SECTION: PREPARED TESTIMONY

LENGTH: 3238 words

HEADLINE: PREPARED TESTIMONY OF DR. CHARLES W. LAUGHLIN ADMINISTRATOR COOPERATIVE RESEARCH, EDUCATION, AND EXTENSION SERVICE
 
BEFORE THE HOUSE COMMITTEE ON APPROPRIATIONS SUBCOMMITTEE ON AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES

BODY:
 Mr. Chairman and Members of the Committee, I appreciate the opportunity to present the proposed fiscal year (FY) 2001 budget for the Cooperative State Research, Education, and Extension Service (CSREES), one of four agencies in the Research, Education, and Economics (REE) mission area of the United States Department of Agriculture (USDA). I am especially honored as this is my first opportunity to submit testimony to this Committee.

I have been the Administrator of CSREES for a little over eight months, having come to CSREES from the land-grant university system. Through the years I spent in that great system, first as a student and then as an educator, I gained an appreciation for the strong partnership the agency has forged with the land-grant system, other colleges and universities, and public and private research and education organizations. Over the years, I have witnessed how funding from the broad portfolio of CSREES programs has taken scientific discovery from conception to application. Formula funds have leveraged dollars from other sources, provided the start-up funds needed for an investigator to establish a research program and obtain the results needed to compete successfully in a competitive program, and allowed for a rapid response to an emerging problem. Competitively funded research from the National Research Initiative has supported individual investigators undertaking basic research aimed at generating new knowledge. Finally, research results were applied to real life problems through the Cooperative Extension System's outreach efforts. All of these efforts were undertaken in an environment which prepared students to meet the ongoing needs of agriculture, the environment, individuals and communities.

The broad portfolio of CSREES programs, whether formula based or competitively awarded, ensure that research leads to the transfer and implementation of practical outcomes. With this broad portfolio as a base, the strong Federal, state, and university partnership has supported great successes that have far reaching impacts on the food we eat, the environment in which we live, and the quality of life of our citizens. For example:

In an Animal Health Program in the School of Veterinary Medicine at the University of Minnesota, three investigators teamed up to study three important pathogens, Pasteurella multocida (a multispecies animal pathogen of major national importance), Cryptosporidium (primarily a disease of cattle causing morbidity in calves, but also an opportunistic cause of disease in humans), and Avian pneumovirus (a new and emerging disease of turkeys). University and National Institutes of Health (NIH) funds supported the establishment of a gene sequencing facility. The research on Pasteurella and the Pneumovirus was extended by a grant from private industry, while CSREES formula funds were used to support the initial gene sequencing. These preliminary studies, in turn, led to successful grant applications to the National Research Initiative (NRI) and NIH. The NRI grant funds provided the sequencing of the entire Pasteurella genome, one of the first non-viral animal pathogens to have its entire genetic blueprint deciphered. The practical outcomes of this work have been enormous. First, for all three organisms, there has been the development of practical diagnostic kits and experimental vaccines based on knowledge gained from gene sequences. In the case of Avian pneumovirus, experiment station support allowed an accurate and sensitive diagnostic kit to be available within three months of obtaining the genome sequence. Two vaccines were developed within 12 months.

As a result of the development of the diagnostic kits and vaccines, extension professionals were able to work with producers to confine the spread of the disease and prevent a national epidemic. This example indicates how a variety of funding mechanisms may be necessary to take discovery research from conception to application. In particular, it demonstrates how formula funds provided to research directors can underwrite a new study such that it quickly becomes competitive. It shows how funds from one source can be used to leverage funds from another, and how both research and extension formula monies can be used to respond quickly to an emerging and potentially devastating disease that began at the local level but showed every likelihood of becoming a national catastrophe.

The questions before us involve not only important issues requiring the application of hard data and science, as in the scenario described above, but problems involving human behavior and motivation, complex social systems; and personal values. These questions require an agency that is engaged, and an engaged agency must be organized to step up to today's and tomorrow's needs. The challenge to CSREES is to move from a knowledge-dissemination model to an engagement model, developing and sustaining mutually beneficial partnerships with a wide array of constituents. The FY 2001 budget strongly moves us in that direction.

The FY 2001 budget proposes an increase of approximately 2.3 percent in discretionary funds. CSREES is committed to seven overarching themes in its FY 2001 budget:

- Increases for competitively awarded grant programs such as the $30.7 million increase for the NRI;

- Funding for targeted areas, including Biobased Products, Invasive Species, and Pest Related issues;

- Integrated research, extension, and education activities, as evidenced by an increase of $36.6 million increase in the Integrated Activities Account;

- A balanced program portfolio, as evidenced by sustained support at the FY 2000 level for all formula programs;

- Expanded partnerships to reach diverse audiences through increases in funding for the 1890 and 1994 land-grant institutions, as well as for Hispanic-Serving Institutions; and through increases in programs that support the USDA Civil Rights Implementation Team Recommendations;

- Development of human capacity to address the need for a highly trained cadre of quality scientists, engineers, managers, and technical specialists in the food and fiber systems through increased funding for the Higher Education Programs and International Science and Education Grants; and

- Streamlined management and improved accountability of CSREES programs through increases for the Research, Education, and Economics Information System (REELS), and through the integration of research, extension, and education under certain programs as intended in the Agricultural Research, Extension, and Education Reform Act of 1998 (AREERA).

