    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of Agriculture]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 1998

    [[Page 127]]

                            DEPARTMENT OF AGRICULTURE

                             OFFICE OF THE SECRETARY

                                  Federal Funds

    General and special funds:

                             Office of the Secretary

                         (including transfers of funds)

        For necessary expenses of the Office of the Secretary of
    Agriculture, and not to exceed $75,000 for employment under 5 U.S.C.
    3109, [$2,836,000] $2,872,000: Provided, That not to exceed $11,000 of
    this amount, along with any unobligated balances of representation funds
    in the Foreign Agricultural Service, shall be available for official
    reception and representation expenses, not otherwise provided for, as
    determined by the Secretary: Provided, That none of the funds
    appropriated or otherwise made available by this Act may be used to pay
    the salaries and expenses of personnel of the Department of Agriculture
    to carry out section 793(c)(1)(C) of Public Law 104-127: Provided
    further, That none of the funds made available by this Act may be used
    to enforce section 793(d) of Public Law 104-127.

              Office of the Assistant Secretary for Administration

        For necessary salaries and expenses of the Office of the Assistant
    Secretary for Administration to carry out the programs funded in this
    Act, [$613,000] $621,000.

          Office of the Assistant Secretary for Congressional Relations

                         (including transfers of funds)

        For necessary salaries and expenses of the Office of the Assistant
    Secretary for Congressional Relations to carry out the programs funded
    in this Act, including programs involving intergovernmental affairs and
    liaison within the executive branch, [$3,668,000] $3,714,000: Provided,
    That no other funds appropriated to the Department in this Act shall be
    available to the Department for support of activities of congressional
    relations: Provided further, That not less than [$2,241,000] $2,268,000
    shall be transferred to agencies funded in this Act to maintain
    personnel at the agency level.

       Office of the Under Secretary for Research, Education and Economics

        For necessary salaries and expenses of the Office of the Under
    Secretary for Research, Education and Economics to administer the laws
    enacted by the Congress for the Economic Research Service, the National
    Agricultural Statistics Service, the Agricultural Research Service, and
    the Cooperative State Research, Education, and Extension Service,
    [$540,000] $547,000.

     Office of the Assistant Secretary for Marketing and Regulatory Programs

        For necessary salaries and expenses of the Office of the Assistant
    Secretary for Marketing and Regulatory Programs to administer programs
    under the laws enacted by the Congress for the Animal and Plant Health
    Inspection Service, Agricultural Marketing Service, and the Grain
    Inspection, Packers and Stockyards Administration, [$618,000] $625,000.

                  Office of the Under Secretary for Food Safety

        For necessary salaries and expenses of the Office of the Under
    Secretary for Food Safety to administer the laws enacted by the Congress
    for the Food Safety and Inspection Service, [$446,000] $583,000.

    Office of the Under Secretary for Farm and Foreign Agricultural Services

        For necessary salaries and expenses of the Office of the Under
    Secretary for Farm and Foreign Agricultural Services to administer the
    laws enacted by Congress for the Farm Service Agency, Foreign
    Agricultural Service, the Office of Risk Management, and the Commodity
    Credit Corporation, [$572,000] $580,000.

       Office of the Under Secretary for Natural Resources and Environment

        For necessary salaries and expenses of the Office of the Under
    Secretary for Natural Resources and Environment to administer the laws
    enacted by the Congress for the Forest Service and the Natural Resources
    Conservation Service, [$693,000] $702,000.

               Office of the Under Secretary for Rural Development

        For necessary salaries and expenses of the Office of the Under
    Secretary for Rural Development to administer programs under the laws
    enacted by the Congress for the Rural Housing Service, Rural Business-
    Cooperative Service, and the Rural Utilities Service of the Department
    of Agriculture, [$588,000] $596,000.

     Office of the Under Secretary for Food, Nutrition and Consumer Services

        For necessary salaries and expenses of the Office of the Under
    Secretary for Food, Nutrition and Consumer Services to administer the
    laws enacted by the Congress for the Food and Consumer Service,
    [$454,000] $560,000. (7 U.S.C. 2201-2202; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0115-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of the Secretary...........           3           3           3
    00.02 Under/Assistant Secretaries.......           5           6           6
    00.03 Service Center Implementation.....           3           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          11          13           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       4
    22.00 New budget authority (gross)......          16           9           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          13           9
    23.95 New obligations...................         -11         -13          -9
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          18          11          11
    41.00 Transferred to other accounts.....          -2          -2          -2
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          16           9           9
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          16           9           9
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                       4           5
    73.10 New obligations...................          11          13           9
    73.20 Total outlays (gross).............          -7         -12         -11
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           4           5           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           7           8           8
    86.93 Outlays from current balances.....                       4           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7          12          11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16           9           9
    90.00 Outlays...........................           7          12          11
    ---------------------------------------------------------------------------

        The Office of the Secretary covers the overall planning,
    coordination, and administration of the Department's programs. This
    includes the Secretary, Deputy Secretary, Under Secretaries, Assistant
    Secretaries, and their immediate staffs,

    [[Page 128]]

    who provide top policy guidance for the Department; maintain
    relationships with agricultural organizations and others in the
    development of farm programs; and provide liaison with the Executive
    Office of the President and Members of Congress on all matters
    pertaining to agricultural policy.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0115-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           5           6           6
    12.1  Civilian personnel benefits.......           1           2           2
    25.2  Other services....................           3           4
    99.5  Below reporting threshold.........           2           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          11          13           9
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0115-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          66          81          83
    ---------------------------------------------------------------------------

                             Fund for Rural America

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural development activities......                      48
    00.02 Research, extension and education
            grants..........................                      43
    00.03 Other.............................                       9
                                               ---------   ---------  ----------
    10.00   Total obligations...............                     100
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     100
    23.95 New obligations...................                    -100
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................                     100
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                  75
    73.10 New obligations...................                     100
    73.20 Total outlays (gross).............                     -25         -40
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                      75          35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                      25
    86.98 Outlays from permanent balances...                                  40
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      25          40
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     100
    90.00 Outlays...........................                      25          40
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................                     100
      Outlays...........................                      25          40
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 100
      Outlays...........................                                  25
                                        ------------------------------------
    Total:
      Budget Authority..................                     100         100
      Outlays...........................                      25          65
                                        ====================================

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Section 502 housing loans.........                     141
    1150  Direct Farm Ownership Loans.......                      10
    1150  Direct water and waste disposal
            loans...........................                       8
    1150  Rural housing for domestic farm
            labor loans.....................                       2
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                     161
        Direct loan subsidy (in percent):
    1320  Section 502 housing loans.........                   14.18        0.00
    1320  Direct Farm Ownership Loans.......                   21.03        0.00
    1320  Direct water and waste disposal
            loans...........................                    9.02        0.00
    1320  Rural housing for domestic farm
            labor loans.....................                   47.77        0.00
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                   14.72        0.00
        Direct loan subsidy budget authority:
    1330  Section 502 housing loans.........                      20
    1330  Direct Farm Ownership Loans.......                       2
    1330  Direct water and waste disposal
            loans...........................                       1
    1330  Rural housing for domestic farm
            labor loans.....................                       1
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..                      24
        Direct loan subsidy outlays:
    1340  Section 502 housing loans.........                      16           4
    1340  Direct Farm Ownership Loans.......                       2
    1340  Direct water and waste disposal
            loans...........................
    1340  Rural housing for domestic farm
            labor loans.....................                                   1
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........                      18           5
    ---------------------------------------------------------------------------

        The Federal Agriculture Improvement and Reform Act of 1996 (1996
    Act) established the Fund for Rural America to provide support to rural
    communities across the United States. The 1996 Act provides that $100
    million be made available on January 1, 1997 for use by the Fund. The
    Secretary of Agriculture is authorized by the 1996 Act to allocate the
    available funding between rural development and research activities. The
    Act specifies that at least one-third of the funds be allocated to rural
    development activities and one-third to research activities. No more
    than two-thirds of the available funds may be made available for rural
    development activities.

        In 1997, the Secretary plans to use $48 million of the available
    funding to support rural development activities including Water 2000,
    Section 502 Single Family Housing Loans, the Distance Learning/Medical
    Link programs and other rural development loans and grants. Another $43
    million will be used to provide research, extension, and education
    grants designed to: 1) increase international competitiveness,
    profitability and efficiency; 2) enhance the economic standing of rural
    communities; and 3) improve environmental stewardship. Finally, $9
    million will be used to fund a research project examining the special
    telecommunications needs of rural America, and to support additional
    grants for Outreach for Socially Disadvantaged Producers and additional
    direct ownership loans for beginning farmers.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                       1
    41.0  Grants, subsidies, and
            contributions...................                      99
                                               ---------   ---------  ----------
    99.9    Total obligations...............                     100
    ---------------------------------------------------------------------------

    [[Page 129]]

                             Fund for Rural America

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-4-1-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural development activities......                                  33
    00.02 Research, extension and education
            grants..........................                                  33
    00.03 Undistributed.....................                                  34
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                 100
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 100
    23.95 New obligations...................                                -100
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................                                 100
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 100
    73.20 Total outlays (gross).............                                 -25
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                  75
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                  25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 100
    90.00 Outlays...........................                                  25
    ---------------------------------------------------------------------------

        The Federal Agriculture Improvement and Reform Act of 1996 (1996
    Act) authorized funding for the Fund for Rural America in 1997, 1999,
    and 2000. The Budget proposes to shift the $100 million available in
    2000 to 1998 in order to facilitate more consistent and efficient
    program delivery.

                                   Trust Funds

                               Gifts and Bequests

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                   1
        Receipts:
    02.01 Gifts and bequests................           1           2           2
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           1           2           3
        Appropriation:
    05.01 Gifts and bequests................          -1          -1          -1
    07.99 Total balance, end of year........                       1           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            32.0)...........................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1           1           1
    22.00 New budget authority (gross)......           1           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           2           2
    23.95 New obligations...................          -1          -1          -1
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           1           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           1
    90.00 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        The Secretary is authorized to accept and administer gifts and
    bequests of real and personal property to facilitate the work of the
    Department. Property and the proceeds thereof are used in accordance
    with the terms of the gift or bequest (7 U.S.C. 2269).

                              EXECUTIVE OPERATIONS

                                  Federal Funds

    General and special funds:

                              Executive Operations

                                 chief economist

        For necessary expenses of the Chief Economist, including economic
    analysis, risk assessment, cost-benefit analysis, and the functions of
    the World Agricultural Outlook Board, as authorized by the Agricultural
    Marketing Act of 1946 (7 U.S.C. 1622g), and including employment
    pursuant to the second sentence of section 706(a) of the Organic Act of
    1944 (7 U.S.C. 2225), of which not to exceed $5,000 is for employment
    under 5 U.S.C. 3109, [$4,231,000] $5,308,000.

                Commission on 21st Century Production Agriculture

        For establishment of the Commission on 21st Century Production
    Agriculture, as authorized by section 181 of the Federal Agriculture
    Improvement and Reform Act, (7 U.S.C. 7311-7318), of which not to exceed
    $55,000 is for employment under 5 U.S.C. 3109, $1,100,000.

                            national appeals division

        For necessary expenses of the National Appeals Division, including
    employment pursuant to the second sentence of section 706(a) of the
    Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed $25,000 is
    for employment under 5 U.S.C. 3109, [$11,718,000] $13,359,000.

                      Office of Budget and Program Analysis

        For necessary expenses of the Office of Budget and Program Analysis,
    including employment pursuant to the second sentence of section 706(a)
    of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed
    $5,000 is for employment under 5 U.S.C. 3109, [$5,986,000] $5,918,000.

             Office of Small and Disadvantaged Business Utilization

        For necessary expenses of the Office of Small and Disadvantaged
    Business Utilization, including employment pursuant to the second
    sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225),
    of which not to exceed $5,000 is for employment under 5 U.S.C. 3109,
    $795,000. (7 U.S.C. 2201, 2202; 42 U.S.C. 2000d; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                     Office of the Chief Information Officer

        For necessary expenses of the Office of the Chief Information
    Officer, including employment pursuant to the second sentence of section
    706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not to
    exceed $10,000 is for employment under 5 U.S.C. 3109, $275,000.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Chief Economist...................           4           4           5
    00.02 Commission on 21st Century
            Production Agriculture..........                                   1
    00.03 National Appeals Divison..........          12          12          13
    00.04 Budget and Program Analysis.......           6           6           6
    00.05 Small and Disadvantaged Business
            Utilization.....................                                   1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          22          22          27
    ----------------------------------------------------------------------------

    [[Page 130]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          23          22          27
    23.95 New obligations...................         -22         -22         -27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          22          22          27
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           3           3
    73.10 New obligations...................          22          22          27
    73.20 Total outlays (gross).............         -19         -22         -27
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          18          19          24
    86.93 Outlays from current balances.....           1           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          19          22          27
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          22          22          27
    90.00 Outlays...........................          19          22          27
    ---------------------------------------------------------------------------

        Executive Operations provides support for USDA policy officials and
    selected Departmentwide services.

        The Office of the Chief Economist advises the Secretary of
    Agriculture on the economic implications of Department policies and
    programs and proposed legislation. The Office serves as the single focal
    point for the Nation's economic intelligence and analysis, risk
    assessment, and cost-benefit analysis related to domestic and
    international food and agriculture, and is responsible for coordination
    and clearance review of all commodity and aggregate agricultural and
    food-related data used to develop outlook and situation material within
    the Department.

                               WORKLOAD INDICATORS

                                         1996 actual  1997 est.   1998 est.
    World Agricultural Supply and Demand
    Estimates Reports issued............          12          12          12
    Weekly Weather and Crop Bulletin
    issued..............................          52          52          52
    OCE Home Page Electronic Hits.......          NA      35,000      50,000
    Significant and economically
    significant regulations reviewed....          40          40          40

        The Federal Agriculture Improvement and Reform (FAIR) Act of 1996
    authorized the Commission on the 21st Century Production Agriculture to
    (1) conduct comprehensive review and assessment of the success of
    production flexibility contracts in supporting the viability of U.S.
    farming, and (2) a review of the future of production agriculture and
    the appropriate role of the Federal government.

        The National Appeals Division conducts administrative hearings and
    reviews of adverse program decisions made by the Farm Service Agency,
    the Natural Resources Conservation Service, and the Rural Housing
    Service.

                             PERFORMANCE INDICATORS

                                         1996 actual  1997 est.   1998 est.
    Regional Training Sessions..........           0           3           0
    Training Briefs Issued..............          NA           4           6
    National Training Conferences Held..           1           0           1
    Appeals assigned per hearing officer
    per month...........................        5.76        6.15        6.60
    Average time to issue appeal
    determinations (days)...............       76.84        75.0        75.0
    Travel dollars per hearing officer..       1,880       1,800       1,700

        The Office of Budget and Program Analysis provides overall direction
    and administration of the Department's budgetary functions including:
    development, presentation, and execution of the budget; review of
    program and legislative proposals for programs and budget implications;
    and analysis of program issues and alternatives and preparation of
    summaries of pertinent data to aid Departmental policy officials and
    agency program managers in the decisionmaking process.

        The Office of Small and Disadvantaged Business Utilization oversees
    direction and implementation of Sections 8 and 15 of the Small Business
    Act and oversees procurement to assure maximum participation of small
    and small disadvantaged businesses.

                             WORKLOAD INDICATORS\1\

                                         1996 actual  1997 est.   1998 est.
    Subcontracting plans reviewed.......          --          --          45
    Small Businesses counseled..........          --          --       6,200
    Small Business Procurement
    Conferences conducted or sponsored
    by USDA OSDBU.......................          --          --           2
    Conferences participated in by OSDBU
    employees...........................          --          --          15
    Procurement Assistance Reviews
    conducted...........................          --          --           4
    Training conferences conducted......          --          --           2
        \1\ 1996 and 1997 data are shown in the account ``Departmental
    Administration.''

