provisions of the 1938 agricultural adjustment program formulated under the legislation contemplated by Senate Joint Resolution Numbered 207, Seventyfifth Congress. Such payments to any producer shall be at a rate per pound equal to the difference between 12 cents per pound and the average price of seven-eighths Middling cotton on the ten designated spot cotton markets on the dates of sale of such cotton, but in no case shall exceed 3 cents per pound. The basis for any such payment, or the amount thereof, when officially determined in conformity with rules prescribed by the Secretary of Agriculture shall be reviewable only by the Secretary of Agriculture." SECTION 32-25 PERCENT LIMITATION ON ANY ONE COMMODITY (Public Law 430, 75th Cong., Feb. 16, 1938, 52 Stat. 38) This legislation deleted the proviso in section 32 prohibiting export payment with respect to unmanufactured cotton and inserted in lieu thereof a provision that not in excess of 25 percent of the funds available during any fiscal year could be spent with respect to any one agricultural commodity or product thereof. Following this change in authority, emphasis was placed upon the development of export subsidy programs in an effort, in an increasingly difficult world situation of nationalistic feeling and threat of war, to maintain our fair share of the world market, particularly with respect to wheat and cotton. "SEC. 203. Section 32, as amended, of the Act entitled 'An Act to amend the Agricultural Adjustment Act, and for other purposes,' approved August 24, 1935, is amended by striking out: 'Provided further, That no part of the funds appropriated by this section shall be used for the payment of benefits in connection with the exportation of unmanufactured cotton' and is further amended by adding at the end thereof the following: 'Notwithstanding any other provisions of this section, the amount that may be devoted, during any fiscal year after June 30, 1939, to any one agricultural commodity or the products thereof in such fiscal year, shall not exceed 25 per centum of the funds available under this section for such fiscal year'." FSCC EXTENDED UNTIL JUNE 30, 1942 (Public Law 430, 75th Cong., Feb. 16, 1938, 52 Stat. 38) "SEC. 204. An Act entitled 'An Act to extend the time for purchase and distribution of surplus agricultural commodities for relief purposes and to continue the Federal Surplus Commodities Corporation,' approved June 28, 1937 (Public Law Numbered 165, Seventy-fifth Congress), is amended by striking out 'continued, until June 30, 1939,' and inserting in lieu thereof 'continued, until June 30, 1942.' The Federal Surplus Commodities Corporation shall submit to Congress on the first day of each regular session an annual report setting forth a statement of the activities, receipts, and expenditures of the Corporation during the previous fiscal year." SECTION 32 ADMINISTRATIVE FUNDS (Public Law 430, 75th Cong., Feb. 16, 1938, 52 Stat. 69) This is the first authority to establish a percentage limitation on total funds available as the maximum which may be used for administrative expenses. It provides a limitation of 1 percent of funds available for expenses in the District of Columbia, and of 2 percent for field expenses. "SEC. 392. (b) In the administration of this title, sections 7 to 17, inclusive, of the Soil Conservation and Domestic Allotment Act, as amended, and section 32, as amended, of the Act, entitled "An Act to amend the Argicultural Adjustment Act, and for other purposes," approved August 24, 1935, the aggregate amount expanded in any fiscal year, beginning with the fiscal year ending June 30, 1939, for administrative expenses in the District of Columbia, including regional offices, shall not exceed 1 per centum of the total amount available for such fiscal year for carrying out such Acts, and the aggregate amount expended in any fiscal year for administrative expenses in the several States (not including the expenses of county and local committees) shall not exceed 2 per centum of the total amount available for such fiscal year for carrying out such Acts". SECTION 32 ADMINISTRATIVE FUNDS, FISCAL YEAR 1939 (Public Law 644, 75th Cong. June 16, 1938, 52 Stat. 744) "Provided further, That the funds provided by section 32 of the Act entitled 'An Act to amend the Agricultural Adjustment Act, and for other purposes', approved August 24, 1935 (7 U.S.C. 612c), shall be available during the fiscal year 1939 for administrative expenses, in accordance with the provisions of section 392 of the Agricultural Adjustment Act of 1938, in carrying out the provisions of said section, including the employment of persons and means in the District of Columbia and elsewhere, in accordance with the provisions of law applicable to the employment of persons and means by Agricultural Adjustment Administration". DISPOSAL OF SURPLUS COMMODITIES, FISCAL YEAR 1940 (Public Law 159, 76th Cong. June 30, 1939, 53 Stat. 975) The Agricultural Appropriation Act, fiscal year 1940, appropriated funds for the disposal of surplus commodities in addition to regular section 32 funds for this purpose and incorporated in the basic section 32 language authority to donate commodities among persons in low income groups. "To