DATE: May 21, 2007

TO: Teresa Lasseter, Administrator

> Steven Connelly, DAFO

FROM: Brymer Humphreys, SED

SUBJECT: New York State Reorganization Plan

Administrator Lassiter has tasked each State Executive Director to
conduct an independent local-level review of the efficiency and
effectiveness of FSA offices in their state. After meetings with
employee organizations and taking into account the changes the other
USDA agencies in New York are making, the State Committee and I are
submitting this reorganization plan to you.

A great deal of time has been taken to carefully weigh the pros and cons
of each office submitted for closure under this plan. There are two
underlying themes we adopted when considering our proposal:

1.  How to best serve our customers with continually shrinking staffing
    levels and

2.  How do we retain the quality employees who are serving their
    producers.

**[Background]{.underline}**

Given our current financial outlook and New York's evolving agricultural
base we feel it is important to take the necessary steps to ensure the
viability of New York FSA as well as to provide the type of customer
service farmers expect from this agency. I believe the constant
under-staffing of our state has placed undue stress on our employees.
For the last few years, offices of all sizes have endured excessive
workload demands with inadequate staffing. I believe that this stress
has caused low employee morale, increased health problems and created an
overall dissatisfaction with the Agency. In the short term, this
reorganization plan may not seem beneficial to the employees. I believe
in the long term this plan will reduce stress on our employees, provide
more adequately staffed offices, and will result in better service to
our producers.

The following information highlights New York FSA:

-   There are 43 FSA field offices in New York serving 50 counties

-   Of those 43 offices, there are 37 headquarter offices and 6
    sub-offices participating in shared management situations

-   There are 13 credit teams (Type 1 offices) in the state

-   Proposed number of offices after reorganization -- 35

-   Proposed number of shared management offices after reorganization --
    0

-   Number of credit teams after reorganization - 13

-   New York has closed two field offices (Fulton and Tompkins) in the
    last 4 years

-   New York commodity offices issued over \$92 million to approximately
    13,000 farmers in fiscal year 2006.

-   New York credit teams approved 594 loans totaling \$58 million to
    producers in fiscal year 2006

The following information reflects the status of New York's FTE
situation:

-   The 2007 county office FTE ceiling is 129. New York FSA currently
    has 129 employees, along with 2-non-ceiling COTS and one flexed
    position from GS to CO. That flexed position is currently being used
    for a COT position.

-   The CO ceiling has decreased by 2 FTE positions in each of the past
    2 years. Each time New York has complied with those employee
    reductions.

-   Workload fluctuates from year-to-year depending on commodity prices
    and weather conditions. A three year workload average from 2004-2006
    indicates our staffing needs are 161.95 FTEs.

-   Since 1995 New York's county office staff ceiling has been reduced
    23% (from 168 FTEs to 129 FTEs).

-   New York's temporary staffing ceiling decreased from 21 FTEs in 2004
    to 11 FTEs in 2007.

-   Temporary FTEs have consistently staffed offices for multiple years
    in order to complete the workload demands. These temporary employees
    are assigned with program responsibilities. They don't simply answer
    the phone or file paperwork.

-   There are four offices in New York staffed by one permanent PT.
    These are all sub-offices in shared management arrangements.

-   There are three offices in New York staffed by two PTs. Two of these
    offices are in shared management operations and the remainder has a
    temporary Acting CED arrangement.

-   There are four offices staffed with a CED and one PT.

-   The GS staffing levels have remained constant over the past three
    years. Staffing for GS employees is at 85 FTEs.

New York has been a leader in office reductions. The state has closed
nine offices over the years. Most recently, the state closed the
Tompkins County office in 2004 and the Fulton County office in 2005.

In other situations the state has adopted the shared management concept.
From this state's perspective, the shared management concept is an
acceptable short-term solution to a CED vacancy. However, it is not a
practical long term solution for the following supervisory and budgetary
standpoints:

-   Sub offices with one PT are drastically understaffed.

-   Temporary employees are requested in those counties to administer
    programs and provide office coverage. However, temporary employees
    are not provided benefits and are limited in promotion potential.
    These conditions create an unstable workforce for a CED to manage.
    Also, temporary staffing is not always available due to budget
    constraints.

