U.S. CARGO PREFERENCE FUNDING ACCORD SEEN NEAR The U.S. Departments of Agriculture and Transportation are close to agreement on how to fund the increasing share of food aid to be shipped on U.S. flag vessels under a 1985 farm bill provision on cargo preference. Melvin Sims, USDA's general sales manager told a House Agriculture Appropriations subcommittee hearing that the two departments are negotiating a "memorandum of understanding" on cargo preference. Under a 1985 farm bill provision, the percentage of food aid shipments carried on U.S. flag vessels was to gradually increase over three years to 75 pct in 1988. The increased cost of using U.S. vessels was to be funded by the Transportation Department instead of USDA. However, USDA officials said Transportation has so far contributed no money. The agreement between USDA and Transportation is expected to resolve the matter, USDA officials said. Tom Kay, administrator of the USDA's Foreign Agricultural Service said yesterday the requirement that more food aid shipments be carried on U.S. vessels has been difficult to meet. "As the tonnage (required under cargo preference) goes up, its going to be harder and harder to meet," Kay said. Two farm state Congressmen, Pat Roberts (R-Kan.) and Glenn English (D-Okla.) said cargo preference makes U.S. farm export programs more costly and the program should be eliminated. In the past, farm interests opposed to cargo preference have been defeated in Congress by the maritime interests who view cargo preference as vital to the U.S. shipping fleet.