The program during the peak month in 1962 provided lunches to over 32% of the approximately 43,400,000 school children in the country. The number of lunches served, increased approximately 6.68% over 1961. Participation in the program in December 1961 reached 14,200,000 children in 64,447 schools and an appreciable increase is expected in 1963 and 1964. During 1962 over $781 million worth of agricultural 11 commodities were used in the program. Over 23% of this amount represented commodities contributed under section 6 of the School Lunch Act and the Federal surplus removal and price support programs. About 77% of the food used in the program was purchased by the schools through local suppliers. Participation in the program from 1961 through 1964 is as follows: 12 Personnel benefits.... ALLOCATION TO AGRICULTURAL STA- Total personnel compensation.. 21 Travel and transportation of persons. 22 Transportation of things.. 1 23 Rent, communications, and utilities. 24 Printing and reproduction.. Other services.. 2 Number of schools (month of peak 26 Supplies and materials.. 2 participation).... 31 Equipment.......... Number of school children (peak thousands). 13,454 Number of meals served (millions). 2,275 REMOVAL OF SURPLUS AGRICULTURAL COMMODITIES (Permanent, indefinite) No funds available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) shall be used for any purpose other than commodity program expenses as authorized therein, and other related operating expenses, except for (1) transfers to the Department of the Interior as authorized by the Fish and Wildlife Act of August 8, 1956, (2) transfers otherwise provided in this Act, (3) not more than $4,754,000 for formulation and administration of marketing agreements and orders pursuant to the Agricultural Marketing Agreement Act of 1937, as amended, and the Agricultural Act of 1961, and (4) not more than $51,500,000 for expenses for the Pilot Food Stamp Program. Under section 32 of the act of August 24, 193. 612c), an amount equal to 30% of custom during each calendar year (except for an amou 30% of such receipts collected on fishery prod ferred to the Department of the Interior to end distribution of fishery products), and unused b to $300 million are available for expanding do foreign market outlets for farm commodities vided in recent appropriation acts, transfers made from this fund to the school lunch progr purchase and distribution of agricultural comm other foods pursuant to section 6 of the Natio Lunch Act. Section 32 funds are also authori administration of marketing agreements and the section 22 import-control programs. The lation provides that funds devoted to any one or product thereof must not exceed 25% of f able. It also provides that the funds must principally to perishable agricultural commod than those receiving price support under title Agricultural Act of 1949, as amended. It determined that this provision can be legally s reserving the principal portion of section 32 fu use of perishable nonbasic agricultural commo the occasion arises warranting their use for su 1. Commodity program payments are of four Direct purchases are donated to the school lunc charitable institutions serving needy persons, a certified by welfare agencies as eligible for Diversion payments enable processors to purch commodities on the domestic market, diver by-products and new uses, and sell them at parable to competing products, thus creating ne for surplus commodities; (c) Export payme exporters to purchase surplus commodities on th market and sell them on the world market at c world prices; (d) Production payments, none were made in 1962, help to reestablish farmers' power. During the past 2 years assistance u programs was given to the following commod (in millions of dollars): -300,000-300,000-300,000 -1,025 300,000 109,699 300,000 300,000 39,880 108,183 272,668 264,853 308,183 "Promote and develop fishery products and research pertaining to American fisheries," Bureau of Commercial Fisheries, Interior (15 U.S.C. 713c as amended by Act of August 3, 1956) "School lunch program" Agricultural Marketing Service (76 Stat. 1208). "Salaries and expenses," Foreign Agricultural Service (76 Stat. 1209) "Marketing research and service," Agricultural Marketing Service (5 U.S.C. 572) .. Appropriation (adjusted).. Tobacco.. Vegetables Miscellaneous... The use of section 32 program funds is conti economic conditions. The estimates for both 1964 reflect in total the requirements based on tion as now foreseen. Distribution of the total would be highly tentative since the type of pro used is dependent upon a determination at the kind of action which will best meet the parti which had developed. If troublesome surplus foreseen should develop, steps will be taken to tional available funds for their removal or d conditions might warrant. 