 million administrative expense limitation. The $6.4 million not subject to the limitation consists of reimbursements from CCC for warehouse examination and $312,000 for permissive tobacco inspection. Mr. WHITTEN. What will happen to the funds that you collect in excess of the $23,000,000 limitation? Mrs. THYMIAN. We do not anticipate collecting more than the $23 million for those programs subject to the limitation. The grading programs are subject to unpredictable production fluctuations. If, due to such fluctuations, it appeared that this expense limitation would be exceeded, we would either have to obtain your permission to exceed the limitation or refuse service when the $23 million figure was reached. BLYTHEVILLE COTTON MARKETING OFFICE Mr. WHITTEN. The fiscal year 1982 appropriation language provides that not less than $250,000 of your appropriation is available only for the Blytheville, Arkansas, Cotton Marketing Office. What have you done with this $250,000? Mrs. THYMIAN. The $250,000 in the appropriation language provided for the Blytheville, Arkansas, Cotton Marketing Office will be returned to the Treasury at the end of the fiscal year as unobligated funds. We feel this function is adequately serviced by our cotton classing office in Hayti, Missouri. Reopening the Blytheville office would entail additional expenses that would have to be recovered from the user fee program, perhaps resulting in an increase in the assessment. WHOLESALE MARKET DEVELOPMENT Mr. WHITTEN. For fiscal year 1983 you are proposing to terminate the wholesale market development program. You say that such research and assistance for improved food distribution can be provided as needed by the States or private resources. Please provide for the record a list of the States you contacted to verify that they have the research and design capabilities for setting up wholesale markets. Mrs. THYMIAN. AMS has not conducted a survey of the States or private resources to verify their capability to conduct the research and design work necessary to establish wholesale markets. However, it is assumed that observations of the benefits realized in States that have established wholesale markets will provide sufficient incentive for other States to allocate the resources necessary to conduct their own studies. It is believed that most States have planning and development commissions that, although lacking unique expertise in food distribution, might undertake these efforts. Mr. WHITTEN. How many people are currently assigned to the Wholesale Market Development Program by title and grade? Mrs. THYMIAN. The Wholesale Market Development Program is the principal in-house research activity of the Market Research and Development Division of AMS. There are currently 25 positions in this program. I would be happy to provide further detail for the record. Mr. WHITTEN. Would you please provide an object classification table for the wholesale market development program for fiscal year 1982. [The information follows:] Wholesale Market Development FY 1982 Object Class-1982 obligations Mr. WHITTEN. On page 40 of the notes you say that in fiscal year 1981, four wholesale market facilities studies and 12 research projects were completed. Would you please list these for the record? [The information follows:] WHOLESALE Market FACILITIES STUDIES COMPLETED IN FISCAL YEAR 1981 1. Northeastern New Jersey Wholesale Food Distribution Plan. This study has been presented to New Jersey officials but final report publication is still in process. 2. Montgomery, Alabama regional market. 3. Atlanta, Georgia upgrading and expansion of existing facilities. 4. Model development to assist in projecting facility expansion requirements. RESEARCH PROJECTS 1. Development of improved handling and shipping practices for the Florida State Farmers' Market system. 2. Design, operation, and feasibility of small on-farm egg grading and packing plant. ty. 3. Design, and operating procedures for two meat distribution warehouses. 4. Evaluation of slip sheets for unitized shipment of groceries in trailers. 5. Commercial plant systems for processing and handling cottage cheese whey. 6. Costs for handling shell eggs in a new facility compared with an existing facili 7. Evaluation of systems for distributing bread from wholesale distribution points to retail stores. 8. Evaluation of handling amd marketing systems for watermelons. 9. Evaluation of vendor delivery of grocery products to retail food stores compared to consolidated deliveries from a central distribution center. 10. Developing an in-line precipitator to recover egg solids from waste water. 11. Developing a reconstituted dairy products plant utilizing a sterilization processing and packaging system. 12. Potential for heat recovery from beef-rendering operations. Mr. WHITTEN. Would you please list for the record the work that you plan to complete during fiscal year 1982? [The information follows:] WHOLESALE MARKET DEVELOPMENT PROJECTS TO BE COMPLETED IN FISCAL YEAR 1982 1. Plan and promote improved Farmers' Market and wholesale distribution facilities in Asheville, North Carolina. na. 2. Evaluate and plan regional food distribution facilities in Pee Dee, South Caroli 3. Plan improved wholesale food distribution facilities in Raleigh, North Carolina. 4. Develop a computer model to project costs and facility requirements for wholesale food distribution centers. 5. Feasibility of expanding an egg grading and packing plant to eliminate a second shift. 6. The economic feasibility of expanding the fed beef production and processing sector in New York and the Northeast. 7. Facility improvements and long range development planning for the Columbia State Farmers' Market, Columbia, South Carolina. 8. Technical assistance in marketing animal products. 9. Evaluation of a shell egg packing plant layout. 10. Evaluation of egg packaging materials. 11. Fresh tomato marketing systems. 