        The Office of the Chief Information Officer (OCIO) was established
    pursuant to the Information Technology Management Reform Act of 1996 to
    provide policy guidance, leadership, coordination and direction to
    USDA's information management and information technology investment
    activities in support of program delivery.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          16          17          17
    12.1  Civilian personnel benefits.......           3           3           3
    21.0  Travel and transportation of
            persons.........................                                   1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           1           1           2
    31.0  Equipment.........................           1                       2
                                               ---------   ---------  ----------
    99.9    Total obligations...............          22          22          27
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         241         257         277
    ---------------------------------------------------------------------------

                             Chief Financial Officer

        For necessary expenses of the Office of the Chief Financial Officer,
    including employment pursuant to the second sentence of section 706(a)
    of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed
    $10,000 is for employment under 5 U.S.C. 3109, [$4,283,000] $4,718,000:
    Provided, That the Chief Financial Officer shall actively market cross-
    servicing activities of the National Finance Center. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program: Chief financial
            officer.........................           4           4           5
    01.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           5           5           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           5           5           6
    23.95 New obligations...................          -5          -5          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           4           4           5
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------

    [[Page 131]]

    70.00   Total new budget authority
              (gross).......................           5           5           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           5           5           6
    73.20 Total outlays (gross).............          -5          -5          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           4           5
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           5           6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           4           5
    90.00 Outlays...........................           4           4           5
    ---------------------------------------------------------------------------

        The Office of the Chief Financial Officer (OCFO) supports the Chief
    Financial Officer in carrying out the dual roles of chief financial
    management policy officer and chief financial management advisor to the
    Secretary and mission area heads. OCFO provides leadership for all
    financial management, accounting, travel, Federal assistance, and
    performance measurement activities within the Department. It is
    responsible for the management and operation of the National Finance
    Center and the Departmental Working Capital Fund, and provides budget,
    accounting, and fiscal services to the Office of the Secretary,
    Departmental Staff Offices, Office of Communications, Office of the
    Chief Information Officer and Executive Operations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           3           3           4
    12.1    Civilian personnel benefits.....           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           4           4           5
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           5           5           6
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          53          57          61
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          13          13          13
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Supply and other central
              services......................          19          21          21
    00.02   Video and other visual
              information services..........           5           5           5
    00.03   National Finance Center.........         133         139         140
    00.04   ADP systems.....................          40          46          44
                                               ---------   ---------  ----------
    00.91     Total operating expenses......         197         211         210
          Purchase of equipment:

    01.01   Supply and other central
              services......................           1                       1
    01.03   National Finance Center.........          14          10           9
    01.04   ADP systems.....................           4           7           8
                                               ---------   ---------  ----------
    01.91     Total purchase of equipment...          19          17          18
                                               ---------   ---------  ----------
    10.00   Total obligations...............         215         228         228
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          25          12          12
    22.00 New budget authority (gross)......         197         228         228
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         227         240         240
    23.95 New obligations...................        -215        -228        -228
    24.90 Unobligated balance available, end
            of year: Fund balance...........          12          12          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         163         228         228
    68.10   Change in orders on hand from
              Federal sources...............          34
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         197         228         228
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         197         228         228
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Fund balance.          25          -8          -8
    72.95   Orders on hand from Federal
              sources.......................          23          57          57
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          48          49          49
    73.10 New obligations...................         215         228         228
    73.20 Total outlays (gross).............        -211        -228        -228
    73.45 Adjustments in unexpired accounts.          -5
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance.          -8          -8          -8
    74.95   Orders on hand from Federal
              sources.......................          57          57          57
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          49          49          49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         163         228         228
    86.98 Outlays from permanent balances...          48
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         211         228         228
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -163        -228        -228
    88.95 Change in orders on hand from
            Federal sources.................         -34
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          47
    ---------------------------------------------------------------------------

        This fund finances by advances or reimbursements certain central
    services in the Department of Agriculture, including duplicating and
    other visual information services, art and graphics, video services,
    supply, centralized accounting systems, centralized automated data
    processing systems for payroll, personnel, and related services, voucher
    payments services, and ADP systems. The capital consists of $400
    thousand appropriated (7 U.S.C. 2235), and subsequent appropriations of
    $31,838 thousand as of September 30, 1996. Earnings are kept at a low
    level through adjustments in rates charged for services to maintain as
    nearly as possible the nonprofit nature of the fund.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4609-0-4-352    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          51              4             4              4
            Investments in US securities:
    1106      Receivables, net..............          22             50            50             50
    1803  Other Federal assets: Property,
            plant and equipment, net........          43             55            55             55
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         116            109           109            109
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           3              3             3              3
          Non-Federal liabilities:

    2201    Accounts payable................          26             23            23             23

    [[Page 132]]

    2207    Other...........................          16             16            16             16
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          45             42            42             42
        NET POSITION:
    3300  Cumulative results of operations..          71             67            67             67
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          71             67            67             67
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         116            109           109            109
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          77          74          77
    11.3    Other than full-time permanent..           3           2           2
    11.5    Other personnel compensation....           1           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          81          78          81
    12.1  Civilian personnel benefits.......          14          15          15
    21.0  Travel and transportation of
            persons.........................           2           2           2
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           3           4           4
    23.2  Rental payments to others.........           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........          19          29          29
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................          63          68          64
    26.0  Supplies and materials............           7           7           7
    31.0  Equipment.........................          22          21          22
    99.0  Subtotal, reimbursable obligations         215         228         228
                                               ---------   ---------  ----------
    99.9    Total obligations...............         215         228         228
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    2001  Full-time equivalent employment...       2,008       2,013       1,998
    2005  Full-time equivalent of overtime
            and holiday hours...............          68          60          60
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

                                  Federal Funds

    General and special funds:

                           Departmental Administration

                         (including transfers of funds)

        For Departmental Administration, [$30,529,000] $29,811,000, to
    provide for necessary expenses for management support services to
    offices of the Department and for general administration and disaster
    management of the Department, repairs and alterations, and other
    miscellaneous supplies and expenses not otherwise provided for and
    necessary for the practical and efficient work of the Department,
    including employment pursuant to the second sentence of section 706(a)
    of the Organic Act of 1944 (7 U.S.C. 2225), of which not to exceed
    $10,000 is for employment under 5 U.S.C. 3109: Provided, That this
    appropriation shall be reimbursed from applicable appropriations in this
    Act for travel expenses incident to the holding of hearings as required
    by 5 U.S.C. 551-558. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Direct program: Departmental
            Administration..................          28          31          30
    01.01 Reimbursable program..............          13          14          13
                                               ---------   ---------  ----------
    10.00   Total obligations...............          41          45          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          41          45          43
    23.95 New obligations...................         -41         -45         -43
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          28          31          30
          Permanent:

            Spending authority from
                offsetting collections:
    68.00     Offsetting collections (cash).           9          14          13
    68.10     Change in orders on hand from
                Federal sources.............          -2         -12
    68.15     Adjustment to orders on hand
                from Federal sources........           6          12
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total)...................          13          14          13
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          41          45          43
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Obligated balance: Appropriation           8                       1
    72.95   Orders on hand from Federal
              sources.......................          14          12
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          22          12           1
    73.10 New obligations...................          41          45          43
    73.20 Total outlays (gross).............         -44         -44         -44
    73.40 Adjustments in expired accounts...          -7         -12
          Unpaid obligations, end of year:

    74.40   Obligated balance: Appropriation                       1
    74.95   Orders on hand from Federal
              sources.......................          12
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          12           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          28          30          30
    86.93 Outlays from current balances.....           7                       1
    86.97 Outlays from new permanent
            authority.......................           5          14          13
    86.98 Outlays from permanent balances...           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          44          44          44
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -9         -14         -13
    88.95 Change in orders on hand from
            Federal sources.................           2          12
    88.96 Adjustment to orders on hand from
            Federal sources.................          -6         -12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          28          31          30
    90.00 Outlays...........................          35          30          30
    ---------------------------------------------------------------------------

        Departmental Administration is comprised of activities that provide
    staff support to top policy officials and overall direction and
    coordination of the Department. These activities include Department-wide
    programs for human resource management, management improvement,
    occupational safety and health management, real and personal property
    management, procurement, contracting, motor vehicle and aircraft
    management, supply management, ADP and telecommunications management,
    civil rights and equal opportunity, emergency preparedness, and the
    regulatory hearing and administrative proceedings conducted by the
    Administrative Law Judges, Judicial Officer, and Board of Contract
    Appeals.

        Departmental Administration is also responsible for representing
    USDA in the development of government-wide policies and initiatives;
    analyzing the impact of government-wide trends and developing
    appropriate USDA principles, policies, and standards. In addition,
    Departmental Administration engages in strategic planning and evaluating
    programs to ensure USDA-wide compliance with applicable laws, rules, and
    regulations pertaining to administrative matters for the Secretary and
    general officers of the Department.

        Office of Small and Disadvantaged Business Utilization Workload
                                 Indicators \1\

                                         1996 actual  1997 est.   1998 est.
    Subcontracting plans reviewed.......          40          40
    Small businesses counseled..........       6,100       6,200

    [[Page 133]]

    Small business procurement
    conferences conducted or sponsored
    by USDA/OSDBU.......................           2           2
    Conferences participated in by OSDBU
    employees...........................          15          15
    Procurement assistance reviews
    conducted...........................           4           4
    Training conferences conducted......           3           3
        \1\ Consistent with the Administration's budget request, 1998 data is
    shown in the account ``Executive Operations''.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          19          23          22
    12.1    Civilian personnel benefits.....           4           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.3    Purchases of goods and services
              from Government accounts......           1           1           1
    26.0    Supplies and materials..........           1
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          27          29          28
    99.0  Reimbursable obligations..........          12          12          12
    99.5  Below reporting threshold.........           2           4           3
                                               ---------   ---------  ----------
    99.9    Total obligations...............          41          45          43
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         365         362         345
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          83          73          73
    ---------------------------------------------------------------------------

                           Hazardous Waste Management

                         (including transfers of funds)

        For necessary expenses of the Department of Agriculture, to comply
    with the requirement of section 107(g) of the Comprehensive
    Environmental Response, Compensation, and Liability Act, as amended, 42
    U.S.C. 9607(g), and section 6001 of the Resource Conservation and
    Recovery Act, as amended, 42 U.S.C. 6961, [$15,700,000] $25,000,000, to
    remain available until expended: Provided, That appropriations and funds
    available herein to the Department for Hazardous Waste Management may be
    transferred to any agency of the Department for its use in meeting all
    requirements pursuant to the above Acts on Federal and non-Federal
    lands. (42 U.S.C. 6961, et seq., 42 U.S.C. 9601, et seq.; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          15          18          25
                                               ---------   ---------  ----------
    10.00   Total obligations...............          15          18          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1           2
    22.00 New budget authority (gross)......          16          16          25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          17          18          25
    23.95 New obligations...................         -15         -18         -25
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          16          16          25
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          15          15          16
    73.10 New obligations...................          15          18          25
    73.20 Total outlays (gross).............         -15         -16         -22
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          15          16          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          15          11          17
    86.93 Outlays from current balances.....                       5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          15          16          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          16          25
    90.00 Outlays...........................          15          16          22
    ---------------------------------------------------------------------------

        Under the Comprehensive Environmental Response, Compensation, and
    Liability Act, the Resource Conservation and Recovery Act and the
    Pollution Prevention Act of 1990, the Department has the responsibility
    to meet the same standards for storage and disposition of hazardous
    wastes as private businesses. Since the Department has substantial
    commitments under these Acts, a central fund has been established so
    that resources may be allocated to the Department's agencies.
    Allocations are made according to objective criteria.

                             PERFORMANCE INDICATORS

                                         1996 actual  1997 est.   1998 est.
    OGC'S number of new and pending
    cases reviewed/total number of new
    and pending projects (number).......         175         275         310
    Potential responsible parties
    settled.............................           4          10          10
    New sites identified for
    investigation (number)..............         198         150         204
    Investigations completed............          90         170          77
    Number of Underground Storage Tanks
    (USTs) planned for removal vs.
    number of USTs removed..............       31/46       30/30       10/10
    Leaking Underground Storage Tanks
    (USTs) ongoing cleanups vs. number
    of leaking USTs completed...........       39/14       21/21         9/9
    HWM cleanup projects planned vs.
    number of projects completed........       51/62       90/90       80/72
    Natural Resource Damages (NRD)
    assessments initiated vs. number of
    assessments completed...............         2/1         3/2         4/2

        The performance indicators in the 1998 request reflect more complex
    and work intensive projects.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Direct obligations: Other services          14          15          24
    99.5  Below reporting threshold.........           1           3           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          15          18          25
    ---------------------------------------------------------------------------

            Agriculture Buildings and Facilities and Rental Payments

                         (including transfers of funds)

        For payment of space rental and related costs pursuant to Public Law
    92-313, including authorities pursuant to the 1984 delegation of
    authority from the Administrator of General Services to the Department
    of Agriculture under 40 U.S.C. 486, for programs and activities of the
    Department which are included in this Act, and for the operation,
    maintenance, and repair of Agriculture buildings, [$120,548,000]
    $123,385,000: Provided, That in the event an agency within the
    Department should require modification of space needs, the Secretary of
    Agriculture may transfer a share of that agency's appropriation made
    available by this Act to this appropriation, or may transfer a share of
    this appropriation to that agency's appropriation, but such transfers
    shall not exceed 5 percent of the funds made available for space rental
    and related costs to or from this account. In addition, for
    construction, repair, improvement, extension, alteration, and purchase
    of fixed equipment or facilities as necessary to carry out the programs
    of the Department, where not otherwise provided, [$23,505,000]
    $5,000,000, to remain available until expended; and in addition, for
    necessary relocation expenses of the Department's agencies, $2,700,000,
    to remain available until expended; making a total appropriation of
    [$144,053,000] $131,085,000. (7 U.S.C. 2201, 2202, 2208; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

    [[Page 134]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Rental payments to GSA: Non-
              recurring repairs.............          91         101          98
    00.02   Building operations and
              maintenance...................          18          25          25
    00.03   Beltsville renovation and repair           6           3
    00.04   Strategic space plan............          40          34           5
    00.05   Relocation expenses.............                                   3
                                               ---------   ---------  ----------
    00.91     Total direct program..........         155         163         131
    01.01 Reimbursable program..............           4           5           5
                                               ---------   ---------  ----------
    10.00   Total obligations...............         159         168         136
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          38          19
    22.00 New budget authority (gross)......         140         149         136
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         177         168         136
    23.95 New obligations...................        -159        -168        -136
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         136         144         131
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           4           5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         140         149         136
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           9          47          71
    73.10 New obligations...................         159         168         136
    73.20 Total outlays (gross).............        -120        -144        -155
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          47          71          52
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         116         114         107
    86.93 Outlays from current balances.....                      25          43
    86.97 Outlays from new permanent
            authority.......................           4           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         120         144         155
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -4          -5          -5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         136         144         131
    90.00 Outlays...........................         116         139         150
    ---------------------------------------------------------------------------

        This account finances the General Services Administration's fees for
    rental of space and related services. The appropriation covers all fees
    for all regular appropriated accounts within the Department of
    Agriculture with the exception of the Forest Service. This account also
    finances the operation and maintenance of four buildings in the
    Headquarters area.

        Beginning in 1995, the account included funds for USDA's strategic
    space plan. Since then, funds have been made available for the
    construction and occupancy of an office facility at the Beltsville
    Agricultural Research Center and the design and initial implementation
    of a long-term program to renovate and modernize the South Building. The
    1998 request provides additional funding for the South Building
    renovation and for one-time expenses associated with the relocation of
    USDA agencies.

                               WORKLOAD INDICATORS

                                         1996 actual  1997 est.   1998 est.
        Indicators:.....................
      Maintenance and Repairs:
        Minor Repairs (number)..........         361         300         300
        Maintenance (hours).............        21.9        19.0        19.0
        Service Calls (number)..........        10.3        11.5        11.5

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           4           4           4
    12.1    Civilian personnel benefits.....           1           1           1
    23.1    Rental payments to GSA..........          91         100         101
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           6           6
    25.2    Other services..................           7           2           2
    25.3    Purchases of goods and services
              from Government accounts......           1           2           2
    25.4    Operation and maintenance of
              facilities....................          49          48          15
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         155         163         131
    99.0  Reimbursable obligations..........           4           5           5
                                               ---------   ---------  ----------
    99.9    Total obligations...............         159         168         136
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          82          83          83
    ---------------------------------------------------------------------------

                           Advisory Committees (USDA)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0118-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 USDA advisory committees..........           1
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              99.5).........................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1
    23.95 New obligations...................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1
    73.10 New obligations...................           1
    73.20 Total outlays (gross).............          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1
    90.00 Outlays...........................           1
    ---------------------------------------------------------------------------

        The Federal Advisory Committee Act (Public Law 92-463) was passed in
    1972 to recognize a means by which committees and similar groups provide
    expert advice to officers of the Federal Government. This account
    provides for direction and financial support of all authorized
    Department of Agriculture advisory committee activities other than those
    included in the Forest Service or financed by other than appropriated
    funds.

        Beginning in 1997, USDA agencies are financing the operation of
    advisory committees from their own appropriations and funds.

    [[Page 135]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0118-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          15
    ---------------------------------------------------------------------------

                            OFFICE OF COMMUNICATIONS

                                  Federal Funds

    General and special funds:

                            Office of Communications

        For necessary expenses to carry on services relating to the
    coordination of programs involving public affairs, for the dissemination
    of agricultural information, and the coordination of information, work,
    and programs authorized by Congress in the Department, [$8,138,000]
    $8,279,000, including employment pursuant to the second sentence of
    section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of which not
    to exceed $10,000 shall be available for employment under 5 U.S.C. 3109,
    and not to exceed $2,000,000 may be used for farmers' bulletins.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program: Public affairs....           8           8           8
    01.01 Reimbursable program..............           4           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          12           9           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          12           9           9
    23.95 New obligations...................         -12          -9          -9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           8           8           8
          Permanent:

            Spending authority from
                offsetting collections:
    68.00     Offsetting collections (cash).           3           1           1
    68.10     Change in orders on hand from
                Federal sources.............          -1
    68.15     Adjustment to orders on hand
                from Federal sources........           2
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total)...................           4           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12           9           9
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.95 Unpaid obligations, start of year:
            Orders on hand from Federal
            sources.........................           4           3           3
    73.10 New obligations...................          12           9           9
    73.20 Total outlays (gross).............         -13          -9          -9
    74.95 Unpaid obligations, end of year:
            Orders on hand from Federal
            sources.........................           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           7           8           8
    86.93 Outlays from current balances.....           2
    86.97 Outlays from new permanent
            authority.......................           4           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13           9           9
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -3          -1          -1
    88.95 Change in orders on hand from
            Federal sources.................           1
    88.96 Adjustment to orders on hand from
            Federal sources.................          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           8           8           8
    90.00 Outlays...........................           9           8           8
    ---------------------------------------------------------------------------

        Public affairs.--This office provides general direction, leadership,
    and coordination of the Department's information program. The major
    objective is to provide a balanced and useful information program that
    reports on USDA's research, administrative action, and regulatory
    activities using all communications media in order to enable the general
    public and the agricultural industry to have a better understanding of
    agriculture's services to farmers and to society.