-   The state has maintained a practice of providing temporary employees
    to the sub offices to assist with the workload demands. However,
    this has placed other offices at a disadvantage because their
    workload demands require more employees. The state doesn't have the
    budget or the ceiling to supply temporary employees to all counties
    who request one.

-   Significant work quality problems develop in sub-offices from a lack
    of oversight or an over-trusting CED.

-   It is difficult to adequately train a temporary employee in a one
    person office.

-   Shared management creates an inefficient use of personnel. PTs in
    understaffed sub-offices are still required to read and file
    procedure, maintain office files, and load software. These tasks
    must be fulfilled, but they take time away from completing program
    duties.

-   CEDs perform additional duties without additional compensation.
    There is also more stress on employees in shared management offices.

-   Placing a CED directly from a COT program into a shared management
    office would be disastrous.

-   Travel costs are increased as a result of CED travel between
    offices. Travel costs for training are also increased because one PT
    from each office attends training sessions.

-   COC costs are higher in shared management than in a combined office
    setting because there are two COCs consisting of eight members
    versus one COC with five or six members.

Farm numbers have decreased over the years in New York, just like they
have across the country. Every office in the state paid fewer farmers in
2006 then in the previous two years. This is due in part to programs
that are not available or better growing conditions. It is also
indicative of the direction agriculture is heading towards - fewer
farmers mean reduced clientele. The counties selected for consolidation
are located in areas with a declining agricultural base and where a
strong resurgence is unlikely.

The State Committee believes, based on current trends and economic
conditions facing the government, the county office employment ceiling
is more likely to see additional reductions as opposed to increased
FTEs. The State Committee also believes we need to get ourselves in the
best position possible to administer and implement the next Farm Bill.
Under our current staffing plan, offices will endure greater
difficulties administering a complex Farm Bill due to the constant
reduction is staffing. To that end, we need to position ourselves to
meet the challenges of any program without expecting additional funding
for temporary employees.

**[Goals of Reorganization]{.underline}**

1.  *The State Committee is in favor of trying to maintain an office
    size of three-four PTs and one CED.*

The goal of the state reorganization plan is to create more adequately
staffed offices in order to better serve customers and better utilize
our employees. Fully staffed offices will allow for more cross training
between employees, better office coverage, and less stress for most
employees. In turn, this will provide better service to producers and
should reasonably offset the extra distance some producers may have to
travel. Maintaining an office building, providing temporary staffing and
paying more in travel costs while accomplishing less work is not an
effective use of taxpayer money.

Many of the temporary employees in the shared management operations
would no longer be needed in the new county. This would allow
understaffed counties throughout the state the use of a temporary
position to help out during high volume workload periods. There are many
counties that need help and whose program contract numbers and workload
numbers demonstrate the need for additional office staffing.

2.  *Reduce Inefficiencies*

Intangible costs savings will result in an office closure. A few of
these items are:

-   Time spent loading software and maintaining handbooks in one office
    rather than two offices

-   Producers will receive better service in a fully staffed office.

-   Understaffed offices cannot complete all the demands placed on them
    by the Agency, Department, or the Administration. Farmers should not
    have to wait to enroll farms into programs such as CREP because the
    office cannot complete all of the duties required.

-   PTs better trained and capable of specializing in program areas
    instead of trying to know everything or waiting for CED/PT from
    another office to assist.

-   50% reduction in time a CED spends negotiating leases.

-   Time saved by the state IT staff working on a computer in a small
    office.

-   Time spent preparing for two COC meetings.

-   Better staffed offices result in fewer employee leave issues.

-   CED can spend more time on outreach if he/she doesn't have two
    offices to manage.

-   Temporary PTs can be assigned to offices with higher workload
    burdens. These temporary's could work more as office assistants
    rather than program specialists.

-   Time spent by DDs driving to office and reviewing files, conducting
    office reviews, accessibility determinations, etc.

Tangible cost savings can be found by consolidating offices. Some of
these saving are:

-   Reduced rent, phone, utility and janitorial costs

-   Reduced COC meetings, temporary payroll, and travel costs

-   \$5100 savings in computer stations and internet connectivity costs

-   District Director and County Operations Reviewer travel costs

-   STO printing and postage savings

3.  *Eliminate Shared Management Offices where it won't create dramatic
    obstacles for producers to receive service.*

Many producers travel to their FSA county office two to three times a
year. The additional mileage for the producer would be offset with more
employees able to assist him or her. Moreover, offices fax and mail
documents to their producers to eliminate the farmer's travel time.

