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Mr. CROW. The Agricultural Marketing Act of 1946, in addition to authorizing research to find ways of improving marketing, authorizes service work among marketing firms and agencies to put these research results to use, to get the best known marketing practices adopted, and to collect and disseminate needed marketing information.

The act directs that this marketing service work in the States be done by State departments of agriculture, and it authorizes the use of Federal funds to pay half the cost of such projects as are approved by the United States Department of Agriculture.

During the past few years marketing problems have increased in complexity and number. Production patterns in many States have changed. The problem of finding outlets for surpluses has grown. Marketing techniques have changed, and farmers and marketing agencies must adjust their practices accordingly. Marketing costs are rising, and improvements in efficiency must be adopted to hold them down.

To a greater extent than heretofore achieved, the marketing service people in State departments of agriculture are trying to handle these problems at the State level. This increased effort by the States to solve their marketing problems was sparked by the Agricultural Marketing Act and the use of Federal funds to pay a portion of the cost of worthwhile endeavors.

Forty-three States and Territories are now participating in this program through 125 approved projects. While no State is yet conducting a well-rounded program in marketing, collectively the States participating in this service program are dealing with most types of marketing problems.

HELPING TO BRING ABOUT PRODUCTION ADJUSTMENTS

They start by determining in advance the expected production of a product so that marketing plans can be made accordingly. By objective forecasting of production of cling peaches in California, the Cling Peach Advisory Board may deal with an expected surplus by removing immature fruit prior to harvest and by planning diversion to canneries. Through weekly collection and dissemination of figures on tomato plantings in Florida, production can be adjusted to market demands. Reports on sow farrowings, tree counts, and similar projects are of great assistance in anticipating, and solving marketing problems.

Four States are developing ways of certifying virus-free nursery stock, so that the growers' time and money will not be used in putting out virus-infected trees. Several States have ascertained from distributors the variety and package type preferred, and advised growers accordingly. Through such means as these, this marketing service program is helping bring adjustments in production.

HELPING TO DETERMINE WHEN PRODUCTS SHOULD BE MARKETED

Next the program is helping determine when products should be harvested by developing maturity tests for fruits, melons, and other products. By service work in the producing areas, proper grading and packing methods are demonstrated. Assistance is given in planning, equipping, and operating packing sheds, egg assembly plants,

grain elevators, poultry processing plants, livestock auctions, milk plants, and other facilities in areas of production.

To enable growers to get the best price for their products, many States under this program have developed country-point market news services, which have brought local prices for eggs, friuts, vegetables, alfalfa, hogs, broilers, and grain in line with prices in other local markets, and with the terminal market prices.

By finding and encouraging the construction of storage facilities, growers have been able to hold their products off a glutted, pricedepressed market. By making available to buyers information on protein content of wheat, and fibers tests of cotton, by growing areas, these buyers have been induced to pay higher prices for the quality they need.

FINDING MARKETS FOR FARM PRODUCTS

Many States have found buyers for products in surplus production. Large quantities of peaches, apples, watermelons and other fruits and vegetables have been moved, by providing buyers from wide areas with advance information concerning the availability of these products. The States have originated, and cooperated with other agencies in putting on special promotional campaigns for milk, cheese, pork, potatoes, and other commodities. When a State has had a chronic problem with finding markets for a product, its marketing specialists have visited the markets, ascertained what was wrong, and taken corrective action. In some such cases the wrong variety was being produced. In others, the package type was wrong or the product was arriving in poor condition-immature or damaged by bruising. In still others, it has been determined that some promotional effort was needed.

Several States are organizing special livestock sales where products are brought together and sold on a graded basis to buyers brought in from a wide area. Egg-buying stations purchasing on a graded basis have been set up. Wool pools have been established. Assistance has been given in consolidating small milk plants. Tobacco growers have been shown how to sort their product to get the best price. Fruit and vegetable growers who have been offered low prices for their loads at markets have been shown how to throw out the lower quality and repack the remainder, and as a result have taken their product back to the same market and obtained a much higher price. Small growers have been helped to organize themselves to be able to find satisfactory outlets.

REDUCING DETERIORATION AND SPOILAGE

Very significant results have come from marketing service projects to reduce deterioration and spoilage in marketing channels. Several States-Vermont, Mississippi, Wisconsin, Minnesota, and North Dakota-have obtained samples of milk, butter, cheese and other dairy products at various places in the distributive channel, checked the quality of such samples, determined the cause of off-quality, and have shown the person responsible for the condition what to do to correct it. Samples of cotton picked up for classing have been checked for gin damage, and the operators of the gins responsible shown what changes in equipment or methods should be made to stop the damage. Eggs and poultry picked up in marketing channels have led marketing

specialists to the causes of poor handling and poor quality. New egg laws have resulted and producers and handlers have been shown how to grade and handle their product. Considerable success has been achieved in some States in reducing rodent contamination of grain and reducing damage from excess moisture and poor storage facilities. The quality of seed produced in three States is being improved by correcting deficiencies in processing and storage.

SOLVING TRANSPORTATION AND HANDLING PROBLEMS

A few States are helping solve transportation problems by working with carriers to get an adequate supply of good transportation equipment at harvesttime. Shippers and haulers have been shown how to load products to minimize breakage and bruising. Three States have entered cases to hold down increases in freight rates.

