tion and the SAES. Individual faculty grants are 

 administered through regular academic units of 

 the institution. Thus, the grant-funded program of 

 the USDA is administered within the 1890 land 

 grant institution essentially as an internal granting 

 unit. 



Organization and Management Within the 

 Economic Research Service 



The Economic Research Service (ERS) con- 

 ducts social and economic research on issues that 

 affect all facets of the food and fiber sector, use 

 of our Nation's resources, economic growth, and 

 quality of life in rural America including; 

 Estimates of current resource use and availability, 

 output and distribution of food and fiber, fore- 

 casts and projections of resource use and output, 

 adjustments and performance in the food and 

 fiber sector and rural America, and the impacts on 

 all segments of society. Research is focused on 

 national and regional problems of continuing sig- 

 nificance. 



Management. Research priorities are determined 

 through interaction of ERS leaders with the Office 

 of the Secretary, congressional committees, and 

 other agencies and organizations. Subject matter 

 emphasis and problem orientation stem from orga- 

 nization of the service into six program divisions 

 with responsibility for these respective broad sub- 

 ject matter areas: National economic analysis, 

 commodity economics, natural resource econom- 

 ics, economic development, foreign demand and 

 competition, and foreign development. These divi- 

 sions, in turn, manage some 50 contributing sub- 

 ject matter or program areas for such categories 

 as inputs and finance in the food and fiber sector, 

 transportation economics, dairy, developed coun- 

 tries, rural resources and environment, manpow- 

 er and population studies, and consumer econom- 

 ics and demand analysis. 



Research projects are conducted within and 

 across program area and division lines in accor- 

 dance with ERS priorities and the availability of 

 needed research expertise. The research is con- 

 ducted both in Washington, D. C, and at some 70 

 other locations throughout the United States. ERS 

 typically also has some personnel overseas on 

 special projects relating to agricultural develop- 

 ment. ERS also works with Federal and State 

 agencies, with SAES, 1890 colleges and the Tus- 

 kegee Institute, Regional Centers for Rural Devel- 

 opment, and other organizations as appropriate. 

 This joint work includes the development of 

 priorities and methodology, data accession, and 

 interpretation and analysis and other phases of 

 research, whether basic or applied, as the need 

 arises. For example, one ERS researcher has 

 been stationed at the Johnson Space Center, 



32 AGRICULTURE 



Houston, Texas, to work on interpretation of 

 remote sensing for use in crop yield estimation. 

 Others may analyze and interpret data available at 

 a State capital or county seat. Others may work 

 with imiversity faculty on conceptual and metho- 

 dological developments. Some work with physical 

 and biological scientists at various laboratories and 

 field stations, including ARS regional laboratories. 



This routine rrianagement system is supplement- 

 ed by a series of special provisions. In the case 

 of a need for a major change in priorities, special 

 work groups or task forces may be convened to 

 help define the need and recommend alternatives 

 for action. They may include members of a man- 

 agement team, researchers from various divisions 

 or program areas, and resource people from out- 

 side ERS. 



At the beginning of each planning cycle, 5 per- 

 cent of the budget and personnel ceilings are with- 

 drawn from the divisions and reallocated on the 

 basis of proposals for new research from the di- 

 visions. Budget reviews are held each quarter and 

 reallocations are made as needed. In addition, 

 approximately one-third of the program areas are 

 formally reviewed each year by the administrator 

 and deputy administrators. This review typically 

 follows a review by people outside the agency 

 who have a particular interest or expertise in the 

 area in question. 



Intramural and extramural research. The vast 

 majority of the ERS program is conducted by 

 ERS personnel. ERS has cooperative agreements 

 with land grant and other universities and with 

 consulting firms. These agreements are based on 

 the ability of outside units to contribute to the 

 ERS program because of their competitive advan- 

 tage with respect to competence, location, or data 

 services. Such outside activities are carefully 

 planned to supplement activities within ERS. 



A new program of support for research at U.S. 

 universities was recently inaugurated by ERS. 

 The Service has invited research proposals on 25 

 special issues believed suitable for a graduate stu- 

 dent's dissertation. ERS expects to accept, on a 

 competitive basis, about 10 proposals for work to 

 begin prior to October 1, 1977. ERS will initiate a 

 research agreement or contract with the institu- 

 tion, specifying the research product and the 

 amount of reimbursement. 



Recognition and funding of basic research. In 

 ERS planning and program development, basic 

 research is not separately identified nor does it 

 receive special funding. However, many of the pro- 

 ject and program plans contain objectives and 

 methodological approaches that require basic re- 

 search for their accomplishment. Priorities are set 

 first on the basis of the economic and social signifi- 

 cance of the problem addressed. Determinations 