                               WORKLOAD INDICATORS

                                         1996 actual  1997 est.   1998 est.
    Media organizations receiving USDA
    Information.........................       2,000       2,110       2,020
    Broadcasters served by USDA products       4,994       5,004       5,014
    Tours conducted by USDA Visitors
    Center..............................       2,100       2,200       2,300
    Photographic images converted to CD.       6,500       2,500       2,500
    Monthly meetings with Public Affairs
    Directors to share information on
    communications management...........          18          24          30

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6           6
    12.1    Civilian personnel benefits.....           1           1           1
    25.2    Other services..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           8           8           8
    99.0  Reimbursable obligations..........           4           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          12           9           9
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          98          95          94
    ---------------------------------------------------------------------------

                         OFFICE OF THE INSPECTOR GENERAL

                                  Federal Funds

    General and special funds:

                         Office of the Inspector General

                         (including transfers of funds)

        For necessary expenses of the Office of the Inspector General,
    including employment pursuant to the second sentence of section 706(a)
    of the Organic Act of 1944 (7 U.S.C. 2225), and the Inspector General
    Act of 1978, as amended, [$63,028,000] $65,259,000, including such sums
    as may be necessary for contracting and other arrangements with public
    agencies and private persons pursuant to section 6(a)(9) of the
    Inspector General Act of 1978, as amended, including a sum not to exceed
    $50,000 for employment under 5 U.S.C. 3109; not to exceed $2,500 for
    official representation activities; and including a sum not to exceed
    [$95,000] $125,000, for certain confidential operational expenses
    including the payment of informants, to be expended under the direction
    of the Inspector General pursuant to Public Law 95-452 and section 1337
    of Public Law 97-98: Provided, That funds transferred to the Office of
    the Inspector General through forfeiture proceedings or from the
    Department of Justice Assets Forfeiture Fund or the Department of the
    Treasury Forfeiture Fund, as a participating agency, as an equitable
    share from the forfeiture of property in investigations in which the
    Office of the Inspector General participates, or through the granting of
    a Petition for Remission or Mitigation, shall be deposited to the credit
    of this account for law enforcement activities authorized under the
    Inspector General Act of 1978, as amended, to remain available until
    expended. (7 U.S.C. 450b, 2201, 2202, 2220, 2270; Public Law 100-504;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          64          63          65
    01.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total obligations...............          66          65          67
    ----------------------------------------------------------------------------

    [[Page 136]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          66          65          67
    23.95 New obligations...................         -66         -65         -67
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          64          63          65
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          66          65          67
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           6           8           8
    73.10 New obligations...................          66          65          67
    73.20 Total outlays (gross).............         -64         -65         -67
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           8           8           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          58          57          59
    86.93 Outlays from current balances.....           4           6           6
    86.97 Outlays from new permanent
            authority.......................           2           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          64          65          67
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -2          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          64          63          65
    90.00 Outlays...........................          63          63          65
    ---------------------------------------------------------------------------

        The Office keeps the Secretary and Congress informed about fraud,
    other serious problems, mismanagement, and deficiencies in Department
    programs and operations, recommends corrective action, and reports on
    the progress made in correcting the problems. It reviews existing and
    proposed legislation and regulations and makes recommendations to the
    Secretary and Congress regarding the impact these laws have on the
    Department's programs and the prevention and detection of fraud and
    mismanagement in such programs. The Office provides policy direction and
    conducts, supervises, and coordinates all audits and investigations. The
    office supervises and coordinates other activities in the Department and
    between the Department and other Federal, State and local government
    agencies whose purposes are to: (a) promote economy and efficiency; (b)
    prevent and detect fraud and mismanagement; and (c) identify and
    prosecute people involved in fraud or mismanagement.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          37          38          40
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          41          42          43
    12.1    Civilian personnel benefits.....          11          11          11
    21.0    Travel and transportation of
              persons.......................           5           5           5
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          60          60          62
    99.0  Reimbursable obligations..........           2           2           2
    99.5  Below reporting threshold.........           4           3           3
                                               ---------   ---------  ----------
    99.9    Total obligations...............          66          65          67
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...         754         754         762
    1005  Full-time equivalent of overtime
            and holiday hours...............          30          30          30
    ---------------------------------------------------------------------------

                          OFFICE OF THE GENERAL COUNSEL

                                  Federal Funds

    General and special funds:

                          Office of the General Counsel

        For necessary expenses of the Office of the General Counsel,
    [$27,749,000] $29,449,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          28          28          29
    01.01 Reimbursable program..............           2           2           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          30          30          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          30          30          30
    23.95 New obligations...................         -30         -30         -30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          28          28          29
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          30          30          30
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           1           1
    73.10 New obligations...................          30          30          30
    73.20 Total outlays (gross).............         -30         -29         -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          27          27          27
    86.93 Outlays from current balances.....           1                       1
    86.97 Outlays from new permanent
            authority.......................           2           2           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          30          29          29
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -2          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          28          28          29
    90.00 Outlays...........................          27          27          28
    ---------------------------------------------------------------------------

        The Office of the General Counsel of the Department of Agriculture
    provides all legal advice, counsel, and services to the Secretary and to
    all agencies, offices, and corporations of the Department on all aspects
    of their operations. It represents the Department in administrative
    proceedings; nonlitigation debt collection proceedings; state water
    rights adjudications; proceedings before the Environmental Protection
    Agency, Interstate Commerce Commission, Federal Maritime Administration
    and International Trade Commission; and, in conjunction with the
    Department of Justice, in judicial proceedings and litigation. All
    attorneys and related support per-

    [[Page 137]]

    sonnel of the Department are under the supervision of the General
    Counsel.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          20          21          23
    12.1    Civilian personnel benefits.....           4           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           1           1
    26.0    Supplies and materials..........                       1
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          28          28          29
    99.0  Reimbursable obligations..........           2           2           1
    99.5  Below reporting threshold.........           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          30          30          30
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         335         340         360
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          18          13          10
    ---------------------------------------------------------------------------

                            ECONOMIC RESEARCH SERVICE

                                  Federal Funds

    General and special funds:

                            Economic Research Service

        For necessary expenses of the Economic Research Service in
    conducting economic research and analysis, as authorized by the
    Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627) and other laws,
    [$53,109,000] $54,310,000: Provided, That this appropriation shall be
    available for employment pursuant to the second sentence of section
    706(a) of the Organic Act of 1944 (7 U.S.C. 2225). (7 U.S.C. 292, 411,
    427, 1441a, 1704, 1761-68, 2201, 2202, 3103, 3291, 3311, 3504; 22 U.S.C.
    3101; 42 U.S.C. 1891-93; 44 U.S.C. 3501-11; 50 U.S.C. 2061 et seq., 2251
    et seq.; Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          53          53          54
    01.01 Reimbursable program..............           7           4           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          60          57          58
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          60          57          58
    23.95 New obligations...................         -60         -57         -58
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          53          53          54
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           7           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          60          57          58
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           6           9           9
    73.10 New obligations...................          60          57          58
    73.20 Total outlays (gross).............         -57         -57         -58
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           9           9           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          44          46          47
    86.93 Outlays from current balances.....           6           7           7
    86.97 Outlays from new permanent
            authority.......................           7           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          57          57          58
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          53          53          54
    90.00 Outlays...........................          50          53          54
    ---------------------------------------------------------------------------

        The Economic Research Service provides economic and other social
    science research and analysis for public and private decisions on
    agriculture, food, natural resources, and rural America.

        Miscellaneous funds received from States, local organizations, and
    others are available for support of economic research and analysis (7
    U.S.C. 450b, 450h, 3318b).

        The 1998 request includes funding for two studies: one for the cost
    and benefits of resource-conserving production practices and one for
    GPRA measurement tools.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          30          31          32
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          31          32          33
    12.1    Civilian personnel benefits.....           6           6           6
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           1           1           1
    25.3    Purchases of goods and services
              from Government accounts......           6           6           6
    25.5    Research and development
              contracts.....................           4           4           4
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          52          53          54
    99.0  Reimbursable obligations..........           7           4           4
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          60          57          58
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         552         552         552
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          39          39          39
    ---------------------------------------------------------------------------

                    NATIONAL AGRICULTURAL STATISTICS SERVICE

                                  Federal Funds

    General and special funds:

                    National Agricultural Statistics Service

        For necessary expenses of the National Agricultural Statistics
    Service in conducting statistical reporting and service work, including
    crop and livestock estimates, statistical coordination and improvements,
    marketing surveys, and the Census of Agriculture notwithstanding 13
    U.S.C. 142(a-b), as authorized by the Agricultural Marketing Act of 1946
    (7 U.S.C. 1621-1627) and other laws, [$100,221,000] $119,877,000, of
    which up to [$17,500,000] $36,327,000 shall be available until expended
    for the Census of Agri-

    [[Page 138]]

    culture: Provided, That this appropriation shall be available for
    employment pursuant to the second sentence of section 706(a) of the
    Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $40,000 shall be
    available for employment under 5 U.S.C. 3109. (7 U.S.C. 411, 411a, 411b,
    427, 471, 475, 476, 501, 951, 953, 955-57, 2201, 2202, 2248, 3103, 3311,
    3504; 18 U.S.C. 1902, 1905, 2072; 42 U.S.C. 1891-93; 44 U.S.C. 3501-11;
    50 U.S.C. 2061 et seq., 2251 et seq.; Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Agricultural estimates..........          77          79          80
    00.02   Statistical research and service           4           4           4
    00.03   Census of Agriculture...........                      18          36
                                               ---------   ---------  ----------
    00.91     Total direct program..........          81         100         120
    01.01 Reimbursable program..............           9          10          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............          90         110         130
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          90         110         130
    23.95 New obligations...................         -90        -110        -130
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          81         100         120
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           9          10          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          90         110         130
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          11          14          18
    73.10 New obligations...................          90         110         130
    73.20 Total outlays (gross).............         -87        -107        -128
    73.40 Adjustments in expired accounts...           1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          14          18          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          69          89         106
    86.93 Outlays from current balances.....           9           8          12
    86.97 Outlays from new permanent
            authority.......................           9          10          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          87         107         128
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7          -8          -8
    88.40     Non-Federal sources...........          -2          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -9         -10         -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          81         100         120
    90.00 Outlays...........................          78          97         118
    ---------------------------------------------------------------------------

        Agricultural estimates.--The Service provides the official National
    and State estimates of acreage, yield, and production of crops, stocks,
    and value of farm commodities, and numbers of inventory values of
    livestock items. Data on approximately 120 crops and 45 livestock
    products are covered in nearly 400 reports issued each year. Detailed
    data are also collected on agricultural chemical use, labor, and
    expenditures. Data collected and published on prices paid and received
    by farmers are basic to computation of farm program payments.

        The work under this activity is conducted through 45 State offices
    serving the 50 States; most of these offices are operated as joint State
    and Federal services. Cooperative arrangements with State agencies
    provide additional State and county data. The 1998 program includes an
    increase of $540,000 for the development of standardized performance
    measurement tools for GPRA and a decrease of $1 million for list
    development and maintenance.

        Statistical research and service.--This activity is designed to
    improve agricultural estimating techniques by improving sample survey
    designs and procedures and by testing new forecasting and estimating
    techniques, such as the use of satellite data.

        Census of Agriculture.--In 1997, the Census of Agriculture, formerly
    funded by the Department of Commerce, was funded by the Department of
    Agriculture. Due to the cyclical nature of the program, an increase of
    $18,827,000 is requested to conduct the census in 1998.

        Miscellaneous funds received from local organizations, commodity
    groups, and others are available for dissemination of reports and for
    crop and livestock survey work under cooperative agreements (7 U.S.C.
    450b, 450h, 3318b).

                      Performance Measures and Indicators:

                                                     Indicators
            Performance Measures         1996 actual  1997 est.   1998 est.
                                        ------------------------------------
    Percentage of agricultural cash
    receipts covered by NASS's current
    production statistics program.......        91.0        93.0        96.0
    Percentage of reports issued that
    meet scheduled release date.........        99.9        99.9       100.0
    Timeliness of report releases.......   25.0 days   24.5 days   24.0 days

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          40          44          48
    11.3      Other than full-time permanent           1           1           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          41          45          53
    12.1    Civilian personnel benefits.....           9          10          12
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           4
    24.0    Printing and reproduction.......                       1           1
    25.2    Other services..................          18          19          23
    25.3    Purchases of goods and services
              from Government accounts......           4          14          20
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           2           5           3
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          80         100         119
    99.0  Reimbursable obligations..........           8           9           8
    99.5  Below reporting threshold.........           3           2           3
                                               ---------   ---------  ----------
    99.9    Total obligations...............          90         110         130
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         955       1,032       1,202
    1005    Full-time equivalent of overtime
              and holiday hours.............           1           1           1
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          92          98          98
    ---------------------------------------------------------------------------

                          AGRICULTURAL RESEARCH SERVICE

                                  Federal Funds

    General and special funds:

                          Agricultural Research Service

                         (including transfers of funds)

        For necessary expenses to enable the Agricultural Research Service
    to perform agricultural research and demonstration relating to
    production, utilization, marketing, and distribution (not otherwise pro-

    [[Page 139]]

    vided for); home economics or nutrition and consumer use including the
    acquisition, preservation, and dissemination of agricultural
    information; and for acquisition of lands by donation, exchange, or
    purchase at a nominal cost not to exceed $100, [$716,826,000]
    $726,797,000: Provided, That appropriations hereunder shall be available
    for temporary employment pursuant to the second sentence of section
    706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed
    $115,000 shall be available for employment under 5 U.S.C. 3109: Provided
    further, That appropriations hereunder shall be available for the
    operation and maintenance of aircraft and the purchase of not to exceed
    one for replacement only: Provided further, That appropriations
    hereunder shall be available pursuant to 7 U.S.C. 2250 for the
    construction, alteration, and repair of buildings and improvements, but
    unless otherwise provided the cost of constructing any one building
    shall not exceed $250,000, except for headhouses or greenhouses which
    shall each be limited to $1,000,000, and except for ten buildings to be
    constructed or improved at a cost not to exceed $500,000 each, and the
    cost of altering any one building during the fiscal year shall not
    exceed 10 percent of the current replacement value of the building or
    $250,000, whichever is greater: Provided further, That the limitations
    on alterations contained in this Act shall not apply to modernization or
    replacement of existing facilities at Beltsville, Maryland: Provided
    further, That the foregoing limitations shall not apply to replacement
    of buildings needed to carry out the Act of April 24, 1948 (21 U.S.C.
    113a): Provided further, That funds may be received from any State,
    other political subdivision, organization, or individual for the purpose
    of establishing or operating any research facility or research project
    of the Agricultural Research Service, as authorized by law[: Provided
    further,That all rights and title of the United States in the property
    known as the National Agricultural Water Quality Laboratory of the
    United States Department of Agriculture, consisting of approximately
    9.161 acres in the city of Durant, Oklahoma, including facilities and
    fixed equipment, shall be conveyed to Southeastern Oklahoma State
    University].
        None of the funds in the foregoing paragraph shall be available to
    carry out research related to the production, processing or marketing of
    tobacco or tobacco products. (7 U.S.C. 328, 427, 427i, 1281 note, 1621,
    2201, 2204, 2225, 2250, 3101 note; 10 U.S.C. 2306; 16 U.S.C. 590(a)-
    590(b), 590(k); 18 U.S.C. 1114; 19 U.S.C. 1306(a), 1306(c); 20 U.S.C.
    191-194; 21 U.S.C. 113a, 114c, 114e-131; 42 U.S.C. 1476(e), 1483;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Research on soil and water
              conservation..................          87          85          82
    00.02   Research on plant science.......         234         243         246
    00.03   Research on animal science......         113         115         116
    00.04   Research on commodity conversion
              and delivery..................         140         143         141
    00.05   Human nutrition research........          60          64          75
    00.06   Integration of agricultural
              systems.......................          33          30          29
    00.07   Repair and maintenance of
              facilities....................          18          18          18
    00.08   Contingencies...................           1           1           1
    00.11   Agricultural Information and
              Library Science...............          20          18          19
                                               ---------   ---------  ----------
    00.91     Total direct program..........         706         717         727
    01.01 Reimbursable program..............          37          42          42
                                               ---------   ---------  ----------
    10.00   Total obligations...............         743         759         769
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         747         759         769
    22.30 Unobligated balance expiring......          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         743         759         769
    23.95 New obligations...................        -743        -759        -769
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         710         717         727
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          37          42          42
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         747         759         769
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         184         192         194
    73.10 New obligations...................         743         759         769
    73.20 Total outlays (gross).............        -739        -757        -766
    73.40 Adjustments in expired accounts...           4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         192         194         197
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         558         574         582
    86.93 Outlays from current balances.....         144         141         142
    86.97 Outlays from new permanent
            authority.......................          37          42          42
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         739         757         766
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -31         -36         -36
    88.40     Non-Federal sources...........          -6          -6          -6
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -37         -42         -42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         710         717         727
    90.00 Outlays...........................         702         715         724
    ---------------------------------------------------------------------------

        The Agricultural Research Service conducts research to provide the
    means for a safer, more economical supply of agricultural products for
    the Nation and to provide producers with technologies to competitively
    supply these products. Technology needs of regulatory, technical
    assistance and education agencies of USDA and other Federal agencies are
    supported through ARS research. The Service uses coordinated,
    interdisciplinary approaches to perform basic and applied research on
    soil and water conservation, plant and animal sciences, commodity
    conversion and delivery, human nutrition, and integrated agricultural
    systems. In 1998, the Service proposes increased emphases for critical
    research needs in agriculture, such as: food safety, integrated pest
    management and biocontrol of pests, human nutrition, genetic resources,
    emerging diseases and exotic pests, grazinglands, and restoration of the
    South Florida Everglades ecosystem. The Service expects to submit 70 new
    patent applications, participate in 75 new Cooperative Research and
    Development Agreements (CRADAs), license 25 new products, and develop 70
    new plant varieties to release to industry for further development and
    marketing in 1998.

