To Members of the NASULGC System:

The House Agriculture Appropriations Subcommittee met this morning to receive testimony on the research, education, and extension components of the president's F.Y. 2005 budget request for the U.S. Department of Agriculture. Appearing on behalf of the administration were:

• Joseph J. Jen, USDA Under Secretary for Research, Education and Economics
• Edward B. Knipling, Acting Administrator, Agricultural Research Service
• Colien Hefferan, Administrator, Cooperative State Research, Education, and Extension Service
• Susan E. Offutt, Administrator, Economic Research Service
• R. Ronald Bosecker, Administrator, National Agricultural Statistics Service
• Stephen B. Dewhurst, USDA Budget Officer

Links to Written Statements:
Undersecretary Jen
CSREES Administrator Hefferan
Acting ARS Administrator Knipling

Six members of the subcommittee attended all or part of the hearing, including:

• Henry Bonilla (R-TX), Chairman
• Marcy Kaptur (D-OH), Ranking Democrat
• Tom Latham (R-IA)
• Sam Farr (D-CA)
• Allen Boyd (D-FL)
• Virgil Goode (I-VA)

The hearing began with Dr. Jen who read a prepared statement. Members of the subcommittee then asked questions of the witnesses. Paraphrased excerpts from this Q&A session follow:

Rep. Bonilla: The president's budget request proposes elimination of "congressional initiated research" projects, but does include funding for at least 10 CSREES "administration" earmarks. Why? Dr. Jen: The administration favors competitive grants.

Rep. Bonilla: The F.Y. 2004 bill requires the administration to submit detailed justification in the explanatory notes when it proposes to eliminate any congressionally initiated research projects. Why aren't these justification statements included in the notes? Mr. Dewhurst: Given the delayed enactment of the F.Y. 2004 bill, there wasn't time, but we will provide those to the subcommittee.

Rep. Bonilla: The president's budget proposes a $6 million increase in the Expanded Food and Nutrition Education Program (EFNEP). Would the increase go to replace the funds cut last year? Dr. Hefferan: Yes, the budget proposes to restore EFNEP to approximately the F.Y. 2003 enacted level. (Dr. Hefferan then went on to describe various benefits from EFNEP.)

Rep. Farr: By what amount has specialty crops research increased under this administration? Dr. Jen: I don't know off-hand. We'll provide that information for the record.

Rep. Kaptur: Not counting the $178 million included to complete the new ARS facility at Ames, Iowa, how much is the USDA (research, education, and economics) request down from last year? Answer: If you don't include the $178 million for Ames, we would be down $244 million from F.Y. 2004.

Rep. Kaptur: Has the department had any Nobel prize winners? Answer: One, at ARS, about 30 years ago.

Rep. Kaptur: To what extent is your budget leading us to the future? All you seem to be doing is "responding." I don't see a research agenda for the future. Defend yourself: where is your vision in this budget? Dr. Jen: Genomics is one area. We're collaborating closely with NASA to combine databases for another. A third area is bringing nanotechnology to agriculture.

Rep. Latham: What are you doing with respect to genetic research into BSE? How about soybean rust? Answer: We're working diligently in both those areas.

Rep. Boyd: We put $3 million in last year's bill for climate forecasting. Your budget request zeroed this out? Answer: Yes, this was not included in the budget (it was one of the congressional earmarks).

Rep. Boyd: Are you conducting an annual survey of ARS facilities? Dr. Jen: I have visited some of those facilities in Florida. I know there are many pressing needs.

Rep. Farr: Funding for the organic transition program would be cut by $1.5 million in this budget? Answer: Yes, the requested level is $499,000. The F.Y. 2004 enacted level was $2.1 million.

Rep. Boyd: The IR-4 minor crop pest management program would be level funded in your budget. How will that level of funding address the backlog in approvals? Dr. Hefferan: The IR-4 program is jointly funded by CSREES, ARS, states, universities, and industry. The 10% cut imposed on this program in the F.Y. 2004 bill means that 80 pests, affecting 30 specialty crops won't be addressed.

Rep. Goode: Was funding for the Steele's Tavern Initiative cut? Answer: Yes, this ARS program would be reduced by $1.5 million.

Rep. Kaptur: If bio-fuels and bio-products are a priority for this administration, why have you cut funding at ARS by $5 million and $2 million at CSREES? Answer: This is still a priority area for us and base funds are intact.

Rep. Kaptur: Did you know that half of the cost of being in the greenhouse industry is energy? What is the department doing to reduce greenhouse energy use? Answer: We'll provide an answer for the record.

Rep. Farr: In light of the fact that best practices for the use of methyl bromide indicate it can be used without adding to the greenhouse gas problem, what is the department doing? Answer: We're involved in developing alternatives to methyl bromide but not in the greenhouse gas arena.

Rep. Farr: Does ARS have a policy of requiring its employees to get prior approval before publishing or speaking about "high visibility" or "sensitive" issues? Answer: ARS handles most of these issues in the field. However, for some "high visibility" issues, we ask that they keep the ARS HQ office informed.

Rep. Kaptur: The 2002 farm bill raised the floor for the 1890s Institutions in Smith-Lever and Hatch formula funds. Why hasn't the department followed suit? Dr. Hefferan: The primary sticking point is the required state match. The required match is now 60% and that is going up to 70%. Some of the institutions are unable to meet the matching requirements. So, we're trying to address some of the systemic problems at the 1890s institutions through the capacity building and facilities line items, which don't require matching funds.

Rep. Kaptur: Have you looked at ways to help the 1890s institutions take advantage of international opportunities? There are probably lots of cooperative opportunities. Answer: Good suggestion. We'll take it under advisement.

Rep. Kaptur: I'm concerned about the concentration in our seed stock industry. What reports have been done lately on the structure of America's seed stock business? Answer: Economic Research Service has recently looked into this matter.

Fred H. Hutchison
Fleishman-Hillard Government Relations