2. Food stamp program payments aim to en creased domestic use of agricultural food co among low-income families through issuance o pons which may be used in retail stores for the commercial-brand foods. In September 196 Number of needy persons were participating in the 8 pilot areas in operation last fiscal year. In the 40 additional areas in which the program has been offered, there are an estimated 398,000 needy persons eligible for participation. A supplemental appropriation for 1964 is anticipated for separate transmittal. 3. Operating expenses occur mainly in connection with purchasing, exporting, and diverting surplus commodities and in distributing section 32 and Commodity Credit Corporation commodities to eligible outlets. Distribution in 1962 including that under section 6 of the National School Lunch Act, is summarized below (in millions): 117 Value of commodities Supplies and materials. 42 54 Pounds of 63 commodities Grants of commodities to States. 154,493 (peak month) distributed distributed 31 By recipients: Equipment.. 53 41 School children.. Needy persons. Grants, subsidies, and contributions (Com- 7.4 226.9 1,377.0 Persons in charitable institutions.. 179.9 the Foreign countries: 111.. Total, Agricultural Marketing Service. 224.6 2,704.1 ALLOCATION TO AGRICULTURAL STA 5,045.0 BILIZATION SERVICE AND CONSERVATION 541.4 Donation by Commodity Credit Corporation under section 416.. Section 6, National School Lunch Act.......... Total... Supervisory assistance is furnished local and State groups to encourage the preservation of surpluses for year round use. In cooperation with the food trade, press and radio, greater consumption of abundant foods is encouraged. In 1962 the monthly plentiful foods list contained an average of 8 foods, and 7 national and 30 area, State, and local drives were conducted. 4. Marketing agreements and orders are put into effect upon request of producers or handlers after hearings and investigations, and approval by producers (and handlers in case of marketing agreements). They help to stabilize prices and benefit producers and consumers by establishing and maintaining orderly marketing conditions. Administration at the local level is financed by assessments upon handlers. On June 30, 1962, there were 83 orders in effect for milk and 44 covering tree fruits, tree nuts, and vegetables. Agreement and order programs including developmental work pursuant to the Agricultural Act of 1961 are being financed under this project. The cost of developmental work, consisting of the expenses of advisory Total number of permanent positions committees, public hearings and referenda, is expected to decrease in 1964. Object Classification (in thousands of dollars) Full-time equivalent of other positions 21 Travel and transportation of 22 Transportation of things. 6 23 Rent, communications, and utilities. 24 Printing and reproduction 25 Other services. Services of other agencies. Advanced to "Expenses, Agricultural Sta bilization and Conservation Service" 26 Supplies and materials Grants of commodities to States 7.042 31 Equipment 41 Grants, subsidies, and contributions. Total, Agricultural Stabilization and Average GS grade. 7.7 Average GS salary.. $6,439 Average salary of ungraded positions.. $4.684 STABILIZATION AND CONSERVA TION SERVICE Il Personnel compensation: Permanent positions.. Other personnel compensation.. Positions other than permanent. Average number of all employees.. Average GS grade. Total personnel compensation Average GS salary. 1 Includes capital outlay as follows: 1962, $2 thousand; 1963, $1 thousand; 1964, $2 thousand. ? Selected resources as of June 30 are as follows: 1961, $2 thousand; 1962, $1 thousand; 1963, $1 thousand; 1964, $1 thousand. License fees are deposited in this special fund and are used to meet costs of administering the Perishable Agricultural Commodities, and the Produce Agency Acts (7 U.S.C. 491-497, 499a-499s). Public Law 87-725, enacted October 1, 1962, authorizes an increase in fees from $25 to a maximum of $50. Effective January 1, 1963, the fee will be increased to $36. These acts are intended to assure equitable treatment to farmers and others in the marketing of fresh and frozen fruits and vegetables. Commission merchants, dealers, and brokers handling these products in interstate and foreign commerce are licensed. Complaints of violations are investigated and violations dealt with by (a) informal agreements agreeable to both parties, (b) formal decisions. involving payments of reparation awards between parties, and (c) suspension or revocation of license and/or publication of the facts. Approximately 25,000 licenses were in effect on June 30, 1962, and some decrease is expected by 1964 due to additional exemptions authorized by the amendment approved October 1, 1962. Complaints received are expected to number about 2,300 in 1964about 300 more than in 1962. 