Department of Agriculture Appropriations for 1964

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 sum 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
(Public Law 144, 77th Cong., July 1, 1941, 55 Stat. 437)

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 calcu lated 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 adminis tration 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."

FEDERAL SURPLUS COMMODITIES CORPORATION CONTINUED UNTIL JUNE 30, 1945 (Public Law 634, 77th Cong., June 27, 1942, 56 Stat. 461)

The Federal Surplus Commodities Corporation was chartered by the State of Delaware on October 4, 1933, without specific authority of any Federal statute (19 Comp. Gen. 537, 541). Express acknowledgment of its status as an agency of the United States was first shown by the Congress in the act of June 28, 1937 (50 Stat. 323; 15 U.S.C. 713c) which continues the Corporation as an agency under the Secretary of Agriculture.

The Corporation was created as an essential part of the Government's program for relieving the national economic emergency of the early 1930's. During the 11 years of its active life, the Corporation engaged in the following major programs:

1. Farm products, dairy products, and fuel were purchased to absorb pricedepressing surplus production. This surplus was diverted from commercial channels and distributed to needly families by State relief organizations.

2. A wheat loan fund was designed to aid distribution and exportation of stocks of wheat in excess of a normal reserve.

3. A wheat and flour export fund aided in financing surplus wheat and flour operations and disposing of the surplus outside the United States.

4. The Northeastern Timber Salvage Administration was organized in November 1938 to salvage storm-damaged timber in the northeastern section of the United States.

5. A school lunch program aided in the distribution of surplus food commodities.

6. A food stamp plan was adopted as a method of disposing of surplus farm products.

7. Commodity Credit Corporation used the organization of Federal Surplus Commodities Corporation as an agency in the procurement, stockpiling, and shipment of agricultural commodities immediately prior to and during the war period.

8. The Texas timber salvage program was organized to salvage timber in Texas and adjoining States which had been damaged by a severe ice and sleet storm in January 1944.

The last-named program comprised the final activity of the Corporation. January 1945, all operations of that program ceased. On March 14, 1947, the dissolution of Federal Surplus Commodities Corporation was completed.

"The Federal Surplus Commodities Corporation is hereby continued as an agency of the United States, under the direction of the Secretary of Agriculture until June 30, 1945."

DISPOSAL OF SURPLUS AGRICULTURAL COMMODITIES, FISCAL YEAR 1943

(Public Law 674, 77th Cong., July 22, 1942, 56 Stat. 694)

The Agriculture Appropriation Act, fiscal year 1943, provided for the reappropriation of 1941 and 1942 unobligated balances of section 32 funds for fiscal year 1943, approximately $150 million.

STEAGALL AMENDMENT, AMEND AND EXTEND

(Public Law 729, 77th Cong., Oct. 2, 1942, 56 Stat. 768)

This law amended price policy legislation (Steagall amendment) affecting use of section 32 funds, extended the legislation until 2 years after the war, and increased support price to 90 percent.

"To support, during the continuance of the present war and until the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress

by concurrent resolution declares that hostilities in the present war have terminated, a price for the producers of any such commodity with respect to which such announcement was made of not less than 90 per centum of the parity or comparable price therefor."

SECTION 32 FUNDS FOR SCHOOL LUNCH AND MILK PROGRAMS, FISCAL YEAR 1944

(Public Law 129, 78th Cong., July 12, 1943, 57 Stat. 392)

This legislation, which authorized the appropriation for the Department of Agriculture for 1944, for the first time authorized a specific amount of section 32 funds for the operation of the school lunch and school milk program. It also provided that such activities could be carried out without regard to the existence of a surplus condition.

"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, during the fiscal year ending June 30, 1944, funds appropriated by or for the purposes of section 32 of said Act shall be available to the Secretary of Agriculture for the maintenance and operation of a school milk and lunch program under clause (2) of said section 32 in a sum not exceeding $50,000,000: Provided, That such funds shall be available for such purposes during the fiscal year 1944 without regard to the requirement therein relating to the encourage ment of domestic consumption but no part of such funds shall be available to defray the expenses of any activity heretofore carried on by the Works Projects Administration."

SECTION 32 FUNDS FOR CERTAIN CLAIM CASES

(Public Law 367, 78th Cong., June 28, 1944, 58 Stat. 450)

This proviso made section 32 funds available in special claim cases involving certain Irish potato and commercial truck crop payments.

"Provided further, That the War Food Administrator is authorized and directed to make payments on Irish potatoes and commercial truck crops for fresh consumption under the 1943 agricultural conservation program with respect to any farm if the War Food Administration determines that the producer would have been eligible for such payments except for the failure of such producer, because of negligence of an officer or agent of the Federal Government, to file on or before June 30, 1943, Form ACP-140, and such payments shall be made out of funds appropriated for the purposes 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)."

SECTION 32 FUNDS FOR SCHOOL LUNCH AND CHILD CARE PROGRAMS,

FISCAL YEAR 1945

(Public Law 367, 78th Cong., June 28, 1944, 58 Stat. 452)

The 1945 fiscal year appropriation for the Department of Agriculture under the appropriation item "Exportation and domestic consumption of agricultural commodities" provided the program authority and funds for carrying out the school lunch program for 1945. The legislation for the first time provided detailed requirements as to the conditions under which Federal assistance was to be provided.

"Not exceeding $50,000,000 of the funds appropriated by and pursuant to this section may also be used during the fiscal year ending June 30, 1945, to provide food for consumption by children in nonprofit schools of high school grade or under and for child-care centers through (a) the purchase, processing, and exchange, and the distribution of agricultural commodities and products thereof; or (b) the making of payments to such schools and centers or agencies having control thereof in connection with the purchase and distribution of agricultural commodities in fresh or processed form and, when desirable, for the processing and exchange of such commodities and their products; or (c) by such other means as the Secretary may determine: Provided, That funds appropriated for the purposes of this program shall be apportioned for expenditure in the States, territories, possessions, and the District of Columbia in accordance with school enrollment and need, as determined by the Secretary, except that if

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