FY 2001 Budget Highlights

The FY 2001 budget request is a conscious effort to address concerns raised about the distribution of funding between formula grant programs and competitive grant programs in the Administration's FY 2000 Budget. In order to reduce the disparity in funding between formula and competitive grant programs, the FY 2000 budget proposed $200 million for the National Research Initiative and $489 million for the six major formula programs (a reduction from the FY 1999 enacted level of $540 million).



In response to the concerns raised about this reduction, the FY 2001 budget has proposed to fund major formula programs at the FY 2000 enacted level of $542 million, and to request a more modest funding level of $150 million for the NRI. We hope that the Committee will recognize and respond to this action, and provide this more modest increase for the NRI.

One of the most crucial variables in the food and fiber system is scientific and professional human capital. The research and education agenda of the future depends on a highly trained cadre of qualified scientists, engineers, managers, and technical specialists. However, the higher education institutions that produce this essential human capital are confronted with two increasingly serious issues: expertise development and institutional development.

Increases arc provided in the FY 2001 budget for several of the CSREES Higher Education Programs. An increase of $2 million is provided for the Food and Agricultural Sciences National Needs Graduate Fellowships Grants Program to expand support for the recruitment and training of outstanding graduate students in the food and agricultural sciences. An increase of $1.65 million is provided for the Higher Education Challenge Grants Program to enhance programs and capabilities for educating baccalaureate students in priority food and agricultural science areas, including food safety. An increase of $1 million is provided for the Multicultural Scholars Program which will support efforts to increase the multicultural diversity of the food and agricultural scientific and professional workforce.

The CSREES budget request reflects USDA Civil Rights Action Team recommendations to address disparities in funding and enhance the Department's cooperative efforts with institutions of higher education that are primarily devoted to the needs of minority students. An increase of $650 thousand is provided for the Hispanic Serving Institutions Education Grants program and an increase of $300 thousand is provided for the 1890 Institutions Teaching and Research Capacity Building Grants Program. CSREES is proposing an increase of $2.5 million for the Native American Institutions Endowment Fund to increase the endowment which will increase the interest earned on the endowment for use by the 1994 Institutions. CSREES also is proposing that the 1994 Institutions be authorized to use endowment income for facility renovation and construction and will encourage the 1994 Institutions to use the increased funding for that purpose. An increase of $0.5 million is provided for the second year of the 1994 Institutions competitive research program; an increase of $0.4 million is provided for the Extension Services at 1994 Institutions program; and an increase of $3.3 million is proposed for the Extension Indian Reservations Program to enhance the ability of extension agents to provide educational programs to isolated and under-served audiences on the reservations. Additionally, eligibility under the Section 406 Integrated Authority, first used in 2000 and for which a total of $76 million in 12 programs is requested in 2001, is open to colleges and universities, including the 1890 institutions.

Achieving sustained long-term improvement in the competitive position of United States agriculture relies critically on the Federal government's assurance that producers and marketers have access to the basic tools for success. Studies have shown that successful producers (farmers, ranchers, and foresters) are better educated, more apt to adopt new technology, have lower costs of production, and take better advantage of or have more opportunities for spreading production and marketing risk across alternative enterprises and mechanisms, than their less successful counterparts. The FY 2001 CSREES budget proposes a new $9.6 million Biobased Products Program that will generate information and tools for farmers to grow, harvest, and handle alternative crops, and for manufacturers to convert renewable, raw materials to useful products for industry and/or consumers. The $4 million proposed for a new Small Farms Initiative will develop research, education, and extension programs in appropriate marketing strategies for small farms, business skills for small farmers, and help beginning farmers establish viable farm operations and enterprises. A proposed increase of almost $3.7 million will be focused on organic fanning under the research and extension components of the Sustainable Agriculture Research and Education Program. An additional $1 million is requested for a new program to develop and implement biologically based pest management practices that mitigate the ecological, agronomical and economic risks associated with the transition from conventional to organic production systems.

Increases are proposed to support the development and application of new technology and management practices to replace the traditional pest controls that are at risk of being restricted or prohibited due to the Food Quality Protection Act of 1996 (FQPA). The budget proposes a $6 million increase to support long-term development and implementation of innovative pest management for major acreage crops, fruits, and vegetables through an integrated research,education, and extension competitive grants program. A $2 million increase is proposed for the development of intermediate-term alternative pest controls for fruit and vegetable crops to replace pesticides at risk of not meeting the new FQPA requirements.

