23,609,907 23,098,583 22,550,075 266,108 257,758 243,419 2. Inspection, grading, classing and standardization(a) Poultry inspection.-Inspection of poultry for wholesomeness is provided pursuant to the Poultry Products Inspection Act of 1957. All poultry moving in interstate or foreign commerce is required to be inspected_both before and after slaughter. Birds found to be unfit for human consumption are condemned and removed from channels of trade. The increase for 1966 provides for inspection of an increased volume of poultry and for laboratory work on harmful pesticides or other chemical residues in poultry meat. Legislation will be proposed to place the service on a self-supporting basis resulting in a reduction of $17,567 thousand for 1966. (b). Other inspection, grading, classing, and standardization.-Nationally uniform standards of quality for agricultural products are established and applied to specific lots of produce to promote confidence between buyers and sellers; reduce hazards in marketing due to misunderstandings and disputes arising from the use of nonstandard descriptions; encourage better preparation of uniform quality products for market; and furnish consumers with more definite information on the quality of products they buy. The standards are applied by or under the supervision of Federal employees at the request of any interested party, and generally for a fee. Approximately 80% of the total cost of this work was offset by fees and other revenue in 1964, which are shown principally under Agricultural Marketing Service trust funds in part II of the Budget Appendix. The increase for 1966 provides for assistance to States in applying livestock standards and for mandatory reimbursement to Employees Compensation Fund. Legislation will be proposed to (1) amend the U.S. Grain Standards Act which would include placing on a voluntary basis the grain inspection in domestic trade and establishing fees to recover the cost of that portion of the service which is of special benefit to the users of the service; (2) amend the Tobacco Inspection Act and the Cotton Statistics and Estimates Act to recover in fees the full 3. Regulatory activities.-These include the administration of regulatory laws such as Packers and Stockyards, Standard Container, United States Warehouse, and Federal Seed Acts, to assure fair play in the marketplace; to protect producers and handlers of agricultural commodities from financial loss due to careless or fraudulent marketing practices; and to preserve free and open competition in the marketing of farm products. Assistance is also provided to farmers and others in obtaining and maintaining equitable and reasonable transportation rates and services on farm products and supplies. The increase for 1966 would be used to provide for more effective administration of the Packers and Stockyards and U.S. Warehouse Acts. Legislation will be proposed to amend the U.S. Warehouse Act to recover the full cost of that portion of the service which is of special benefit to the users of the service and to repeal the Naval Stores Act, the Tobacco Seed and Plant Exportation Act, and the two Standard Container Acts resulting in a reduction of $690 thousand for 1966. 4. Administration and coordination of State payments.This covers the Federal activity required in administering and coordinating the marketing service work performed by the States and financed jointly by State funds, and Federal funds provided by the appropriation Payments to States and possessions. In 1965 this work will be carried on in 43 States with 142 work projects. 11.5 Other personnel compensation- 451 397 397 2,527 30,840 31,330 22.0 Transportation of things... 403 452 23.0 Rent, communications, and utilities. 1,879 2,065 458 2,078 24.0 Printing and reproduction.. 243 280 25.1 Other services.. 25.2 Services of other agencies. 284 Obligations (affecting expenditures) -- 74 Reimbursables in excess of obligations, end Expenditures.. Under proposed legislation, 1966.-A redu 32,167 32,657 $25,936 thousand is anticipated for 1966 under le being proposed as follows: (1) amendment to Grain Standards Act which would include plac voluntary basis the inspection of grain in domes and establishing fees to recover the full cost of tha of the service which is of special benefit to the use service; (2) to amend the Poultry Products In Act, the Cotton Statistics and Estimates Act, the Inspection Act and the U.S. Warehouse Act to the full cost of that portion of these services wh special benefit to the users; and (3) to repeal th Stores Act, Tobacco Seed and Plant Exportat 41,232 Wool Standards Act and two Standard Containe This reduction in the Marketing services appro will be partially offset by a need for an appropriat million to provide operating capital until suffic are collected to permit the poultry inspection a house programs to function on a self-supporting l 