        Research on soil and water conservation.--Research is conducted to
    improve soil and water management, irrigation, and conservation
    practices; to protect natural resources from harmful effects of soil,
    air, and water pollutants and to minimize certain agricultural pollution
    problems; and to determine the relation of soil types and water to
    plant, animal, and human nutrition.

        Research on plant science.--Research is conducted to increase plant
    productivity by improving plant varieties, developing new crop
    resources, and improving crop production practices, including methods to
    control plant diseases, nematodes, insects, and weeds.

        Research on animal science.--Research is conducted to increase
    livestock productivity (including poultry) through improved breeding,
    feeding, and management practices, and to develop methods for
    controlling diseases, parasites, and insect pests affecting these
    animals.

        Research on commodity conversion and delivery.--Research is
    conducted to develop new and improved foods, feeds, products, and
    processes for agricultural commodities and to improve the processing,
    transportation, storage, wholesaling, and retailing of products.
    Research is also conducted on means to ensure the safety of food and
    feed supplies, control insect pests of man and his belongings, and
    reduce the hazards to human life resulting from pesticide residues and
    other causes.

        Human nutrition research.--Research is conducted on subjects such as
    human nutritional requirements and the com-

    [[Page 140]]

    position and nutritive value of foods, to promote optimum human health
    through improved nutrition.

        Integration of agricultural systems.--Research is conducted to
    develop integrated systems for efficiently producing, processing, and
    marketing agricultural products, and to develop alternative agricultural
    systems that are less dependent upon nonrenewable resources and that are
    productive, efficient, and sustainable in the long term.

        Agricultural information and library services.--The National
    Agricultural Library provides a variety of information products and
    services through: (1) the administration of a unique collection of
    books, journals, and other information materials about food and
    agriculture to ensure accessibility to their contents; (2) the
    development and maintenance of cooperative efforts in the library and
    related information areas, with other Federal agencies and with
    educational institutions in each State; and (3) an active program of
    information dissemination.

        Repair and maintenance of facilities.--Funds are used to restore,
    upgrade, and maintain Federal facilities to meet OSHA and EPA
    requirements, provide suitable workspace for in-house research programs,
    and to retrofit existing structures for better energy utilization.

        Contingencies.--Funds available to meet urgent needs that develop
    unexpectedly during the year when such needs cannot be met by
    redirection of resources from other projects.

        Reimbursements.--Agricultural Research Service performs program
    research activities and services for other USDA, Federal, and non-
    Federal agencies. These activities and services are paid for on a
    reimbursable basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         296         312         315
    11.3      Other than full-time permanent          22          23          23
    11.5      Other personnel compensation..           9           8           8
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         327         343         346
    12.1    Civilian personnel benefits.....          71          79          84
    21.0    Travel and transportation of
              persons.......................          13          13          13
    22.0    Transportation of things........           1           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          29          29          30
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................           7          12           9
    25.3    Purchases of goods and services
              from Government accounts......           3           3           3
    25.4    Operation and maintenance of
              facilities....................          21          19          18
    25.5    Research and development
              contracts.....................         112         101         107
    25.7    Operation and maintenance of
              equipment.....................           9           9           9
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........          56          52          53
    31.0    Equipment.......................          37          35          35
    32.0    Land and structures.............           3           3           3
    41.0    Grants, subsidies, and
              contributions.................          14          14          12
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         706         717         727
    99.0  Reimbursable obligations..........          37          42          42
                                               ---------   ---------  ----------
    99.9    Total obligations...............         743         759         769
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       7,471       7,644       7,458
    1005    Full-time equivalent of overtime
              and holiday hours.............          45          45          45
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          74          87          87
    ---------------------------------------------------------------------------

                            Buildings and Facilities

        For acquisition of land, construction, repair, improvement,
    extension, alteration, and purchase of fixed equipment or facilities as
    necessary to carry out the agricultural research programs of the
    Department of Agriculture, where not otherwise provided, [$69,100,000]
    $59,300,000, to remain available until expended (7 U.S.C. 2209b):
    Provided, That funds may be received from any State, other political
    subdivision, organization, or individual for the purpose of establishing
    any research facility of the Agricultural Research Service, as
    authorized by law. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          25          43          47
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          74          79         105
    22.00 New budget authority (gross)......          30          69          59
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         104         148         164
    23.95 New obligations...................         -25         -43         -47
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          79         105         118
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          30          69          59
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          28          28          19
    73.10 New obligations...................          25          43          47
    73.20 Total outlays (gross).............         -25         -52         -53
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          28          19          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           2          10           9
    86.93 Outlays from current balances.....          23          42          44
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          25          52          53
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          69          59
    90.00 Outlays...........................          25          52          53
    ---------------------------------------------------------------------------

        This account provides funds for acquisition of land, construction,
    repair, improvement, extension, alterations, and purchases of fixed
    equipment or facilities of or used by the Agricultural Research Service.
    The 1998 request provides for the continuing modernization and
    renovation efforts at the Beltsville Agricultural Research Center,
    Beltsville, MD; Regional Utilization Centers at Peoria, IL;
    Philadelphia, PA; New Orleans, LA; and Plum Island Animal Disease
    Center, Greenport, NY; National Agricultural Library; and construction
    of new replacement laboratories at Parlier, CA; and Montpellier, France.
    The request also provides for construction of a new facility in Ft.
    Lauderdale, FL as part of the Administration's Everglades initiatives.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          21          30          33
    32.0  Land and structures...............           2          11          12
    41.0  Grants, subsidies, and
            contributions...................           1           2           2
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          25          43          47
    ---------------------------------------------------------------------------

    [[Page 141]]

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Science and Education
            Administration contributed funds          11          15          15
        Appropriation:
    05.01 Miscellaneous contributed funds...         -11         -15         -15
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          12          15          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           9           8           8
    22.00 New budget authority (gross)......          11          15          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20          23          23
    23.95 New obligations...................         -12         -15         -15
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           8           8           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................          11          15          15
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           4           3           4
    73.10 New obligations...................          12          15          15
    73.20 Total outlays (gross).............         -12         -13         -14
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           4           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           9          10          10
    86.98 Outlays from permanent balances...           3           3           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          13          14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11          15          15
    90.00 Outlays...........................          12          13          14
    ---------------------------------------------------------------------------

        Miscellaneous contributed funds received from States, local
    organizations, individuals, and others are available for work under
    cooperative agreements on research activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           3           3           3
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           5           8           8
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          12          15          15
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          69          69          69
    ---------------------------------------------------------------------------

          COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

                                  Federal Funds

    General and special funds:

                        Research and Education Activities

        For payments to agricultural experiment stations, for cooperative
    forestry and other research, for facilities, and for other expenses,
    including $168,734,000 to carry into effect the provisions of the Hatch
    Act (7 U.S.C. 361a-361i); $20,497,000 for grants for cooperative
    forestry research (16 U.S.C. 582a-582a7); $27,735,000 for payments to
    the 1890 land-grant colleges, including Tuskegee University (7 U.S.C.
    3222); [$49,767,000] $10,051,000 for special grants for agricultural
    research (7 U.S.C. 450i(c)); [$11,769,000] $24,738,000 for special
    grants for agricultural research on improved pest control (7 U.S.C.
    450i(c)); [$94,203,000] $130,000,000 for competitive research grants (7
    U.S.C. 450i(b)), to remain available until expended; $4,775,000 for the
    support of animal health and disease programs (7 U.S.C. 3195); $650,000
    for supplemental and alternative crops and products (7 U.S.C. 3319d);
    [$500,000 for grants for research pursuant to the Critical Agricultural
    Materials Act of 1984 (7 U.S.C. 178) and section 1472 of the Food and
    Agriculture Act of 1977, as amended (7 U.S.C. 3318), to remain available
    until expended; $475,000 for rangeland research grants (7 U.S.C. 3331-
    3336);] $3,000,000 for higher education graduate fellowships grants (7
    U.S.C. 3152(b)(6)), to remain available until expended (7 U.S.C. 2209b);
    [$4,000,000] $4,350,000 for higher education challenge grants (7 U.S.C.
    3152(b)(1)); $1,000,000 for a higher education minority scholars program
    (7 U.S.C. 3152(b)(5)), to remain available until expended (7 U.S.C.
    2209b); $1,500,000 for an education grants program for Hispanic-serving
    Institutions (7 U.S.C. 3241); $4,000,000 for aquaculture grants (7
    U.S.C. 3322); $8,000,000 for sustainable agriculture research and
    education (7 U.S.C. 5811); $9,200,000 for a program of capacity building
    grants (7 U.S.C. 3152(b)(4)) to colleges eligible to receive funds under
    the Act of August 30, 1890 (7 U.S.C. 321-326 and 328), including
    Tuskegee University, to remain available until expended (7 U.S.C.
    2209b); $1,450,000 for payments to the 1994 Institutions pursuant to
    section 534(a)(1) of Public Law 103-382; and [$10,249,000] $2,662,000
    for necessary expenses of Research and Education Activities, of which
    not to exceed $100,000 shall be for employment under 5 U.S.C. 3109; in
    all, [$421,504,000] $422,342,000.
        None of the funds in the foregoing paragraph shall be available to
    carry out research related to the production, processing or marketing of
    tobacco or tobacco products.

                   Native American Institutions Endowment Fund

        For establishment of a Native American institutions endowment fund,
    as authorized by Public Law [130] 103-382 (7 U.S.C. 301 note),
    $4,600,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Federal payment, Native American
            Institutions Endowment Fund.....           5           5           5
    02.02 Earnings on investments...........                                   1
                                               ---------   ---------  ----------
    02.99   Total receipts..................           5           5           6
        Appropriation:
    05.01 Cooperative state research
            activities......................          -5          -5          -5
    07.99 Total balance, end of year........                                   1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Payments under the Hatch Act....         169         169         169
    00.02   Cooperative forestry research...          20          20          20
    00.03   Payments to 1890 colleges and
              Tuskegee University...........          28          28          28
    00.04   Special research grants.........          73          75          47
    00.05   National research initiative
              competitive grants............          52         139         130
    00.06   Animal health and disease
              research......................           5           5           5

    [[Page 142]]

    00.07   Federal administration..........          20          10           3
    00.08   Higher education................           9          21          20
    00.09   Native American Institutions
              Endowment Fund................           5           5           5
                                               ---------   ---------  ----------
    00.91     Total direct program..........         381         472         427
    01.01 Reimbursable program..............          11          16          16
                                               ---------   ---------  ----------
    10.00   Total obligations...............         392         488         443
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                      46
    22.00 New budget authority (gross)......         438         443         443
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         438         489         443
    23.95 New obligations...................        -392        -488        -443
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          46
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         422         422         422
    40.25   Appropriation (special fund,
              indefinite)...................           5           5           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         427         427         427
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          11          16          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         438         443         443
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         402         322         366
    73.10 New obligations...................         392         488         443
    73.20 Total outlays (gross).............        -428        -444        -440
    73.40 Adjustments in expired accounts...         -44
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         322         366         369
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         209         217         217
    86.93 Outlays from current balances.....         208         211         207
    86.97 Outlays from new permanent
            authority.......................          11          16          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         428         444         440
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -11         -16         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         427         427         427
    90.00 Outlays...........................         417         428         424
    ---------------------------------------------------------------------------

        Cooperative State Research, Education, and Extension Service
    participates in a nationwide system of agricultural research and
    education program planning and coordination between State institutions
    and the U.S. Department of Agriculture. It assists in maintaining
    cooperation among the State institutions, and between the State
    institutions and their Federal research partners. The Agency administers
    grants and payments to State institutions to supplement State and local
    funding for agricultural research and higher education.

        Payments under the Hatch Act.--Funds under the Hatch Act are
    allocated on a formula basis to agricultural experiment stations of the
    land-grant colleges in the 50 States, the District of Columbia, Puerto
    Rico, Guam, the Virgin Islands, American Samoa, Micronesia, and Northern
    Mariana Islands.

        Cooperative forestry research.--These funds are allocated by formula
    to land-grant colleges or agricultural experiment stations in the 50
    States, Puerto Rico, Guam, the Virgin Islands, and other State-supported
    colleges and universities having a forestry school and offering graduate
    training in forestry sciences.

        Payments to 1890 colleges and Tuskegee University.--Funds allocated
    on a formula basis support agricultural research and broaden the
    curricula at the seventeen 1890 land-grant colleges, including Tuskegee
    University.

        Special research grants.--This program addresses research areas of
    national interest. Increased funding is proposed for grant programs in
    integrated pest management/biological control and pesticide clearance.
    Funding is also proposed for pest management alternatives, pesticide
    impact assessment and sustainable agriculture. Advances in these areas
    will provide producers with safe, alternative pest control methods
    resulting in more farmers increasing the number of acres on which
    Integrated Pest Management (IPM) methods are used. The program goal is
    the implementation of IPM methods on 75 percent of crop acreage by the
    year 2000, with an outcome of creating an agricultural system that is
    highly competitive in the global economy. Funding proposed for pesticide
    clearance and minor use animal drugs will address the growing need for
    registration of safe pesticides and drugs for minor crops and animals
    and lead to reduced levels of chemical and drug residues in food
    products by half. In 1998, the Agency expects to complete 300
    conventional pesticide registration tolerance packages and 30
    biopesticide registration packages. A grant program for global change is
    proposed for research at universities as part of a coordinated Federal
    initiative. Funding is also proposed for water quality, the National
    Biological Impact Assessment Program, rural development centers,
    aquaculture centers, and supplemental and alternative crops.

        National research initiative competitive grants.--Funding is being
    proposed for the National Initiative for Research on Agriculture, Food,
    and the Environment (NRI). Research scientists throughout the U.S.
    scientific community compete for funding under this program. The
    performance goal has been to attract the widest possible involvement of
    U.S. scientists in agricultural research to increase the knowledge base
    related to U.S. agriculture, food, and the environment and maintain
    world leadership in agricultural science and engineering. NRI funding
    has resulted in increased participation by universities which are not
    traditionally considered agricultural schools and of highly skilled
    researchers in projects addressing agricultural issues. The outcomes
    include the efficient communication of research results to scientific,
    engineering, and community user groups. These grants support research in
    plants and animals; natural resources and the environment; nutrition,
    food safety, and health; markets, trade, and rural development; and
    processing for adding value or developing new products. This initiative
    includes funding for a plant genome mapping program for which the
    Agricultural Research Service serves as the lead agency. Global change
    research being carried out through the NRI is part of a government-wide
    program. In 1998, the requested increase will be targeted to expand
    research to help reduce the incidence of food borne illness caused by
    microbiological pathogens ($4 million), improve environmental quality
    ($10 million), and to increase research on the genetic enhancement of
    plants ($22 million).

        Animal health and disease research.--Funds, distributed by formula,
    support livestock and poultry disease research in sixty-seven colleges
    of veterinary medicine and in eligible agricultural experiment stations.

        Federal administration.--A coordinating and review staff assists in
    maintaining cooperation within and among the States, and between the
    States and their Federal research partners. This staff also administers
    research and education grants and payments to States. Federal
    administration is funded from a combination of program set-asides from
    for-

    [[Page 143]]

    mula and grant programs and from direct appropriation for
    administration.

        Higher education.--Funding is proposed for graduate fellowships
    grants, competitive challenge grants, Hispanic serving institutions
    education grants program, a multicultural scholars program and a Native
    American institutions program. Proposed funding for these higher
    education programs would support approximately 94 grants. These programs
    will enable universities to broaden their curricula; increase faculty
    development; student research projects; and the number of new scholars
    recruited in the food and agricultural sciences. In addition, an
    increased number of graduate students, including minority graduate
    students, will be enrolled in the agricultural sciences. Funding is also
    proposed for a capacity building program at the 1890 institutions as
    part of a USDA initiative to strengthen these institutions through a
    broadening of curricula, increased faculty development and student
    research projects. Proposed funding would support approximately 49
    teaching and research grants.

