e to finance the program from section 32 funds until the ed and a direct appropriation under that authority becomes ble shows program operations by pilot area for fiscal year of the fiscal year, was operating as Virginia-Hibbing-Nashwauk area. eration as 2 separate counties. el County. The following table shows the use made of section 32 funds for program operations during the past 2 years: TABLE I 1 Liquidation and disposition of prior year programs. Includes $205,606 and $598,578 in fiscal year 1962 and 1963 respectively for the cost of printing stamps and such contractual costs as necessary to issue and redeem the stamps. Includes $16,131 and $19,371 in fiscal year 1962 and 1963 respectively for distribution costs of commodities donated to needy families. C. Surplus removal operating expenses 1. Planning surplus removal programs and distributing commodities.-In addition to planning surplus removal programs under section 32, Agricultural Marketing Service distributes surplus food commodities (sec. 32 and sec. 416CCC) to eligible domestic outlets. Commodities are shipped at the request of State agencies, with the Federal Government paying all costs to central State receiving points. These costs may include processing and packaging as well as transportation. The State agencies accept the commodities at their central receiving points and are responsible for distribution to the final users. State agencies approve eligible recipients according to USDA standards. For example, to participate in the program, school lunch programs must be operated on a nonprofit basis, institutions and hospitals must be nonprofit and exempt from Federal income tax, and persons in family units receiving commodities must be certified as needy by public welfare agency. State agencies are responsible for overall supervision of the program to insure that the commodities are effectively used and that waste or resale is avoided. Almost 1.9 billion pounds of surplus commodities were distributed to domestic outlets and benefited some 16.9 million school children taking part in the school lunch program; nearly 1.4 million persons in charitable institutions and 7 million needy persons in this country. The distribution of foods to the steadily increasing school lunch outlets increased by 25 million pounds. This increase was offset, however, by a decline in the needy family distribution as average participation dropped from 6.6 million to 6.3 million persons per month. This decrease was due partially to the discontinuance of the program in newly opened food stamp areas. regulations were issued effective May 1, 1963, regarding cerntability by the State agencies responsible for the direct dis3 within their State. Emphasis will be placed on implementgulations to bring about improved administration. Variable ì to schools so as to give additional food assistance to schools need will also be stressed. re also supplied to over 56,000 persons in 8 States and Puerto ims of floods, snow and ice storms, and hurricane winds. d cost of commodities donated to domestic outlets in fiscal are shown in the following tables II and III. millions of dollars of surplus food distribution for domestic use, fiscal years 1962 and 1963 d that commodities approximating $360,300,000 may be donated In 1964. TABLE III.—Quantity in millions of pounds of surplus food distribution for domestic use, fiscal years 1962 and 1963 1 Less than 50,000 pounds. NOTE. It is estimated that approximately 2,006,700,000 pounds may be distributed during the 1964 fiscal year. 2. Food trades program.—Under this program the consumption of plentiful food is encouraged by focusing consumer attention on agricultural commodities in abundant supply. This is done by enlisting the cooperation of food distributors in obtaining merchandising emphasis on these foods and by supporting industry food promotion and merchandising campaigns. A special food guide is distributed each month to retailers and wholesalers who are approved to accept food stamp coupons. This guide gives information not only on plentiful foods but also on foods especially suitable for use in economy budgets. The workload under this activity is shown in the following table: Special food drives were conducted during 1963 on apples, lettuce, cheese, tart cherries, frozen orange juice, and dairy products. The August Sandwich Month, to stimulate consumption of grain supplies, was fully supported. Major food drives are planned in 1964 on peaches, dairy products, turkeys, broilerfryers, almonds, rice, beef, eggs, tuna, and wheat flour during August Sandwich Month. D. Marketing agreements and orders Although the number of programs is leveling off, the operation of these programs has become increasingly complicated by technological changes, changing marketing structures and new order provisions. While mergers of existing milk orders are decreasing the number of total orders they actually are expanding and bringing previously unregulated geographic areas under their jurisdiction thereby increasing their workload. The area, volume and value of commodities covered by agreements and orders and resulting workload is reflected in the following tables: 1. Activities under the milk, fruit, vegetable, and tree nut agreement and order programs during fiscal year 1963 and estimated for 1964 Hearings held to consider amendments to existing orders or the issuance of orders in new areas... 34 Requests received for new programs. Amendments issued to existing orders. Applications reviewed from dairy cooperatives for qualifications to participate under the act. 44 15 45 46 |