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increasingly driven by sound strategic planning and decision making based on solid use of 

 information and technology derived from modem science and technology development. 



While we believe that the USDA already uses this type of enlightened decision making, we 

 saw in the new Secretary's early agenda setting an indication of new emphasis and an 

 opportunity to effectively communicate our belief that the science and education community 

 is in a position to be a very positive contributor to a management strategy that uses science 

 based information and technology. 



13. How much research is funded either through check-ofT dollars or industry? Do you 

 feel this is a viable alternative for the future and how can we avoid the appearance 

 of conflict of interest? 



According to CSRS estimates, about $134 million of the $1,981 billion for agricultural 

 research in FY 1991 was derived from industry. This is about seven percent of the total. 

 Of these industry funds, it is estimated that about $40-45 million is derived from check-off 

 funds. 



Check-off funds, managed by producer boards, are usually preferentially directed to market 

 development as opposed to research. Research grants are almost always awarded for very 

 short term, one-time studies that have a highly predictable outcome and product. This is a 

 necessary condition to securing the continuation of the check-off commitment by 

 participants. These funds are almost always leveraged with public funds, frequently to a very 

 large degree. From the perspective of scientists performing research, check-off funds often 

 provide badly needed operating funds for existing areas of research, especially in today's 

 situation where an increasingly large percent of pubhc funds are spent for salaries. 



In our opinion, the growth of check-off funds expended for research will be finite. ITus 

 would not seem to be a source of funding that could grow from the present small portion 

 of the total resource to a point where it would significantly oifstt public funding. Such 

 funds, spent in a partnering mode, have another kind of utility, however. This is in 

 increased "ownership" and support of public programs by industry which comes from their 

 shared investment 



In addition to check-off funds, industry provides other kinds of funding to support 

 agricultural research. Larger companies engage the SAESs at both the fundamental and the 

 application ends of the research spectrum. 



There is increased partnering between SAESs and industry on discovery level research in 

 biotechnology; the kind of research that produces new products such as diagnostics and 

 vaccines. Here, successful technology transfer must be measured by fielding a product, and 

 this requires an industrial partner in almost all cases. 



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