**Summary**

**[County Offices Considered for Consolidation]{.underline}**

The following information provides a brief summary of our proposed
reorganization plan. We plan to address the six shared management
offices and two Type 2 offices (offices with a full-time CED and staff
in a location without a credit team). We propose to close the offices
listed in the order below; however, we request to reserve the right to
close them in any order based on any situations that may affect the
closing such as leases, retirements, etc. The following shared
management offices were selected for closure:

1.  Close the Suffolk County FSA office in Riverhead and combine it with
    the Dutchess/Ulster/Putnam/Westchester office in Millbrook. Suffolk
    County is a Type 2 office.

2.  Close the Sullivan County FSA office in Liberty and combine it with
    the Orange County Office in Middletown. Orange County is currently
    the headquarters office for this shared management operation.

3.  Close the Albany County FSA office in Voorheesville and combine it
    with the Schoharie/Schenectady County FSA office in Cobleskill.
    Schoharie/Schenectady is currently the headquarters office for this
    shared management operation.

4.  Close the Rensselaer County office in Troy and combine it with the
    Washington/Warren County office in Greenwich. The Rensselaer County
    CED is currently operating as the Acting CED for the Columbia/Greene
    FSA office in Ghent. If Rensselaer FSA closes, the CED from that
    county could be hired in the Columbia/Green office. Rensselaer
    County is a Type 2 office.

5.  Close the Broome County FSA office in Binghamton and combine it with
    the Cortland/Tompkins FSA office in Cortland. Broome County is the
    sub-office in a shared management operation with the Delaware County
    FSA office.

6.  Close the Herkimer County FSA office in Herkimer and combine it with
    the Otsego County FSA office in Cooperstown. Otsego County is
    currently the headquarters office for this shared management
    operation.

7.  Close the Yates County FSA office in Penn Yan and combine it with
    Ontario County. The Penn Yan office is currently the sub-office in a
    shared management operation with Steuben County FSA.

8.  Close the Oswego County FSA office in Mexico and combine it with
    Jefferson County. The Oswego office is currently the sub-office in a
    shared management operation with Wayne County.

It should be noted that we have met with the county office employee
association NYASCOE on a number of occasions. NYASCOE is opposed to any
type of office consolidation in New York. NYASCOE feels all offices
should remain open and the state should instead utilize the shared
management system. Other employee groups, individual employees, and the
STC feel that shared management has a purpose, but more gains could be
found from consolidating offices. To that end, we believe the following
plan will benefit the farmers and the employees of New York.

**[Justification]{.underline}**

The following numbers represent averages and median numbers for New York
State FSA:

-   Each office paid an average of 324 producers in 2005 and 300
    producers in 2006. The median number of producers paid by county was
    353 in 2005 and 315 in 2006.

-   Commodity payments per office averaged \$1,969,155 per year between
    2004-2006.

-   In 2006 each office averaged 203 farmers/landowners participating in
    DCP and an average of 606 enrolled farms per office.

-   In 2006 an average of 120 producers per county were enrolled in
    MILC.

-   In 2006 each county had an average of 62 CRP contracts.

-   In 2006, for every dollar distributed to producers, it costs 13
    cents in administrative funds.

The following is the justification for closing each of the selected
offices.

***[Suffolk County]{.underline}***

The Suffolk County office is the smallest workload office in New York.
The employees do a good job, but there isn't sufficient workload to
warrant keeping this office open. The only reason why this office has
never been targeted for closure is because of its location on the east
end of Long Island. The closest FSA office to the Suffolk County office
is in Connecticut. Farmers could take a ferry to the New London office.
The nearest New York County is Orange County which is 135 miles from the
Suffolk County office. However, we are proposing to combine it with
Dutchess/Ulster/Putnam/Westchester County FSA office in Millbrook (148
miles from Riverhead) to eliminate producers and staff from having to
use the Tappanzee Bridge to cross the Hudson River.

The Suffolk County FSA office is located in an area with a greatly
diminished agricultural population. Many of the remaining Long Island
farmers have enrolled land into Purchased Development Rights (PDR)
programs to eliminate development and preserve the remaining farmland.
Even with the measures taken by the farmers, there is still an extremely
small FSA agricultural base in Suffolk County. Long Island has a
tremendous horticulture base, but those numbers do not carry over into
FSA program participation.

