Plan to Reorganize Agriculture Department Unit Surprises Lawmaker

An Agriculture Department plan to reorganize its Rural Business-Cooperative Service to focus broadly on economic development caught the House Agriculture subcommittee chairman unawares, according to an Agriculture policy newsletter.

Despite authority under the 2014 farm bill for changes to improve service, Rep. Robert Aderholt, R-Ala., told department officials at a budget hearing March 18 that he was “surprised” at the plan to make the RBCS the lead agency in a combined effort that will include housing, community facilities, infrastructure, and business and cooperative programs, as reported by the Hagstrom Report.

The plan has prompted industry groups such as the National Cooperative Business Association, the National Council of Farmer Cooperatives and the National Farmers Union to worry over possible reductions in data and statistical services.

At the hearing, Agriculture Undersecretary for Rural Development Lisa Mensah said the department is “excited” about the reorganization outlined in the farm bill. RBCS Administrator Lillian Salerno said the agency has had only very preliminary discussions about reorganization, and that “we absolutely know our obligations” about briefing Congress on reorganizations.

Sources told the Hagstrom Report, however, that the reorganization process is already proceeding under what is known within the government as a modified “10-10” process.

Longtime followers of the RCBS noted that the division has shrunken dramatically since 1994, when the Agricultural Cooperative Service, a separate division within USDA, was made a part of the newly formed Rural Development mission area, the newsletter said.

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