genetic improvements in livestock to overcome en- vironmental stresses, diseases and insect pests. Crops, livestock and poultry producers will all benefit from new technologies to conserve water, energy and unskilled labor. Agribusinesses and related industries-food pro- cessing, fertilizer, petroleum, farm machinery and food marketing businesses-will also require new improved technologies. Critical institutional, personnel and financial re- quirements must also be met if technological advances are to be used in socially desirable ways. Not all the new agricultural technologies likely to be developed in the decades ahead will be such that creators and distributors in the private sector will be able to appropriate enough of their benefits to cover costs of research, development, production and distribution. Hybrid corn was a special case in which it was feasible for such companies to ap- propriate a reasonable proportion of benefits. In addi- tion to more cases like hybrid corn, the future is likely to involve socially beneficial but privately unprofitable cases. These will need to be handled in the public sector by agricultural experiment stations and extension ser- vices. In instances where appropriation of benefits and/or ability to shift costs to others will be easy, the private sector will need to be regulated to prevent environmental pollution, contamination of the food chain and the development of undesirable rural, social and economic structures. Social science research must be conducted in advance if we are to have capacity to deal with such cases. Some such research is now getting underway in agricultural colleges, other colleges and universities. In addition, social science research (DISC and as parts of SM and PS) will be needed to help devise institutional controls over the general level of agricultural output to keep capacity from being prematurely used and overused. Much emphasis is now being wisely directed to DISC research in support of crop production technology. However, important neglected DISC research is needed for livestock production and tgri', .., ..... More DISC research is also needed in the social, institu- tional and human development sciences if we are to have the institutions and human skills required to create, use and neither over- nor underregulate the new tech- nologies targeted above. To accomplish our targets, agricultural research (PS, SM and DISC) requires: expanded budgets, more highly skilled personnel, and improvements in administration and coordination. Budget U.S. publicly supported agricultural research has in- creased little in recent years, and support is not keeping pace with either inflation or needs and opportunities. Less than 2 percent of the total federal research and development (R&D) budget is allocated for support of agricultural research and educational programs. Within the USDA, less than 2 percent of the current budget goes for research and education. The USDA should have a more substantial competitive research grant program to support high priority DISC, PS and SM research related to food production, forestry and human nutrition. The social sciences should be included. The addition of PS and SM research in the competitive grants research pro- gram would make it necessary to increase the average grant size and recognize the multidisciplinary nature of PS and SM research. Rather than the present $15 million to $17 million program, a $75 million to $100 million annual program (in real 1983 dollars) in grants open to all the nation's scientific expertise is needed. This should be increased through time as a constant proportion of the value of agricultural output. The needs and oppor- tunities examined in this report indicate that this increase in competitive grant funding should be accompanied by a 10 percent annual increase (in real 1983 dollars) in sus- tained support of PS, SM and DISC research facilities, properties and personnel of state Agricultural Experi- ment Stations, and for the Agricultural Research Service (ARS), Economic Research Service (ERS) and Statistical Research Service (SRS) of the USDA. These increases should continue for at least 10 years before being reappraised. Personnel Achieving the desired capacity for agricultural pro- duction will require highly trained people to do agricultural and food research. The public agricultural research system is not attracting or holding enough bright young biological, physical and social scientists to meet this critical need. The private sector also needs more skilled managers, consultants and scientists. Severe shortages now exist in pest management, marketing, animal health and veterinary toxicology, resource management and the rural social sciences. The state Agricultural Experiment Stations provide the bulk (90 percent) of support for advanced degrees in agriculture. This must be supplemented with federal-level funds. If we depend entirely on state funds, the training of agri- cultural scientists will be haphazardly underfunded. We recommend that the USDA initiate a vastly expanded postdoctoral fellowship program to support outstanding young scientists for advanced training in the biological, physical and social dimensions of PS, SM and DISC aspects of agricultural research. We applaud current congressional action to initiate a $10 million post- doctoral fellowship program within the USDA's Agricultural Research Service. It should be extended to