        Reimbursable program.--Funds support basic and applied agriculture
    research and activities performed for other USDA, Federal, and non-
    Federal agencies.

        Native American Institutions Endowment Fund.--This program provides
    for an endowment for the 1994 land-grant institutions (29 Tribally
    controlled colleges) to strengthen the infrastructure of these
    institutions and develop Indian expertise for the food and agricultural
    sciences and businesses and their own communities. At the termination of
    each fiscal year, the Secretary shall withdraw the income from the
    endowment fund for the fiscal year, and after making adjustments for the
    cost of administering the fund, distribute the adjusted income on a
    formula basis to the 1994 land-grant institutions.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          11          12          12
    12.1    Civilian personnel benefits.....           2           2           2
    21.0    Travel and transportation of
              persons.......................           1           1           1
    25.3    Purchases of goods and services
              from Government accounts......           2           2           2
    26.0    Supplies and materials..........           1           1           1
    41.0    Grants, subsidies, and
              contributions.................         364         454         409
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         381         472         427
    99.0  Reimbursable obligations..........          11          16          16
                                               ---------   ---------  ----------
    99.9    Total obligations...............         392         488         443
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         184         194         195
    1005    Full-time equivalent of overtime
              and holiday hours.............           2           2           2
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           9           9           9
    ---------------------------------------------------------------------------

                           [buildings and facilities]

        [For acquisition of land, construction, repair, improvement,
    extension, alteration, and purchase of fixed equipment or facilities and
    for grants to States and other eligible recipients for such purposes, as
    necessary to carry out the agricultural research, extension, and
    teaching programs of the Department of Agriculture, where not otherwise
    provided, $61,591,000, to remain available until expended (7 U.S.C.
    2209b).] (Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          60          69
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          10           7
    22.00 New budget authority (gross)......          58          62
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          68          69
    23.95 New obligations...................         -60         -69
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          58          62
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         156         185         194
    73.10 New obligations...................          60          69
    73.20 Total outlays (gross).............         -31         -60         -61
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         185         194         133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           2           3
    86.93 Outlays from current balances.....          29          57          61
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          31          60          61
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          58          62
    90.00 Outlays...........................          31          60          61
    ---------------------------------------------------------------------------

        Funds provide grants to States and other eligible recipients for the
    acquisition of land, construction, repair, improvement, extension,
    alteration and purchase of fixed equipment or facilities to carry out
    agricultural research, extension, and teaching programs. No funding is
    proposed in 1998.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1
    25.2  Other services....................           2           1
    41.0  Grants, subsidies, and
            contributions...................          57          67
                                               ---------   ---------  ----------
    99.9    Total obligations...............          60          69
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          10          10
    ---------------------------------------------------------------------------

                              Extension Activities

        Payments to States, the District of Columbia, Puerto Rico, Guam, the
    Virgin Islands, Micronesia, Northern Marianas, and American Samoa: For
    payments for cooperative extension work under the Smith-Lever Act, as
    amended, to be distributed under sections 3(b) and 3(c) of said Act, and
    under section 208(c) of Public Law 93-471, for retirement and employees'
    compensation costs for extension agents and for costs of penalty mail
    for cooperative extension agents and State extension directors,
    $268,493,000; $2,000,000 for extension work at the 1994 Institutions
    under the Smith-Lever Act (7 U.S.C. 343(b)(3)); payments for the
    nutrition and family education program for low-income areas under
    section 3(d) of the Act, $58,695,000; payments for the pest management
    program under section 3(d) of the Act, [$10,783,000; payments for the
    farm safety program under section 3(d) of the Act, $2,855,000]
    $15,000,000; payments for the pesticide impact assessment program under
    section 3(d) of the Act, [$3,214,000] $3,313,000; payments to upgrade
    1890 land-grant college research, extension, and teaching facilities as
    authorized by sec-

    [[Page 144]]

    tion 1447 of Public Law 95-113, as amended (7 U.S.C. 3222b), $7,549,000,
    to remain available until expended; payments for the rural development
    centers under section 3(d) of the Act, $908,000; payments for a
    groundwater quality program under section 3(d) of the Act, [$10,733,000;
    payments for the agricultural telecommunications program, as authorized
    by Public Law 101-624 (7 U.S.C. 5926), $1,167,000;] $9,061,000; payments
    for a pesticide applicator training program under section 3(d) of the
    Act, $1,500,000; payments for youth-at-risk programs under section 3(d)
    of the Act, [$9,554,000] $11,700,000, of which $1,700,000 is for 1890
    land-grant colleges and Tuskegee University, as authorized by section
    883 of Public Law 104-127; payments for a food safety program under
    section 3(d) of the Act, [$2,365,000] $4,365,000; [payments for carrying
    out the provisions of the Renewable Resources Extension Act of 1978,
    $3,192,000;] payments for Indian reservation agents under section 3(d)
    of the Act, $1,672,000; payments for sustainable agriculture programs
    under section 3(d) of the Act, $3,309,000; [payments for rural health
    and safety education as authorized by section 2390 of Public Law 101-624
    (7 U.S.C. 2661 note, 2662), $2,628,000;] payments for cooperative
    extension work by the colleges receiving the benefits of the second
    Morrill Act (7 U.S.C. 321-326, 328) and Tuskegee University,
    [$24,337,000] $25,090,000; and for Federal administration and
    coordination including administration of the Smith-Lever Act, as
    amended, and the Act of September 29, 1977 (7 U.S.C. 341-349), as
    amended, and section 1361(c) of the Act of October 3, 1980 (7 U.S.C. 301
    note), and to coordinate and provide program leadership for the
    extension work of the Department and the several States and insular
    possessions, [$12,066,000] $5,156,000; in all, [$425,520,000]
    $417,811,000: Provided, That funds hereby appropriated pursuant to
    section 3(c) of the Act of June 26, 1953, and section 506 of the Act of
    June 23, 1972, as amended, shall not be paid to any State, the District
    of Columbia, Puerto Rico, Guam, or the Virgin Islands, Micronesia,
    Northern Marianas, and American Samoa prior to availability of an equal
    sum from non-Federal sources for expenditure during the current fiscal
    year. (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)
        [For an additional amount for payments for cooperative extension
    work by the colleges receiving the benefits of the second Morrill Act (7
    U.S.C. 321-326, 328) and Tuskegee University, $753,000.] (Omnibus
    Consolidated Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Smith-Lever Act, 3(b) and 3(c)..         268         268         268
    00.02   Youth at Risk...................          10          10          12
    00.03   Water quality...................          11          11           9
    00.04   EFNEP...........................          61          59          59
    00.05   Pest management.................          11          11          15
    00.06   Farm Safety.....................           3           3
    00.07   Pesticide impact assessment.....           3           3           3
    00.08   Pesticide Applicator Training...                                   2
    00.09   Indian reservation extension
              agents........................           2           2           2
    00.10   Ag. Telecommunications..........           1           1
    00.11   Food safety.....................           3           2           4
    00.12   Rural Development...............           1           1           1
    00.13   Payments to 1890 colleges and
              Tuskegee University...........          25          25          25
    00.15   Renewable resources extension
              act...........................           3           3
    00.16   Federal Administration..........          12          12           5
    00.18   Rural health and safety
              education.....................           3           3
    00.19   1890 facilities (section 1447)..           6          13           8
    00.21   Sustainable Agriculture.........           3           3           3
    00.22   1994 Institutions Activities....                       2           2
                                               ---------   ---------  ----------
    00.91     Total direct program..........         426         432         418
    01.01 Reimbursable program..............          10          25          25
                                               ---------   ---------  ----------
    10.00   Total obligations...............         436         457         443
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           4           6
    22.00 New budget authority (gross)......         438         451         443
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         442         457         443
    23.95 New obligations...................        -436        -457        -443
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         428         426         418
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          10          25          25
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         438         451         443
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         189         212         225
    73.10 New obligations...................         436         457         443
    73.20 Total outlays (gross).............        -413        -444        -445
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         212         225         223
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         277         293         287
    86.93 Outlays from current balances.....         126         126         133
    86.97 Outlays from new permanent
            authority.......................          10          25          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         413         444         445
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -10         -25         -25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         428         426         418
    90.00 Outlays...........................         403         419         420
    ---------------------------------------------------------------------------

        The Cooperative Extension System, a national educational network, is
    a dynamic organization pledged to meeting the country's needs for
    research-based educational programs that will enable people to make
    practical decisions to improve their lives. To accomplish its mission,
    the Cooperative Extension System adjusts programs to meet the shifting
    needs and priorities of the people it serves.

        The nonformal educational network combines the expertise and
    resources of federal, state, and local partners. The partners in this
    unique System are: (a) The Cooperative State Research, Education, and
    Extension Service at the U.S. Department of Agriculture; (b) Extension
    professionals at land-grant universities throughout the United States
    and its territories; and (c) Extension professionals in nearly all of
    the Nation's 3,150 counties. Thousands of paraprofessionals and nearly 3
    million volunteers support this partnership and magnify its impact.
    Strong linkages with both public and private external groups are also
    crucial to the Cooperative Extension System's strength and vitality.

        Base programs, funded by the Smith-Lever 3(b) and (c) legislated
    formula funds, are the major educational efforts central to the mission
    of the System and common to most Extension units. They are the ongoing
    priority efforts of the System, involving many discipline-based and
    multi-disciplinary programs. The System's base programs are the
    foundation of the Extension organization and partnership that are
    intended to increase the number of community-based projects, families,
    and individuals reached to disseminate research findings as widely and
    quickly as possible. The use of electronic mail, satellite transmission
    of courses, and computer-assisted instruction are encouraged to
    communicate ideas.

        Extension resources are provided to the States by these formula
    funds and competitively-awarded programs such as sustainable
    agriculture. Smith-Lever 3(b) and (c) funds and payments to the 1890
    colleges and Tuskegee University provide funds to support the Extension
    infrastructure.

        Funds for designated programs, funded by Smith-Lever 3(d) legislated
    formula funds, such as youth at risk, expanded food and nutrition
    education program (EFNEP), and food safe-

    [[Page 145]]

    ty, provide support for the Cooperative Extension System to address
    identified priority issues.

        National initiatives funded by legislative formulas,
    administratively determined distribution, Congressional and Executive
    intent, and competitively-awarded projects, are the System's commitment
    to respond to important problems of broad national concern with
    additional resources and significantly increased effort to achieve a
    major impact on national priorities. They are the most current
    significant and complex issues on which the Extension System has the
    potential to make a difference--usually in cooperation with other
    agencies, groups, and units of government. The goal is to inform and
    educate these extension agriculture professionals and volunteers who, in
    turn, educate the professional farmers and end-users regarding these
    critical initiatives and concerns.

        Initiatives proposed in 1998 include funding for: sustainable
    agriculture education programs; increased efforts on pest management;
    pesticide applicator training; and support to the 1890 Institutions and
    Tuskegee University.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           7           7
    12.1    Civilian personnel benefits.....           2           2           2
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................           3           2           2
    25.3    Purchases of goods and services
              from Government accounts......           2           2           2
    31.0    Equipment.......................           1
    41.0    Grants, subsidies, and
              contributions.................         409         416         402
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         426         432         418
    99.0  Reimbursable obligations..........          10          25          25
                                               ---------   ---------  ----------
    99.9    Total obligations...............         436         457         443
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         177         186         176
    ---------------------------------------------------------------------------

                   ANIMAL AND PLANT HEALTH INSPECTION SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                         (including transfers of funds)

        For expenses, not otherwise provided for, including those pursuant
    to the Act of February 28, 1947, as amended (21 U.S.C. 114b-c),
    necessary to prevent, control, and eradicate pests and plant and animal
    diseases; to carry out inspection, quarantine, and regulatory
    activities; to discharge the authorities of the Secretary of Agriculture
    under the Act of March 2, 1931 (46 Stat. 1468; 7 U.S.C. 426-426b); and
    to protect the environment, as authorized by law, [$434,909,000]
    $424,491,000, of which [$4,500,000] $4,443,000 shall be available for
    the control of outbreaks of insects, plant diseases, animal diseases and
    for control of pest animals and birds to the extent necessary to meet
    emergency conditions: Provided, That no funds shall be used to formulate
    or administer a brucellosis eradication program for the current fiscal
    year that does not require minimum matching by the States of at least 40
    percent: Provided further, That this appropriation shall be available
    for field employment pursuant to the second sentence of section 706(a)
    of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $40,000
    shall be available for employment under 5 U.S.C. 3109: Provided further,
    That this appropriation shall be available for the operation and
    maintenance of aircraft and the purchase of not to exceed four, of which
    two shall be for replacement only: Provided further, That, in addition,
    in emergencies which threaten any segment of the agricultural production
    industry of this country, the Secretary may transfer from other
    appropriations or funds available to the agencies or corporations of the
    Department such sums as he may deem necessary, to be available only in
    such emergencies for the arrest and eradication of contagious or
    infectious disease or pests of animals, poultry, or plants, and for
    expenses in accordance with the Act of February 28, 1947, as amended,
    and section 102 of the Act of September 21, 1944, as amended, and any
    unexpended balances of funds transferred for such emergency purposes in
    the next preceding fiscal year shall be merged with such transferred
    amounts: Provided further, That appropriations hereunder shall be
    available pursuant to law (7 U.S.C. 2250) for the repair and alteration
    of leased buildings and improvements, but unless otherwise provided the
    cost of altering any one building during the fiscal year shall not
    exceed 10 percent of the current replacement value of the building.
        In fiscal year [1997] 1998 the agency is authorized to collect fees
    to cover the total costs of providing technical assistance, goods, or
    services requested by States, other political subdivisions, domestic and
    international organizations, foreign governments, or individuals,
    provided that such fees are structured such that any entity's liability
    for such fees is reasonably based on the technical assistance, goods, or
    services provided to the entity by the agency, and such fees shall be
    credited to this account, to remain available until expended, without
    further appropriation, for providing such assistance, goods, or
    services.
        Of the total amount available under this heading in fiscal year
    [1997, $98,000,000] 1998, $100,000,000 shall be derived from user fees
    deposited in the Agricultural Quarantine Inspection User Fee Account.
    (10 U.S.C. 2306; 15 U.S.C. 69e, 1821-31; 16 U.S.C. 1531-43; 18 U.S.C.
    1114; 19 U.S.C. 1306, 21 U.S.C. 101-105, 111-114, 114a-114c; 114d-1,
    114e-131, 134-135b, 151-158; 26 U.S.C. 4491-94; 45 U.S.C. 71-74; 46
    U.S.C. 466a-466(b); 49 U.S.C. 1471(a)-1509(d), 1741; 46 Stat. 67; 78
    Stat. 939-940; 99 Stat. 1645-1650, 1654-1656, 1658-1659; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         171          89          91
        Receipts:
    02.01 Agricultural quarantine inspection
            fees............................          36         135         141
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         207         224         232
        Appropriation:
    05.01 Salaries and expenses.............        -118        -133        -141
                                               ---------   ---------  ----------
    05.99 Subtotal appropriation............        -118        -133        -141
    07.99 Total balance, end of year........          89          91          91
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Pest and disease exclusion......         213         234         241
    00.02   Plant and animal health
              monitoring....................          68          71          75
    00.03   Pest and disease management
              programs......................          98          96          80
    00.04   Animal care.....................          10          10          10
    00.05   Scientific and technical
              services......................          49          54          53
    00.06   Contingencies...................           5           4           4
    00.07   Emergency program funding.......          34          43
                                               ---------   ---------  ----------
    00.91     Total direct program..........         477         512         463
    01.01 Reimbursable program..............          39          42          43
                                               ---------   ---------  ----------
    10.00   Total obligations...............         516         554         506
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         -21         -15         -16
    22.00 New budget authority (gross)......         489         512         508
    22.22 Unobligated balance transferred
            from other accounts.............          33          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         501         539         492
    23.95 New obligations...................        -516        -554        -506

    [[Page 146]]

    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         -15         -16         -14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         332         337         324
    40.20   Appropriation (special fund,
              definite).....................                      98         100
    40.25   Appropriation (special fund,
              indefinite)...................         118
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         450         435         424
          Permanent:

    60.25   Appropriation (special fund,
              indefinite)...................                      35          41
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          39          42          43
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         489         512         508
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          61          69         138
    73.10 New obligations...................         516         554         506
    73.20 Total outlays (gross).............        -508        -485        -509
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          69         138         135
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         433         366         357
    86.93 Outlays from current balances.....          40          47          69
    86.97 Outlays from new permanent
            authority.......................          35          72          78
    86.98 Outlays from permanent balances...                                   5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         508         485         509
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -5          -5          -5
    88.40     Non-Federal sources...........         -34         -37         -38
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -39         -42         -43
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         450         470         465
    90.00 Outlays...........................         467         443         466
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................         450         470         465
      Outlays...........................         467         443         466
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 -10
      Outlays...........................                                 -10
                                        ------------------------------------
    Total:
      Budget Authority..................         450         470         455
      Outlays...........................         467         443         456
                                        ====================================

        The major objectives of the Animal and Plant Health Inspection
    Service (APHIS) are to protect the animal and plant resources of the
    Nation from destructive pests and diseases. This mission is carried out
    under the five major areas of activity, as follows:

        Pest and disease exclusion.--The agency conducts inspection and
    quarantine activities at U.S. ports-of-entry to prevent the introduction
    of exotic animal and plant diseases and pests. APHIS develops and
    conducts preclearance programs to ensure that agricultural products
    destined for U.S. ports-of-entry do not present a risk to U.S.
    agriculture. APHIS engages in cooperative programs in foreign countries
    to control pests of imminent concern to the United States. APHIS also
    certifies plants and plant products for export and regulates imports and
    exports of designated endangered plant species. User fees have been
    implemented to recover the cost of certain agricultural quarantine
    inspection services.

