Private lenders initiate, process, close, service, and supervise the loan; the Farmers Home Administration guarantees the lender against loss on a percentage of the loan. Interest rates are determined between borrower and lender.

For further information, contact the Information Staff, Farmers Home Administration, Department of Agriculture, Washington, D.C. 20250. Phone, 202-447-4323.

Rural Development Service

The Rural Development Service (RDS), a Washington-based agency, is responsible for coordinating a nationwide rural development program utilizing the services of executive branch departments and agencies in support of State and local rural development programs. This responsibility is expressed in section 603 of the Rural Development Act of 1972, legislation that embraces a wide range of rural development assistance measures and authorities, and whose emphasis is on community development. All towns of 10,000 population or less are defined as rural, and towns up to 50,000 population are eligible for some form of rural development assistance.

Coordination, leadership, and information assistance are available to government offices at all levels and to community groups throughout rural America. The agency does not operate programs of loans or other financial assistance under the Rural Development Act or other legislation, but can provide information and services that will assist public or private interests to gain access to appropriate sources.

RDS developed and maintains the Federal Assistance Program Retrieval System (FAPRS), a computerized program information system which provides information concerning Federal aid programs to interested persons throughout the United States. FAPRS is designed to identify quickly the specific Federal assistance programs for which a community may be eligible and which allows the community to

carry out a project or meet a previously identified need.

In the field of executive branch coordination, RDS seeks, in cooperation with other departments and agencies, to develop agreements and procedures that will facilitate better delivery of Federal resources and services to rural communities and areas.

RDS also seeks, through information activities and rural development leadership training programs, to stimulate local development initiatives that will result in more effective use of available Federal assistance for which rural communities are eligible claimants. The agency also seeks to develop interagency arrangements under which USDA field representatives can participate in the dissemination of information pertaining to other Federal programs, and can furnish basic advice regarding application procedures. RDS

maintains liaison with the Federal Regional Councils, and with State and local governments and organizations, providing them with rural development advisory assistance in grantsmanship, planning, and communication; program and planning review; and troubleshooting services as requested.

When problems impeding objectives of the Rural Development Act or other legislation are identified by the agency, it works with program administrators to promote needed policy and administrative changes and improvements. RDS also is an advocate for rural community interests on interagency task forces.

To help private citizens make their full contribution to rural development programs, RDS works with national and local groups and organizations to promote their understanding of rural development programs and their participation in specific development projects. It assists volunteer civic action groups to advance rural development objectives by providing information and coordination services. The agency also assists in the development of better comprehensive planning among substate districts and conducts special

projects in areawide development planning. RDS provides personalized one-stop assistance and information in disseminating a wide range of materials on rural development to the interested public. This includes facts on new programs as they become operational.

The agency assists the Secretary of Agriculture in establishing national rural development goals and in evaluating the Nation's progress in attaining these goals. It also provides research information on rural development to government agencies at all levels and works to initiate and expand research efforts related to human and natural resources, and on community and economic aspects of development in rural areas.

For further information contact the Administrator, Rural Development Service, Department of Agriculture, Washington, D.C. 20250. Phone, 202-447-7595.

authorized REA to make loans to improve and extend telephone service in rural areas. On May 11, 1973, authority to guarantee loans made by nonREA lenders was authorized by an amendment to the act. The REA Administrator is appointed by the President, subject to Senate confirmation.

REA LOANS

REA loans are made from the Rural Electrification and Telephone Revolving Fund in the U.S. Treasury. These funds are generally loaned at 5 percent interest. Borrowers meeting specified criteria, however, may obtain loans at 2 percent interest. The Fund is replenished through collections on outstanding and future REA loans, through borrowings from the Secretary of the Treasury, and through sales of beneficial ownership interests in borrowers' notes held in trust by REA.

REA LOAN GUARANTEES

REA also guarantees loans to facilitate the obtaining of financing for largescale electric and telephone facilities from non-REA sources. Guarantees are considered if such loans could have been made by REA under the act, and may be made concurrently with an REA loan. Guaranteed loans may be obtained from any legally organized lending agency qualified to make, hold, and service the loan. All policies and procedures of REA are applicable to a guaranteed loan. In 1974 REA entered into an agreement with the Federal Financing Bank, whereby FFB agreed to purchase obligations guaranteed by the REA Administrator. REA acts as the agent for the FFB and all borrowers' dealings are with REA.