12. Analyze, plan, and promote improved methods, facilities, equipment, and systems for distributing food products. 13. A cost comparison of unloading products at final food distribution warehouses. 14. Unitized shipment of groceries in trailers. 15. Mushroom industry analysis. 16. Energy costs for marketing fresh beef. 17. Improvement of terminal facilities in Pittsburgh, Pennsylvania. Mr. WHITTEN. What work will be pending but not completed at the end of fiscal year 1982? Mrs. THYMIAN. We will provide that information for the record. [The information follows:] RESEARCH PROJECTS PENDING AT THE END OF FISCAL YEAR 1982 1. Evaluation of modular containers for use in handling and shipping fresh produce. 2. Evaluation of systems for exporting dry beans to Europe in van containers. 3. Feasibility of producing vegetables in eastern United States for local retail food stores. 4. Evaluation of handling and marketing systems for potatoes. 5. Evaluation of potentials for modularization of frozen food shipments. 6. Potential for cost reduction through computer use by independent wholesalers. 7. Evaluating dock layouts and cooler facility arrangements to increase dairy plant efficiency. 8. Recovering and using energy losses in dairy and other food processing plants. 9. Developing a prototype system for harvesting and handling fowl ova in slaughter plants. 10. An analysis of scanning and electronic cash registers to determine their feasibility in small food stores. 11. Evaluation of handling and marketing systems for cantaloupes. 12. Methods, facility, and labor used to package broilers. 13. Costs for packaging retail cuts of beef in vacuum and conventional packages. 14. Evaluating hot boning techniques in beef processing to reduce operating costs and improve labor productivity. 15. Improved handling of cotton samples. MARKET FACILITY PROJECTS PENDING AT THE END OF Fiscal Year 1982 1. Southern New Jersey-Plan and promote improved wholesale food marketing facilities. 2. Boston, Massachusetts-Expansion of existing produce market facilities. 3. Richmond and Lynchburg, Virginia-Farmers' Markets. 4. Charlotte, North Carolina-Proposed Farmers' Market. 5. No follow up assistance will be provided for: 1. Raleigh, North Carolina Wholesale Food Distribution Center Development. 2. Pee Dee, South Carolina Regional Food Distribution Center Development. Mr. WHITTEN. What is the current status of the Los Angeles Market? Mrs. THYMIAN. Terminal market wholesalers in Los Angeles failed to meet a March 1 deadline regaining signed contracts for 75 percent of the proposed space on the new market. Commitments are still needed for 23 bays or about 69,000 square feet of space. The city is requesting a 30-day extension to overcome this latest hurdle in implementing plans for a new market. FARMERS' MARKET Mr. WHITTEN. Did AMS play any role or provide any assistance to the farmers' market that is now operating at the D.C. Stadium? Mrs. THYMIAN. AMS played a resource coordinating role in developing the farmers' market at the Stadium by identifying contact persons in the nearby States and by providing results of similar efforts in other locations. FOOD COST SURVEY Mr. WHITTEN. What was the final result of the food cost survey that was conducted at Purdue University? Was this study ever published? Mrs. THYMIAN. A report on the study was published by Purdue University in February 1981. The findings of the study included a conclusion that price reporting can play an important competitive role in local food markets; consumers, however, did not engage in store switching during the limited time of the study. Consumers judged the price reports useful and accurate, but judged them less helpful than weekly grocery ads. Mr. WHITTEN. Are any further studies anticipated in this area? Mrs. THYMIAN. Nothing is planned by AMS at this time. FEDERAL-STATE MARKETING IMPROVEMENT PROGRAM Mr. WHITTEN. You are proposing to terminate the Payments to States and Possessions program. During the budget process, would you please describe what you requested for this program in your request to the Assistant Secretary, what you requested of the Office of the Secretary, and what the Office of the Secretary requested of the Office of Management and Budget? Mrs. THYMIAN. The Agency requested that funding be eliminated for the Federal State Marketing Improvement Program and the Office of the Secretary and the Office of Management and Budget concurred in this plan. Mr. WHITTEN. How do you plan to use the $1,000,000 that was appropriated for Payments to States and Possessions during Fiscal Year 1982? Mrs. THYMIAN. To date, two projects have been approved for funding, an aquaculture study in Hawaii for $146,000 and a project to describe and analyze the New Mexico wool marketing system for $48,167. I would be happy to provide for the record a listing of other applications for funds under this program. [The information follows:] Fiscal Year 1982 Federal-State marketing improvement program project applications Requested California-A study to identify and assess rail lines, bridges and roads which are essential to agriculture........ $30,000 California-A coordinated economic study of direct marketing in the San 6,000 Connecticut-Development of a direct marketing center 25,000 Connecticut-Development of Farmers' Markets on Fairgrounds. 14,000 Kansas-Project to develop a computer marketing service program for 15,000 Massachusetts-Continuation of Direct Marketing project 40,000 Minnesota-Direct Marketing program for the promotion, expansion and creation of new marketing opportunities for Minnesota-grown products and specialty crops.. 47,000 Missouri-Project to improve the marketing system for slaughter lambs.. North Dakota-Continuation of a project to expand North Dakota's export marketing programs........ 12,000 Oklahoma-Projects to analyze local agricultural transportation needs..... 19,000 30,000 |