GIPSA Wants More Legislated Authority

March 23, 2000

USDA's Grain Inspection, Packers and Stockyards Administration wants Congress to grant several legislated authorities it says will enhance its operations. One industry organization calls for more flexibility for GIPSA to control costs and maximize operational efficiency.

James R. Baker, GIPSA administrator, told a House agriculture subcommittee that the agency wants legislative authority to allow more than one official agency to operate in a single geographic area on a case-by-case basis. Now only one agency is allowed per designated area. "We want to capture the benefits of market competition and still maintain the highest level of accuracy and integrity," he said.

The agency also wants the authority to prohibit adding bleach, vanilla, cinnamon and other substances to grain to disguise quality. If GIPSA finds someone adding a substance to mask and misrepresent the grain's true quality, and if the action results in the false issuance of an official inspection certificate, it is a violation of the law and penalties apply, said Baker. "Prohibiting the additive altogether will enhance the integrity of the national grain marketing system," he added.

GIPSA also seeks legislative authority to eliminate the procedural requirement to base export inspections on samples obtained after final elevation of the grain. "Obtaining samples after elevation is appropriate," said Baker, "and still will be used for many factors. However, grains and oilseeds with new value enhanced traits require more complicated and time-consuming analysis or identity preservation processes. Conducting certain analyses prior to final elevation will enable the industry to expedite marketing and improve the testing capabilities of the official inspection system."

The National Grain and Feed Association urged Congress to grant USDA's Federal Grain Inspection Service additional flexibility to control costs and maximize operational efficiency. "The cost of official grain inspection continued to be one of the biggest operating expenses at export elevators," said NGFA President Kendell W. Keith. "We support FGIS' goals of streamlining official grain inspection and weighing services but are concerned that the agency may lack sufficient managerial flexibility to achieve them."