of their time to such emergency work.35 In similar fashion other Federal agencies, such as the Farm Credit Administration, the Rural Rehabilitation Division of the Federal Emergency Relief Administration (later transferred to the Farm Security Administration), and the Soil Conservation Service found it desirable to have representation in every agricultural county in the country. Allotments were made by the Agricultural Adjustment Administration to add county agents in counties not previously served and in other counties to relieve the greatly increased burden on the existent staff which had its regular duties to perform. Because the distribution of activities involved a readjustment of time for agricultural activities, home economics, and boys' and girls' club work, it was deemed best to augment the extension staff and funds through suitable additional legislation.

The Bankhead-Jones Act 36 was approved June 29, 1935, authorizing additional appropriations for research and extension work in agriculture and home economics. Title II of the Act refers in part to extension and authorizes $8,000,000 for the first fiscal year and $1,000,000 additional per year until a maximum of $12,000,000 is reached. Funds are to be paid by order of the Secretary of Agriculture as follows: (1) To each State and Hawaii an equal amount of $20,000, and (2) the remainder ". . . to the several States and the Territory of Hawaii in the proportion that the farm population of each bears to the total farm population of the several States and the Territory of Hawaii. .

9 37

The Bankhead-Jones Act differs from previous extension acts in two respects: (1) Its apportionment is based on farm instead of rural population, and (2) Federal funds do not need to be matched by the States. During the depression it was found that the matching principle had prevented many needy counties from securing extension service because they could not contribute the money to offset Federal funds. The Bankhead-Jones Act tended to correct that condition.

Additional Federal grants.-During the latter part of the World War the Food Production Act had provided $4,348,400 for the fiscal year ending June 30, 1918, to finance the in

35 See Table 15, p. 85, for percentage of agent's time devoted to various activities. 36 For text of Act see Appendix A.

37 Sec. 21,

creased activities of the Extension Service.38 To continue the urgent food production program another appropriation was voted for the following year.39 The next year the appropriation amounted to $1,500,000 40 and became known as the "supplementary Smith-Lever fund." These supplementary funds were voted by Congress in varying amounts year by year as a part of the Agricultural Appropriation Act. The funds were distributed on a basis of rural population and required full offset of Federal allotments by State and local funds. For several years the supplemental Smith-Lever appropriation had become stabilized at $1,580,000 annually. This constituted one of the supplementary funds.

Another supplementary fund used to finance cooperative extension work originated in the Deficiency Act of July 3, 1930, as ". . . additional cooperative extension work including employment of specialists in economics and marketing to be allotted and paid by the Secretary of Agriculture to the several States and the Territory of Hawaii in such amounts as he may deem necessary. Such appropriations have been continued in the budget of the Department of Agriculture and have become known as "additional cooperative." 42

" 41

When the Bankhead-Jones Act was passed, a statement was included to the effect that “. . . the sums appropriated

shall be in addition to, and not in substitution for, sums appropriated under such Act of May 8, 1914, as amended and supplemented, or sums otherwise appropriated for agricultural extension work." 43 In planning the budget for the fiscal year ending June 30, 1937, budget officials suggested a 25 percent reduction in the original amounts of the supplemental Smith-Lever and additional cooperative items 14 in each of the 4 years during which increments of $1,000,000 were provided in the Bankhead-Jones Act. It was in this

38 40 Stat. L. 274 (1917). 39 40 Stat. L. 1046 (1918). 40 41 Stat. L. 261 (1919).

41 46 Stat. L. 870 (1930).

44

42 U. S. Department of Agriculture, Extension Service, Sources of Funds Allotted for Cooperative Extension Work in States, Alaska, Hawaii, and Puerto Rico for Fiscal Year Ending June 30, 1937 (mimeographed).

