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User-Fee Financing of USDA Meat and Poultry Inspection

  • by James M. MacDonald, Fred Kuchler, Jean C. Buzby, Fitzroy Lee and Lorna Aldrich
  • 3/1/1999
  • AER-775

Overview

USDA's Food Safety and Inspection Service (FSIS) finances about 13.5 percent of its budget outlays through user fees for overtime and unscheduled meat and poultry inspections. This report surveys the application of user-fees for financing meat and poultry inspection programs in other countries; reviews user-fee systems in other Federal agencies, particularly those with food and agricultural missions or regulatory responsibilities; and discusses the relevant economics literature on the use and design of user fees. Finally, the report suggests several elements that should underlie the structure of user fees for meat and poultry inspection, should such a program be introduced.

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