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(2) have been serving free or at substantially reduced prices at least 20 percent of the lunches to the children.

FOREIGN AGRICULTURAL SERVICE-SALARIES AND EXPENSES "For necessary expenses for the Foreign Agricultural Service, including carrying out title VI of the Agricultural Act of 1954 17 U.S.C. 1761-1768), market development activities abroad, and for enabling the Secretary to cordinate 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), $12,457,000: 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), shall be merged with this appropriation and shall be available for all expenses of the Foreign Agricultural Service."

DEPARTMENT OF AGRICULTURE AND RELATED AGENCIES APPROPRIATION ACT, 1963 (Public Law 87–879, 87th Congress, October 24, 1962, 76 Stat. 1208 and 1209)

SCHOOL LUNCH PROGRAM "For necessary expenses to carry out the provisions of the National School Lunch Act (42 U.S.C. 1751-1760), $125,000,000: 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.”

FOREIGN AGRICULTURAL SERVICE-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: 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) shall be merged with this appropriation and shall be available for all expenses of the Foreign Agricultural Service."

DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATION ACTS

(75 Stat. 251 ; 76 Stat. 340)
Fiscal Years 1962 and 1963

SECTION 32 COMMODITIES TO BE DONATED TO TRUST TERRITORY OF THE

PACIFIC ISLANDS “Provided further, That notwithstanding the provisions of any law, the Trust Territory of the Pacific Islands is authorized to receive, during the current fiscal year, from the Department of Agriculture for distribution on the same basis as domestic distribution in any State, territory, or possession of the United States, without exchange of funds, such surplus food commodities as may be available pursuant to section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c) and section 416 of the Agricultural Act of 1949, as amended (7 U.S.C. 1431)."

PRIMARY OBJECTIVES OF SECTION 32 PROGRAMS

Mr. WHITTEN. In a nutshell, section 32 provides that 30 percent of the import duties on things coming into this country is set aside for specified uses which have been spelled out in the language of the act. With all changes, it still remains that this act primarily is to promote new uses, to provide for the movement of surplus to increase consumption and exports.

Now there are several sections, or authorities provided in the act. One of them that we ran into a few years ago was this authority to maintain purchasing power for producers, for example, the cranberry problem, which this committee learned of after the fact and on which we later had hearings.

However, the Government had contributed substantially to causing the problem, so I do think the Government's effort to make up for the damage by publicizing and promoting cranberries has probably put them in a better position than they were before the occurrence took place. I hear that from retail outlets. They say they are selling about as much cranberry juice as other juices, in many instances.

Mr. Smith. Yes, the industry has made a remarkable recovery.

Mr. WHITTEN. Now what are the main features of the present law under which you are operating now?

Mr. SMITH. The main features, Mr. Chairman, breaks down into three broad categories, as far as the Act's authority is concerned.

Clause (1) as we refer to it, relates to encouraging the exportation of agricultural commodities and products thereof by benefit payments, in connection with the exportation or indemnities.

Clause (2) which is the more commonly used section or portion of section 32, relates to encouraging domestic consumption, of such commodities or products by diverting them, by payment of benefits or indemnities, or by other means from the normal channels of trade, or by increasing their utilization through benefits, indemnities, donations or by other means among persons in the low income groups, as determined by the Secretary of Agriculture.

And the third one provides authority for reestablishing farmers' purchasing power, making payment in connection with the normal production of any agricultural commodity.

Mr. WHITTEN. At this point, Mr. Smith, we might quote for the record clause (1). I will read it for the information of the Committee since I have the copy in front of me.

Clause 1, and I quote: Encourage the exportation of agricultural commodities and products thereof by the payment of benefits in connection with the exportation thereof, or of indemnities for loss incurred in connection with such exportation or by payments to producers in connection with the production of that part of any agricultural commodity required for domestic consumption.

How long has that section been used, if you know, in the history of the act?

Mr. SMITH. Since its inception, there have been export programs of one kind or another, Mr. Chairman.

COMMODITIES SUPPORTED BY SECTION 32 FUNDS

Mr. WHITTEN. How difficult would it be for you to provide for the record the commodities which have participated in these funds, how much money out of these funds accumulatively have been used for the various commodities through the years, with a separate breakdown for last year? Do you have that?

Mr. SMITH. We have that information, Mr. Chairman.

Mr. WHITTEN. I would like to have that included in the record at this point.

(The material requested follows:)

[graphic]

AGRICULTURAL MARKETING SERVICE Removal of surplus agricultural commodities (sec. 32)-Obligations by individual commodities, fiscal years 1936-62

Almonds.
Apples (canned, dried, fresh).
Apricots (dried)
Beans (dry, lima, snap).
Beel.
Beets.
Blackberries
Butter
Cabbage
Carrots.
Cauliflower
Celery.
Chard.
Cheese
Cherries
Citrus Juice and salad)
Coffee.
Cor.
Cornmeal
Cotton
Cottonseed.
Cranberries.
Dates.
Eggs.
Figs.
Filberts.
Fish..
Flax fiber
Flaxseed.
Grapes
Grapefruit (juice and fruit).
Greens.
Hominy grits.
Honey.--
Hops.
Kale.
Lamb...-
Lard....
Lemons (fruit and Juice).
Linseed oil.
Loganberries..---------------*****

[graphic]

Ment, miscellaneous.
Milk
Oats, rolled
Olives and olive oil.
Onions
Oranges (fruit and juice)
Peaches
Peanut butter
Peanuts
Pears...
Peas (canned, dried, fresh)
Pecans
Pineapples
Plums
Pork...
Pork and beans
Potatoes, Irish
Potatoes, sweet.
Poultry
Prunes (dried and fresh).
Raisins.
Rice.
Sauerkraut
Shortening, vegetable
Sorghums, grain.
Soup..
Spinach
Squash
Sugarbeet.
Syrup
Tangerines (fruit and juice)
Tobacco
Tomatoes
Turkeys.
Turnips
Vegetables, miscellaneous
Walnuts.
Watermelons.
Wheat
Wheat cereal
Wheat flour
Other

177, 151
39,773, 921

3, 401, 290
2,928, 946
28, 306, 335
10, 017, 604
1, 705, 665
21, 407, 126
6, 130, 032
2, 270, 845
1, 354, 973

52, 840

506, 368
52,082, 607

2,050, 062
101, 174, 285

3,663, 909
26, 025, 938
15,757, 309
6, 612, 936

15, 107
99,000
926, 625
233, 070
135, 886
110, 951

361, 608
1,081, 272
18, 083, 921
3,807, 920

6, 020

7, 668
30,975, 950
9,776, 830

599
19, 454, 261

4,546, 987
106, 994, 475

12, 075, 811 1,098, 228, 210

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