Proceeds from sales of wheat include export differentials not paid by the purchasers but charged to the commodity export program or the International Wheat Agreement.

(b) Public Law 480 (Export).-CCC commodities are furnished pursuant to Public Law 480. Further details are contained under "Foreign assistance programs."

(c) International Wheat Agreement.-This authorizes furnishing of wheat to importing countries at stable and equitable prices. (See "Foreign assistance program").

(d) Feed for migratory waterfowl and resident game birds.—Under the act of July 3, 1956, as amended, and Public Law 87-152, approved August 17, 1961, grain owned by the Corporation is furnished to the Department of the Interior for feeding (1) migratory waterfowl to prevent crop depredations and (2) starving migratory birds; and also furnished to the States, as certified by the Department of the Interior, to feed resident game birds in danger of starvation. (e) Barter (export).—Under its charter act and other legislative authority, the Corporation may exchange its agricultural commodities for foreign-produced materials, goods, and equipment.

Pursuant to section 4 (h) of the Commodity Credit Corporation Charter Act, materials acquired by the Corporation are transferred to the national stockpile and the Corporation is reimbursed therefor at the fair market value by General Services Administration. However, for the past few years no funds have been appropriated to General Services Administration for this purpose.

Pursuant to section 206 of the Agricultural Act of 1956, as amended (7 U.S.C. 1856), strategic and other materials acquired by the Corporation are transferred to the supplemental stockpile which is designed to furnish a safety margin beyond the national stockpile objectives. The Corporation is reimbursed by appropriation at the lower of cost or domestic market price. More on this item is contained under "Foreign assistance programs."

In accordance with section 303 of Public Law 480 (7 U.S.C. 1692), agricultural commodities owned by the Corporation are bartered or exchanged for strategic and other materials designated by the President, of which the United States does not produce its requirements, and which entail less risk of loss or substantially less storage charges, or materials required in foreign aid and assistance programs, or materials required in substantial quantities for offshore construction programs.

In accordance with the recommendations of the Executive Stockpile Committee which were formally approved by the President on September 20, 1962. greater emphasis than in the past is being given to the use of barter in offshore procurement programs with the cooperation of other agencies who would otherwise spend dollars abroad for the items being procured.

The main objectives of the program will be (1) to increase the disposition of surplus agricultural commodities and (2) to strengthen the U.S. balance-ofpayments position by using the commodities instead of dollars as payment for items purchased abroad by other agencies.

Pursuant to section 407 of Public Law 765, 83d Congress, as amended (5 U.S.C. 171z-1), foreign currencies received from the export sale of Corporationowned surplus commodities were used to construct military housing abroad. This is further described under "Special activities."

(f) Payment-in-kind (export).—Under authority of the charter act, paymentin-kind programs were developed to stimulate exports from commercial supplies instead of from the Corporation's inventories and thereby reduce the acquisition of current crops by the Corporation. Upon proof of export of commodities obtained from private stocks, the Corporation will issue to U.S. exporters certificates at applicable subsidy rates redeemable in commodities from its stocks. (g) Payment-in-kind (domestic).-Under authority of Public Law 87-5 and sections 124 and 133 of the Agricultural Act of 1961, approved August 8, 1961. and the Food and Agriculture Act of 1962, Corporation-owned feed grains and wheat may be furnished in payment of land retirement certificates issued under the special programs for feed grains and the wheat stabilization programs as well as the price support payments for the 1963 crops of feed grains and wheat. The Corporation makes payments to producers by issuance of negotiable payment-in-kind certificates, or by making cash advances in lieu of issuing certificates to producers who elect in advance to have the Corporation market their certificate rights. The payments are recorded as expenses and included in realized losses for the fiscal year. The certificates are redeemable only in specified feed grains from price-support inventories of the Corporation. Most of

the certificates issued are surrendered to the Corporation for marketing and cash advances are made to the producers for the certificate value.

All certificates and certificate rights surrendered to the Corporation are placed in a certificate pool. Certificate rights are sold from the pool for use in obtaining grains from price-support inventories of the Corporation and the proceeds of such sales are applied as recoveries of the cash advances made to producers. Pooled certificates, or certificate rights, are reflected as a liability and the corresponding amount of cash advances is reflected as an asset in the statement of financial condition. Redemptions of certificates or certificate rights in grains are recorded as sales at the dollar value of the certificates or rights redeemed. The value of certificates not surrendered for cash advances or for grains is reflected as a libality in the statement of financial condition.

(h) Transfers to other Government agencies.—(1) Domestic: Pursuant to section 32, Public Law 320, 74th Congress, as amended (7 U.S.C. 612c) and supplemented, Corporation-owned commodities and products are acquired for relief and school lunch programs (excludes sec. 416 donations).

(2) Export: This includes commodities transferred pursuant to section 402 of the Mutual Security Act of 1954, as amended (22 U.S.C. 1922).

(i) Donations.-(1) Domestic: Section 202 of the Agricultural Act of 1949, as amended by the Agricultural Act of 1961 (7 U.S.C. 1446a), directs the Corporation to donate dairy products to the armed services and to veterans' hospitals through December 31, 1964.

Section 407 of the Agricultural Act of 1949 (7 U.S.C. 1427) directs the Corporation to make available its farm commodities or products for use in relieving distress in areas determined by the President of the United States to be acute distress areas and also in connection with any major disaster determined by him to warrant assistance under Public Law 875, 81st Congress.

Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) authorizes the Corporation to donate food commodities to the Bureau of Indian Affairs and to Federal, State, and private agencies for use in the United States for nonprofit school lunch programs, for training students in home economics (as authorized by Public Law 86-756, 74 Stat. 899), nonprofit summer camps for children, and the assistance of needy persons, and section 210 of the Agricultural Act of 1956 (7 U.S.C. 1859) authorizes the Corporation to donate food commodities to certain penal and correctional institutions.

Pursuant to other legislative authority, various other donations are made for research, experimentation, textile training classes, educational and miscellaneous other projects.

(2) Export: Section 416 of the Agricultural Act of 1949, as amended by title III, Public Law 480, 83d Congress (7 U.S.C. 143), authorizes the Corporation to donate commodities and their products acquired under the price-support programs or from private stocks to prevent waste, to nonprofit voluntary agencies and to intergovernmental organizations for use in the assistance of needy persons outside the United States.

Under section 308 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1697), purchases of animal fats and edible oils and products thereof are authorized as will tend to maintain the support level for cottonseed and soybeans without requiring the acquisition of such commodities under the price support program. Such oils may be donated for use in the assistance of needy persons outside the United States.

Under section 9 of the act of September 6, 1958, the Corporation is authorized to purchase products of oilseeds, and edible oils or fats and the products thereof in such form as may be needed for donations abroad.

(j) Market development.-Pursuant to the Commodity Credit Corporation Charter Act, agricultural commodities are made available by CCC for use at trade fairs and exhibitions abroad to aid in the development of foreign markets for such commodities.

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