OTHER ACTIVITIES TO FACILITATE MARKETING

Extensive work has been done by some States with retailers showing them how to display and handle certain commodities to increase sales. One State, Maine, has significantly increased sales of broilers by helping with a campaign to encourage chicken barbecues by organizations, backyard barbecues, and even put barbecues on television. When marketing techniques change, the States are helping with the adjustments. They are helping encourage and install potato washers and vacuum coolers. They are helping with the problems of bulkhauling of milk. They are assisting poultry processors in meeting the requirements of Federal inspection. They have helped get meatpacking plants and canneries into areas without satisfactory outlets.

I hope these examples will give you a good idea of the kind of marketing service program we are trying to develop in the States. Once a year 135 of the State workers are attending a 3-day school to learn how to do their job better. In many States industry is throwing resources into the work. Each of the 13 advisory committees that reviewed this program commended it and recommended its expansion. The States have not only improved their competence in the marketing field and the variety of work they are equipped to do; they have also received favorable reactions from their legislatures. State funds available for matching this year far exceeded the available Federal funds.

JOINT ACTION WITH INDUSTRY IN PLANNING PROGRAM

In order to get the best results from all funds available, many States are following the practice of having representatives of the experiment station, the extension service, and the State department of Agriculture work with industry groups in determining the marketing problems most in need of attention. These State agencies then outline a joint program of attack on the problem, following which the experiment station does the necessary research, the extension service the educational work, and the State departments the service work.

With this joint approach and the assistance that can be supplied by the United States Department of Agriculture, much effective work can be done in marketing. While each State is much more proficient in some types of work than in others and some States are far better

equipped than others, this program is making definite progress toward achieving the objectives intended in the Agricultural Marketing Act.

If there are any questions, I shall be glad to try to answer them, Mr. Chairman.

COORDINATING PROGRAM WITH THE STATES

Mr. WHITTEN. How do you go about trying to prevent duplication between the States? As I understand it, all the projects are approved here in Washington.

Mr. CROW. That is correct. We have less of a problem in marketing service than we might have in the research field because of the nature of marketing service work; being, namely, to get the marketing agencies to adopt improved practices. Where the same problem exists in two States, the same type of service work might be needed in each to bring about the necessary changes. We do attempt to arrange for two or more States to work together on common problems of an area, and arrange for States with mutual interests to get together and exchange views on what they are doing, how they are doing it, and on comparing their results.

On several occasions two or more States have jointly planned and conducted work on a problem of mutual interest.

METHODS USED IN ADMINISTERING PROGRAM

Mr. WHITTEN. How big a section do you have, Mr. Crow? How many folks do you have?

Mr. CROW. I devote about one-fourth of my time to the administration of this program, and we have 4 people (including 1 secretary) who devote full time to it.

Mr. WHITTEN. Do you provide anybody in the States to work with them, or is it just somebody going out from Washington?

Mr. Crow. It is somebody going out of Washington.

The three full time professional people review the projects and the work plans that are submitted each year as a basis for making the allotments, recommend for the administrator's approval allotments of funds, review the results of the work in the States, and perform other administrative duties.

After the administrative activities are taken care of such time as remains is used in the States. There we see the work that is being done, talk with the people affected, see what the results are, and give suggestions for improving the program.

Last year with the resources we had we were able to get into only 19 States. In addition, we sent the States research reports that they could use in the work that they were doing.

We also prepared and issued during the year a guide to the procedures being followed in this program, incorporating in it the answers to the questions that the people in the States most frequently ask, and setting forth the requirements that must be met for Federal particination.

Ea year we prepare an annual report of the work done in eachs State, by projects, and send it to every State, so that each State will know what every other State is doing. This report is really the high

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lights of the work, the material in it being extracted from much more detailed reports sent us by each State.

In addition to that, we help to plan the program for a 3-day intensive school each year where the State people learn how to carry on the work better than they have been doing it in the past, and we publish the proceedings of this school, which contains the recommendations as well as the speeches that were made.

Our staff also presents the work before the advisory committees, and with the administrative funds available as many audits as could be made were made of the expenditures to be sure that none of the money was expended on anything other than approved projects. Mr. WHITTEN. Mr. Marshall, do you have any questions?

PROGRESS ON PHILADELPHIA MARKET CONSTRUCTION

Mr. MARSHALL. Do you have any idea when the Philadelphia terminal market construction might be complete?

Mr. CROW. The plans developed for Philadelphia, were made so the buildings will be constructed over a period of years with the first buildings ready for occupancy in about a year and a half. The plans include the facilities needed now and provide room for expansion to meet the growing needs of the city. You are interested in knowing when some of the buildings will be completed and in operation, are you not?

Mr. MARSHALL. I got interested in this because I made a trip up there and saw those antiquated facilities which were terrible.

When this gets into operation I am interested in going up there and seeing it.

Mr. CROW. I believe in about a year and a half there will be enough completed to justify your effort.

Mr. WHITTEN. Mr. Natcher, do you have any questions?

Mr. NATCHER. Yes, thank you, Mr. Chairman.

HELPING STATES PLAN PROJECTS TO SOLVE MARKETING PROBLEMS

I believe one of the main responsibilities of your liaison office is to make recommendations and aid the individual States in planning and carrying out marketing service projects. Is that correct? Mr. CROW. Yes; that is correct, Mr. Natcher.

Mr. NATCHER. I wonder if at this point in the record, and to save time if you would file a short statement going into this matter in a little more detail, the type of work you do along this line.

Mr. CROW. May I ask a question to be sure I understand exactly what you want?

Mr. NATCHER. Yes, of course.

Mr. CROW. Would you like in the record a statement that describes fairly well all the kinds of things that the States are doing or what we are doing to help the States?

Mr. NATCHER. I want to know what you are doing to help the States, just a short statement. I will appreciate it.

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