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AGRICULTURE, RURAL DEVELOPMENT AND
RELATED AGENCIES APPROPRIATIONS
FOR 1986

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON APPROPRIATIONS

HOUSE OF REPRESENTATIVES

NINETY-NINTH CONGRESS
FIRST SESSION

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Animal and Plant Health Inspection Service........

Food Safety and Inspection Service....

46-085 O

Printed for the use of the Committee on Appropriations

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1985

Page

1

67

67

67

237

451

COMMITTEE ON APPROPRIATIONS

JAMIE L. WHITTEN, Mississippi, Chairman

EDWARD P. BOLAND, Massachusetts
WILLIAM H. NATCHER, Kentucky

NEAL SMITH, Iowa

JOSEPH P. ADDABBO, New York
SIDNEY R. YATES, Illinois
DAVID R. OBEY, Wisconsin

EDWARD R. ROYBAL, California
LOUIS STOKES, Ohio

TOM BEVILL, Alabama

BILL CHAPPELL, JR., Florida

BILL ALEXANDER, Arkansas

JOHN P. MURTHA, Pennsylvania

BOB TRAXLER, Michigan

JOSEPH D. EARLY, Massachusetts
CHARLES WILSON, Texas

LINDY (MRS. HALE) BOGGS, Louisiana
NORMAN D. DICKS, Washington

MATTHEW F. MCHUGH, New York
WILLIAM LEHMAN, Florida

MARTIN OLAV SABO, Minnesota
JULIAN C. DIXON, California

VIC FAZIO, California

W. G. (BILL) HEFNER, North Carolina

LES AUCOIN, Oregon

DANIEL K. AKAKA, Hawaii

WES WATKINS, Oklahoma

WILLIAM H. GRAY III, Pennsylvania

BERNARD J. DWYER, New Jersey

BILL BONER, Tennessee

STENY H. HOYER, Maryland

BOB CARR, Michigan

SILVIO O. CONTE, Massachusetts
JOSEPH M. McDADE, Pennsylvania
JOHN T. MYERS, Indiana
CLARENCE E. MILLER, Ohio
LAWRENCE COUGHLIN, Pennsylvania

C. W. BILL YOUNG, Florida
JACK F. KEMP, New York
RALPH REGULA, Ohio
GEORGE M. O'BRIEN, Illinois
VIRGINIA SMITH, Nebraska

ELDON RUDD, Arizona

CARL D. PURSELL, Michigan
MICKEY EDWARDS, Oklahoma
BOB LIVINGSTON, Louisiana
BILL GREEN, New York

TOM LOEFFLER, Texas
JERRY LEWIS, California

JOHN EDWARD PORTER, Illinois
HAROLD ROGERS, Kentucky
JOE SKEEN, New Mexico
FRANK R. WOLF, Virginia
BILL LOWERY, California

ROBERT J. MRAZEK, New York

RICHARD J. DURBIN, Illinois

RONALD D. COLEMAN, Texas

FREDERICK G. MOHRMAN, Clerk and Staff Director

(II)

AGRICULTURE, RURAL DEVELOPMENT AND RELATED AGENCIES APPROPRIATIONS FOR 1986

THURSDAY, MARCH 7, 1985.

AGRICULTURAL COOPERATIVE SERVICE

WITNESSES

KAREN DARLING, DEPUTY ASSISTANT SECRETARỲ, MARKETING AND INSPECTION SERVICES

RANDALL E. TORGERSON, ADMINISTRATOR, AGRICULTURAL COOPERATIVE SERVICE

JACK H. ARMSTRONG, DEPUTY ADMINISTRATOR

SAMUEL V. LADD, DIRECTOR, BUDGET AND ACCOUNTING DIVISION, ANIMAL AND PLANT HEALTH INSPECTION SERVICE

STEPHEN B. DEWHURST, BUDGET OFFICER, DEPARTMENT OF AGRICULTURE

INTRODUCTIONS

Mr. WHITTEN. We turn now to the Agricultural Cooperative Service. We are glad to have with us Ms. Darling, Mr. Torgerson and others from the Agricultural Cooperative Service. Back through the years, we have been taught that one of the answers is for those engaged in agriculture to set up a cooperative to help them get things done. One of the greatest questions for many years was a tax on cooperatives.

I set out to learn about that subject and came up with a feeling that there is nothing in the world wrong with a cooperative if you want to buy together and sell together. The complaint was that cooperatives would do business with nonmembers, which made them competitive with other folks. I never attended a meeting for many years where that wasn't one of the questions. The folks advocating the tax were not fully candid, and the folks defending it weren't candid either.

But it is one place where the farmers, theoretically at least, can get together in a group and to a degree protect themselves, and it is a method of business that has developed all over the United States.

SERVICES RENDERED TO COOPERATIVES

Now, I would just like to have you tell us how it works and what you do to help those that are engaged in cooperative ventures. I am asking you to tell us where you fit in and what service you render for them and the farmer.

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