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AGRICULTURAL MARKETING SERVICE-Con. Under section 32 of the act of August 24, 1935 (7 U.S.C.

612c), an amount equal to 30% of customs receipts General and special funds-Continued

during each calendar year (except for an amount equal to ALLOTMENTS AND ALLOCATIONS RECEIVED FROM OTHER ACCOUNTS

30% of such receipts collected on fishery products transNote --Obligations incurred under allotments and allocations from other ac

ferred to the Department of the Interior to encourage the counts are included in the schedules of the parent appropriations as follows:

distribution of fishery products), and unused balances up Agriculture: *Commodity Credit Corporation fund."

to $300 million are available for expanding domestic and "Commodity Credit Corporation, administrative expenses."

foreign market outlets for farm commodities. As proFunds Appropriated to the President, "Agency for International Development." Office of Emergency Planning Civil defense and defense mobilization func

vided in recent appropriation acts, transfers have been tions of Federal agencies.

made from this fund to the school lunch program for the purchase and distribution of agricultural commodities and

other foods pursuant to section 6 of the National School REMOVAL OF SURPLUS AGRICULTURAL COMMODITIES Lunch Act. Section 32 funds are also authorized for the (Permanent, indefinite)

administration of marketing agreements and orders, and No funds available under section 32 of the Act of August 24, 1935

the section 22 import-control programs. The basic legis(7 U.S.C. 6120) shall be used for any purpose other than commodity lation provides that funds

devoted to any one commodity program expenses as authorized therein, and other related operating or product thereof must not exceed 25% of funds availexpenses, except for (1) transfers to the Department of the Interior as

able. It also provides that the funds must be devoted authorized by the Fish and Wildlife Act of August 8, 1956, (2) transfers otherwise provided in this Act, (3) not more than $4,464,000 for principally to perishable agricultural commodities other formulation and administration of marketing agreements and orders than those receiving price support under title II of the pursuant to the Agricultural Marketing Agreement Act of 1937, as Agricultural Act of 1949, as amended. It has been amended, and the Agricultural Act of 1961, and (4) not more than $51,500,000 for expenses for the Pilot Food Stamp Program.

determined that this provision can be legally satisfied by

reserving the principal portion of section 32 funds for the Program and Financing (in thousands of dollars)

use of perishable nonbasic agricultural commodities when

the occasion arises warranting their use for such purpose. 1962

1. Commodity program payments are of four types: (a) actual estimate estimate

Direct purchases are donated to the school lunch program,

charitable institutions serving needy persons, and persons Program by activities:

certified by welfare agencies as eligible for relief; (b) 1. Commodity program payments: (a) Direct purchases


Diversion payments enable processors to purchase surplus (b) Diversion payments

10,980 163,984 164,493 commodities on the domestic market, divert them to (c) Export payments..


by-products and new uses, and sell them at prices com2. Food stamp program..

14,292 51,500 26,500 3. Operating expenses.

3,265 3,978 4,253 parable to competing products, thus creating new markets 4. Marketing agreements and orders.

2,667 5,511 4,754 for surplus commodities; (c) Export payments enable

exporters to purchase surplus commodities on the domestic Total program costs, funded 1.

200,801 224,973 200,000 market and sell them on the world market at competitive Change in selected resources 2.


world prices; (d) Production payments, none of which Total obligations.

163,994 224,973 200,000 were made in 1962, help to reestablish farmers' purchasing

power. During the past 2 years assistance under these Financing: Unobligated balance brought forward (-)---|-300,000 -300,000-300,000

programs was given to the following commodity groups Recovery of prior year obligations (-). -1,025

(in millions of dollars): Unobligated balance carried forward. 300,000 300,000 300,000 109,699

1961 Unobligated balance lapsing ---

Obligations 39,880

1962 599 108,183 Dairy products

116.4 0.9 New obligational authority..

272,668 264,853
308,183 Eggs and poultry.

37.6 31.2 Fruits...

1.4 1.5 Grains

3.0 1.7 Livestock..

78.2 82.0 New obligational authority:

12.6 Peanut butter

8.2 Appropriation

325,827 318,069 361,500 Transferred to (-)


1.5 Vegetables.

3.2 16.7 "Salaries and expenses, general adminis


.8 tration" (76 Stat. 1212) "Promote and develop fishery products and


253.2 143.7 research pertaining to American fisheries," Bureau of Commercial Fisheries, Interior (15 U.S.C. 713c as amended by Act of August 3, 1956)..

