In a step welcomed by AAGIWA, USDA's Federal Grain Inspection Service (FGIS) informed official agencies on November 20 that the Agency would re-evaluate the implementation of its Quality Management Program (QMP) and agencies should not send any further manuals into the Field Management Division.

GIPSA Deputy Administrator David Shipman, in a meeting with the AAGIWA Board on November 27, said after an internal review of the program, it became apparent the program would not provide the benefits that had been hoped. He emphasized that FGIS was not seeking to "re-invent the wheel" or create more "red tape" for official agencies. The goal, he said, remains to have in place a system where agencies can demonstrate their internal control system and provide quality results. It became apparent, though, that the current template and implementation process were not achieving the desired results.

Karen Guagliardo, chief, Review Branch, Compliance Division, said she has assembled a team of FGIS and official agency representatives to re-evaluate the template for the manuals and to make recommendations on how to improve the implementation process. Named to serve on the QMP Review Team were:

• From FGIS, Bob Krouse, Mark Wooden, and Ken Critchfield and
• From official agencies, Larry Kitchen (Missouri Dept. of Agriculture/AAGIWA President), Dave Reeder (Fremont Grain Inspection Department/AAGIWA Secretary-Treasurer), and Al Carlin (Kankakee Grain Inspection).

AAGIWA President Larry Kitchen complimented FGIS on its decision to re-think the program's direction. "I know it can be awkward and uncomfortable to stop a major program once it is underway -- none of us relishes being in that position - but, at the same time one must recognize when a program is not delivering the desired results. We greatly appreciate FGIS Management for recognizing the situation and making the decision to stop and re-evaluate," Kitchen said. He also said he recognized that the decision to halt the program could come as a bitter pill to some agencies who had nearly completed their manual and had invested considerable time and effort in the process. That situation, Kitchen said, is unfortunate, but "the reality is the program just wasn't going to work as designed and it becomes a matter of when do you make the decision to reevaluate." In that regard, he said, it is better to make the decision late than never.

Kitchen further noted that FGIS' decision to consider changes to the program came after the AAGIWA's October 18 meeting in Kansas City with Mr. Shipman. At that time, several AAGIWA representatives expressed their concern with the current direction of the QMP program.

AAGIWA's Board of Directors met November 27 in Denver, principally to hear from the FGIS senior management team on current issues. Those from GIPSA/FGIS in attendance included: James Link, administrator, GIPSA/USDA; David Shipman, deputy administrator, GIPSA/USDA; John Giler, director, Field Management Division, FGIS/USDA; Karen Guagliardo, chief, Review Branch, Compliance Division, FGIS/USDA; Bob Lijewski, chief, Policies and Procedures Branch, Field Management Div., USDA; and John Sharpe, director, Technical Services Division, FGIS/USDA

AAGIWA President Larry Kitchen said he thought the meeting was somewhat historic - in his experience with AAGIWA he was not aware of a previous occasion where FGIS had attended an AAGIWA Board meeting to discus current issues. He thanked the FGIS delegation for their participation and said this dialog should help build an even stronger official inspection system.

In a meeting that continued on November 28, the AAGIWA board also reviewed the association's finances, program ideas for the 2008 Annual Meeting, and potential changes in the bylaws. Board members/members present were: Larry Kitchen (president), Missouri Department of Agriculture; Mark Fulmer (vice president), Lincoln Inspection Service; David Ayers, Champaign-Danville Grain Inspection Departments; Tom Dahl, Sioux City Inspection and Weighing Service; Randy Deike, Washington Department of Agriculture; and Tom Meyer, Kansas Grain Inspection.

FGIS management also updated AAGIWA on availability of surplus computers during the course of the November 27 meeting. GIPSA Deputy Administrator David Shipman said the Agency is upgrading its computers in a phased process and would be providing some of the computers it is phasing-out free to official agencies. The initiative has been somewhat delayed, but will be taking place in the next several months. The number of computers requested by agencies exceeds the amount that will be available, so distribution will be rationed appropriately.

AAGIWA Board Meets

FGIS management also updated AAGIWA on availability of surplus computers during the course of the November 27 meeting. GIPSA Deputy Administrator David Shipman said the Agency is upgrading its computers in a phased process and would be providing some of the computers it is phasing-out free to official agencies. The initiative has been somewhat delayed, but will be taking place in the next several months. The number of computers requested by agencies exceeds the amount that will be available, so distribution will be rationed appropriately.