enable the Secretary of Agriculture to further carry out the provisions of section 32, as amended, of the Act entitled 'An Act to amend the Agricultural Adjustment Act, and for other purposes', approved August 24, 1935, and subject to all provisions of law relating to the expenditure of funds appropriated by such section, $113,000,000. Such sum shall be immediately available and shall be in addition to, and not in substitution for, other appropriations made by such section or for the purpose of such section: Provided, That not in excess of 25 per centum of the funds herein made available may be devoted to any one agricultural commodity: Provided further, That of that part of the funds appropriated in this paragraph which may be allocated for expenditure in connection with cotton not less than 50 per centum shall be allocated for use in carrying out clause (3) of such section, or in carrying out clause (2) of such section, which clause (2) is hereby amended by inserting before the semicolon after 'commerce' the following: 'or by increasing their utilization through benefits, indemnities, donations or by other means, among persons in low income groups as determined by the Secretary of Agriculture"." SECTION 32 ADMINISTRATIVE FUNDS, FISCAL YEAR 1940 (Public Law 159, 76th Cong., June 30, 1939, 53 Stat. 974) "And provided further, That the funds provided by section 32 of the Act entitled 'An Act to amend the Agricultural Adjustment Act and for other purposes', approved August 24, 1935 (7 U.S.C. 612c), shall be available during the fiscal year 1940 for administrative expenses, in accordance with the provisions of section 392 of the Agricultural Adjustment Act of 1938, in carrying out the provisions of said section 32, including the employment of persons and means in the District of Columbia and elsewhere, in accordance with the provisions of law applicable to the employment of persons and means by the Agricultural Adjustment Administration." PURCHASE AND DISTRIBUTION OF SURPLUS FISHERY PRODUCTS AND PROMOTE MARKETS FOR FISHERY PRODUCTS (Public Law 393, 76th Cong., Aug. 11, 1939, 53 Stat. 1411, 1412) This law authorizes an annual transfer of section 32 funds to the Interior Department for the purpose of conducting a fishery educational service and developing markets for fishery products. In previous years special legislation was passed appropriating funds from the Treasury to enable the Federal Surplus Commodities Corporation to divert fish and fish products from the normal channels of trade by acquiring them and providing for their distribution through Federal, State, and private relief agencies. (When FSCC authority expired in 1945 it did not terminate the authority for the Department of Agriculture to transfer section 32 funds to the Interior Department for purposes provided in this act, nor did it terminate the authority for the Department of Agriculture to use these funds for the purchase of surplus fishery products and their donation through eligible outlets.) "Sec. 1. Any part of the funds not to exceed $1,500,000 per year, transferred by the Secretary of Agriculture to the Federal Surplus Commodities Corporation created under and to carry out the provisions of section 32 of the Act or August 24, 1935 (49 Stat. 774), as amended, may also be used by such Corporation for the purposes of diverting surplus fishery products (including fish, shellfish, molluskes, and crustacea) from the normal channels of trade and commerce by acquiring them and providing for their distribution through Federal, State, and private relief channels: Provided, That none of the funds made available to the Federal Surplus Commodities Corporation under this Act shall be used to purchase any of the commodities designated in this Act which may have been produced in any foreign country. The provisions of law relating to the acquisition of materials or supplies for the United States shall not apply to the acquisition of commodities under this Act." (15 U.S.C. 1940 ed. 713c-2, Aug. 11, 1939, 53 Stat. 1411.) "SEC. 2. (a) From the fund authorized to be transferred by section 1 hereof, the Secretary of Agriculture is authorized to transfer to the Secretary of the Interior sums as follows to be maintained in a separate fund, $75,000, which shall be used by the Secretary of Interior to promote the free flow of domestically produced fishery products in commerce by conducting a fishery educational service; and $100,000, which shall be used by the Secretary of the Interior to develop and increase markets for fishery products of domestic origin. U.S.C. 1940 ed. 713c-3, Aug. 11, 1939, 53 Stat. 1412.)" SECTION 32 ADMINISTRATIVE FUNDS, FISCAL YEAR 1941 (Public Law 658, 76th Cong., June 25, 1940, 54 Stat. 561) (15 The Agriculture Appropriations Act, fiscal year 1941, provided authority for section 32 administrative expenses. Also the maximum available for administrative expenses was set at 3 percent without regard to District of Columbia and field limitations. "Provided further, That the funds provided by section 32 of the Act entitled 'An Act to amend the Agricultural Adjustment Act and for other purposes,' approved August 24, 1935 (7 U.S.C. 612c), shall be available during the fiscal year 1941 