The office is staffed with one full time CED and one permanent PT. The
CED is enrolled in the Farm Loan Officer Training (FLOT) program which
requires credit training one week per month in the Cobleskill office in
Schoharie County.

The current Dutchess County CED has indicated he will retire in December
2007. The Suffolk County CED could be hired by the Dutchess County COC.
The Suffolk County PT would be reassigned to the Orange County FSA
office in Middletown. The workload absorbed by Dutchess County would be
negligible. The Dutchess County office would be unchanged from their
current staffing. There would be one CED and two PTs. The Orange County
office in Middletown would be adequately staffed with 4 PTs and one CED.

Recognizing how difficult it will be for Suffolk County producers to
visit their new office, the STC proposes having the CED visit the
Suffolk County office on a monthly basis for a period of two to three
days each month to meet with farmers.

Suffolk's 3-year workload average is 628 days. Dutchess County's
workload is 955 NWDs. Once the administration portion of Suffolk County
is removed the workload drops to 433 NWDs.

To better balance the workload, it is recommended that in the future the
Ulster County producers be eligible to transfer from the
Dutchess/Ulster/Putnam/Westchester office to the Orange County office.

The Suffolk County FSA office lease expires March 31, 2009.

Administrative costs consisting of rent, utilities, temporary staffing,
and COC payroll for 2006 were approximately \$20,433. Suffolk County
employee travel costs were \$4,500.

Suffolk County employees would need their relocation cost paid. The
Agency must readily assume that responsibility.

NRCS will maintain a presence in Suffolk County and there is a full-time
RD presence in Suffolk County.

Other information about Suffolk County:

-   The office paid 29 producers in 2005 and 28 producers in 2006.

-   The office averaged \$215,169 in commodity payments per year from
    2004-2006.

-   In 2006, 15 farmers/landowners participated in DCP with a total of
    65 enrolled farms.

-   In 2006, there were no Suffolk County producers enrolled in MILC

-   In 2006, there were 3 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs 76
    cents in administrative funds.

The cost for the physical relocation should be approximately \$5,000.
Furniture and equipment that is not needed in the Dutchess office can be
excessed.

The farmers on Long Island are represented by Congressman Tim Bishop,
(D), 1^st^ Congressional District (202-225-3826) and Steve Israel, (D),
2^nd^ Congressional District (202-225-3335).

***[Sullivan County]{.underline}***

The Sullivan County FSA office is a small office located in Liberty.
Sullivan is the sub-office and Orange County is the headquarters office
for this shared management operation.

Sullivan County is located in the foothills of the Catskill Mountains.
Farm numbers continue to decline in this county. The office is staffed
with one full-time PT and one temporary PT. The office has requested and
received a full time temporary employee for the past three years. Due to
higher living costs in this region the temporary employees are hired at
a grade higher than other temporary employees in the state.

The shared management CED spends one to two days a week in Sullivan
County and the other two-three days in the headquarters office of Orange
County. Orange's 3-year workload average is 733 days higher than
Sullivan's workload of 573 NWDs. A government car is sometimes available
for the CED because of the credit team located in Orange County. The
distance between the Sullivan office and the Orange office is 43 miles.

The Sullivan County permanent PT would be assigned to work in the Orange
County office. The Orange/Sullivan Office would then consist of one CED
and five permanent PTs (Four permanent PTs if the Suffolk County office
doesn't close).

The Sullivan office lease expires March 31, 2010. Currently there isn't
any NRCS staff in Sullivan County. NRCS will not back-fill that
position. There is no FSA credit team or RD presence in Sullivan County.

Administrative costs consisting of rent, utilities, temporary staffing,
and COC payroll for 2006 were approximately \$44,918. The cost of the
Orange County government car traveling to Sullivan County was
approximately \$1,800 in 2006 and employee travel costs in Sullivan
County were approximately \$450. The Sullivan PT has received a
one-grade increase due to shared management. This additional salary cost
would be reduced over time once the grade and pay retention allowances
expire.

Other information about Sullivan County:

-   The office paid 96 producers in 2005 and 83 producers in 2006.

-   Commodity payments averaged \$369,929 per year between 2004-2006.

-   In 2006, there were 74 farmers/landowners participating in DCP with
    a total of 230 enrolled farms.

