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AGRICULTURAL MARKETING SERVICE

General and special funds:

MARKETING RESEARCH AND SERVICE

For expenses, not otherwise provided for, necessary to carry on research and service to improve and develop marketing and distribution relating to agriculture as authorized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627) and other laws, including the administration of marketing regulatory acts connected therewith; research and development, including related cost and efficiency evaluations, and services relating to agricultural marketing and distribution, for carrying out regulatory acts connected therewith, and for administration and coordination of payments to States; and not to exceed $25,000 for employment at rates not to exceed $50 per diem, except for employment in rate cases at not to exceed $100 per diem, pursuant to section 706(a) of the Organic Act of 1944 (5 U.S.C. 574), as amended by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), in carrying out section 201(a) to 201(d), inclusive, of title II of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1291) and section 203(j) of the Agricultural Marketing Act of 1946, [$39,794,500] $42,905,000: Provided, That appropriations hereunder shall be available pursuant to 5 U.S.C. 565a for the construction, alteration, and repair of buildings and improvements, but unless otherwise provided, the cost of erecting any one building shall not exceed [$15,000] $25,000, except for two buildings to be constructed or improved at a cost not to exceed [$30,000] $50,000 each, and the cost of altering any one building during the fiscal year shall not exceed [$5,000] $10,000 or [5] 10 per centum of the cost of the building, whichever is greater. (5 U.S.C. 511-512, 541a, 556b, 563-564, 575; 7 U.S.C. 51-65, 71-87, 91-99, 181-229, 241-273, 414a, 4156, 415e, 423, 440, 471-476, 501-508, 511-511q, 516, 581-589, 591-599, 1551-1610; 15 U.S.C. 251-257i; 21 U.S.C. 94a, 451-469; 26 U.S.C. 4851-4854, 4861-4865, 4871-4877, 6001, 6804, 7233, 7263, 7492-7493, 7701; 31 U.S.C. 725d; 76 Stat. 110; Department of Agriculture and Related Agencies Appropriation Act, 1963.)

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Program and Financing (in thousands of dollars)

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1962 actual

1963 1964 estimate estimate

111

moving products from the farm to the consumer. In cooperation with public and private agencies and trade groups, efforts are made to develop objective methods to determine quality, reduce losses from waste and spoilage, and improve efficiency in the physical handling of farm products as they move through marketing channels. The work includes research at each stage of marketing, such as assembly points, terminal or central markets, and retail markets.

4. Regulatory activities..

3,387

3,880

4,179

5. Administration and coordination of

1959 actual

1960 actual

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State payments..

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Individual research projects:

actual actual

90

Active at end of year..

Total direct program costs, funded 1.

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Completed during year.

Change in selected resources

2

375

Initiated during year.

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Contracts for marketing research by pri

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vate firms or other non-Federal
agencies:

3. Inspection, grading, classing, and stand

Number negotiated during year.

ardization (obligations) 3.

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Total obligations..

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1,185 44,090

Number in effect, end of year..

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Advances and reimbursements (-)—

For emergency preparedness functions..

From other accounts...

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Unobligated balance lapsing

New obligational authority

664
38,246 41,080

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New obligational authority:

2. Market news service.-This service provides current information on supply, movement, and prices at specific markets for practically all agricultural commodities. This daily market information enables American farmers to determine where and when to sell and at what price. -1,035 Information is collected and disseminated at year-round and seasonal offices maintained in more than 130 cities. and towns, often with local and other support and cooperation, generally from State Departments of Agriculture.

-150

42,905

MARKET NEWS SERVICE

Appropriation..

Transferred from "Removal of surplus agri

cultural commodities" (5 U.S.C. 572) __

Transferred to (-)-—

"Operating expenses, Public Buildings Service," General Services Administration (75 Stat. 353 and 76 Stat. 728) .......... "Salaries and expenses, general administration" (76 Stat. 1212).

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Buyers and sellers inter

viewed..

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Daily newspapers carrying

Appropriation (adjusted):

reports (approximate).

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Current....

Stations broadcasting re

Permanent..

Proposed transfer from "Special milk

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ports:

Radio

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Television...

165

Service due to pay increases__

program,' Agricultural Marketing

169

169

169

Mimeographed releases to

1,335

growers, shippers, and
others....

1 Includes capital outlay as follows: 1962, $449 thousand; 1963, $522 thousand;

1964, $400 thousand.

1 Selected resources as of June 30 are as follows:

1962

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Names on mailing list.

25,733,345 24,673,455 23,364,240 23,609,907 295,139 273,185 268,445 263,108

3. Inspection, grading, classing, and standardization.Nationally uniform standards of quality of agricultural products are established and applied to specific lots of produce to promote confidence between buyers and sellers; reduce hazards in marketing due to misunderstandings and disputes arising from the use of nonstandard descripdefinite information on the quality of products they buy. tions; encourage better preparation of uniform quality products for market; and furnish consumers with more

The standards are applied by or under the supervision of Federal employees at the request of any interested party, and generally for a fee. The mandatory inspection of poultry for wholesomeness is also carried on under this project. Approximately 55% of the total cost of this work was offset by fees and other revenue in 1962, which are shown principally under Agricultural Marketing Service trust funds in part II of the budget appendix.

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The increase for 1964 would be used for inspecting the increasing volume of poultry produced and supervising new and enlarged poultry processing facilities.

4. Regulatory activities.-These include the administration of regulatory laws such as packers and stockyards, standard container, United States warehouse, and Federal seed, to assure fair play in the market place; to protect producers and handlers of agricultural commodities from financial loss due to careless or fraudulent marketing practices; and to preserve free and open competition in the marketing of farm products. Assistance is also provided to farmers and others in obtaining and maintaining equitable and reasonable transportation rates and services on farm products and supplies.

