Program B: Marketing Programs

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Program B: Marketing Programs

Program Authorization: R.S. 36:628(B)

PROGRAM DESCRIPTION

The mission of the Marketing Program is to increase the processing and sales of Louisiana food and agricultural products of producers and agribusinesses in order to enhance the economic well-being of the State of Louisiana through the individuals and businesses whom we serve. The goal of the Marketing Program is to create and sustain markets and affect jobs through its development of value-added food, agriculture and forestry products industries by way of financial assistance and counsel. To carry out this goal, the program operates financial, informational, promotional and market development activities. Financial assistance is provided through the State Market Commission, the Louisiana Alligator Market Development Authority, the Louisiana Alligator Market Development Authority and the Louisiana Agricultural Finance Authority. Loans, loan guarantees, loan rate buy downs and low interest loans are provided to agribusiness for the for the acquisition, construction, expansion or improvement of facilities that process, store or market food (including seafood), agriculture and forest products; to agribusiness for operating capital, market development & product inventories; and to youth who are involved in an organized school program in agriculture, i.e. 4-H and FFA projects. Informational assistance programs are provided to the general public, farmers and agribusinesses through the Federal-State Market News Service and Market Bulletin. The Market News Service collects and disseminates price and market information on livestock, poultry and eggs, rice, grains, sweet potatoes, fruits and vegetables. The Market Bulletin provides for the advertising of agricultural items for sale to subscribers resulting in the sale/purchase of items not normally available in commercial trade channels. Promotional and market development programs serve farmers, agribusinesses, food companies and the consumer through state, national and international trade shows, supermarket promotions market research, commodity promotions, targeted market development assistance and other activities. The program also includes assistance in the collection of assessments for numerous commodity boards and commissions, and the development and implementation of promotion and market development activities of theses boards and commissions. The activities of this program are Administrative, Market Development, and Louisiana Agricultural Finance Authority.

OBJECTIVES AND PERFORMANCE INDICATORS

1. The Marketing Program will create markets and affect jobs through the development of valued-added food, agriculture and forestry products industries through financial assistance programs. Specifically, the program will increase the number of alligator and ostrich hides processed to 23,500 while maintaining the number jobs and farm youth impacted by financial assistance.

2. The Marketing Program will sustain or increase trade leads by 5% for markets of Louisiana produced food, agriculture & forest products during FY 1998-99.

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with state general fund, fees and self-generated revenues, statutory dedicated funds and federal funds. The fees and self-generated revenues are generated from: (1) a fee of up to 3% of the total assessments collected for the Rice Research and Promotion Boards, the Soybean and Grain Promotion Board, and the Crawfish Promotion Board; (2) interest collected from the Market Commission Loan Program; (3) reimbursement from the Southern United States Trade Association (SUSTA) for 100% of the director's salary, related benefits, etc.; (4) a fee of $10.00 collected bi-annually for subscriptions to the Market Bulletin; and (5) miscellaneous revenues collected for booth rentals at food shows. Statutory dedicated revenues are the result of interest income and fees collected with any bonds issued by the Agricultural Finance Authority. (Per R.S. 39:32B.(8), see table below for a listing of expenditures out of each statutory dedicated fund.) The federal funds are derived from: (1) USDA for collecting statistical livestock and crop data; (2) USDA for baled pine straw research project; and (3) USDA for telephone costs.

ANALYSIS OF RECOMMENDATION

GENERAL FUND	TOTAL	T.O.	DESCRIPTION

$1,172,225	$1,837,141	23	ACT 18 FISCAL YEAR 1997-1998

			BA-7 TRANSACTIONS:
$0	$0	0	None

$1,172,225	$1,837,141	23	EXISTING OPERATING BUDGET - December 10, 1997

$20,882	$20,882	0	Annualization of 1997 -'98 Merit Pay Adjustment(s)
$35,056	$35,056	0	1998-'99 Merit Pay Adjustment(s)
($19,372)	($19,372)	(1)	Personnel Reduction(s)
($23,414)	($23,414)	0	Attrition Adjustment(s)
($4,285)	($4,285)	0	Retirement Rate Adjustment(s)
($12,119)	($12,119)	0	Reductions in various Expenditure Categories; Including Reductions to fully fund Salaries
($405)	$0	0	Means of financing substitution, replace general fund with self-generated revenue

$1,168,568	$1,833,889	22	TOTAL RECOMMENDED

($3,657)	($3,252)	(1)	DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 99.8% of the existing operating budget. It represents 95.6% of the total request ($1,918,225) for this program. One vacant position has been eliminated.

PROFESSIONAL SERVICES

$100,000		Legal services for attorneys to represent the department in all legal proceedings

$100,000		TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$251,434		Product promotion of Louisiana products by providing materials and supplies at trade shows

$251,434		TOTAL OTHER CHARGES

		Interagency Transfers:
$1,323		Department of Civil Service
$2,183		Office of Uniform Payroll System

$3,506		TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$11,194		Replacement telephone equipment

$11,194		TOTAL ACQUISITIONS AND MAJOR REPAIRS

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