-   In 2006, there were 39 producers enrolled in MILC

-   In 2006, there were 17 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs 26
    cents in administrative funds.

The cost for relocating the office is minimal. With the short distance
between the two offices, the movement of furniture, equipment and files
will be relatively low. The cost for the physical relocation should be
approximately \$3,000. Furniture and equipment that is not needed in the
Orange office can be excessed and/or transferred to other offices that
have a need for the items.

Sullivan County farmers are represented by Congressman Maurice Hinchey
(D) 22^nd^ Congressional District (202-225-3665).

***[Albany County]{.underline}***

The Albany County FSA office is a small office located in Voorheesville.
Albany is the sub-office and Schoharie/Schenectady County is the
headquarters office for this shared management operation.

The Albany County FSA office is located in the increasingly urbanized
county of our state capital. Traditional FSA producers continue to sell
out to developers. The office is staffed with one full-time PT and one
temporary PT. The office has requested and received a temporary employee
since the last full-time PT retired in 1997. The CED spends two days a
week in Albany County and the other two days in the headquarters office
of Schoharie.

Schoharie's 3-year workload average is 135 days higher than Albany's
workload of 762 NWDs. The CED has been afforded a government car for
travel. The distance between the Albany office and the Schoharie office
is 35 miles.

The Albany County PT would be assigned to work in the Schoharie County
office. The Schoharie/Schenectady/Albany County commodity team would
then consist of one CED and three PTs.

The Albany County office lease expires September 1, 2007. The county
will be conducting a one-year lease extension. The building is not
handicap accessible and requires approximately \$800,000 in renovations.
There is no FSA credit team or RD presence in Albany County.

Administrative costs consisting of rent, utilities, temporary staffing,
and COC payroll for 2006 were approximately \$51,759. The cost of the
government car for the CED was \$3515 and Albany County employee travel
costs were \$300. The Albany PT has received a one-grade increase due to
shared management. This additional salary cost would be reduced over
time once the grade and pay retention allowances expire.

Other information about Albany County:

-   The office paid 161 producers in 2005 and 153 producers in 2006.

-   Commodity payments averaged \$487,046 per year between 2004-2006.

-   In 2006, there were 134 farmers/landowners participating in DCP with
    a total of 312 enrolled farms.

-   In 2006, there were 15 producers enrolled in MILC

-   In 2006, there were 20 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs 17
    cents in administrative funds.

The cost for relocating the office is minimal. With the short distance
between the two offices, the movement of furniture, equipment and files
will be relatively low. The cost for the physical relocation should be
approximately \$2,500. Furniture and equipment that is not needed in the
Schoharie office can be excessed and/or transferred to other offices
that have a need for the items.

Albany County farmers are represented by Congressman Michael McNulty
(D), 21^st^ Congressional District (202-225-5076).

***[Rensselaer County]{.underline}***

The Rensselaer County FSA office is a medium size office located in
Troy. The CED is currently the Acting CED in Columbia/Greene County.

Rensselaer County is currently staffed with a CED, two full-time PTs and
one temporary PT. It is expected that one of the PTs will transfer to
another county office (Schoharie) by June 15. That PTs position will not
be backfilled as the state is at its permanent COF ceiling. The office
has requested and received a full-time temporary employee since the CED
has agreed to serve as the Acting CED in the Columbia/Greene FSA office.
The CED spends one to two days a week in Columbia County and the other
two-three days in the Rensselaer office.

The Rensselaer office would be combined with the Washington County FSA
office because the two offices are currently only 35 miles apart. The
majority of Rensselaer County farmers operate out of the northern half
of the county, primarily on the Washington County border. There is a
farm loan team in Washington County that serves the Rensselaer County
producers.

Rensselaer County's 3-year workload average is 903 NWDs. Washington
County's 3-year workload average is 953 NWDs, but their customer base
has over 130 more farmers than Rensselaer County.

There is currently a vacant CED position in Columbia/Greene County. The
Columbia/Greene County office has been filled with two COT candidates
since the death of the CED in 2003. Neither candidate stayed in the
county for more than five months. This was due in part to the cost of
living in the area and neither employee was from the area. The distance
to the Columbia office for the Rensselaer CED is a few miles more than
his drive to the Rensselaer Office. It is assumed that the
Columbia/Greene COC would readily hire the Rensselaer CED.

