April 3, 2019
Proposed Relocation/Realignment of USDA’s ERS and NIFA
Background
United States, a decentralized agency or organizational unit
As part of the reorganization of the proposed U.S.
of the executive branch coordinated by the Office of
Department of Agriculture (USDA), Secretary Perdue
Management and Budget whose activities are
announced in August 2018 the department’s intention to
predominantly the collection, compilation, processing, or
relocate the Economic Research Service (ERS) and the
analysis of information for statistical purposes.
National Institute of Food and Agriculture (NIFA) outside
the Washington, DC, metropolitan area. He also proposed
National Institute of Food and Agriculture
the realignment of ERS from the Office of the
A 2004 USDA task force report recommended the
Undersecretary for Research, Education, and Economics
formation of a National Institute for Food and Agriculture.
(REE) to the Office of the Chief Economist. Among the
The task force recommended that such an institute should:
stated reasons for the agency relocations are (1) improving
USDA’s ability to attract and retain qualified staff with
support fundamental research addressing the
out
frontiers of knowledge while leading to practical
the burden of the high cost of living; (2) placing USDA
results or further scientific discovery;
resources closer to the many agricultural stakeholders who
distribute research grants through a competitive,
live and work outside the Washington, DC, area; and (3)
peer-reviewed process and be solely a grant-
creating departmental savings on high employment costs
awarding entity, not one that conducts its own in-
and rent.
house research;
enhance, not replace, existing USDA research;
In a subsequent USDA notice in the Federal Register,
receive oversight from committees of scientists
interested parties were invited to make proposals for siting
and a council of advisors;
the relocated headquarters of ERS and NIFA. Logistical
needs for a new site included “location within a reasonable
achieve increasing annual appropriations over a
five-year period until it received $1 billion per
distance of a commercial primary airport and the
year; and
transportation infrastructure to have commuting options for
employees.” The notice also stressed the importance of a
be located in Washington, DC, to be close to the
site “in close proximity to a critical mass of intellectual
other major federal science agencies.
capacity” and stated that economic incentives and lower
NIFA was formally established four years later in the 2008
upfront capital costs would be factors in the site selection
farm bill (Food Conservation and Energy Act, P.L. 110-
process. With respect to the relocation of ERS, the notice
234) as the successor agency of the Cooperative State
also emphasized the need for enhanced information
Research, Education, and Extension Service (CSREES).
technology security to handle the agency’s confidential
Currently, NIFA administers both formula and competitive
statistical information.
grant funds under the 1887 Hatch Act and the 1914 Smith-
Lever Act and oversees a wide range of cooperative
In October 2018, USDA announced that it had received 136
extension and education functions of the former CSREES.
expressions of interest in 35 states. That initial list has been
narrowed to 68 locations for further consideration. A final
External Response to the Proposed Relocation
decision on the site(s) is expected in May 2019. USDA
Criticism of the proposed ERS and NIFA relocations and
announced that it would be working with the consulting
realignment began almost immediately. Scientists and
firm Ernst and Young to assist in the site selection process
scientific organizations have mounted aggressive
and to manage the actual relocation.
campaigns to slow or reverse the planned relocation. The
American Statistical Association joined with 59 other
Economic Research Service
organizations in sending a letter to House and Senate
ERS was founded in 1961 as the successor agency of the
agriculture appropriations subcommittees on November 18,
Bureau of Agricultural Economics, which was established
2018, requesting that “no funding be used for relocation
in 1922. ERS conducts economic and statistical analyses on
beyond that already provided for its relocation within the
agricultural commodities, trade and international
National Capital Region.” As stated in the letter, the
agriculture, rural demography, agricultural marketing, food
signers’ “fundamental concern is that the proposed
price forecasting, surveys of farm and crop production
relocation and realignment will undermine the quality and
practices, farm and rural labor and income analysis, food
breadth of the work these agencies support and perform—
safety and nutrition, natural resources, and the environment.
work that is vital to informing and supporting U.S.
More recently, ERS has developed geospatial online
agriculture, food and rural economies.” This concern about
mapping tools to integrate and display data and research
the “quality and breadth of work” may reflect the fact that,
results geographically. ERS is one of 13 “principal
within the metropolitan Washington area, NIFA and ERS
statistical agencies” of the Federal Statistical System of the
researchers can more easily communicate and interact with
https://crsreports.congress.gov
Proposed Relocation/Realignment of USDA’s ERS and NIFA
their counterparts in other federal research and statistical
included in the Trump Administration’s FY2020 budget
agencies, as was recognized by the 2004 USDA task force
request when the spending blueprint is delivered to
in its recommendation that the newly created agency be
Congress. Similar language also appears in the explanatory
located in the Washington metropolitan region.
statement of the Senate agriculture appropriations bill for
FY2019. These cost estimates were not included in the
A second letter opposing the relocation and signed by 99
Administration’s FY2020 budget request.