43 Sec. 21.

44 On the ground that no authorization had been given for these items. Information from the Extension Service, U. S. Department of Agriculture.

form that the appropriation bill reached Congress, where it developed that such a change would reduce the total allotments to certain States. Authorization was therefore given the Secretary of Agriculture to allot funds so that no State would suffer a reduction.45 Though this was done for 1937 and 1938, it appeared that reductions must ensue in 1939 to some States when these supplemental funds were reduced to 25 percent of the original amounts. Accordingly, in the Appropriation Act for 1939 the additional cooperative item was increased from $250,000 to $275,000, an amount sufficient to prevent losses in total Federal grants for extension to all the States.

Federal appropriations for cooperative extension work in agriculture and home economics for the fiscal year 1937 are summarized in Table 7.

TABLE 7.-Summary of allotments of Federal funds for extension work in agriculture and home economics, fiscal year ended June 30, 1937 1

1 See U. S. Department of Agriculture, Miscellaneous Publication No. 285, Federal Legislation, Regulations, and Rulings Affecting Cooperative Extension Work in Agriculture and Home Economics, September 1937 (Washington: U. S. Government Printing Office, 1937), pp. 6-16.

2 The Act applies to the 48 States, Alaska, Hawaii and Puerto Rico. The appropriations for Alaska are authorized to be made annually, the appropriations for the other areas are permanent.

3 Applies to the 48 States and Hawaii; appropriations made annually.

4 Applies to the 48 States and Hawaii. The appropriation is authorized to be made annually and is to increase by $1,000,000 a year until a total of $12,000,000 is reached. The Act requires that the States and Hawaii must have complied with the offset provisions of the other acts for cooperative extension work.

5 The appropriation authorized to be made annually is only as much as the Secretary of Agriculture estimates each year, up to a maximum of $100,000. For 1936-37, $56,838 was appropriated. Allotments to 33 States and Puerto Rico totaled $50,540.

Appropriation made annually. $554,670 was appropriated for the year 1936-37, of which $100,000 was allotted to 28 States, Alaska, and Puerto Rico.

7 $750,000 was appropriated, of which $730,650 was allotted to 46 States. The Act provides for allotment to the 48 States and Hawaii at the discretion of the Secretary, of Agriculture, provided that the total funds allotted to these areas for cooperative extension work should not be less than the total allotment in 1936. The appropriation is made annually.

45 Appropriation Act for 1937.

Financing the Extension System

The financing of the Extension Service is a cooperative enterprise. Table 8 shows Federal appropriations and total expenditures by source of funds for the years 1915 to 1936. For the fiscal year ending June 30, 1937, a total of $29,763,662 was allotted for extension work. (See Table 9.) The Federal Government contributed 58 percent; States and colleges, 19 percent; counties, 20 percent; and farmers' organizations, 3 percent. (See Table 11.)

The apportionment of extension funds within the States for various purposes for the year 1937 is shown in Table 10. About 65 percent of the funds are allotted to counties and 35 percent to colleges. The county funds are used for agricultural agents, home demonstration agents, and boys' and girls' 4-H club agents. The college funds are used for extension specialists, administration, leadership of county workers, printing, and reserve.

TABLE 8.-Federal appropriations and expenditures from Federal funds and from State, county, and local funds for cooperative extension work in all States, Alaska, Hawaii, and Puerto Rico, by fiscal year, 1915 to 1936 1

1 Data obtained from Extension Service, U. S. Department of Agriculture.

Totals have not been adjusted for discrepancies resulting from rounding to thousands of

dollars.

TABLE 9.-Total funds allotted for cooperative extension work and amounts derived from Federal funds and from sources within the States, by State, fiscal year ended June 30, 1937 1

1 Data obtained from U. S. Department of Agriculture, Extension Service, Sources of Funds Allotted for Cooperative Extension Work in States, Alaska, Hawaii and Puerto Rico for Fiscal Year Ending June 30, 1937 (multilithed).

The totals have not been adjusted for differences resulting from rounding to dollars.