Agricultural Marketing Service
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2016 Explanatory Notes Agricultural Marketing Service Contents Page Purpose Statement ....................................................................................................................... 21-1 Statement of Available Funds and Staff Years ........................................................................... 21-8 Permanent Positions by Grade and Staff Year Summary ............................................................ 21-9 Motor Vehicles Fleet Data .......................................................................................................... 21-10 Marketing Services: Appropriations Language ....................................................................................................... 21-11 Lead-off Tabular Statement ..................................................................................................... 21-11 Project Statement ..................................................................................................................... 21-12 Justifications ............................................................................................................................ 21-14 Geographic Breakdown of Obligations and Staff Years ......................................................... 21-22 Classification by Objects ........................................................................................................ 21-23 Status of Programs .................................................................................................................. 21-24 Limitation of Administrative Expenses ...................................................................................... 21-49 Payments to States: Appropriations Language ....................................................................................................... 21-50 Lead-off Tabular Statement .................................................................................................... 21-50 Project Statement ..................................................................................................................... 21-51 Geographic Breakdown of Obligations and Staff Years ......................................................... 21-52 Classification by Objects ........................................................................................................ 21-55 Status of Programs .................................................................................................................. 21-56 Perishable Agricultural Commodities Act Fund: Lead-off Tabular Statement .................................................................................................... 21-60 Project Statement ..................................................................................................................... 21-61 Geographic Breakdown of Obligations and Staff Years ......................................................... 21-61 Status of Programs ................................................................................................................. 21-62 Section 32: Appropriations Language ....................................................................................................... 21-63 Lead-off Tabular Statement ..................................................................................................... 21-64 Project Statement ..................................................................................................................... 21-66 Justifications ............................................................................................................................ 21-68 Geographic Breakdown of Obligations and Staff Years ......................................................... 21-69 Status of Programs .................................................................................................................. 21-70 Shared Funding Projects ….. ....................................................................................................... 21-76 Summary of Budget and Performance: Key Performance Outcomes and Measures ............................................................................ 21-78 Strategic Goals and Objectives Funding Matrix ...................................................................... 21-82 Full Cost by Strategic Objective ............................................................................................. 21-83 AGRICULTURAL MARKETING SERVICE Purpose Statement The mission of the Agricultural Marketing Service (AMS) is to facilitate the strategic marketing of agricultural products in domestic and international markets, while ensuring fair trading practices and promoting a competitive and efficient marketplace to the benefit of producers, traders, and consumers of U.S. food and fiber products. AMS carries out a wide range of programs under the authorization of the Agricultural Marketing Act of 1946 as well as over 50 other statutes. More than half of the funds needed to finance AMS activities (excluding commodity purchase program funds) are derived from voluntary user fees. AMS also provides services for private industry and State/Federal agencies on a reimbursable basis. In addition, AMS conducts several appropriated program activities through cooperative arrangements with State Departments of Agriculture and other agencies. 1. Market News Service: The Market News program is authorized by the following statutes: Agricultural Marketing Act of 1946 Agricultural and Food Act of 1981 (as amended by the Food Security Act of 1985) The Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) Cotton Statistics and Estimates Act of 1927 The Mandatory Price Reporting Act of 2010 Peanut Statistics Act Naval Stores Act Tobacco Inspection Act of 1935 U.S. Cotton Futures Act The AMS Market News service collects, analyzes, and disseminates market information to the public for numerous agricultural commodities, including cotton, cottonseed, and tobacco; dairy products; fruits, vegetables and ornamentals; livestock, meat, grains, poultry and eggs; organic products. Market information covers local, regional, national, and international markets and includes current data on supply, movement, contractual agreements, inventories, and prices for agricultural commodities. Market News data provides producers and marketers of farm products and those in related industries with timely, accurate, and unbiased market information that assists them in making the critical daily decisions of where and when to sell, and at what price; thereby enhancing competitiveness and helping to increase the efficiency of agricultural marketing systems. Federal and State reporters obtain market information, which AMS experts analyze, compile, and immediately disseminate to the agricultural community, academia, and other interested parties. National information is integrated with local information and released in a form easily understood by the industry and locality served. Electronic access through internet-released market news reports and e-mail subscriptions makes Market News information quickly and widely available. The Market News Portal offers data in the format requested by the user such as customized reports, graphs, and dashboards. 2. Shell Egg Surveillance and Standardization: These programs are authorized by the following statutes: Egg Products Inspection Act Agricultural Marketing Act of 1946 a. Shell Egg Surveillance: AMS supports egg marketing by ensuring that cracked, leaking, or other types of “loss” (restricted) eggs are diverted from table egg consumption and by verifying that marketed eggs have a quality level of at least U.S. Consumer Grade B. AMS conducts this program, in cooperation with State Departments of Agriculture, to ensure that shell egg handling operations are inspected at least four times annually and hatcheries are inspected at least once each year to control the disposition of certain types of under grade and restricted eggs. This program diverts eggs that are not at least U.S. Consumer Grade B-- 21-1 AGRICULTURAL MARKETING SERVICE and which cannot be sold in shell form--to egg breaking plants, which reassures buyers and supports efficient markets. b. Standards Development: AMS develops, reviews, and maintains agricultural commodity standards that describe product quality attributes such as taste, color, texture, yield, weight, and physical condition for use in the trading of agricultural commodities. These standards provide a common language for buyers and sellers of commodities and are widely used by the agricultural industry in domestic and international trading, futures market contracts, and as a benchmark for purchase specifications in most private contracts. AMS grade standards are the basis for AMS Market News reports, grading services for cotton, milk and dairy products, eggs, fresh and processed fruits and vegetables, livestock, meat, olive oil, peanuts, poultry, rabbits, tobacco, and Federal commodity procurement. To support international markets, AMS provides technical expertise to international standards organizations to protect the interests of U.S. agricultural producers. 3. Market Protection and Promotion Programs: AMS administers programs under several laws that stimulate innovative and improved commodity marketing, authorize the collection of pesticide application and residue information to ensure proper marketing practices, and provide assistance to industry-sponsored activities. In the administration of market protection and promotion activities,