The permanent Rensselaer PT would be assigned to the Washington County
office. The Washington/Warren/Rensselaer commodity team would then
consist of one CED and three PTs. The Columbia/Greene County Office
would consist of one CED and two PTs.

The Rensselaer County CED's travel has already exceeded \$1,500 for the
FY07 year because of the Acting CED assignment in Columbia County. His
normal travel costs average \$550 per year.

Washington County's 3-year workload average is 225 days higher than
Rensselaer's workload. The Columbia/Greene County 3-year average
workload is 333 days higher than Rensselaer. The Rensselaer CED admits
there is more workload to be generated in Columbia/Greene but he is
unable to encourage it because of his workload in Rensselaer County.

Rensselaer County's office lease expires June 30, 2009. The Rensselaer
office is located in the city of Troy, an area that is not producer
friendly and it lacks parking.

Administrative costs consisting of rent, utilities, student intern
payroll, and COC payroll for 2006 were approximately \$36,665. The 2007
temporary payroll costs will be approximately \$16,483 (up from zero in
2006) and the CED travel costs will be approximately \$3000 (up from
\$550 in 2006).

There is no FSA credit team or RD presence in Rensselaer County.

Other information about Rensselaer County:

-   The office paid 220 producers in 2005 and 195 producers in 2006.

-   Commodity payments averaged \$1,383,582 per year between 2004-2006.

-   In 2006, there were 195 farmers/landowners participating in DCP with
    a total of 630 enrolled farms.

-   47 of those 195 farmers are enrolled in MILC

-   In 2006, there were 10 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs 18
    cents in administrative funds. That number will increase for 2007 as
    travel and temporary costs are increased.

The cost for relocating the office is minimal. With the short distance
between the two offices, the movement of furniture, equipment and files
will be relatively low. The cost for the physical relocation should be
approximately \$2,500. Furniture and equipment that is not needed in the
Washington office can be excessed and/or transferred to other offices
that have a need for the items.

Rensselaer County farmers are represented by Congressman Kirstin
Gillibrand (D), 20^th^ Congressional District (202-225-5614) and
Congressman Michael McNulty (D), 21^st^ Congressional District
(202-225-5076).

***[Broome County]{.underline}***

The Broome County FSA office is a small office located in Binghamton.
Broome is the sub-office and Delaware County is the headquarters office
for this shared management operation.

Farm numbers continue to decline in this geographically small county.
The office is staffed with two full time PTs. The CED usually spends one
to two days a week in Broome County and the remainder of the time in the
headquarters office of Delaware.

Although Broome is currently the sub-office for Delaware County, we feel
it makes more sense for the producers to be administered out of Cortland
County. Approximately half of the Broome producers are located in
between the Cortland and Broome offices. The distance from the Delaware
office to the Broome office is 52. The distance from the Cortland office
to the Broome office is only 37 miles. Interstate RT 81 and RT 11 are
easily accessible for farmers to travel to the Cortland office.

Broome's 3-year average workload is only 500 NWD per year. During the
same time frame the Cortland office workload was 1162 NWD and Delaware
County's was 1140 NWD.

Both of the Broome County permanent PTs would be assigned to work in the
Cortland County office. The Cortland Office would then consist of one
CED and four permanent PTs. The Delaware office would be staffed with
one CED and three PTs.

The Broome office lease expires March 31, 2010. The Cortland lease
expires June 30, 2007. The Cortland office will be conducting a one-year
lease extension.

Broome's administrative costs consisting of rent, utilities, and COC
payroll for 2006 was approximately \$20,389. Travel costs for the Broome
County office were \$200 in 2006. The Delaware County CED travel costs
average \$3,700 per year. As of pay period 8 her travel costs were
\$2,094. The Cortland office has a credit site and a government car. A
PT in Delaware County has received a one-grade increase due to shared
management. This additional salary cost would be reduced over time once
the grade and pay retention allowances expire.

Other information about Broome County:

-   The office paid 134 producers in 2005 and 104 producers in 2006.

-   Commodity payments averaged \$604,340 per year between 2004-2006.

-   In 2006, there were 78 farmers/landowners participating in DCP with
    a total of 207 enrolled farms.

-   In 2006, there were 46 producers enrolled in MILC

-   In 2006, there were 67 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs 22
    cents in administrative funds.