        Plant and animal health monitoring.--The Agency conducts programs to
    assess animal and plant health and to detect endemic and exotic diseases
    and pests. The plant and animal health monitoring programs are primarily
    cooperative efforts of the Federal and State governments, and industry.
    The Agency also carries out surveys in cooperation with the States to
    detect harmful plant and animal pests and diseases and to determine if
    there is a need for pest eradication programs.

        Pest and disease management programs.--The Agency carries out
    programs to control and eradicate infestations and animal diseases that
    threaten the United States; to reduce agricultural losses caused by
    predatory animals, birds, and rodents; to provide technical assistance
    to States, counties, farmer or rancher groups, and foundations; and to
    ensure compliance with interstate movement and disease control
    regulations. Interstate shipments of plants, livestock, and related
    materials are monitored and regulated to prevent the spread of disease.
    APHIS protects agriculture from detrimental animal predators through
    identification, demonstration, and application of the most appropriate
    methods of control.

        Animal care.--The Agency conducts regulatory activities which ensure
    the humane care and handling of animals used in research, exhibition, or
    the wholesale pet trade. The Agency is also responsible for
    administering the Horse Protection Act, which prohibits the showing,
    selling, or exhibition of sore horses.

        Scientific and technical services.--APHIS develops methods to
    control animals and pests that are detrimental to agriculture, other
    wildlife, and public safety. The agency regulates genetic research to
    guard against the release of potentially harmful organisms into the
    environment. APHIS also conducts veterinary diagnostic laboratory
    activities and biologic regulatory enforcement to ensure that the
    products developed for combatting disease are potent, safe, and pure. It
    also provides and directs technology development in coordination with
    other groups in APHIS and Plant Protection and Quarantine (PPQ)
    officials to support PPQ programs of the Agency and its cooperators at
    the State, national, and international levels.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         220         249         238
    11.3      Other than full-time permanent          20          16          16
    11.5      Other personnel compensation..          12          12          11
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         252         277         265
    12.1    Civilian personnel benefits.....          55          57          52
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          17          13          11
    22.0    Transportation of things........           6           5           4
    23.2    Rental payments to others.......           4           4           3
    23.3    Communications, utilities, and
              miscellaneous charges.........          16          18          16
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          46          59          50
    26.0    Supplies and materials..........          28          26          18
    31.0    Equipment.......................          21          24          18
            Grants, subsidies, and
                contributions:
    41.0      Mexican-United States
                Commission for the
                prevention of foot-and-mouth
                disease.....................           2           1           1
    41.0      Joint Screwworm eradication
                programs....................          17          17          15
    41.0      Joint Commission on the
                Mediterranean fruit fly.....           3           2           2
    41.0      Grants, subsidies, and
                contributions-Other.........           3           2           2
            Insurance claims and
                indemnities:
    42.0      Brucellosis...................           3           3           2
    42.0      Scrapie of sheep..............           1           1           1
    42.0      Tuberculosis..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         477         512         463

    [[Page 147]]

    99.0  Reimbursable obligations..........          39          42          43
                                               ---------   ---------  ----------
    99.9    Total obligations...............         516         554         506
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       3,823       3,906       3,604
    1005    Full-time equivalent of overtime
              and holiday hours.............         156         156         156
    1011    Exempt Full-time equivalent
              employment....................       1,970       2,140       2,098
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.         341         345         340
    2005    Full-time equivalent of overtime
              and holiday hours.............         260         260         260
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Swine health protection.........                                  -1
    00.02   Pink bollworm...................                                  -1
    00.03   Animal welfare..................                                  -3
    00.04   Biotechnology...................                                  -1
    00.05   Veterinary biologics............                                  -4
                                               ---------   ---------  ----------
    00.91     Total direct program..........                                 -10
    01.01 Reimbursable program..............                                  10
                                               ---------   ---------  ----------
    10.00   Total obligations...............
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    23.95 New obligations...................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................                                 -10
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                  10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                 -10
    86.97 Outlays from new permanent
            authority.......................                                  10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                 -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -10
    90.00 Outlays...........................                                 -10
    ---------------------------------------------------------------------------

        Legislation will be proposed to establish user fees for APHIS' costs
    for animal welfare inspections, such as for animal research centers,
    humane societies, and kennels; for the issuance of biotechnology
    certificates; for veterinary biologics licensing, inspections, and
    testing activities; for activities associated with the control and or
    eradication of pink bollworm; and inspections of facilities to comply
    with the garbage cooking requirements of the Swine Health Protection
    Act.

        This is one of several proposals in the budget to charge fees to
    users directly availing themselves of, or subject to, a government
    service, program, or activity, in order to cover the government's costs.
    Legislation will be proposed to authorize the fees and, upon enactment
    of the authorization, a budget amendment to the current appropriations
    language will be proposed to make the fees available for expenditure.
    Because the current requirements of the Budget Enforcement Act of 1990
    make it difficult to fund discretionary programs with receipts that are
    not authorized in appropriations acts, the Administration is proposing a
    change in the requirements to facilitate the enactment of proposals such
    as this one.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........                                  -5
    11.3      Other than full-time permanent                                  -1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation                                  -6
    12.1    Civilian personnel benefits.....                                  -1
    21.0    Travel and transportation of
              persons.......................                                  -1
    25.2    Other services..................                                  -1
    26.0    Supplies and materials..........                                  -1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..                                 -10
    99.0  Reimbursable obligations..........                                  10
                                               ---------   ---------  ----------
    99.9    Total obligations...............
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                                -167
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                                 167
    ---------------------------------------------------------------------------

                            Buildings and Facilities

        For plans, construction, repair, preventive maintenance,
    environmental support, improvement, extension, alteration, and purchase
    of fixed equipment or facilities, as authorized by 7 U.S.C. 2250, and
    acquisition of land as authorized by 7 U.S.C. 428a, [$3,200,000]
    $7,200,000, to remain available until expended. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          13          27           8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          31          27           3
    22.00 New budget authority (gross)......           9           3           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          40          30          10
    23.95 New obligations...................         -13         -27          -8
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          27           3           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           9           3           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          12          14          25
    73.10 New obligations...................          13          27           8
    73.20 Total outlays (gross).............         -12         -16         -18
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          14          25          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           1           2
    86.93 Outlays from current balances.....           8          15          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          16          18
    ----------------------------------------------------------------------------

    [[Page 148]]

        Net budget authority and outlays:
    89.00 Budget authority..................           9           3           7
    90.00 Outlays...........................          12          16          18
    ---------------------------------------------------------------------------

        The buildings and facilities fund provides for construction,
    repairs, preventive maintenance, and alterations, as needed, for APHIS
    operated facilities, which include animal quarantine stations, border
    inspection stations, sterile insect rearing facilities, and
    laboratories.

        The 1998 budget proposes $7.2 million for this program, which
    consists of $4.0 million for repairs, alterations, preventive
    maintenance, and renovations for currently owned APHIS facilities, and
    $3.2 million for the modernization of the Plum Island, New York, Animal
    Disease Center.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           8           8           4
    32.0  Land and structures...............           5          19           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............          13          27           8
    ---------------------------------------------------------------------------

                                   Trust Funds

                            Miscellaneous Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                       1           1
        Receipts:
    02.02 Miscellaneous contributed funds...           8           6           6
    02.03 Fees for feed and attendants for
            animals in quarantine...........                       1           1
                                               ---------   ---------  ----------
    02.99   Total receipts..................           8           7           7
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           8           8           8
        Appropriation:
    05.01 Miscellaneous trust funds.........          -7          -7          -7
    07.99 Total balance, end of year........           1           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Expenses, feed, and attendants for
            animals in quarantine...........           1           1           1
    00.03 Miscellaneous contributed funds...           6           6           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............           7           7           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           4           4           4
    22.00 New budget authority (gross)......           7           7           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          11          11          11
    23.95 New obligations...................          -7          -7          -7
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           4           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................           7           7           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           7           7           7
    73.20 Total outlays (gross).............          -7          -7          -7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           6           6           6
    86.98 Outlays from permanent balances...           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7           7           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           7           7           7
    90.00 Outlays...........................           8           7           7
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Expenses, feed, and attendants for
        animals in quarantine...............           1           1           1
      Miscellaneous contributed funds.......           6           6           6
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Expenses, feed, and attendants for
        animals in quarantine...............           1           1           1
      Miscellaneous contributed funds.......           7           7           7
    ---------------------------------------------------------------------------

        The following services are financed by fees and miscellaneous
    contributions advanced by importers, manufacturers, States,
    organizations, individuals, and others:

        Expenses, feed, and attendants for animals in quarantine.--All costs
    associated with the quarantine of animals are paid from fees advanced by
    importers (21 U.S.C. 102).

         Miscellaneous contributed funds.--Funds are received from States,
    local organizations, individuals, and others and are available for plant
    and animal quarantine inspection and cooperative plant and animal
    disease and pest control activities (7 U.S.C. 450b, 2220). Commencing in
    1979, fees were collected for the importation of commercial birds.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-9971-0-7-352    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           6              6             6              6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           6              6             6              6
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           1              1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             1              1
        NET POSITION:
    3600  Other.............................           5              5             5              5
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           5              5             5              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           6              6             6              6
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           1           1           1
    11.5    Other personnel compensation....           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           3           3           3
    12.1  Civilian personnel benefits.......           1           1           1
    21.0  Travel and transportation of
            persons.........................           1           1           1
    25.2  Other services....................           2           2           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............           7           7           7
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...          53          53          53
    1005  Full-time equivalent of overtime
            and holiday hours...............           6           6           6
    ---------------------------------------------------------------------------

    [[Page 149]]

                       FOOD SAFETY AND INSPECTION SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses to carry on services authorized by the
    Federal Meat Inspection Act, as amended, the Poultry Products Inspection
    Act, as amended, and the Egg Products Inspection Act, as amended,
    [$574,000,000] $591,209,000, and in addition, $1,000,000 may be credited
    to this account from fees collected for the cost of laboratory
    accreditation as authorized by section 1017 of Public Law 102-237:
    Provided, That this appropriation shall not be available for shell egg
    surveillance under section 5(d) of the Egg Products Inspection Act (21
    U.S.C. 1034(d)): Provided further, That this appropriation shall be
    available for field employment pursuant to section 706(a) of the Organic
    Act of 1944 (7 U.S.C. 2225), and not to exceed $75,000 shall be
    available for employment under 5 U.S.C. 3109: Provided further, That
    this appropriation shall be available pursuant to law (7 U.S.C. 2250)
    for the alteration and repair of buildings and improvements, but the
    cost of altering any one building during the fiscal year shall not
    exceed 10 percent of the current replacement value of the building. (7
    U.S.C. 450, 1901-06; 10 U.S.C. 2306; 18 U.S.C. 1114; 21 U.S.C. 451-470,
    601-624, 641-645, 661, 671-680, 691-692; 694-695; Public Law 99-641;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         544         575         591
    01.01 Reimbursable program..............          81          84          90
                                               ---------   ---------  ----------
    10.00   Total obligations...............         625         659         681
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       1
    22.00 New budget authority (gross)......         626         658         681
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         626         659         681
    23.95 New obligations...................        -625        -659        -681
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         545         574         591
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          81          84          90
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         626         658         681
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          25          36          39
    73.10 New obligations...................         625         659         681
    73.20 Total outlays (gross).............        -614        -656        -681
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          36          39          39
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         513         537         559
    86.93 Outlays from current balances.....          20          35          32
    86.97 Outlays from new permanent
            authority.......................          81          84          90
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         614         656         681
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -1          -1
    88.40     Non-Federal sources...........         -81         -83         -89
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -81         -84         -90
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         545         574         591
    90.00 Outlays...........................         533         572         591
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................         545         574         591
      Outlays...........................         533         572         591
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                -390
      Outlays...........................                                -390
                                        ------------------------------------
    Total:
      Budget Authority..................         545         574         201
      Outlays...........................         533         572         201
                                        ====================================

        The primary objectives of the Food Safety and Inspection Service are
    to ensure that meat, poultry, and egg products are wholesome,
    unadulterated, and properly labeled and packaged, as required by the
    Federal Meat Inspection Act, the Poultry Products Inspection Act, and
    the Egg Products Inspection Act.

        The meat, poultry, and egg products inspection program of the Food
    Safety and Inspection Service provides in-plant inspection of all
    domestic plants preparing meat, poultry, or egg products for sale or
    distribution; reviews foreign inspection systems and establishments that
    prepare meat, poultry, or egg products for export to the United States;
    and provides technical and financial assistance to States which maintain
    meat and poultry inspection programs.

        In 1998, the Administration is proposing a new user fee to offset
    the cost of Federal meat, poultry, and egg inspection. The proposal
    would require industry to reimburse the government for the salaries,
    benefits and related costs associated with in-plant inspection. This
    proposal would ensure that sufficient resources are available to provide
    the level of in-plant inspection necessary to meet the demands of the
    industry. The Federal government would continue to fund critical food
    safety activities, such as microbiological testing, technology
    development, and an emergency response function.

                     FEDERALLY FUNDED INSPECTION ACTIVITIES

                                         1996 actual  1997 est.   1998 est.
    Federally inspected establishments:
      Slaughter plants..................         297         279         262
      Processing plants.................       4,402       4,364       4,327
      Combination slaughter and
        processing plants...............         996         981         966
      Talmadge-Aiken plants.............         245         231         215
      Import establishments.............         162         150         150
      Egg plants........................          78          81          82
    Federally inspected and passed
        production (millions of pounds):
      Meat slaughter....................      44,689      45,011      45,461
      Poultry slaughter.................      43,572      44,262      45,147
      Egg products......................       2,980       3,140       3,300
      Product inspected and passed under
        HACCP system: a............         N/A         N/A      66,525
    Import/export activity (millions of
        pounds):
      Meat and poultry imported.........       2,361       2,400       2,600
      Meat and poultry exported.........       7,500       8,200      10,000
    States and territories with
        cooperative programs: b
      Intrastate inspection.............          26          26          26
      Talmadge-Aiken inspection.........           9           9           9
      Number of slaughter and/or
        processing plants (excludes
        exempt plants)..................       2,868       2,852       2,844
      Pounds inspected slaughter
        (millions)......................       1,150       1,210       1,330
    Compliance activities:
      Marketplace reviews...............                  20,000     c
                                                                     101,000
      Corrective action reviews.........      31,099     50,0000      50,000
      Corrective actions completed......         472         500         600
    Product Testing (samples analyzed):
      Food chemistry....................      22,862      23,000      23,000
      Food microbiology.................      26,538     177,000     252,000
      Chemical residues.................      69,103      60,000      60,000
      Antibiotic residues...............     173,592     174,000     174,000
      Pathology samples.................       6,467       6,500       6,500
      Serology samples..................       3,981       3,500       3,500
    Egg Products:
      Food chemistry....................                     200         300
      Food microbiology.................       2,009       3,000       6,000
      Chemical residues.................         140         350         300
    Consumer Education and public
        outreach:
      Meat and Poultry Hotline Calls
        received........................     110,000     110,000     110,000

    [[Page 150]]

    Epidemiological Investigations:
      Cooperative efforts with State and
        public health offices...........          50          60          60
      Illnesses reported and treated
        d..........................         N/A         N/A         N/A
    Field Automation and Information
        Management Project (cumulative):
      Number of computers provided to
        field inspection staff..........       1,103       1,917       2,708
        a Production data will be based on meat and poultry slaughter
    operations and reflect output of large establishments required to produce
    under HACCP systems within 18 months of the July 25, 1996 publication of the
    HACCP final rule.
        b States with cooperative agreements which are operating programs.
        c Includes retail inspection audits and State assist activities--
    1,000; and marketplace sampling, testing, reviewing and evaluation--100,000.
        d By the end of 1997, the sentinel site survey will have the
    baseline data necessary to estimate the incidence of foodborne illness and
    treatment.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         321         331         340
    11.3      Other than full-time permanent          15          18          18
    11.5      Other personnel compensation..          14          16          16
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         350         365         374
    12.1    Civilian personnel benefits.....          90          93          95
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          21          23          23
    22.0    Transportation of things........           2           2           3
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           5           5
    24.0    Printing and reproduction.......           2           2           2
    25.1    Advisory and assistance services           1           1           2
    25.2    Other services..................           9          15          15
    25.3    Purchases of goods and services
              from Government accounts......           4           4           4
    25.4    Operation and maintenance of
              facilities....................           3           3           3
    26.0    Supplies and materials..........           5           6           6
    31.0    Equipment.......................           8          12          12
    41.0    Grants, subsidies, and
              contributions.................          41          42          43
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         543         575         589
    99.0  Reimbursable obligations..........          80          84          90
    99.5  Below reporting threshold.........           2                       2
                                               ---------   ---------  ----------
    99.9    Total obligations...............         625         659         681
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       9,470       9,623       9,607
    1005    Full-time equivalent of overtime
              and holiday hours.............         129         129         129
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.         242         276         246
    2005    Full-time equivalent of overtime
              and holiday hours.............       1,126       1,240       1,240
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                                -390
    01.01 Reimbursable program..............                                 390
                                               ---------   ---------  ----------
    10.00   Total obligations...............
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    23.95 New obligations...................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................                                -390
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                 390
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    73.20 Total outlays (gross).............
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                -390
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -390
    90.00 Outlays...........................                                -390
    ---------------------------------------------------------------------------

        Legislation will be proposed to charge fees for the salaries,
    benefits and related costs associated with in-plant inspection of meat,
    poultry, and egg products at all establishments inspected by the Food
    Safety and Inspection Service (FSIS). Currently, fees to reimburse the
    cost of overtime inspection are required at some FSIS-inspected
    establishments, but not at others. The Federal government would continue
    to fund salaries, benefits and related costs associated with in-plant
    emergency response function.