The use of section 32 program funds is contingent upon

-4,757 -5,071 -5,200 "School lunch program" Agricultural

economic conditions. The estimates for both 1963 and Marketing Service (76 Stat. 1208). -45,000 -45,000 -45,000 1964 reflect in total the requirements based on the situa"Salaries and expenses," Foreign Agricul

tion as now foreseen. Distribution of the total in advance tural Service (76 Stat. 1209)

-3,117 -3,117 -3,117 "Marketing research and service," Agricul

would be highly tentative since the type of program to be tural Marketing Service (5 U.S.C. 572). -285

used is dependent upon a determination at the time of the

kind of action which will best meet the particular need Appropriation (adjusted)

272,668 264,853 308,183 which had developed. If troublesome surpluses not now

foreseen should develop, steps will be taken to use addiIncludes capital outlay as follows: 1962. $49 thousand; 1963. $64 thousand; tional available funds for their removal or diversion as 1964, $53 thousand. : Selected resources as of June 30 are as follows:

conditions might warrant.

2. Food stamp program payments aim to encourage inadjust

creased domestic use of agricultural food commodities 1961 1962

among low-income families through issuance of food couStores.

6, 528

17,716 17,716 17,716 Unpaid undelivered orders.. 67, 100 -1,025 18,080 18,080 18,080 pons which may be used in retail stores for the purchase of Total selected resources -- 73, 628 -1,025 35, 796 35, 796 35, 796

commercial-brand foods. In September 1962, 131,811






1962 actual

1963 estimate

1964 estimate

409 625

33 204 114

151 1,833

63 154,493






needy persons were participating in the 8 pilot areas in

Object Classification in thousands of dollars) Continued 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 AGRICULTURAL MARKETING for separate transmittal.

SERVICE-Continued 3. Operating expenses occur mainly in connection with

12 Personnel benefits..

238 368 purchasing, exporting, and diverting surplus commodities 21 Travel and transportation of persons.

396 765 and in distributing section 32 and Commodity Credit Cor 22 Transportation of things...


24 poration commodities to eligible outlets. Distribution in

23 Rent, communications, and utilities.


243 24 Printing and reproduction...

63 118 1962 including that under section 6 of the National School

25 Other services. -

60 217 Lunch Act, is summarized below (in millions):

Services of other agencies.

244 2,713 26 Supplies and materials.


54 Number of Value of Pounds of

Grants of commodities to States.
recipients commodities

124,185 150,984
(peak month) distributed distributed
31 Equipment


60 By recipients:

41 Grants, subsidies, and contributions (ComSchool children.

16.0 $181.2

modity program payments)--

14,920 Needy persons.


226.9 1,377.0 Persons in charitable institutions...


Total, Agricultural Marketing Service 143,587 213,560
Foreign countries: 111..---

224.6 2,704.1





SERVICE By program:

11 Personnel compensation: Section 32

Permanent positions.---

1,296 982 Donation by Commodity Credit Corporation

Positions other than permanent


8 under section 416...

461.6 4,182.4
Other personnel compensation.


6 Section 6, National School Lunch Act. -

Total personnel compensation

1,319 996 Total..

658.6 5,045.0
12 Personnel benefits..-.


84 21 Travel and transportation of persons.


97 Supervisory assistance is furnished local and State 22 Transportation of things...


4 23 Rent, communications, and utilities.


58 groups to encourage the preservation of surpluses for year

24 Printing and reproduction...


12 round use. In cooperation with the food trade, press and 25 Other services


20 radio, greater consumption of abundant foods is encour Services of other agencies.


25 aged. In 1962 the monthly plentiful foods list contained Advanced to "Expenses, Agricultural Sta

bilization and Conservation Service". 479 103 an average of 8 foods, and 7 national and 30 area, State,

26 Supplies and materials.


10 and local drives were conducted.

Grants of commodities to States

7,042 4. Marketing agreements and orders are put into effect 31 Equipment

18 upon request of producers or handlers after hearings and 41 Grants, subsidies, and contributions.

10,957 10,000 investigations, and approval by producers (and handlers in

Total, Agricultural Stabilization and case of marketing agreements). They help to stabilize

Conservation Servire..

20,407 11,413 prices and benefit producers and consumers by establishing and maintaining orderly marketing conditions. Ad

Total obligations

163,994 224,973 ministration at the local level is financed by assessments upon handlers. On June 30, 1962, there were 83 orders in

Personnel Summary 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 AGRICULTURAL MARKETING

SERVICE 1961 are being financed under this project. The cost of developmental work, consisting of the expenses of advisory Total number of permanent positions ..

585 813

14 Full-time equivalent of other positions.

4 committees, public hearings and referenda, is expected to

Average number of all employees.