SUPPLEMENTAL FINANCING

Borrowers meeting specified criteria are required to obtain part of their financing from non-REA sources. The National Rural Utilities Cooperative Finance Corporation, Banks for Cooperatives, and other financial institutions. provide a substantial portion of the borrowers' capital needs.

ELECTRIC PROGRAM

In the field of rural electrification, REA is empowered by Congress through the Rural Electrification Act of 1936, as amended, to make loans to qualified borrowers, with preference to nonprofit and cooperative associations and to public bodies. The loans finance the construction and operation of generating plants and transmission and distribution lines to provide initial and continued adequate electric service to persons in rural areas.

TELEPHONE PROGRAM

In authorizing the telephone loan program in 1949, Congress directed that it be conducted to "assure the availability of adequate telephone service to the widest practicable number of rural users of such service." About two-thirds of the telephone systems financed by REA are commercial companies, and about one-third are subscriber-owned cooperatives.

RURAL TELEPHONE BANK

The Rural Telephone Bank, an agency of the United States, was established in 1971. Bank loans are made, in preference to REA loans, to telephone systems able to meet its requirements. The Bank's management is vested in a Governor (the REA Administrator) and a Board of Directors, including six who are elected by the Bank's stockholders. Bank loans are being made for the same purposes as loans made by REA but bear interest at a rate consistent with the Bank's cost of money. In addition, loans may be made to purchase stock in the Bank required as a condition of obtaining a loan. The Bank uses the facilities and services of REA and other Department of Agriculture agencies.

For further information, contact the Information Services Division, Rural Electrification Administration, Department of Agriculture, Washington, D.C. 20250. Phone, 202-4475606.

MARKET NEWS

This service provides current, unbiased information to producers, processors, distributors, and others to assist them in the orderly marketing and distribution of farm commodities. Information is collected and disseminated on supplies, demand, prices, movement, location, quality, condition, and other market data on farm products in specific markets and marketing

areas.

STANDARDIZATION, INSPECTION,
GRADING, AND CLASSING

These voluntary services, supported by fees, are provided to buyers and sellers

of cotton and tobaccos. Standards are developed with input from the trade. Inspection, grading, certification, and identification of class, quantity, quality, and condition of product are other marketing services provided.

FREIGHT RATE SERVICES

AMS has the responsibility for obtaining fair and reasonable rates and essential services necessary to efficient transportation of agricultural commodities and farm supplies. AMS participates in negotiations with carriers and in proceedings before Federal and State transportation regulatory bodies.

MARKETING AND REGULATORY
PROGRAMS

AMS administers four general types of programs designed collectively to protect producers, handlers, and consumers of agricultural commodities from financial loss or personal injury

resulting from careless, deceptive, or fraudulent marketing practices. One regulates certain business practices of dealers in farm fruits and vegetables; another requires truth in seed labeling and advertising; a third covers the licensing, bonding, and examination of warehouses operating under the provisions of the U.S. Warehouse Act (7 U.S.C. 241-273) and examination of warehouses operating under storage agreements or contracts with CCC; and a fourth protects farmers' rights to organize cooperatives.

MARKETING AGREEMENTS AND ORDERS

These programs, under authority of the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.), help to establish and maintain orderly marketing conditions for certain commodities and their products, such as milk, fruits, vegetables, tobacco, nuts, and hops. Milk order programs establish minimum prices that handlers or distributors are required to pay producers. Programs for other commodities are concerned primarily with regulating the flow to market of many highly perishable commodities. Through orderly marketing, adjusting the supply to demand, and avoiding unreasonable fluctuations during the marketing season, the income of producers is increased by normal market forces and consumer interests are protected through quality and quantity control.

PLANT VARIETY PROTECTION PROGRAM

Under authority of the Plant Variety Protection Act (7 U.S.C. 2321 et seq.), AMS administers a program which provides for the issuance of "certificates of plant variety protection." These certificates afford developers of novel varieties of sexually reproduced plants exclusive rights to sell, reproduce, import, or export such varieties, or use them in the production of hybrids or different varieties for a period of 17

years.

These programs provide farmers with a means to finance and operate various research and promotional activities.