        This is one of several proposals in the budget to charge fees to
    users directly availing themselves of, or subject to, a government
    service, program, or activity, in order to cover the government's costs.
    Legislation will be proposed to authorize the fees and, upon enactment
    of the authorization, a budget amendment to the current appropriations
    language will be proposed to make the fees available for expenditure.
    Because the current requirements of the Budget Enforcement Act of 1990
    make it difficult to fund discretionary programs with receipts that are
    not authorized in appropriations acts, the Administration is proposing a
    change in the requirements to facilitate the enactment of proposals such
    as this one.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........                                -277
    11.3      Other than full-time permanent                                 -15
    11.5      Other personnel compensation..                                 -14
                                               ---------   ---------  ----------
    11.9        Total personnel compensation                                -306
    12.1    Civilian personnel benefits.....                                 -84
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..                                -390
    99.0  Reimbursable obligations..........                                 390
                                               ---------   ---------  ----------
    99.9    Total obligations...............
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.                              -7,940
    1005    Full-time equivalent of overtime
              and holiday hours.............                                -128
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.                               7,940
    2005    Full-time equivalent of overtime
              and holiday hours.............                                 128
    ---------------------------------------------------------------------------

    [[Page 151]]

                                   Trust Funds

         Expenses and Refunds, Inspection and Grading of Farm Products

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Fees for inspection and grading of
            farm products...................           4           5           5
        Appropriation:
    05.01 Expenses and refunds, inspection
            and grading of farm products....          -4          -5          -5
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           4           5           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           4           5           5
    23.95 New obligations...................          -4          -5          -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................           4           5           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           4           5           5
    73.20 Total outlays (gross).............          -4          -5          -5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           4           5           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           5           5
    90.00 Outlays...........................           4           5           5
    ---------------------------------------------------------------------------

        Under authority of the Agricultural Marketing Act of 1946, Federal
    meat and poultry inspection services are provided upon request and for a
    fee in cases where inspection is not mandated by statute. This service
    includes: certifying products for export beyond the requirements of
    export certificates; inspecting certain animals and poultry intended for
    human food where inspection is not required by statute, such as buffalo,
    rabbit, and quail; and inspecting products intended for animal
    consumption.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           2           2           2
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           3           3           3
    12.1  Civilian personnel benefits.......           1           1           1
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           4           5           5
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...          46          52          47
    1005  Full-time equivalent of overtime
            and holiday hours...............          17          17          17
    ---------------------------------------------------------------------------

             GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses to carry out the provisions of the United
    States Grain Standards Act, as amended, for the administration of the
    Packers and Stockyards Act, for certifying procedures used to protect
    purchasers of farm products, and the standardization activities related
    to grain under the Agricultural Marketing Act of 1946, as amended,
    including field employment pursuant to section 706(a) of the Organic Act
    of 1944 (7 U.S.C. 2225), and not to exceed $25,000 for employment under
    5 U.S.C. 3109, [$23,128,000] $25,722,000: Provided, That this
    appropriation shall be available pursuant to law (7 U.S.C. 2250) for the
    alteration and repair of buildings and improvements, but the cost of
    altering any one building during the fiscal year shall not exceed 10
    percent of the current replacement value of the building. (7 U.S.C. 71,
    74-79, 84-87, 181-229, 1621-27; Agriculture, Rural Development, Food and
    Drug Administration, and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................           4           4           4
    00.02 Compliance........................           4           4           4
    00.03 Methods Development...............           3           3           3
    00.04 Packers and Stockyard Program.....          12          12          15
                                               ---------   ---------  ----------
    10.00   Total obligations...............          23          23          26
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          23          23          26
    23.95 New obligations...................         -23         -23         -26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          23          23          26
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           3           4           4
    73.10 New obligations...................          23          23          26
    73.20 Total outlays (gross).............         -22         -23         -26
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           4           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          20          20          23
    86.93 Outlays from current balances.....           2           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          22          23          26
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          23          23          26
    90.00 Outlays...........................          22          23          26
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................          23          23          26
      Outlays...........................          22          23          26
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 -16
      Outlays...........................                                 -16
                                        ------------------------------------
    Total:
      Budget Authority..................          23          23          10
      Outlays...........................          22          23          10
                                        ====================================

        The Grain Inspection, Packers and Stockyards Administration (GIPSA)
    establishes official United States standards for grain, promotes the
    uniform application thereof by official inspection personnel, provides
    for an official inspection system for grain, and regulates the weighing
    and certification of the weight of grain shipped in interstate or
    foreign commerce

    [[Page 152]]

    as authorized by the U.S. Grain Standards Act (USGSA), as amended, and
    the regulations thereof, and the Agricultural Marketing Act of 1946
    (AMA).

        Standardization activities include establishing and updating U.S.
    grain standards, research, and developing and improving methods to
    ensure the accurate and uniform application of the standards.

        The compliance activities ensure the accurate and uniform
    application of the USGSA and applicable provisions of the AMA. The
    compliance program functions include: (1) evaluating alleged violations
    and initiating preliminary investigations; (2) initiating the
    implementation of corrective actions; (3) conducting management and
    technical reviews; (4) administering the designations and delegations of
    State and private agencies to perform official functions and monitoring
    the performance of the agencies; (5) identifying and, where appropriate,
    waiving and monitoring conflicts of interest; (6) licensing personnel of
    delegated States and designated agencies; (7) registering persons/firms
    engaged in the business of buying grain for sale in foreign commerce,
    and in the business of handling, weighing, or transporting of grain for
    sale in foreign commerce; (8) responding to audits of Grain Inspection
    programs; and (9) reviewing and, when appropriate, approving official
    agencies' fee schedules.

        The International Monitoring Staff briefs foreign buyers, assesses
    foreign inspection and weighing techniques, and responds to foreign
    quality and quantity complaints.

        An advisory committee consisting of members from the grain industry
    exists to advise the Agency regarding efficient and economical
    implementation of the USGSA.

        The Grain Quality Improvement Act of 1986 was enacted on November
    10, 1986, to improve the quality of U.S. grain by prohibiting the
    introduction and reintroduction of dockage and foreign material to
    grain.

        For 1998, authorizing legislation will be submitted to permit,
    subject to appropriations, the collection and use of fees to cover the
    cost of standardization activities.

        The goal of the Packers and Stockyards program is to ensure the
    integrity of the livestock, meat, and poultry markets and the
    marketplace in order to protect producers against unfair, deceptive, or
    discriminatory practices as well as those that are predatory or
    monopolistic in nature. Consumers and members of the livestock, poultry,
    and meat industries are also protected against unfair business practices
    in the marketing of livestock, meat and poultry, and from restrictions
    on competition which could unduly affect prices. The Agency also carries
    out the Secretary's responsibilities under Section 1324 of the Food
    Security Act of 1985 covering ``central filing systems'' established by
    States for pre-notification of security interests against farm products.

        Authorizing legislation will be submitted that would establish a
    license fee that, subject to appropriations, would allow the collection
    and expenditure of funds for all costs associated with administering the
    Packers and Stockyards Act. Authorizing legislation will also be
    submitted to establish a Dealers Trust. This would require livestock
    inventories and accounts receivable due from the sale of livestock to be
    held in trust for unpaid cash sellers at a time of financial failure.

                              MAIN WORKLOAD FACTORS

                                         1996 actual  1997 est.   1998 est.
    U.S. standards in effect at end of
    year................................          19          19          19
    Standards reviews in progress.......           7           7           3
    Standards reviews completed.........           4           3           3
    Inspection techniques developed.....           8           2           2
    On-site investigations..............          10          12          14
    Designations renewed................          20          21          22
    Registration certificates issued....          87          90          90
    Investigations......................       2,265       2,000       1,900
    Market agencies/dealers registered..       6,988       6,950       6,900
    Stockyards posted...................       1,348       1,325       1,300
    Slaughtering and processing packers
    subject to the Act (estimated)......       6,000       6,000       6,000
    Distributors, brokers, and dealers
    subject to the Act (estimated)......       6,500       6,500       6,400
    Poultry operations subject to the
    Act.................................         224         225         225

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          14          14          15
    12.1  Civilian personnel benefits.......           3           3           3
    21.0  Travel and transportation of
            persons.........................           1           1           2
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           3           3           4
    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          23          23          26
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         318         351         374
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Standardization.................                                  -4
    00.04   Packers and Stockyards Program..                                 -15
    00.05   Start Up Costs..................                                   3
                                               ---------   ---------  ----------
    00.91     Total direct program..........                                 -16
    01.01 Reimbursable......................                                  19
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                   3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   3
    23.95 New obligations...................                                  -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................                                 -16
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                  19
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                   3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                   3
    73.20 Total outlays (gross).............                                  -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                 -16
    86.93 Outlays from current balances.....
    86.97 Outlays from new permanent
            authority.......................                                  19
    86.98 Outlays from permanent balances...
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                   3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                 -19
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -16
    90.00 Outlays...........................                                 -16
    ---------------------------------------------------------------------------

        Legislation will be proposed to establish a fee for the
    standardization activities of the Grain Inspection, Packers and

    [[Page 153]]

    Stockyards Administration, a licensing fee to cover the costs of
    administering meat packing and stockyard activities, and a statutory
    dealers trust.

        This is one of several proposals in the budget to charge fees to
    users directly availing themselves of, or subject to, a government
    service, program, or activity, in order to cover the government's costs.
    Legislation will be proposed to authorize the fees and, upon enactment
    of the authorization, a budget amendment to the current appropriations
    language will be proposed to make the fees available for expenditure.
    Because the current requirements of the Budget Enforcement Act of 1990
    make it difficult to fund discretionary programs with receipts that are
    not authorized in appropriations acts, the Administration is proposing a
    change in the requirements to facilitate the enactment of proposals such
    as this one.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                                  -8
    12.1    Civilian personnel benefits.....                                  -2
    21.0    Travel and transportation of
              persons.......................                                  -1
    23.3    Communications, utilities, and
              miscellaneous charges.........                                  -1
    25.2    Other services..................                                  -4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..                                 -16
    99.0  Reimbursable obligations..........                                  19
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                   3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                                -275
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                                 275
    ---------------------------------------------------------------------------

    Public enterprise funds:

                        Inspection and Weighing Services

             limitation on inspection and weighing service expenses

        Not to exceed [$43,207,000] $43,092,000 (from fees collected) shall
    be obligated during the current fiscal year for inspection and weighing
    services: Provided, That if grain export activities require additional
    supervision and oversight, or other uncontrollable factors occur, this
    limitation may be exceeded by up to 10 percent with notification to the
    Appropriations Committees. (7 U.S.C. 71, 74-79, 84-87, 1621-27;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          34          43          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....           6           3           3
    22.00 New budget authority (gross)......          31          43          43
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          37          46          46
    23.95 New obligations...................         -34         -43         -43
    24.90 Unobligated balance available, end
            of year: Fund balance...........           3           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          31          43          43
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.           3           2           2
    73.10 New obligations...................          34          43          43
    73.20 Total outlays (gross).............         -35         -43         -43
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          31          43          43
    86.98 Outlays from permanent balances...           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          43          43
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -31         -43         -43
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           4
    ---------------------------------------------------------------------------

        The Grain Inspection, Packers and Stockyards Administration (GIPSA)
    provides a uniform system for the inspection and weighing of grain.
    Services provided under this system are financed through a fee supported
    revolving fund. This authority has been extended through September 2000.

        Fee supported programs include direct services, supervision
    activities and administrative functions. Direct services include
    official grain inspection and weighing by GIPSA employees at certain
    export ports as well as the inspection of U.S. grain shipped through
    Canada. The Agency supervises the inspection and weighing activities
    performed by its own employees. The agency also oversees the inspection
    and weighing of grain performed by employees of 8 delegated States and
    57 designated State and private agencies. The Agency provides an appeal
    service of original grain inspections and a registration system for
    grain exporting firms. Through support from the Association of American
    Railroads and user fees, GIPSA conducts a railroad track scale testing
    program. In addition, the agency provides grading services, on request,
    for rice and grain related products under the authority of the
    Agricultural Marketing Act of 1946 (AMA).

                                         1996 actual  1997 est.   1998 est.
    Export grain inspected and/or
        weighed (million metric tons):
      By Federal personnel..............        89.9        90.0        91.2
      By delegated States...............        24.6        24.6        24.7
    Quantity of grain inspected (all
    official inspections) million metric
    tons................................       134.7       144.0       146.8
    Number of inspections and
        reinspections:
      By Federal personnel..............     158,055     165,000     172,000
      By delegated state/official agency
        licenses........................   2,149,516   2,235,000   2,328,000
    Number of appeals...................       6,800       6,800       6,800
    Number of appeals carried to the
    Board of Appeals and Review.........       1,006       1,000       1,000
    Quantity of rice inspected (million
    metric tons)........................         3.8         3.7         4.0
    Quantity of rice exports (million
    metric tons)........................         3.0         2.3         2.8

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4050-0-3-352    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          34             31            43             43
    0102  Expense...........................         -36            -34           -43            -43
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          -2             -3
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4050-0-3-352    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           5              1             2              3
    1206  Non-Federal assets: Receivables,
            net.............................           4              4             4              4
    1803  Other Federal assets: Property,
            plant and equipment, net........           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          10              6             7              8

    [[Page 154]]

        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................                          1             1              1
    2207    Other...........................           3              2             2              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           3              3             3              3
        NET POSITION:
    3100  Appropriated capital..............           2              8             2              2
    3300  Cumulative results of operations..           5             -5             2              3
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           7              3             4              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          10              6             7              8
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          17          22          22
    11.3    Other than full-time permanent..           1           1           1
    11.5    Other personnel compensation....           4           4           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          22          27          27
    12.1  Civilian personnel benefits.......           4           5           5
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............                       1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           4           7           7
    26.0  Supplies and materials............           1           1           1
    99.0  Subtotal, reimbursable obligations          33          43          43
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          34          43          43
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    2001  Full-time equivalent employment...         490         522         480
    2005  Full-time equivalent of overtime
            and holiday hours...............          99         125         125
    ---------------------------------------------------------------------------

                         AGRICULTURAL MARKETING SERVICE

                                  Federal Funds

    General and special funds:

                               Marketing Services

        For necessary expenses to carry on services related to consumer
    protection, agricultural marketing and distribution, transportation, and
    regulatory programs, as authorized by law, and for administration and
    coordination of payments to States; including field employment pursuant
    to section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to
    exceed $90,000 for employment under 5 U.S.C. 3109, [$38,507,000]
    $49,786,000, including funds for the wholesale market development
    program for the design and development of wholesale and farmer market
    facilities for the major metropolitan areas of the country: Provided,
    That this appropriation shall be available pursuant to law (7 U.S.C.
    2250) for the alteration and repair of buildings and improvements, but
    the cost of altering any one building during the fiscal year shall not
    exceed 10 percent of the current replacement value of the building.
        Fees may be collected for the cost of standardization activities, as
    established by regulation pursuant to law (31 U.S.C. 9701). (7 U.S.C.
    1291, 1621-27: 15 U.S.C. 714-714p: 21 U.S.C. 1031-56: 26 U.S.C. 6804,
    7233, 7263, 7492-93, 7701; 49 U.S.C. 1653.)

                      limitation on administrative expenses

        Not to exceed [$59,012,000] $59,521,000 (from fees collected) shall
    be obligated during the current fiscal year for administrative expenses:
    Provided, That if crop size is understated and/or other uncontrollable
    events occur, the agency may exceed this limitation by up to 10 percent
    with notification to the Appropriations Committees. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market news service.............          20          22          23
    00.02   Inspection and standardization..           6           7           6
    00.03   Market protection and promotion.          15           5          16
    00.04   Wholesale market development....           2           2           2
    00.05   Transportation services.........           3           3           3
                                               ---------   ---------  ----------
    00.91     Total direct program..........          46          39          50
          Capital investment:

    01.01   Reimbursable program............          47          59          60
    01.02   Reimbursable program............           3           4           4
                                               ---------   ---------  ----------
    01.91     Total capital investment......          50          63          64
                                               ---------   ---------  ----------
    10.00   Total obligations...............          96         102         114
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          34          39          39
    22.00 New budget authority (gross)......         102         102         113
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         135         141         152
    23.95 New obligations...................         -96        -102        -114
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          39          39          39
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          47          39          50
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          55          63          64
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         102         102         114
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          22          22          22
    73.10 New obligations...................          96         102         114
    73.20 Total outlays (gross).............         -96        -102        -108
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          22          22          28
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          37          39          44
    86.93 Outlays from current balances.....          10
    86.97 Outlays from new permanent
            authority.......................          49          63          64
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          96         102         108
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1          -2          -2
    88.40     Non-Federal sources...........         -54         -61         -62
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -55         -63         -64
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          47          39          50
    90.00 Outlays...........................          41          39          43
    ---------------------------------------------------------------------------

        Agricultural Marketing Service activities assist producers and
    handlers of agricultural commodities by providing a variety of marketing
    services. These services continue to become more complex as the volume
    of agricultural commodities increases, as a greater number of new
    processed commodities are developed, and as the agricultural market
    structure undergoes extensive changes. Marketing changes include
    increased concentration in food retailing, direct buying,
    decentralization of processing, growth of interregional competition,

    [[Page 155]]

    vertical integration, and contract farming. The individual activities
    include:

        Market news service.--The market news program provides the
    agricultural community with information pertaining to the movement of
    agricultural products. This nationwide service provides daily reports on
    the supply, demand, and price of nearly 700 commodities throughout the
    country.