Designation Opportunities

Largely because of the growth in the container business and an increase in demand for inspections, FGIS published a notice on December 5 asking for applicants interested in providing official services in the states of Maryland, New Jersey, and New York. Applications from interested parties are due at FGIS by January 4, 2008.

AAGIWA Membership Renewal Letters to Go in the Mail Soon

As the calendar year draws to a close, it brings with it dues renewal time. AAGIWA Secretary-Treasurer Dave Reeder says AAGIWA members should expect to see their membership renewal notices arrive in the mail shortly after December 15.

AAGIWA President Larry Kitchen said dues for 2008 will be a little higher than they were, reflecting AAGIWA's increased activity level. He and other Board members will be in touch with AAGIWA members to answer any questions during the renewal process.

AAGIWA to Exhibit at GEAPS Convention

AAGIWA plans to be an exhibitor at the upcoming GEAPS EXCHANGE, which will be held February 23-26, 2008, in Omaha. AAGIWA Vice President Mark Fulmer is coordinating the exhibit and will be working with FGIS representatives on a joint effort Fulmer said, "GEAPS represents a wonderful audience of grain industry decision-makers with whom we want to have a strong relationship so they know who to call when they have questions." GEAPS is expecting the Omaha convention to be their largest ever.

USDA's Grain Inspection Advisory Committee met November 28 and 29 in Denver, Colorado, to hear reports on a variety of issues. The following are highlights:

• FGIS Online continues to modernize the way the agency does business. FGIS expects all official agencies to be participating in the Information Data Warehouse (IDW) program by the end of January 2008, although this may take place in stages.
  
  
• FGIS customer survey results show increased satisfaction with the official system.
  • Timely service -- Those who agreed they received results in a timely manner increased from 90.8 percent in 2000, to 94 percent in 2007.
  • Certificate receipt timeliness - those who agreed they received official certificates in a timely manner increased from 88 to 93.5 percent
  • Accuracy - Those who agreed that official results are accurate increased from 80.7 to 88.8.
  • Consistency - Those who agreed that official results are consistent increased from 79 to 88.6 percent.
  • Value - Those who agreed that the service is a good value for the cost increased from 64 to 80 percent.
  • Knowledge level - Those who agreed that inspection personnel are knowledgeable increased from 86.8 to 93 percent.
  • Satisfaction - Those who agreed that the overall quality of service was satisfactory, increased from 88 to 94 percent.
  
  
  
• FGIS is evaluating on-line alternatives for providing training for grain inspection personnel.
  
  
• GIPSA/official agencies have experienced a significant increase in requests for phytosanitary inspection service.
  • FGIS/official agencies performed about 2,300 phyto inspections on processed products during the month of September and 3,600 in October.
  • In addition, FGIS/official agencies are providing inspections for grade and phyto on an average of 20,000 grain containers, 7,000 export railcars and 250 ships per month.
  
  
• FGIS officials said the Third-Party Contracting Pilot Program will continue through the 2008 season in the Great Lakes. In general, the agency has found that the services provided by private contractor's do not necessarily cost less that FGIS-provided services. The Agency has also been surprised by the lack of competition from contractors interested in providing official services as part of the pilot program. The overall question boils down to whether there are real efficiencies to be gained through the use of private companies.

  The committee debated at some length a resolution asking for a time-line for moving to third-party contracting at export. FGIS officials suggested tempering that approach, saying it was not yet convinced the pilot program had been a success. The Committee ultimately approved the following resolution:

  The Committee recommends that GIPSA continue the contracting pilot program, having periodic reviews with industry regarding the progress. The Committee also recommends that FGIS expand the third-party contracting program to additional export ports where it is economically beneficial to industry and FGIS. Any plans for expansion should be presented at the next Advisory Committee meeting.

• Grain inspection and weighing fee overview
  • The fees have not been adjusted for 3.5 years.
  • Overall, the grain export program is operating with a positive margin.
  • Hourly rates (contract and non-contract) are covering expenses and contributing toward the 3-month reserve.
  • Tonnage rates are not covering support expenses.
  • Grain export fees are not operating as designed to cover specific costs of the program.
  
  
  
• GIPSA Budget and Planning Staff provided an overview of Agency finances, noting the Agency centralized all of its administrative functions in 2007 - shifting some programs from FGIS and some from Packers and Stockyards - to form a Management Support Staff. The net result, though, was an increased cost to the grain programs of $472,000. The following charts provide an overview of current account status.

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