An additional $3 million is proposed for development of practical management alternatives and technologies for commodities affected by the methyl bromide phase-out now scheduled for 2005 under recent amendments to the Clear Air Act. The budget includes an increase of $1.5 million for a Regional Crop Information and Policy Centers program that will address high priority pest management needs of Federal and State regulators, extension personnel, and the public through a coordinated effort at the regional level. These programs, in conjunction with increased funding for the Critical Issues, Pest Management Alternatives, Minor Crop Pest Management, Expert IPM Decision Support System, Integrated Pest Management extension, and Pesticide Applicator Training programs, as well as sustained funding for the Integrated Pest Management research program, will ensure a more safe and secure food and fiber system.Establishing the scientific basis for optimal health, developing knowledge of the eating habits of Americans, and modifying food intake behavior are critical components to having a well nourished population. An increasingly important component to having a well-nourished population is empowering our communities to build their capacities to meet a greater share of their food needs. The FY 2001 budget proposes a new $5.25 million Anti- Hunger and Food Security Grants Program to provide support to non- profit entities for projects that reduce hunger, improve nutrition, bolster community food security, and help families move from poverty to self sufficiency. An increase of $2.3 million above the 2000 appropriated level also is proposed for the Expanded Food and Nutrition Education Program (EFNEP) to support nutrition education programs aimed at meeting the needs of undernourished segments of the population, especially children.

As a Nation, we increasingly value the environment - clean air and water, unique ecosystems, and pristine land. We recognize that, given the vast amounts of land being used in agricultural or forestry production, we must ensure that our production practices, as well as our public policies and programs affecting these practices, are consistent with the dual objectives of promoting competitiveness while preserving natural resources and environmental quality. To achieve these goals, a better understanding of the complex interactions between agricultural production and the environment is needed. An increase of $1.5 million is proposed for a new Invasive Species Program in FY 2001 to target invasive species issues on an ecoregional basis. Water Quality also is a serious national concern as reflected in the President's Clean Water Action Plan. We propose an increase of $3.2 million for the integrated research and extension water quality program that will support projects to investigate such issues as the linkage between agricultural practices and outbreaks of harmful algal blooms, which can lead to conditions that cause massive fish-kills, human health problems, and significant economic losses to the seafood industry.

Americans recognize that their quality of life depends largely on economic, physical, and institutional factors affecting their families, businesses, and communities. The fast pace of changes in these factors, and their increasingly complex interactions, present a growing challenge. CSREES, in partnership with the land-grant university system, enhances the capabilities of individuals, families, and communities to improve their quality of life. An increase of $5 million is proposed for a new Youth Farm Safety Education and Certification Program for support to States to provide formal safety training and certification programs targeted to youth who are 16 to 17 years of age and working in agriculture to help mitigate farm related injuries and deaths. The FY 2001 budget proposes an increase of $1 million for the Children, Youth, and Families at Risk program to enhance child care programs for those segments of the population in greatest need, including limited resource families, isolated farm and rural families, and families needing child care during non-traditional hours, such as families of migrant farm laborers.

CSREES strategies to ensure responsive and effective management of USDA's extramural research, extension, and education programs include: strengthening the Federal/State partnership; integrating research, extension, and education activities as appropriate; improving information management systems which are accessed by both internal and external users; and participating in efforts to improve financial management within USDA. The FY 2001 budget proposes an increase of $250 thousand for REELS. Increased funding will help further the implementation of the system to enable CSREES and the REE mission area to meet the reporting requirements of the Government Performance and Results Act and help facilitate implementation of various reporting requirements and accountability provisions of AREERA.The FY 2001 Budget also includes mandatory funding of $120 million for the Initiative for ? Future Agriculture and Food Systems under Section 401 of AREERA for competitive research, education, and extension grants to address critical and emerging agriculture issues. Mandatory funding also is available under the Fund for Rural America, where a minimum of $20 million is expected to be provided for a wide range of research, extension, and education activities. The budget also supports funding for the Community Food Projects grants program at $2.5 million (supported with mandatory funds provided by the Food and Nutrition Service Food Stamp Program).

An increasing portion of Federal funds will be distributed competitively to address the most critical needs of the agricultural community and fund the most highly meritorious projects. The increases proposed for competitive programs are partially offset by decreases in non-competitive projects slated for reductions due to constrained budget resources. The additional flexibility provided in AREERA, where a portion of the formula funds can be used to support either research or extension projects, allows states more authority to use Federal funds in addressing their highest priority needs.

Summary

The CSREES FY 2001 budget represents a critical investment in research, extension, education, and integrated programs that focus on the development and delivery of tools to help agriculture compete in the long-term, enhancement of the environment, improvement of human health, and development of human capacity.

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LOAD-DATE: March 9, 2000