365 PAYMENTS TO STATES AND POSSESSIONS For payments to departments of agriculture, bureaus an ments of markets, and similar agencies for marketing activi section 204 (b) of the Agricultural Marketing Act of 1946 1623(b)), $1,500,000. (Department of Agriculture and Agencies Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Personnel Summary improving the organizational structure of the marketing system. Through this cooperative approach, the Federal Government's leadership and money are coupled with State resources and experience to aid in the solution of the most urgent local and area marketing problems. In 1965 43 States are conducting about 142 projects under this program. Corporation funds. The Agricultural Act of 1961 changed the financing to a direct appropriation beginning July 1, 1962. 1. Cash payments to States.-Funds are provided under letters of credit to State agencies to reimburse eligible participants for a part of the cost of the fluid milk consumed. An initial reserve is established at the beginning of the fiscal year for each State based on the total amount of reimbursement payments made during the preceding fiscal year adjusted for average growth. In especially needy schools, reimbursement payments may be made for the full cost of this milk for children who are unable to pay. In 1964 over 2.9 billion half-pints of fluid milk were consumed by children-over six times the quantity in 1955, the first year of operation of the program. This represents more than 2% of the total nonfarm consumption of fluid milk in the United States. Milk consumed under this program is expected to continue to increase at about 6% in both 1965 and 1966. Program activities from 1963 through 1966 are as follows: 2. Operating expenses.-Administrative and technical assistance is furnished to State agencies, participating schools, and child-care institutions. Policies, procedures, and standards are developed for administering the program and determining eligibility. The program is administered directly in 8,544 outlets where no State agency has assumed the responsibility for its administration or is prohibited by law from disbursing funds to such participants. Object Classification (in thousands of dollars) Identification code 05-32-2502-0-1-659 62 Transferred from "Removal of surplus agricultural commodities" (78 Stat. 862)... 12.0 Personnel benefits........ 21.0 Travel and transportation of 22.0 Transportation of things..... 23.0 Rent, communications, and utilities.. 24.0 Printing and reproduction... 34 38 38 persons 1,273 25.1 Other services.... 4 -1,273 25.2 Services of other agencies. -1,228 26.0 Supplies and materials.. 31.0 Equipment.... 5 41.0 Grants, subsidies, and contributions... Includes capital outlay as follows: 1964, $1 thousand; 1965, $4 thousand; 1966' $4 thousand; excludes downward adjustment of $442 thousand in prior year costs. Selected resources as of June 30 are as follows: unpaid undelivered orders, 1963, $3 thousand; 1964, $8 thousand; 1965, $8 thousand: 1966, $8 thousand. This program is designed to increase the consumption of fluid milk by children in nonprofit schools of high school grade and under, child-care centers, summer camps, and similar nonprofit institutions. From its inception in 1955 through 1962, the program was financed through advances from Commodity Credit AGRICULTURAL MARKETING SERVICE-Con. General and special funds-Continued SCHOOL LUNCH PROGRAM For necessary expenses to carry out the provisions of the National School Lunch Act, as amended (42 U.S.C. 1751-1760), [$146,400,000 $157,000,000, including $2,000,000 for special assistance to needy schools, as authorized by law: 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. (Department of Agriculture and Related Agencies Appropriation Act, 1965.) Program and Financing (in thousands of dollars) 1964 actual 1965 1966 estimate estimate 120,808 129.990 138,590 and the average United States per capita income. The amendment to the Act, effective July 1, 1962, changed the formula to include participation in place of school-age population. A new provision is also included in the amendment for providing special cash assistance to needy schools in serving free or reduced price lunches. The increase for 1966 would provide for normal growth in the program, and for initiating a program of special assistance to needy schools. The program is operated under an agreement entered into by the State educational agency and the Department of Agriculture. Funds are advanced under letters of credit to State agencies for use in reimbursing participating schools. Schools make application to the State agency and if accepted are reimbursed for a part of the food cost of each meal served. In 1964, the States contributed to this program $1,011 million, most of which came from payments by children. This was far in excess of the statutory matching requirement of $3 for each Federal dollar of cash payment. This appropriation is also used to purchase food for distribution to the schools to help meet the nutritional requirements of the lunches. Transfers are made to this appropriation from the fund Removal of Surplus Agricul tural Commodities for the purchase and distribution of 202,000 agricultural commodities and other foods. Further, commodities acquired under price support and surplus removal programs are available to the schools. The volume of surplus commodities distributed to schools, however, depends upon market conditions. 