2021 EXPLANATORY NOTES – AGRICULTURAL MARKETING SERVICE Agency-Wide Purpose Statement………………………………………………………………………………...23-3 Lead-off Tabular Statement ........................................................................................................... 23-13 Available Funds and Staff Years................................................................................................... 23-14 Permanent Positions by Grade and Staff Years .......................................................................... 23-15 Vehicle Fleet .................................................................................................................................... 23-16 Shared Funding Projects ................................................................................................................ 23-18 Account 1: Marketing Services Lead-Off Tabular Statement .......................................................................................................... 23-20 Appropriations Language ............................................................................................................. 23-20 Project Statement ............................................................................................................................ 23-21 Justifications .................................................................................................................................... 23-22 Proposed Legislation ...................................................................................................................... 23-35 New Administrative Action .......................................................................................................... 23-35 Geographic Breakdown of Obligations and Staff Years ............................................................ 23-36 Classification by Objects ................................................................................................................ 23-38 Status of Programs .......................................................................................................................... 23-39 Limitation on Administrative Expenses (Cotton and Tobacco) ............................................... 23-95 Account 2: Payments to States and Possessions Lead-Off Tabular Statement .......................................................................................................... 23-97 Appropriations Language ............................................................................................................. 23-97 Project Statement ............................................................................................................................ 23-97 Justification ...................................................................................................................................... 23-97 Proposed Legislation ...................................................................................................................... 23-99 Geographic Breakdown of Obligations and Staff Years .......................................................... 23-100 Classification by Objects .............................................................................................................. 23-103 Status of Programs ........................................................................................................................ 23-105 Account 3: Limitation on Fee Funded Inspection and Weighing, and Examination Services Lead-Off Tabular Statement ........................................................................................................ 23-109 Appropriations Language ........................................................................................................... 23-109 Project Statement .......................................................................................................................... 23-109 Geographic Breakdown of Obligations and Staff Years .......................................................... 23-110 23-1 2021 EXPLANATORY NOTES – AGRICULTURAL MARKETING SERVICE Classification by Objects .............................................................................................................. 23-111 Status of Programs ........................................................................................................................ 23-113 Account 4: Perishable Agricultural Commodities Act Fund Lead-Off Tabular Statement ........................................................................................................ 23-115 Project Statement .......................................................................................................................... 23-115 Geographic Breakdown of Obligations and Staff Years .......................................................... 23-115 Status of Programs ........................................................................................................................ 23-117 Account 5: Funds for Strengthening Markets, Income and Supply (Section 32) Lead-Off Tabular Statement ........................................................................................................ 23-119 Appropriations Language ........................................................................................................... 23-119 Project Statement .......................................................................................................................... 23-120 Proposed Legislation .................................................................................................................... 23-122 New Administrative Action ........................................................................................................ 23-122 Geographic Breakdown of Obligations and Staff Years .......................................................... 23-123 Status of Programs ........................................................................................................................ 23-125 Summary of Performance ................................................................................................................ 23-133 23-2 2021 EXPLANATORY NOTES – 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 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 current market information to assist producers and marketers of farm products and those in related industries in making critical daily decisions. Market News information covers local, regional, national, and international markets and includes data on supply, movement, contractual agreements, inventories, and prices for numerous agricultural commodities, both conventionally and organically produced. Reported commodities include cotton, cottonseed, and tobacco; dairy products; fruits, vegetables and ornamentals; livestock, meat, grains, poultry and eggs. 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 23-3 2021 EXPLANATORY NOTES – AGRICULTURAL MARKETING SERVICE 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 and 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