FIELD ORGANIZATION

AMS programs and activities in the field are carried out through a variety of different types of organizations reporting to their respective Washington components. Depending upon the program or activity they range from small individual local offices to relatively large regional offices.

For further information, contact the Information Division, Agricultural Marketing Service, Department of Agriculture, Washington, D.C. 20250. Phone, 202-447-6766.

Animal and Plant Health
Inspection Service

The Animal and Plant Health Inspection Service (APHIS) was reestablished by the Secretary of Agriculture March 14, 1977, pursuant to authority contained in 5 U.S.C. 301 and Reorganization Plan 2 of 1953.

regulatory and control programs to protect and improve animal and plant health for the benefit of man and his environment. In cooperation with State governments, the Service administers Federal laws and regulations pertaining to animal and plant health and quarantine, humane treatment of animals, and the control and eradication of pests and diseases.

APHIS was established to conduct

PLANT PROTECTION AND QUARANTINE
PROGRAMS

Plant protection officials are responsible for programs to control or eradicate plant pests and diseases. These programs are carried out in cooperation with the States involved, other Federal agencies, farmers, and private organizations. Programs are carried out in cooperation with Canada and Mexico when the pest is a joint problem or presents a threat to this country. Pest

monitored to determine effects upon fish, wildlife, beneficial insects, water, and public health.

Agricultural quarantine inspection officials administer Federal regulations that prohibit or restrict the entry of foreign pests and plants, plant products, animal products and byproducts, and other materials that may harbor pests. Inspection service is maintained at all major ocean, Great Lakes, air, and border ports of entry in the continental United States and in Hawaii, Alaska, Puerto Rico, American Virgin Islands, Nassau, and Bermuda. Services are also provided on a regular or oncall basis at some 500 outlying ports and military installations throughout the country. In addition, inspectors work in several foreign countries. In the Netherlands, Belgium, Germany, Italy, France, and Japan, they supervise the certification of flower bulbs before shipment to this country. In Mexico plant protection and quarantine personnel supervise fumigation of fruit before it is moved across the border. Another responsibility is the inspection and certification of domestic plants for export.

VETERINARY SERVICES PROGRAMS

Veterinary services officials are responsible for determining the existence and extent of outbreaks of communicable diseases and pests affecting livestock and poultry. They organize and conduct control and eradication programs in cooperation with State officials, and cooperate with animal health officials in other countries in planning and conducting disease control efforts in those countries. Veterinary services officials maintain inspection and quarantine service at designated ports of entry for imported animals. They are responsible for the health certification of livestock and poultry exported to other countries. Veterinary services also administers Federal laws concerned with the humane handling of livestock and poultry in interstate commerce and governing the transportation, sale, and handling of dogs, cats, circus and zoo

animals, and other animals intended to be used in laboratory research or for exhibition. Veterinary services is responsible for enforcement of the Horse Protection Act of 1970 (84 Stat. 1404; 15 U.S.C. 1821 note), a Federal law which prohibits "soring" of horses shipped interstate for show purposes.

Veterinary services officials are also responsible for administering a Federal law intended to assure that all biological products shipped or sold in interstate commerce for use in the diagnosis, prevention, and treatment of animal diseases are pure, safe, potent, and effective. This responsibility is met through a program regulating biologics manufacturers that produce products subject to the act. This program includes the functions of licensing the manufacturing establishment and its products; inspecting of production facilities, production methods and testing; and confirmation or surveillance by veterinary services.

For further information, contact the Information Division, Animal and Plant Health Inspection Service, Department of Agriculture, Washington, D.C. 20250. Phone, 202-4473977.

Federal Grain Inspection Service

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The Federal Grain Inspection Service (FGIS) was established in the U.S. Department of Agriculture on November 20, 1976. The primary task of the agency is to carry out the provisions of the U.S. Grain Standards Act U.S.C. 71 et al), including changes made by the 94th Congress in 1976, to assure integrity in the inspection, weighing, and handling of American grain. An administrator, appointed by the President and subject to Senate ccnfirmation, heads the agency.

FGIS is responsible for establishing official U.S. standards for grain and administration of a nationwide system of official inspection. In addition to FGIS, private firms and State agencies may, upon application, be authorized to operate in the official inspection system, under criteria contained in the

act.