for administrative expenses, in accordance with the provisions of section 392 of the Agricultural Adjustment Act of 1938, in carrying out the provisions of said section 32, including the employment of persons and means in the District of Columbia and elsewhere, in accordance with the provisions of law applicable to the employment of persons and means by the Agricultural Adjustment Administration, except that within the total of limitations imposed by section 392(b) of said Act for administrative expenses in the District of Columbia, regional offices, and in the several States, such limitations may, in connection with the activities of the Marketing and Marketing Agreements Division of the Agricultural Adjustment Administration and the Federal Surplus Commodities Corporation, be interchanged in whole or in part, during the current fiscal year, between the District of Columbia, regional offices, and the several States." DISPOSAL OF SURPLUS COMMODITIES AND 25-PERCENT RESTRICTION ON USE OF SECTION 32 FUNDS, FISCAL YEAR 1941 (Public Law 658, 76th Cong., June 25, 1940, 54 Stat. 563) The Agriculture Appropriation Act, fiscal year 1941 provided an additional appropriation of $85 million for surplus disposal and provided that the 25-percent provision would not apply to stamp plan for the removal of surplus commodities. At the beginning of World War II it became difficult to secure an effective outlet of agricultural surpluses in the world market. Accordingly, in the development of programs under section 32 greater emphasis was placed on the utilization of the money in a manner that would bring about the creation of new domestic markets through the instrumentality of the so-called stamp plan, school lunch program, and the penny milk program. It appeared that under unsettled international conditions, the most suitable outlets for agricultural surpluses was through undeveloped domestic outlets. "To enable the Secretary of Agriculture to further carry out the provisions of section 32, as amended, of the Act entitled 'An Act to amend the Agricul tural Adjustment Act, and for other purposes,' approved August 24, 1935, and subject to all provisions of law relating to the expenditure of funds appropriated by such section, $85,000,000. Such sum shall be immediately available and shall be in addition to, and not in substitution for, other appropriations made by such section or for the purpose of such section: Provided, That not in excess of 25 per centum of the funds herein made available may be devoted to any one agricultural commodity: Provided further, That said 25 per centum provision and the like provision in said section 32, as amended, shall not apply to amounts devoted to a stamp plan for the removal of surplus agricultural commodities from funds made available hereby and by said section 32, and, notwithstanding expenditures under such stamp plan, the 25 per centum provision shall continue to be calculated on the aggregate amount available hereunder and under said section 32." ADDITIONAL FUNDS-DISPOSAL OF SURPLUS COMMODITIES, FISCAL YEAR 1941 (Public Resolution 88, 76th Cong., June 26, 1940, 54 Stat. 627) "SEC. 41. There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year 1941, the sum of $50,000,000, to be used by the Secretary of Agriculture for the purpose of effectuating the provisions of section 32 of the Act entitled 'An Act to amend the Agricultural Adjustment Act, and for other purposes, approved August 24, 1935, as amended, such sam to be subject to all the provisions of the law relating to the expenditure of such funds." DISPOSAL OF SURPLUS COMMODITIES, FISCAL YEAR 1942 (Public Law 143, 77th Cong., July 1, 1941, 55 Stat. 407) Emergency Relief Appropriation Act, 1942, provided for the disposal of surplus commodities by providing an additional appropriation of $25 million. "SEC. 34. Thereby appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year 1942, the sum of $25,000,000, to be used by the Secretary of Agriculture for the purpose of effectuating the provisions of section 32 of the Act entitled 'An Act to amend the Agriculture Adjustment Act, and for other purposes', approved August 24, 1935, as amended, such sum to be in addition to any funds appropriated by such section 32 and to be subject to all the provisions of law relating to the expenditure of such funds.” SECTION 32 ADMINISTRATIVE EXPENSES, FISCAL YEAR 1942 (Public Law 144, 77th Cong., July 1, 1941, 55 Stat. 435) “Provided further, That the funds provided by section 32 of the Act entitled 'An Act to amend the Agricultural Adjustment Act and for other purposes', approved August 24, 1935 (7 U.S.C. 612c), shall be available during the fiscal year 1942 for administrative expenses, in accordance with the provisions of section 392 of the Agricultural Adjustment Act of 1938, in carrying out the provision of said section 32, and the provisions of the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 608c-608d), including the employment of persons in the District of Columbia and elsewhere, in accordance with the provisions of law applicable to the employment of persons and means by the Agricultural Adjustment Administration, except that within the total of limitations imposed by section 392 (b) of