academic, statistical, research, and producer groups was
sent March 25, 2019, to the House and Senate
In March 27, 2019, testimony before the House
Appropriations Subcommittees on Agriculture, Rural
Appropriations Subcommittee on Agriculture
Development, Food and Drug Administration, and Related
Appropriations, a senior USDA advisor to the Secretary of
Agencies. The letter was also sent to the chair and ranking
Agriculture stated that in addition to the original logistical
members of the House and Senate Appropriation
Committees. That letter requested that “no funding be used
needs to be met in the site selection process, other variables
to be considered in the cost-benefit analysis would include
for relocation or reorganization of ERS and that no funding
quality of life, cost of living, land costs, labor force
be used for the relocation of NIFA outside the National
variables, infrastructure, commute times, and access to data
Capital Region.” The letter requested that any
centers.
reprogramming requests from USDA to continue
implementing the relocation be denied.
In response to a letter from Representative Steny Hoyer and
Delegate Eleanor Holmes Norton in late September 2018,
Congressional Response
USDA’s Office of the Inspector General (IG) began a
Members of the minority on the House Agriculture
review of the proposed relocation. This review, which has
Committee sent a letter on March 27, 2019, to the
not been completed, is to address USDA’s legal and
Subcommittee on Agriculture Appropriations supporting
budgetary authority to execute the realignment of ERS
USDA’s relocation proposal, pointing out that key
under the Office of the Chief Economist and the relocation
functions of USDA such as the Agricultural Research
of the agencies outside the Washington, DC, metropolitan
Service and the National Agricultural Statistics Service are
area. The IG review is expected to determine “USDA’s
already located outside the Washington area. The letter’s
adherence to any established procedures relating to agency
signers stated their support for the relocation as a means “to
realignment and relocation, and procedures associated with
improve the agency’s ability to recruit top talent from
cost benefit analyses (including factors such as staff
universities across the nation while being closer to rural
recruitment and retention, access to agency services, and
America and reducing taxpayer expenditures.” The letter
cost efficiencies).”
further noted the Secretary’s commitment that no ERS or
NIFA employee would be involuntarily separated during
Other Issues
the transition and that employees would be offered
At a March 28, 2019, hearing before the Subcommittee on
relocation assistance and receive the same base salary as
Appropriations, former USDA Undersecretaries for REE
before.
and directors of ERS pointed to other issues that may bear
on the decision to realign ERS under the Office of the Chief
Senators Pat Roberts and Debbie Stabenow—chair and
Economist at USDA. As one of 13 “principal statistical
ranking members, respectively, of the U.S. Senate
agencies” of the Federal Statistical System, ERS subscribes
Committee on Agriculture, Nutrition, and Forestry—wrote
to the Statement of Commitment to Scientific Integrity of
to Secretary Perdue September 7, 2018, pointing out that
the “agencies play a critical role in advancing agricultural
the National Research Council’s (NRC) Principles and
Practices for a Federal Statistical Agency. Four principles
research and analysis on topics such as food and nutrition,
are noted as fundamental for a federal statistical agency:
food safety, global markets and trade, resources and
environment and the rural and agricultural economy.”
relevance to policy issues, credibility among data users,
trust among data providers, and independence from political
Senators Roberts and Stabenow asked for responses to 12
and other undue external influence. The federal statistical
detailed questions regarding the proposed relocation and
agencies may conduct analyses, but they do not advocate
realignment.
policies or take partisan positions.
On December 19, 2018, Representative Chellie Pingree
Concern was expressed in the hearing from witnesses that a
introduced the Agricultural Research Integrity Act (115th
realignment of ERS under the Office the Chief Economist
Congress, H.R. 7330), which would have blocked the
and away from the Washington region could potentially
proposed relocation. The bill would have also blocked the
Secretary’s plan to move ERS from the Undersecretary of
raise questions about the independence and objectivity of
future ERS analyses and may conflict with the NRC
REE to the Office of Chief Economist, which is under the
principles. The NRC discussion of agency independence
Office of the Secretary. No action was taken on the bill
notes that “independence must include separation of the
before closure of the 115th Congress. The explanatory
statistical agency from the parts of its department that are
statement accompanying the FY2019 appropriations bill
contains language directing USDA to “delay indefinitely”
responsible for policy-making (or law enforcement)
activities.”
the proposal to reorganize ERS under the Office of the
Chief Economist and to provide Congress with a “detailed
analysis” and cost estimates of the proposed relocation of
Tadlock Cowan, Analyst in Natural Resources and Rural
both ERS and NIFA. The statement calls for cost estimates
Development
and a “detailed analysis of any research benefits” to be
IF11166
https://crsreports.congress.gov
Proposed Relocation/Realignment of USDA’s ERS and NIFA
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