11.8 Federal-State Marketing Programs

Federal-state marketing programs should be continued and expanded where feasible. The Secretary should take a strong position in defining the concept and use of federal marketing orders based on the original concept of marketing orders as designated in the 1937 Act. The Secretary should enforce these uses and if they are being abused take aggressive action to correct any abuses. The Federal State Market Improvement Program (FSMIP) should be continued and market oriented demonstration projects prioritized. Further, the Secretary should review all state/federal marketing programs to determine their cost effectiveness in relation to the cost imposed on producers. Research should focus on the use of new technologies for sampling and testing, which should be used when proven cost effective. Programs should be reviewed to determine who, state or federal, does which part of the program best, and delegate that work to the appropriate party. Cooperative programs should be reviewed to determine the most effective and affordable delivery systems with programs structured, accordingly.
  
 State/Federal Memorandums of Understandings — State/Federal Memorandums of Understanding's (MOU) for certifying fresh and processed products for "quality and condition" in both domestic and export markets should be incorporated into current MOU's with APHIS to inspect and issue federal phytosanitary certificates. Certification for quality and condition is the responsibility of the Agricultural Marketing Service (AMS). All domestic marketing initiatives should address the feasibility of moving into international markets.
 
Federal and State Inspection of Peanuts — As peanuts move from a quota system to a market-oriented program, there is a key regulatory area that could be greatly enhanced by state departments of agriculture-¬federal and state inspection. Growers need standardized third party inspection to assure fairness between areas and production practices, for example, irrigated versus non-irrigated. The current support level for peanuts is based on a standard grade and should be maintained in evaluating farmers stock. Without mandatory inspection, different buyers could establish different standards, which could vary between regions and practices. In addition, without independent mandatory inspection, quality standards cannot be assured. NASDA believes the inspection of peanuts is a major service provided by Federal-State Inspection Services, and recommends all peanuts be officially inspected and graded by federal and state inspectors.
 
Federal State Shipping Point Inspection Program — NASDA recognizes the need for funding the standardization and development of programs that respond to produce industry needs within the Federal State Shipping Point Inspection Program. The Agricultural Marketing Service’s (AMS) Fresh Products Branch provides the services of standardization and oversight of the cooperating states. The Fresh Products Branch and cooperating states are implementing automated systems to standardize the inspection program nationally and programs such as Good Handling Practices, Good Agricultural Practices and Identity Preservation are being developed to address national food security concerns. Many of the cooperating states have experienced significant reduction in agricultural revenues resulting in a reduction in revenues to the Fresh Product Branch to administer and develop programs that respond to changing industry requirements. Any additional assessments of overhead charges to the state cooperators will be passed on through fee increases to the produce industry because of to new shipping and handling requirements that address national food security concerns.
 
NASDA is committed to working with AMS’s Fresh Products Branch to secure funding from Congress to support the services of standardization and program development and implementation.