Over 2 billion pounds of surplus commodities were distributed to domestic outlets and benefited some 16 million school children taking part in the school lunch program; nearly 1.4 million persons in charitable institutions and 7.4 million needy persons in this country. The tremendous impetus given the distribution to needy persons in 1961 carried full force into 1962 with an average of 6.6 million receiving donated foods as compared with 4.4 million in 1961. Approximately 60 percent more food was donated through an expanded distribution system. The addition of 129 counties and cities in fiscal 1962 makes the program now available in over half of the political subdivisions of the Nation. This expansion has created various administrative problems at the Federal, State, and local levels. The recommendations of a Department task force are being instituted to provide strong Federal leadership to encourage cooperating agencies to provide better direction, better supervision and strengthen controls over handling and use of donated foods.

Surplus foods were also supplied to over 510,000 in 16 States and Puerto Rico who were victims of floods, snow and ice storms, tornado and hurricane winds, tidal waves and fire.

(b) Foreign donations: CCC commodities (section 416) are processed and packaged as necessary and shipped to U.S. voluntary agencies who accept title to the commodities at a U.S. port for delivery to needy persons in foreign countries. In most cases, agencies are reimbursed for ocean freight charges. The voluntary agencies are responsible for overall supervision of the program to insure that the commodities will not be sold or exchanged and will be distributed to needy persons without regard to race, creed, or color.

Section 416 surplus foods are donated for oversea relief only after sufficient stocks have been made available to meet the needs of eligible recipients in this country. Donations for foreign distribution to 111 foreign countries increased 15 percent to a total of 2,704.1 million pounds in fiscal year 1962.

The administrative costs in AMS in connection with the foreign donation program are financed from section 32 funds. The quantity and cost of commodities donated to domestic and foreign outlets in fiscal years 1961 and 1962 are shown in the following tables II and III.

2. Food trades program.-Under this program the consumption of plentiful foods is encouraged by focusing consumer attention on agricultural commodities in abundant supply so as to expand domestic consumption by increasing their utilization by low-income groups. This is done by enlisting the cooperation of food distributors in obtaining merchandising emphasis on foods available in plentiful supply and by supporting industry food promotion and merchandising campaigns. The workload under this activity is shown in the following table:

Special food drives were conducted during 1962 on apples, potatoes, eggs, cranberries, turkeys, and dairy products. The August sandwich month, to stimulate consumption of grain supplies, was fully supported. 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. Major food drives are planned in 1963 on cranberries, peaches, dairy products, potatoes, turkeys, apples, cheese, broiler-fryers, tart cherries, frozen orange juice, and wheat flour during August sandwich month.

Marketing agreements and orders

These programs continue to grow in number, in area and volume of commodities covered, and in number of producers affected as reflected in the following tables: 1. Activities under the milk, fruit, vegetable, and tree nut agreement and order programs during fiscal year 1962 and estimated for 1963

1961

1962

1961.

1962

2. Marketing agreement and order programs in effect for fluid milk during fiscal

year 1962