The increase for 1964 would be used to provide for more effective administration of the U.S. Warehouse Act. A supplemental estimate for 1963 is anticipated for separate transmittal.

Packers and Stockyards Act:

42 Insurance claims and indemnities.

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1962 actual 1963 estimate 1964 estimate

Total, General Services Administration.

74

9

Yards posted and subject to supervi

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1964

estiss

Under existing legislation, 1963.-A proposed supplemental appropriation is anticipated for accelerating the rate of examination of warehouses licensed under the U.S. Warehouse Act, particularly those storing grain.

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113

in solving marketing problems and in putting to use marketing research results.

This program covers such projects as methods of maintaining and improving the quality of products; ways of reducing marketing costs; expanding outlets for surplus products; and the collection and dissemination of special State and local market information and statistics. Through this cooperative approach, the Federal Government's leadership and money are coupled with State resources and experience to aid in the solution of the most urgent local and area marketing problems.

In 1963, 43 States are conducting about 130 projects under this program.

SPECIAL MILK PROGRAM

For necessary expenses to carry out the Special Milk Program, as authorized by the Act of August 8, 1961 ([75 Stat. 319), $105,000,000 7 U.S.C. 1446, note), $102,000,000. (Department of Agriculture and Related Agencies Appropriation Act, 1963.)

Program and Financing (in thousands of dollars)

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Financing:

New obligational authority.........

99,997 102,000

1962

actual

1963 1964 estimate estimate

New obligational authority:
Appropriation

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9

Transferred to "Salaries and expenses, gen-
eral administration" (76 Stat. 1212) (−)..

-3

60

1,531

Appropriation (adjusted).

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Proposed transfers due to pay increases

1,600

to (-):

"Salaries and expenses," Agricultural

Research Service..

-3,225

"Marketing research and service,"

Agricultural Marketing Service...

"Salaries and expenses," Rural Elec

-1,335
-440

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trification Administration.........

1 Includes capital outlay as follows: 1963, $4 thousand; 1964, $4 thousand.

This program is designed to increase the consumption of fluid milk by children in nonprofit schools of high school grade and under, child-care centers, summer camps and similar nonprofit institutions.

From its inception in 1955 through 1962, the program was financed through advances from Commodity Credit Corporation funds. The Agricultural Act of 1961 changed the financing to a direct appropriation beginning July 1, 1962.

1. Cash payments to States.-Funds are advanced to
State agencies to reimburse eligible participants for a part
of the cost of the fluid milk consumed. An initial reserve
is established at the beginning of the fiscal year for each
State based on the total amount of reimbursement pay-
ments made during the preceding fiscal year adjusted for
average growth. In selected needy schools, reimburse-

Payments are made on a matching fund basis to State
marketing agencies for carrying out specifically approved ment payments may be made for the full cost of this milk
marketing service programs designed to bring about im- for children who are unable to pay.

proved marketing. Under this activity, marketing spe

cialists work with farmers, marketing firms, and agencies consumed by children-nearly six times the quantity in

650100-63

8

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1964 estimate

555
2

576

582

45

Transferred from "Removal of surplus agricul-
tural commodities" (76 Stat. 1208) -
Transferred to "Salaries and expenses, gen-
eral administration" (76 Stat. 1212) (−)..

Appropriation (adjusted):

Current..

Permanent..

125,000

125,000 137,000 45,000 45,000 45,000

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125,000 124,993 137,000 45,000 45,000 45,000

Includes capital outlay as follows: 1962, $10 thousand; 1963, $11 thousand; 1964. $11 thousand.

2 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1961, $25 thousand; 1962, $7 thousand; 1963, $7 thousand; 1964, $7 thousand.

1. Food assistance, in the form of both funds and food, is provided to the States and possessions in serving lunches to school children. Each State's portion of the funds available was determined by a statutory formula through fiscal year 1962. The formula took into account the number of school-age children in the State and the relationship between the per capita income of the State and the average United States per capita income. The amendment to the act, effective July 1, 1962, changed the formula to include participation in place of school-age population. A new provision is also included in the amendment for 4 providing special cash assistance to needy schools in serving free or reduced price lunches.

4

1

11 Personnel compensation: Permanent positions.....

Positions other than permanent..

Other personnel compensation..

Total personnel compensation.

557

12 Personnel benefits....

43

21 Travel and transportation of persons.

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22 Transportation of things....

23 Rent, communications, and utilities.

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24 Printing and reproduction..

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4

41 Grants, subsidies, and contributions (cash

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The increase for 1964 would provide for growth in the program, some further cushioning of the impact of transition to the new formula, and initiating a program of special assistance to needy schools.

The program is operated under an agreement entered into by the State educational agency and the Department of Agriculture. Schools make application to the State agency and if accepted are reimbursed for a part of the food cost of each meal served. In 1962, the States contributed to this program $892 million, most of which came from payments by children. This was far in excess of the statutory matching requirement of $3 for each Federal dollar of cash payment.

This appropriation is also used to purchase food for distribution to the schools to round out their nutritional needs. Transfers are made to this appropriation from the

School Lunch Act (42 U.S.C. 1751-1760), [$125,000,000] $137,- fund Removal of surplus agricultural commodities for

000,000, including $2,000,000 for special assistance to needy schools as authorized by law (76 Stat. 944-947): Provided, That no part of this appropriation shall be used for nonfood assistance under section 5 of said Act: Provided further, That $45,000,000 shall be transferred to this appropriation from funds available under section 32 of the Act of August 24, 1935, for purchase and distribution of agricultural commodities and other foods pursuant to section 6 of the National School Lunch Act. (Department of Agriculture and Related Agencies Appropriation Act, 1963.)

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