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1 1 (May 01, 2020)

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                                                                                                    May 1, 2020

Relocation of the USDA Research Agencies: NIFA and ERS


In October 2019, the U.S. Department of Agriculture
(USDA) relocated most staff positions at two of its research
agencies-the National Institute of Food and Agriculture
(NIFA) and the Economic Research Service (ERS)-from
their long-term location in Washington, DC, to Kansas
City, MO. About 75% of affected employees declined to
relocate and left the agencies. While ERS and NIFA have
prioritized hiring new staff, some agency activities have
been reduced or delayed. The USDA budget request for
FY2021 proposes an ERS staff level that is 41% lower than
in FY2018-before the relocation.

Agen~cy Bak.ckrc,-un d
NIFA is USDA's principal extramural research agency
(awarding grants to non-federal entities). It administers
approximately $1.5 billion in federal funding annually.
NIFA supports research, education, and extension projects
conducted in partnership with land-grant colleges and
universities, other institutions and organizations, and
individuals. NIFA awards include capacity (formula-based)
and competitive grants.
ERS is a USDA intramural research agency (employing
federal researchers). It has an annual budget of about $85
million. ERS conducts economic and statistical analyses on
topics of interest to Congress, agricultural producers, and
stakeholders. Topics include agricultural commodities,
trade, marketing, food price forecasting, farm and rural
income, food safety, and nutrition.
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In August 2018, USDA Secretary Sonny Perdue announced
the intention to relocate ERS and NIFA from Washington,
DC, to a location outside of the Washington, DC, area.
Among the stated reasons were (1) improving USDA's
ability to attract and retain qualified staff without the
burden of a high cost of living, (2) placing USDA resources
closer to stakeholders, and (3) lowering agency
employment costs and rent.
Concurrent with the relocation proposal, the Secretary
proposed an organizational realignment: moving ERS from
within the USDA Research, Education, and Economics
(REE) mission area to the Office of the Chief Economist
(OCE). REE consists of four research agencies. OCE is a
staff office within the USDA Office of the Secretary.
E-aernaM Response
Criticism of USDA's relocation and realignment proposals
began almost immediately. In November 2018, the
American Statistical Association and 59 other organizations
sent a letter to congressional appropriations committees
requesting that Congress not provide funding for relocation.
In March 2019, 99 academic, statistical, research, and
producer groups sent a letter to congressional
appropriations committees requesting that they prohibit


USDA's use of funds to implement the proposed relocation
and realignment and that they deny related reprogramming
requests. These groups asserted that USDA's proposal
would undermine the quality and breadth of the work these
agencies support and perform and result in a major
negative impact on U.S. farmers, ranchers, consumers, and
researchers.
The primary external supporters of the relocation were
advocates for smaller government or those supporting
regional interests in hosting the agencies. The Acting White
House Chief of Staff referred to the relocations as a
wonderful way to streamline government.


Members of Congress expressed various views on USDA's
proposals, as exemplified by letters in 2018 and 2019. In
2018, the chair and ranking member of the Senate
Committee on Agriculture, Nutrition, and Forestry asked
Secretary Perdue to provide data and plans for
implementing the proposals. In 2019, some Members on the
House Agriculture Committee supported relocation in a
letter to the House agriculture appropriations subcommittee.
In 2019, chairs of two subcommittees of the House
Agriculture Committee opposed relocation in a letter to
Secretary Perdue.
Some Members of Congress attempted to block or delay
USDA's proposals through legislation, such as the proposed
Agriculture Research Integrity Act (115th Congress: H.R.
7330; 116th Congress: H.R. 1221 and S. 1637).
Other legislative attempts included provisions in two years
of annual appropriations bills. The explanatory statement
accompanying the Consolidated Appropriations Act, 2019
(P.L. 116-6), supported an indefinite delay of ERS
realignment and directed USDA to include in the FY2020
President's budget request cost estimates and an analysis of
expected research benefits. The Further Consolidated
Appropriations Act, 2020 (P.L. 116-94), did not address the
proposals, and the relocation had already occurred. The
report accompanying the earlier House bill (H.R. 3164)
stated that USDA flatly refused numerous requests ... to
provide the initial cost benefit analysis that preceded the
decision to go ahead with the proposal.
OlGan       GAO     Rekews
In 2018, two Members of Congress requested that the
USDA Office of the Inspector General (OIG) review
USDA's legal and budget authority for the proposals and
the sufficiency of a cost-benefit analysis (CBA) used to
justify them. The August 5, 2019, OIG report found that
USDA had legal authority. It also found that USDA had not
complied with approval and reporting requirements
specified in the FY2018 appropriations act (P.L. 115-141).
USDA asserted that its actions complied with all applicable
laws and that the provisions in P.L. 115-141 were


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