	USDA's Research, Education, and Economics (REE) Mission Area

The U.S. Department of Agriculture (USDA) combines its research activities into the Research, Education, and Economics (REE) mission area. The mission area is composed of four agencies with the federal responsibility to advance scientific knowledge for agriculture. Federal Funding

The majority of federal funding for agricultural research, education, and extension activities is from annual discretionary appropriations in the Agriculture and Related Agencies appropriations bill. In FY2016, discretionary funding for the entire REE mission area totaled $2.937 billion ( Table 1 ). The 2014 farm bill provides an average of $120 million per year of mandatory funding to agricultural research ( Figure 3 ). Formula Funds vs. Competitive Grants

Policymakers continue to debate the appropriate role and implications of various funding mechanisms for agricultural research. Some argue that the stagnant growth in inflation-adjusted USDA funding for agricultural research, education, and extension over the past few decades has hurt the ability of the U.S. agricultural sector to stay productive and competitive. Others believe that the states and the private sector should fill the research funding gap left by the federal government.
The U.S. Department of Agriculture's (USDA's) Research, Education, and Economics (REE) mission area has the primary federal responsibility of advancing scientific knowledge for agriculture through research, education, and extension. USDA REE responsibilities are carried out by four agencies: the Agricultural Research Service (ARS), the National Institute of Food and Agriculture (NIFA), the Economic Research Service (ERS), and the National Agricultural Statistics Service (NASS). USDA conducts its own research and administers extramural federal funding to states and local partners primarily through formula funds and competitive grants.
Discretionary funding for the REE mission area totaled $2.937 billion in FY2016, and mandatory funding from the 2014 farm bill adds another $120 million per year on average.
Debates over the direction of public agricultural research and the nature of its funding mechanism continue. Ongoing issues include the need, if any, for new federal funding to support agricultural research, education, and extension activities, and the implications of allocating federal funds via formula funds versus competitive grants. Many groups believe that Congress needs to increase support of U.S. agriculture through expanded federal support of research, education, and extension programs, whereas others believe that the private sector, not taxpayer dollars, should be used to support these activities.