About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (September 5, 2023)

handle is hein.crs/govemsw0001 and id is 1 raw text is: Congressional Research Service Inforrning the legislative debate since 1914 Updated September 5, 2023 Farm and Food Support Under USDA's Section 32 Account Congress created a mandatory appropriation in 1935-the Funds for Strengthening Markets, Income, and Supply (Section 32 of the act of August 24, 1935; 7 U.S.C. 612c). The funds support producers of agricultural commodities that are not supported by other farm support programs, such as the Commodity Credit Corporation (CCC). Commodities include primarily fruits, vegetables, meats, poultry, and fish. Ongoing issues for Congress include the scale of funding and how to direct support to various uses. Known as Section 32, the fund has three primary purposes identified as clauses in the law: (1) to encourage the export of agricultural products; (2) to encourage the domestic consumption of farm products by diverting surpluses and increasing their use; and (3) to reestablish farmers' purchasing power by making payments to farmers. A permanent appropriation of 30% of customs receipts on all imports from the prior calendar year fund the Section 32 account. Following imposition of higher tariffs in 2018, this amount has more than doubled to exceed $27 billion annually. From that appropriation, three primary allocations are made: a transfer to the U.S. Department of Commerce of 30% of customs receipts from fishery products; a statutory amount retained by the U.S. Department of Agriculture (USDA), which increases with inflation, to support farmers and domestic food assistance programs (known as a reserved spending authority); and a transfer of the remainder to the USDA Food and Nutrition Service (FNS) for the child nutrition programs. The latter is nearly 93% of the Section 32 permanent appropriation in FY2023 (the blue portions of Figure 1 and top of Table 1). The amount provided for child nutrition in the Agriculture appropriations act incorporates this Section 32 transfer. Section 32 Commodity Procurement Commodities procured with Section 32 funds may be categorized as either entitlement or contingency (both are shown in the gray boxes in Figure 1 and Table 1 below the line). USDA's entitlement purchases are mandated by various laws and then planned for what is delivered. For example, various nutrition acts specify an amount that is to be delivered in kind to schools and other entities. Based on local preferences, organizations and USDA develop a purchase plan for the year. USDA's Agricultural Marketing Service (AMS) issues bid specifications, generally for processed products, for deliveries to specific locations. Contingency purchases (also known as emergency surplus removals) result from USDA's discretion to use Clause 2 to buy surplus commodities, which increases demand in agricultural markets when farm prices are low. USDA may learn about a need through its own agencies or from industry organizations. Recipients of bonus commodities may include schools, child care centers, and food banks.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most