said Act for administrative expenses in the District of Columbia, regional offices, and in the several States, such limitations may, in connection with the activities of the Surplus Marketing Administration be interchanged, in whole or in part, during the current fiscal year, between the District of Columbia, regional offices, and the several States." DISPOSAL OF SURPLUS COMMODITIES, FISCAL YEAR 1942 In addition to the regular section 32 funds the Agricultural Appropriation Act, fiscal year 1942, provided an appropriation of $100,150,000 for disposal of surplus commodities, of which $116,850 was transferred to BAE for the purpose of special studies on disposal of surplus commodities. "To enable the Secretary of Agriculture to further carry out the provisions of section 32, as amended, of the Act entitled ‘An Act to amend the Agricultural Adjustment Act, and for other purposes', approved August 24, 1935, and subject to all provisions of law relating to the expenditure of funds appropriated by such section, $100,150,000, of which $116,850 shall be transferred to and made a part of the appropriation, 'Salaries and expenses, Bureau of Agricultural Economics'. Such sum shall be immediately available and shall be in addition to, and not in substitution for other appropriations made by such section or for the purpose of such section: Provided, That not in excess of 25 per centum of the funds herein made available may be devoted to any one agricultural commodity; Provided further, That said 25 per centum provision and the like provision in said section 32 as amended, shall not apply to amounts devoted to a stamp plan for the removal of surplus agricultural commodities from funds made available hereby and by said section 32, and, notwithstanding expenditures under such stamp plan, the 25 per centum provision shall continue to be calculated on the aggregate amount available hereunder and under said section 32." STEAGALL AMENDMENT-PRICE SUPPORT FOR NONBASIC COMMODITIES (Public Law 147, 77th Cong., July 1, 1941, 55 Stat. 498) In fiscal year 1942 funds appropriated by section 32 were authorized not only to be used to relieve surplus situations but also to support the price of agricultural commodities, the production of which was originally needed for war. (The Congress, responding to the concern of the farmers over their inability to sustain by themselves the risks involved in greatly expanded production of war crops, by enactment of the so-called Steagall amendment, directed the Secretary of Agriculture to support the price of agriculture commodities at 85 percent of parity when he found it necessary to encourage the expansion of the production of these commodities for war purposes and authorized the use of sec. 32 funds to support the prices of agricultural commodities.) "SEC. 4. (a) Whenever during the existing emergency the Secretary of Agriculture finds it necessary to encourage the expansion of production of any nonbasic agricultural commodity, he shall make public announcement thereof and he shall so use the funds made available under section 32 of this Act or otherwise made available to him for the disposal of agricultural commodities, through a commodity loan, purchase, or other operations, taking into account the total funds available for such purpose for all commodities so as to support a price for the producers of any such commodity with respect to which such announcement was made of not less than 85 per centum of the parity or comparable price therefor. *** Any such commodity loan, purchase, or other operation which is undertaken shall be continued until the Secretary has given sufficient public announcement to permit the producers of such commodity to make a readjustment in the production of the commodity. For the purposes of this section, commodities other than cotton, corn, wheat, tobacco, and rice shall be deemed to be nonbasic commodities." SECTION 32 ADMINISTRATIVE EXPENSE LIMITATION (4 PERCENT) (Public Law 427, 77th Cong., Jan. 31, 1942, 56 Stat. 41) This is permanent authority for expending section 32 funds for the administration of (1) section 32 activities; (2) the Agricultural Marketing Agreement Act of 1937, as amended; and (3) those sections of the Agricultural Adjustment Act of 1933 which were reenacted and amended by the Agricultural Marketing Agreement Act of 1937. The maximum limitation was raised from 3 percent to 4 percent. "In the administration of section 32 of the Act entitled "An Act to amend the Agricultural Adjustment Act and for other purposes," approved August 24, 1935 (49 Stat. 774), as amended, and the Agricultural Marketing Agreement Act of 1937, as amended, and those sections of the Agricultural Adjustment Act (of 1933), as amended, which were reenacted and amended by the Agricultural Marketing Agreement Act of 1937, as amended, the aggregate amount expended in any fiscal year, beginning with the fiscal year ending June 30, 1942, for administrative expenses in the District of Columbia, including regional offices, and in the several States (not including the expenses of county and local committees) shall not exceed 4 per centum of the total amount available for such fiscal year for carrying out the purpose of said Acts." |