The cost for relocating the office is minimal. With the short distance
between the two offices, the movement of furniture, equipment and files
will be relatively low. The cost for the physical relocation should be
approximately \$2,500. Furniture and equipment that is not needed in the
Cortland office can be excessed and/or transferred to other offices that
have a need for the items.

Broome County farmers are represented by Congressman Maurice Hinchey
(D), 22^nd^ Congressional District (202-225-6335) and Congressman
Michael Arcuri, (D), 24^th^ Congressional District (202-225-3665).

***[Herkimer County]{.underline}***

The Herkimer County FSA office is a small office located along the
Thruway in the state's Mohawk Valley region. Herkimer is the sub-office
and Otsego County is the headquarters office for this shared management
operation.

The agriculture base for Herkimer County is in the southern third of the
county. The northern part of the county is in the Adirondack Mountains.
The New York State Thruway, RT 5 and RT 28 make the travel easy for
farmers to reach other offices. It is estimated that half of the farmers
would go to the Otsego County office in Cooperstown with the remainder
going to the Oneida County office in Marcy and a few to the Montgomery
County office in Fultonville. The Herkimer office is 22 miles from
Marcy; 33 miles from Cooperstown; and 33 miles from Johnstown.

The Herkimer office is staffed with two full time PTs. The Otsego CED
spends two days a week in Herkimer County and the other three days in
the headquarters office of Otsego. Herkimer County's 3-year workload
average is 686 NWD. Otsego County's workload is 938 NWD and Oneida
County's is 999 NWD.

One of the Herkimer County PTs would be assigned to work in the Otsego
Office. The other PT would be assigned to the Oneida County office. The
Oneida County office has 313 more workload days than Herkimer, but is
staffed with only two PTs and the CED position is vacant. The resulting
Otsego County office would consist of one CED and three PTs. The Oneida
County office would consist of one CED and three PTs. There are
currently three PTs and one CED in the Montgomery County office.

The Herkimer office lease expires June 30, 2009.

Administrative costs consisting of rent, utilities, and COC payroll for
2006 were approximately \$29,852. The CED has been afforded a government
car for travel between the two offices at a cost of approximately
\$3,600 per year. One PT in the Herkimer County and one PT in the Otsego
County office are grade 8 positions because of shared management. This
additional salary cost would be reduced over time once the grade and pay
retention allowances expire.

Other information about Herkimer County:

-   The office paid 353 producers in 2005 and 328 producers in 2006.

-   Commodity payments averaged \$1,208,920 per year between 2004-2006.

-   In 2006, there were 214 farmers/landowners participating in DCP with
    a total of 419 enrolled farms.

-   In 2006, there were 196 producers enrolled in MILC

-   In 2006, there were 46 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs nine
    cents in administrative funds.

The cost for relocating the office is minimal. With the short distance
between the two offices, the movement of furniture, equipment and files
will be relatively low. The cost for the physical relocation should be
approximately \$2,500. Furniture and equipment that is not needed in the
Otsego office can be excessed and/or transferred to other offices that
have a need for the items.

Herkimer County farmers are represented by Congressman Michael Arcuri,
(D), 24^th^ Congressional District (202-225-3665)

***[Yates County]{.underline}***

The Yates County FSA office is a small office located in the Finger
Lakes Region of New York. Yates is the sub-office and Steuben County is
the headquarters office for this shared management operation.

Agriculture in this county is fairly well spread out and the Finger
Lakes provide natural geographic barriers. Farmers would have an option
of choosing between the Canandaigua office in Ontario County to the
North of Yates County or the Bath office in Steuben County to the south
of Yates County. More farmers may travel north due to their location,
the road system and centers of commerce in Geneva and Canandaigua. The
Yates County office is 24 miles from Canandaigua and 28 miles from Bath.

The Yates office is staffed with one full time PT and one temporary PT.
The Steuben County CED spends one day a week in Yates County and the
rest of the time in the headquarters office in Bath. Yates County's
3-year workload average is 798 NWDs. Steuben County's 3-year workload
average is 1065 NWDs and Ontario County's is 1151 NWDs.

The Yates County PT would be assigned to work in the Steuben County
Office. The reason for this is she lives closer to the Steuben office
and she will be eligible to retire within a year. She is a valuable
employee and there is plenty of work in the Steuben office. When she
retires, her position would not be backfilled. The Ontario County office
would be allowed to hire a new permanent PT. The resulting Steuben
County office would consist of one CED and 4 PTs. The Ontario County
office would consist of one CED and four PTs.