464 719 decrease in 1964.

Number of employees at end of year.

494 783

7.7 Average GS grade

7.8 Object Classification (in thousands of dollars)

Average GS salary

$6,439 $6,885 Average salary of ungraded positions...

$4,684 $4,837 estimate estimate ALLOCATION TO AGRICULTURAL



Total number of permanent positions..

208 275

2 Full-time equivalent of other positions.

5 Il Personnel compensation:

193 Permanent positions.--

145 3,181

5,389 4,974

Average number of all employees.-

42 Positions other than permanent..


Number of employees at end of year.

80 7 Other personnel compensation..

6.9 30


Average GS grade
Average GS salary.

$6,274 $6,731 Total personnel compensation..

3,230 4,996 5,439






4 681 583

7.8 $6,879 $4,850



1962 actual

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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 in volving 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 ainendment approved October 1, 1962. Complaints received are expected to number about 2,300 in 1964about 300 more than in 1962.


Program by activities:
1. Market news service:

Department of Agriculture..
State agencies under cooperative agree-


Non-Federal sources
2. Inspection, grading, classing, and stand-

Department of Agriculture..
Other Federal agencies.

Non-Federal sources. 3. Wool marketing agreements. 4. Research on cotton quality evaluation.. 5. Entomological research for Navy. 6. Storage research on Commodity Credit

Corporation-owned grain. 7. Area redevelopment.--8. Miscellaneous services to other accounts..

Total program costs, funded! Change in selected resources

Total obligations....


11. 2,166

2 14 34


6 32

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Object Classification (in thousands of dollars)


1962 actual

1963 estimate


Unobligated balance brought forward...
Advances and reimbursements from

Other accounts...
Non-Federal sources 3.

Total financing

1964 estimate

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Includes capital outlay as follows: 1962. $13 thousand; 1963, 1964, $12 thousand.

2 Selected resources as of June 30 are as follows: Unpaid undelivere $167 thousand (1962 adjustments, $4 thousand); 1962, $150 thousi thousand; 1964, $6 thousand. 3 Reimbursements from non-Federal sources above include a mo

U.S.C. 563, 564); from States. municipalities, persons, or licensed t tors for services rendered 7 U.S.C. 511e): from sale of photographic 1387) and personal property 740 U.S.C. 481(c)); for overtime and performed at poultry processing plants and in connection with appe or grain.(21 U.S.C. 468; 7 U.S. c. 78); from refund of terminal leavi U.S.C. 61b); from jury fees (5 U.S.C. 30p); and from importers in co reconditioning seed (7 U.S.C. 1582(a)).

1962 amounts exclude $352 thousand of unfilled orders from othe end of year which will become reimbursements of a subsequent year.

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1 Includes capital outlay as follows: 1962, $122 thousand; 1963, $110 thousand:
1964, $110 thousand.
: Selected resources as of June 30 are as follows:



1961 ments 1962 1963 1964 Unpaid undelivered orders. 5, 874 -78 10, 697 12, 028 14,183 Advances -


1,331 1, 570 General and special funds:

Total selected resources... 6, 294 - 78 11, 443 13,359 15,753 SALARIES AND EXPENSES

The primary function of the Foreign Agricultural Service For necessary expenses for the Foreign Agricultural Service, in is to help American agriculture in maintaining and exeluding carrying out title VI of the Agricultural Act of 1954 (7 U.S.C. 1761-1768), market development activities abroad, and for

panding foreign markets for its products. enabling the Secretary to coordinate and integrate activities of the

The agency performs three principal kinds of service Department in connection with foreign agricultural work, including functions: (a) It maintains a worldwide agricultural innot to exceed $35,000 for representation allowances and for expenses telligence and reporting service, to assist U.S. agricultural pursuant to section 8 of the Act approved August 3, 1956 ( 7 U.S.C. industry in its export operations. This is done through 1766), [$16,895,000] $19,039,000: Provided, That not less than $255,000 of the funds contained in this appropriation shall be

a continuous program of analyzing and reporting foreign available to obtain statistics and related facts on foreign production agricultural production, markets, and policies; (b) it helps and full and complete information on methods used by other coun to develop foreign markets for U.S. farm products through tries to move farm commodities in world trade on a competitive

administration of special export programs and through 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,

helping to secure international trade conditions that are 1935, as amended (7 U.S.C. 612c), and $1,417,000 of the funds favorable toward our products; (c) it coordinates Departarailable for administrative expenses of the Commodity Credit Corpo ment of Agriculture activities and relationships in the ration, shall be merged with this appropriation and shall be available for all expenses of the Foreign Agricultural Service. (5 U.S.C.511

foreign field, including relations with international organi512; Department of Agriculture and Related Agencies Appropriation

zations and foreign governments. Act, 1963.)

