Section 32 of Agricultural Adjustment Act Amendment of 1935 was enacted to widen market outlets for surplus agricultural commodities as one means of strengthening farm prices. Section 32 programs are financed by a permanent appropriation equal to 30% of the import duties collected on all items entering the United States under the customs laws, plus any unused balances up to $300 million. Most funds are annually transferred by appropriators to pay for child nutrition programs, although a portion of money is reserved to buy perishable commodities (mainly produce, meat, and poultry products) that are in surplus. Section 32 funds were used to finance the Cottonseed Oil Assistance Program and Sunflower Oil Assistance Program export subsidy programs, which were effectively terminated by the FAIR Act of 1996.
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