The Yates office lease expires December 31, 2009.

Yates County administrative costs consisting of rent, utilities,
temporary staffing, and COC payroll for 2006 were approximately
\$59,787. Yates County employee travel costs were \$600. The estimated
costs of CED travel to the shared management office for 2006 was
\$1,500. The Yates PT and a Steuben County PT have received a one-grade
increase due to shared management. This additional salary cost would be
reduced over time once the grade and pay retention allowances expire.

Other information about Yates County:

-   The office paid 215 producers in 2005 and 206 producers in 2006.

-   Commodity payments averaged \$1,048,400 per year between 2004-2006.

-   In 2006, there were 146 farmers/landowners participating in DCP with
    a total of 219 enrolled farms.

-   In 2006, there were 57 producers enrolled in MILC

-   In 2006, there were 42 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs nine
    cents in administrative funds.

The cost for relocating the office is minimal. With the short distance
between the two offices, the movement of furniture, equipment and files
will be relatively low. The cost for the physical relocation should be
approximately \$2,500. Furniture and equipment that is not needed in the
Ontario office can be excessed and/or transferred to other offices that
have a need for the items.

Yates County farmers are represented by Congressman Randy Kuhl, (R),
29^th^ Congressional District (202-225-3161).

***[Oswego County]{.underline}***

The Oswego County FSA office is a small office located in Central New
York on the shores of Lake Ontario. Oswego County is the sub-office and
Wayne County is the headquarters office for this shared management
operation. The Oswego County office would not be combined with Wayne
County, but with Jefferson County.

Agriculture in Oswego County is located in three areas and would provide
farmers different options to choose their new administrative office.
Farmers would have an option of choosing between the Watertown office in
Jefferson County to the North of Oswego County; the Lafayette office in
Onondaga County to the south of Oswego County; the Auburn office in
Cayuga County to the southwest of Oswego County; or the Lyons office in
Wayne County to the west of Oswego County. Approximately one third to
one half of the farmers may travel north due to their location, the road
system and centers of commerce in Watertown. The Oswego County office is
45 miles from the Jefferson County office; 46 miles from the Onondaga
County office; 48 miles from the Cayuga County office; and 62 miles from
the Wayne County office.

The Oswego office is staffed with one full time PT and one temporary PT.
The Wayne County CED spends two days a week in Oswego County.

Oswego County's 3-year workload average is 671 NWDs. Jefferson County's
3-year workload average is 985 NWDs.

The Oswego County PT would be assigned to work in the Jefferson County
Office. The resulting Jefferson/Oswego County office would consist of
one CED and 4 PTs.

The Oswego office lease expires September 30, 2008.

Oswego County administrative costs consisting of rent, utilities,
temporary staffing, and COC payroll for 2006 were approximately
\$36,395. Oswego County employee travel costs were \$200. The estimated
costs of CED travel to the shared management office for 2006 was
\$1,500. The Oswego PT has received a one-grade increase due to shared
management. This additional salary cost would be reduced over time once
the grade and pay retention allowances expire.

Other information about Oswego County:

-   The office paid 199 producers in 2005 and 184 producers in 2006.

-   Commodity payments averaged \$785,657 per year between 2004-2006.

-   In 2006, there were 160 farmers/landowners participating in DCP with
    a total of 315 enrolled farms.

-   In 2006, there were 68 producers enrolled in MILC

-   In 2006, there were 4 CRP contracts in the county.

-   In 2006, for every dollar distributed to producers, it costs 13
    cents in administrative funds.

With the short distance between the two offices, the movement of
furniture, equipment and files will be relatively low. The cost for the
physical relocation should be approximately \$2,500. Furniture and
equipment that is not needed in the Jefferson office can be excessed
and/or transferred to other offices that have a need for the items.

Oswego County farmers are represented by Congressman John McHugh, (R),
23^rd^ Congressional District (202-225-4611).

**[Attachments]{.underline}**

Enclosed are two maps. The map titled "FSA Shared Management and
Combined Offices" highlights the current office structure in New York.
The map titled "FSA Offices for Consolidation" indicates which offices
are proposed for consolidation.

The Spreadsheet titled "County Offices in FY07 Consolidation Plan" is an
accounting summary of potential cost savings by closing the eight
proposed sites.