1. International agricultural affairs.-The Service Note.--Includes $1.000 thousand for activities previously carried under "Salaries

directs and coordinates Department participation in the and expenses (special foreign currency program)." Foreign Agricultural Service. formulation of trade programs and agreements to stabilize The amounts obligated in 1962 and 1963 are shown in the schedule as comparative transfers.

and expand world trade in American agricultural products, Program and Financing (in thousands of dollars)

and to reduce restrictive tariff and trade practices against

import of American agricultural commodities. Of special 1963

importance at this time is the relationship with the Euroestimate estimate

pean Common Market and intensive efforts are being made

to maintain access to the Market for U.S. agricultural Program by activities:

commodities. This requires comprehensive analysis of the 1. International agricultural affairs...

428 494 625 2. Agricultural attachés.

3,562 3,905 4,431

developing situation in the Common Market countries and 3. Export programs.

6,771 12,718 12,283 related trade areas and appropriate representation to 4. Commodity programs.

2,199 2,236 2,423 officials of the European Economic Community. Rec5. Barter and stockpiling-..

518 550 599

ommendations for the departmental positions on trade 6. General sales management.

418 715 818

agreements and international commodity agreements are Total program costs, funded 1.

13,896 20,618 21.179 formulated. Continuous review is made of the trade

1962 actual


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regulations of signatories to the General Agreement on Tariffs and Trade as these regulations affect the movement of American farm products in international trade. Policies, programs, positions, and standards of participation in public and private international organizations are developed. The Service administers a program of import controls in accordance with section 22 of the Agricultural Adjustment Act of 1935, as amended.

2. Agricultural attachés.--Agricultural attachés located in 55 countries assist in the development of markets abroad for U.S. agricultural commodities. A comprehensive schedule of foreign agricultural market and trade reporting is maintained to meet the needs of the American agricultural industry.

3. Erport programs.-Maintenance and expansion of foreign markets for surplus agricultural products are promoted by (a) developing agreements with foreign countries for sales of U.S. agricultural commodities under Public Law 480, and following up on the shipments of those commodities; and (b) directing and financing the operation of market development projects for agricultural products. Market development projects are, in most cases, carried out in cooperation with commodity trade groups under cooperative agreements. These projects carried out in foreign countries expand markets for U.S. agricultural commodities.

4. Commodity programs.-Information on foreign market requirements for specific commodities is obtained, analyzed, and made available to farm and trade groups. Market programs are developed for use by producers, exporters, and Government officials to maintain and expand the market abroad for U.S. farm products. Assistance is rendered to domestic trade representatives in negotiations with foreign government officials, importers, and consumers and for bringing together American exporters and foreign importers under conditions favorable to trade.

5. Barter and stockpiling.The Service, in cooperation with other Government agencies, conducts a barter program designed to utilize surplus agricultural commodities, in lieu of dollars, in acquiring goods, materials and equipment required by other government agencies from other countries. This work is financed with funds transferred from Administrative expenses, Commodity Credit Corporation.

6. General sales management.— The Service conducts a program to develop sales, and pricing policies and programs for sales for export including sales for credit. The program also now includes price and quality review. Foreign data on prices and stocks, and rail, truck, barge, and ocean freight rates and other market information is collected and recorded for use in program development. Information concerning prices and other sales terms, sales programs and commodity availabilities is furnished to U.S. exporters, foreign importers and foreign government officials. This work is financed with funds transferred from Administrative

expenses, Commodity Credit Corporation.

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PROGRAM)] [For purchase of foreign currencies which accrue the Agricultural Trade Development and Assistance amended (7 U.S.C. 1704), for market development ac ized by section 104(a) of the Agricultural Trade De Assistance Act of 1954, as amended (7 U.S.C. 1704(a to remain available until expended: Provided, That f ated herein shall be used to purchase such foreign cu Department determines are needed and can be used n to carry out the purposes of this paragraph, and su rencies shall, pursuant to the provisions of section 104 for sale to the Department before foreign currencies under said title I are made available for other Unit Provided further, That this appropriation shall be ava tion to other appropriations for these purposes, for t the foregoing currencies.] (Department of Agricultu Agencies Appropriation Act, 1963.)

Note.- Estimate of $1,000 thousand for activities previously title has been transferred in the estimates to "Salaries and Agricultural Service. schedule as comparative transfers.

The amounts obligated in 1962 and 1963

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