202,000 Change in selected resources 2. 66 157,000 0 62 Transferred from "Removal of surplus 45,000 45,000 45,000 Relation of obligations to expenditures: 10 Total obligations.... The program during the peak month in 1964 provided lunches to over 34% of the approximately 46.9 million 202,000 school children in the country. The number of lunches served increased approximately 5.63% over 1963. Participation in the program in December 1963 reached 16.0 million children in 68,534 schools and an appreciable increase is expected in 1965 and 1966. During 1964 about $883 million worth of agricultural commodities and other foods were used in the program. Over 22% of this amount represented commodities contributed under Section 6 of the School Lunch Act and the Federal surplus removal and price support program. About 78% of the food used in the program was purchased by the schools through local suppliers. Participation in the program from 1963 through 1966 is as follows: 793 -1,572 191,400 202,000 67,728 69,544 69,900 71,300 2,072 -2,072 Number of school children (peak 14,957 Number of meals served (millions)... 2,553 -63 1 Includes capital outlay as follows: 1964, $3 thousand; 1965, $24 thousand 1966, $24 thousand; excludes downward adjustment of $63 thousand in prior year costs. 2 Selected resources as of June 30 are as follows: unpaid undelivered orders. 1963, $25 thousand; 1964, $91 thousand; 1965, $91 thousand; 1966, $91 thousand. 1. Food assistance, in the form of both funds and food, is provided to the States and possessions in serving lunches to school children. Each State's portion of the funds available was determined by a statutory formula through fiscal year 1962. The formula took into account the number of school-age children in the State and the relationship between the per capita income of the State : 26.0 Grants of commodities to States. 26.0 Supplies and materials.. 31.0 Equipment. 41.0 Grants, subsidies, and contributions.. 13 35 58,788 59,325 15 59,325 120,808 129,990 10 140,590 191,400 202,000 170 Average GS grade.. Average GS salary. Average salary ungraded positions. $5,187 $5,179 FOOD STAMP PROGRAM 185 8.0 $7,787 $5,179 This program aims at making more effective use of our abundance of food and at providing additional nutrition to those in need. Food coupons which may be used in retail stores for the purchase of commercial brand foods are issued to needy households that qualify to participate. The Department determines-based on income, food needs and other factors-the allotment of coupons for each household unit, including the portion to be purchased. The participant's normal food expenditure is maintained by requiring that, based on family size and income, recipients will purchase a specific value of coupons. The supplemental or bonus coupons, provided free-ofcharge, permit the family or person to upgrade its diet. Coupons are issued by a non-Federal issuing office. Cash paid for the coupons by participants is deposited periodically in a designated Federal Depository. Food stores receive cash or credit for the coupons from any commercial bank which must accept them at face value. The coupons then flow through regular banking channels to the Federal Reserve banks where they are redeemed and subsequently destroyed. Operations were started on a pilot basis late in 1961. By June 30, 1964, pilot programs, with financing from section 32 funds, were reaching over 360,000 needy persons in 22 States. The Food Stamp Act (Public Law 88-525) was enacted on August 31, 1964, providing for financing from direct appropriations. The act provides for expansion of the program through appropriation authorizations of $75 million, $100 million and $200 million for fiscal years 1965, 1966 and 1967 respectively. Designation of new areas to be affected is required to be based on 100,000 recommendations from States desiring to participate. The 1965 Supplemental Appropriation Act makes available $25 million in addition to the $35 million of section 32 funds authorized for the program in the regular 1965 100,000 Appropriation Act. This will provide for the areas in operation on July 1, 1964 and permit expansion during 1965 to reach an additional 640,000 persons in other areas. The increase for 1966 would provide for financing on a 100,000 full-year basis the program level expected by June 30, 1965 |