Grain Advisory Committee Resolutions - November 17, 2004

1. The Advisory Committee recommends that GIPSA continue to develop and promote process verification to the grain and feed industry. Monitor demand and cost for ISO registration of the grading and inspection processes, but do not pursue at this time.
   
   
2. In light of the increased volume of grain being exported from the United States in containers, the Advisory Committee recommends GIPSA take the necessary action to ensure the registration and mandatory inspection and weighing provisions of the US Grain Standards Act are enforced equitably for all export grain.
   Furthermore, the Advisory Committee recommends GIPSA take action to propose an exemption to the mandatory export inspection and weighing provisions of the Act for high value, niche market grains when buyer and seller contractually agree to forego official inspection and weighing.
   The Advisory Committee also recommends GIPSA immediately implement revised inspection and weighing procedures to improve the efficiency and cost effectiveness of official inspection and weighing services for container shipments of grain.
   
   
3. The Advisory Committee recommends that FGIS not move forward with the development of DDG marketing standards. GIPSA should continue to support the industry in anyway possible.
   
   
4. The Advisory Committee opposes the establishment of new user fees to cover the costs of standardization activities. These activities benefit all consumers and, therefore, should be supported by appropriated funds.
   
   
5. The Advisory Committee recommends that GIPSA immediately proceed with a competitive bidding process for rice inspection in accordance with OMB Circular A-76 if the final results of the current feasibility study conclude the private sector can provide more cost-effective service to the rice industry.
   
   
6. The Advisory Committee recommends that GIPSA look into consolidation of domestic field offices to maintain the financial viability of the Program 530 trust fund account. This is due to the recent financial losses in this account (despite reallocation of GIPSA overhead costs 2 years ago), and projections that losses will continue if left unchanged.
   
   
7. The Advisory Committee recommends that FGIS continue to review options for outsourcing services at export and seriously consider contracting of services, direct oversight of delegated private agencies (DPA) and expanded delegation to private providers as options to restructure. The status quo has been fiscally challenged and the South American model does not provide for an official certificate (integrity). The system needs to provide for integrity as well as less cost.