466 2,486 Object Classification (in thousands of dollars) 7. Area redevelopment.. 8. Miscellaneous services to other accounts... Total program costs, funded Change in selected resources 2 1 Includes capital outlay as follows: 1962, $13 thousand; 1963, $12 thousand; 1964, $12 thousand. 2 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1961, $167 thousand (1962 adjustments, $4 thousand): 1962, $150 thousand; 1963, $78 thousand; 1964, $6 thousand. 3 Reimbursements from non-Federal sources above include amounts from cooperating universities and State, county, local, and private agricultural agencies (5 U.S.C. 563, 564); from States, municipalities, persons, or licensed tobacco inspec tors for services rendered (7 U.S.C. 511e); from sale of photographic slides (7 U.S.C. 1387) and personal property (40 U.S. C. 481(c)); for overtime and holiday work performed at poultry processing plants and in connection with appeal inspections on grain (21 U.S.C. 468; 7 U.S.C. 78); from refund of terminal leave payments (5 U.S.C. 61b); from jury fees (5 U.S.C. 30p); and from importers in connection with reconditioning seed (7 U.S.C. 1582(a)). 1962 amounts exclude $352 thousand of unfilled orders from other accounts at end of year which will become reimbursements of a subsequent year. Object Classification (in thousands of dollars) Program and Financing (in thousands of dollars)-Continued 1962 actual 1963 1964 estimate estimate 1962 SALARIES AND EXPENSES For necessary expenses for the Foreign Agricultural Service, including carrying out title VI of the Agricultural Act of 1954 (7 U.S.C. 1761-1768), market development activities abroad, and for enabling the Secretary to coordinate and integrate activities of the Department in connection with foreign agricultural work, including not to exceed $35,000 for representation allowances and for expenses pursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C. 1766), [$16,895,000] $19,039,000: Provided, That not less than $255,000 of the funds contained in this appropriation shall be available to obtain statistics and related facts on foreign production and full and complete information on methods used by other countries to move farm commodities in world trade on a competitive basis: Provided further, That, in addition, not to exceed $3,117,000 of the funds appropriated by section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c), and $1,417,000 of the funds available for administrative expenses of the Commodity Credit Corporation, shall be merged with this appropriation and shall be available for all expenses of the Foreign Agricultural Service. (5 U.S.C. 511512; Department of Agriculture and Related Agencies Appropriation Act, 1963.) Note-Includes $1,000 thousand for activities previously carried under "Salaries and expenses (special foreign currency program)." Foreign Agricultural Service. The amounts obligated in 1962 and 1963 are shown in the schedule as compara tive transfers. 1962 adjust 1961 Unpaid undelivered orders.. 5,874 ments Total selected resources... 6, 294 78 1962 1963 1964 The primary function of the Foreign Agricultural Service is to help American agriculture in maintaining and expanding foreign markets for its products. The agency performs three principal kinds of service functions: (a) It maintains a worldwide agricultural intelligence and reporting service, to assist U.S. agricultural industry in its export operations. This is done through a continuous program of analyzing and reporting foreign agricultural production, markets, and policies; (b) it helps to develop foreign markets for U.S. farm products through administration of special export programs and through helping to secure international trade conditions that are favorable toward our products; (c) it coordinates Departforeign field, including relations with international organiment of Agriculture activities and relationships in the zations and foreign governments. 1. International agricultural affairs.-The Service directs and coordinates Department participation in the formulation of trade programs and agreements to stabilize and expand world trade in American agricultural products, and to reduce restrictive tariff and trade practices against import of American agricultural commodities. Of special importance at this time is the relationship with the European Common Market and intensive efforts are being made to maintain access to the Market for U.S. agricultural commodities. This requires comprehensive analysis of the developing situation in the Common Market countries and related trade areas and appropriate representation to officials of the European Economic Community. Recommendations for the departmental positions on trade agreements and international commodity agreements are formulated. Continuous review is made of the trade ོ་ |