        Inspection, grading and standardization.--Nationally uniform
    standards of quality for agricultural products are established and
    applied to specific lots of products to: promote confidence between
    buyers and sellers; reduce hazards in marketing due to misunderstandings
    and disputes arising from the use of nonstandard descriptions; and
    encourage better preparation of uniform quality products for market.
    Grading services are provided for cotton and domestic and imported
    tobacco.

        Quarterly inspection of egg handlers and hatcheries is conducted to
    ensure the proper disposition of shell eggs unfit for human consumption.

                               MARKET NEWS PROGRAM

                                         1996 actual  1997 est.   1998 est.
    Percentage of reports released on
    time................................          88          92          94

                       COTTON AND TOBACCO USER FEE PROGRAM

                                         1996 actual  1997 est.   1998 est.

    Cotton classed (samples in millions)        17.2        17.4        17.4
    Tobacco auction markets (million
    pounds).............................       1,342       1,593       1,593
    Imported tobacco inspected at
    markets and ports of entry (million
    pounds).............................         309         310         310

             FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

                                         1996 actual  1997 est.   1998 est.

    States and Commonwealths with
    cooperative agreements..............          50          49          49
    Percentage of inspection visits
    performed on time...................        99.7        99.7        99.7

                           STANDARDIZATION ACTIVITIES

                                         1996 actual  1997 est.   1998 est.
    International and U.S. standards in
    effect, end of fiscal year..........         423         426         426
    Number of commodities covered.......         234         234         234
    Standards revised...................          21          21          17

        Market protection and promotion.--This program consists of: (1) the
    research and promotion programs which are designed to improve the
    competitive position and expand markets for cotton, eggs and egg
    products, honey, pork, beef, dairy products, potatoes, watermelons,
    mushrooms, soybeans, fluid milk and fresh cut flowers and greens; (2)
    the Federal Seed Act; and (3) the administration of the Capper-Volstead
    Act and the Agricultural Fair Practices Act.

        Continuation of the fluid milk program was approved in referendum in
    February and March, 1996.

        The pesticide recordkeeping program monitors compliance of private
    certified applicators with Federal regulations requiring them to keep
    records of restricted pesticides used in agricultural production.

        The pesticide data program develops comprehensive, statistically
    defensible information on pesticide residues in food to improve
    government dietary risk procedures. In 1997, funding was transfered to
    the Enviromental Protection Agency. The 1998 budget proposes funding
    this program through the Department of Agriculture.

        Federal seed inspectors conduct tests on seed samples to help ensure
    truthful labeling of agricultural and vegetable seeds sold in interstate
    commerce.

        The Capper-Volstead Act and the Agricultural Fair Practices Act
    protect producers against discriminatory practices by handlers, permit
    producers to engage in cooperative efforts, and ensure that such
    cooperatives do not engage in practices that monopolize or restrain
    trade.

                   MARKET PROTECTION AND PROMOTION ACTIVITIES

                                         1996 actual  1997 est.   1998 est.
    Pesticide Data Program:
      Average number of samples tested
        per commodity...................         600           0         600
      Percentage of goal................         100           0         100
    Pesticide Recordkeeping:
      Number of State/Federal
        Inspections.....................       3,349       4,665       5,276
      Percentage of sampling goal
        attained........................         110          98          98
    Seed Act:
      Interstate investigations:
        Completed.......................         650         650         650
        Pending.........................         550         550         550
      Seed samples tested...............       2,950       2,850       3,000
      Percentage of cases submitted that
        are completed...................         100          92          92
    Plant Variety Protection Act:
      Number of applications received...         408         350         350
      Certificates of protection issued.         228         350         350
    Research and promotion collections
        (dollars in millions):
      Beef..............................        43.0        45.0        46.0
      Cotton............................        67.9        62.7        58.2
      Dairy--National...................        76.5        77.3        78.0
      Honey.............................         3.2         3.4         3.4
      Pork..............................        56.6        58.4        56.7
      Egg...............................        14.0        14.0        14.0
      Potato............................         8.4         7.8         8.1
      Watermelon........................         1.4         1.4         1.4
      Mushroom..........................         2.2         2.3         2.3
      Kiwifruit.........................         0.0         1.0         2.0
      Popcorn...........................         0.0         0.3         0.5
      Soybean...........................        38.8        38.0        36.0
      Fresh cut flowers and greens......        10.0        10.0        10.0
      Fluid Milk........................        25.0       100.0       100.0
      Percentage of board budgets and
        marketing plans approved within
        time frame goal.................          91          91          91

        Wholesale market development.--This program is designed to enhance
    the marketing of agricultural commodities in the United States by
    conducting research into more efficient marketing methods for
    agricultural commodities and by providing technical assistance to urban
    areas interested in improving their food distribution facilities.

        Transportation Services.--The activities are designed to ensure that
    the Nation's transportation systems will adequately serve the needs of
    agriculture and rural areas of the United States.

                     WHOLESALE MARKET DEVELOPMENT ACTIVITIES

                                         1996 actual  1997 est.   1998 est.

    Market studies initiated............          10          12          12
    Studies and projects completed......           7           9          12

                       TRANSPORTATION SERVICES ACTIVITIES

                                         1996 actual  1997 est.   1998 est.
    Number of reports produced..........           8           6           8
    Number of workshops sponsored.......           2           4           2

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          18          20          21
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          20          22          23
    12.1    Civilian personnel benefits.....           4           4           5
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    25.2    Other services..................          14           5          14
    25.3    Purchases of goods and services
              from Government accounts......           2           2           2
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          46          39          50
    99.0  Reimbursable obligations..........          50          63          64
                                               ---------   ---------  ----------
    99.9    Total obligations...............          96         102         114
    ---------------------------------------------------------------------------

    [[Page 156]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         474         478         503
    1005    Full-time equivalent of overtime
              and holiday hours.............           2           2           2
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.         762         835         767
    2005    Full-time equivalent of overtime
              and holiday hours.............          41          70          70
    ---------------------------------------------------------------------------

                       Payments to States and Possessions

        For payments to departments of agriculture, bureaus and departments
    of markets, and similar agencies for marketing activities under section
    204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1623(b)),
    $1,200,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2501-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1           1           1
    23.95 New obligations...................          -1          -1          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           1           1
    73.10 New obligations...................           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           1           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           1
    90.00 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        Grants are made on a matching fund basis to State departments of
    agriculture to carry out specifically approved programs designed to
    enhance marketing efficiency. Under this activity, specialists work with
    farmers, marketing firms, and other agencies in solving marketing
    problems and in using research results.

                  Perishable Agricultural Commodities Act Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Deposits of Perishable
            Agricultural Commodities Act
            fees............................          10           9           9
        Appropriation:
    05.01 Perishable Agricultural
            Commodities Act fund............         -10          -9          -9
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           7           7           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           2           5           7
    22.00 New budget authority (gross)......          10           9           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          12          14          16
    23.95 New obligations...................          -7          -7          -7
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           5           7           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................          10           9           9
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.           3
    73.10 New obligations...................           7           7           7
    73.20 Total outlays (gross).............         -10          -7          -7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           9           7           7
    86.98 Outlays from permanent balances...           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10           7           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10           9           9
    90.00 Outlays...........................          10           7           7
    ---------------------------------------------------------------------------

        License fees are deposited in this special fund and are used to meet
    the costs of administering the Perishable Agricultural Commodities and
    the Produce Agency Acts (7 U.S.C. 491-497, 499a-499s).

        The Acts are intended to ensure equitable treatment to farmers and
    others in the marketing of fresh and frozen fruits and vegetables.
    Commission merchants, dealers, and brokers handling these products in
    interstate and foreign commerce are licensed. Complaints of violations
    are investigated and violations dealt with by (a) informal agreements
    between the two parties, (b) formal decisions involving payment of
    reparation awards, and/or (c) suspension or revocation of license and/or
    publication of the facts. Beginning October 1, 1994, an additional fee
    was instituted for the filing of formal and informal complaints of
    violations of the Act. The November 1995 amendments to the Perishable
    Agricultural Commodities Act: (1) increase the license fee and phase out
    fees for wholesale grocers and retailers by 1999; (2) provide permanent
    authority to the Secretary of Agriculture to set license and reparation
    complaint filing fees; and repeal the 25 percent maximum funding reserve
    cap.

        A 1984 amendment to the Perishable Agricultural Commodities Act
    requires traders to have trust assets on hand to meet their obligations
    to fruit and vegetable suppliers. To preserve their trust and establish
    their rights ahead of other creditors, unpaid suppliers file notice with
    both the Department and their debtors that payment is due.

               PERISHABLE AGRICULTURAL COMMODITIES ACT ACTIVITIES

                                         1996 actual  1997 est.   1998 est.
    Percentage of informal reparation
    complaints completed within time
    frame goal..........................          86          86          86

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           5           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    25.3  Purchases of goods and services
            from Government accounts........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           7           7           7
    ---------------------------------------------------------------------------

    [[Page 157]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          97          97          97
    ---------------------------------------------------------------------------

        Funds for Strengthening Markets, Income, and Supply (Section 32)

                         (including transfers of funds)

        Funds available under section 32 of the Act of August 24, 1935 (7
    U.S.C. 612c) shall be used only for commodity program expenses as
    authorized therein, and other related operating expenses, except for:
    (1) transfers to the Department of Commerce as authorized by the Fish
    and Wildlife Act of August 8, 1956; (2) transfers otherwise provided in
    this Act; and (3) not more than [$10,576,000] $10,690,000 for
    formulation and administration of marketing agreements and orders
    pursuant to the Agricultural Marketing Agreement Act of 1937, as
    amended, and the Agricultural Act of 1961. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............       1,075         576         559
        Receipts:
    02.01 30% of customs duties, funds for
            strengthening markets, income
            and supply (section 32).........       5,732       5,906       5,687
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       6,807       6,482       6,246
        Appropriation:
    05.01 Funds for strengthening markets,
            income, and supply (section 32).      -6,264      -5,923      -5,678
    06.20 Reduction pursuant to Public Law
            104-134.........................           5
    07.99 Total balance, end of year........         576         559         568
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Commodity program payments:
    00.01     Child nutrition program
                purchases...................         399         400         400
    00.02     Emergency surplus removal.....          56          50
    00.03     Disaster Relief...............           1
    00.04     Sunflower and cottonseed oil
                subsidies...................          24
                                               ---------   ---------  ----------
    00.91     Subtotal, Commodity program
                payments....................         480         450         400
    01.01 Administrative expenses...........          16          17          17
                                               ---------   ---------  ----------
    01.92   Total direct program............         496         467         417
    02.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         497         468         418
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         235         300         256
    22.00 New budget authority (gross)......         589         424         462
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.30 Unobligated balance expiring......         -28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         797         724         718
    23.95 New obligations...................        -497        -468        -418
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         300         256         300
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................       6,264       5,923       5,678
    60.75 Procurement reduction pursuant to
            P.L. 104-134....................          -5
    61.00 Transferred to other accounts.....      -5,671      -5,500      -5,217
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........         588         423         461
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         589         424         462
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          18          63          63
    73.10 New obligations...................         497         468         418
    73.20 Total outlays (gross).............        -451        -468        -417
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          63          63          63
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         198         205          98
    86.98 Outlays from permanent balances...         253         263         319
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         451         468         417
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         588         423         461
    90.00 Outlays...........................         450         467         416
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................         588         423         461
      Outlays...........................         450         467         416
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................                                 -10
                                        ------------------------------------
    Total:
      Budget Authority..................         588         423         461
      Outlays...........................         450         467         406
                                        ====================================

        Under section 32 of the act of August 24, 1935, as amended (7 U.S.C.
    612c), an amount equal to 30 percent of customs receipts collected
    during each calendar year is automatically appropriated for expanding
    outlets for nonbasic commodities. An amount equal to 30 percent of
    receipts collected on fishery products is transferred to the Department
    of Commerce. Most of the funds are transferred to the Food and Consumer
    Service and are used to purchase commodities under section 6 of the
    National School Lunch Act and other authorities specified in the child
    nutrition appropriation. If unforeseen commodity surpluses should
    develop, unobligated reserve balances are available for surplus removal.

                               WORKLOAD INDICATORS

                                         1996 actual  1997 est.   1998 est.
    Administrative costs in constant
    dollars as a percentage of commodity
    purchases...........................         1.3         1.3         1.2

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           8           8           9
    12.1    Civilian personnel benefits.....           2           2           2
    22.0    Transportation of things:
              Commodities...................          10           9           8
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
            Other services:
    25.2      Administration................           2           2           2
    25.2      Storage of commodities........           3           3           3
    25.3    Purchases of goods and services
              from Government accounts......           2           2           2
    26.0    Supplies and materials: Grants
              of commodities to States......         467         438         389
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         495         465         416
    99.0  Reimbursable obligations..........           1           1           1
    99.5  Below reporting threshold.........           1           2           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         497         468         418
    ---------------------------------------------------------------------------

    [[Page 158]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         165         173         173
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          12          13          13
    ---------------------------------------------------------------------------

         Funds for Strengthening Markets, Income and Supply (Section 32)

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-4-2-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Administrative expenses...........                                 -10
    02.01 Unobligated balance, start of year                                  10
                                               ---------   ---------  ----------
    10.00   Total obligations...............
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  10
    23.95 New obligations...................
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....                                  10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                  10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    73.20 Total outlays (gross).............
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                 -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                                 -10
    ---------------------------------------------------------------------------

        Proposed legislation would finance the Federal Administration of
    Marketing Agreements and Orders on a user fee basis.

        This is one of several proposals in the budget to charge fees to
    users directly availing themselves of, or subject to, a government
    service, program, or activity, in order to cover the government's costs.
    Legislation will be proposed to authorize the fees and, upon enactment
    of the authorization, a budget amendment to the current appropriations
    language will be proposed to make the fees available for expenditure.
    Because the current requirements of the Budget Enforcement Act of 1990
    make it difficult to fund discretionary programs with receipts that are
    not authorized in appropriations acts, the Administration is proposing a
    change in the requirements to facilitate the enactment of proposals such
    as this one.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-4-2-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                                  -6
    12.1    Civilian personnel benefits.....                                  -1
    23.3    Communications, utilities, and
              miscellaneous charges.........                                  -1
    25.2    Other services..................                                  -1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..                                  -9
    99.0  Reimbursable obligations..........                                  10
    99.5  Below reporting threshold.........                                  -1
                                               ---------   ---------  ----------
    99.9    Total obligations...............
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5209-4-2-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                                -126
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                                 126
    ---------------------------------------------------------------------------

                                   Trust Funds

                            Miscellaneous Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                   2
        Receipts:
    02.01 Deposits of fees from inspection
            and grading of farm products....         102         105         105
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         102         105         107
        Appropriation:
    05.01 Miscellaneous trust funds.........        -102        -103        -103
    07.99 Total balance, end of year........                       2           4
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dairy products....................           6           5           5
    00.02 Fruits and vegetables.............          46          48          48
    00.03 Meat grading......................          20          20          20
    00.04 Poultry products..................          23          23          23
    00.05 Miscellaneous agricultural
            commodities.....................           7           7           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............         102         103         103
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          31          32          32
    22.00 New budget authority (gross)......         102         103         103
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         133         135         135
    23.95 New obligations...................        -102        -103        -103
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          32          32          32
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................         102         103         103
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.92 Unpaid obligations, start of year:
            Obligated balance: U.S.
            Securities: Unrealized discounts         -15         -19         -19
    73.10 New obligations...................         102         103         103
    73.20 Total outlays (gross).............        -106        -103        -103
    74.92 Unpaid obligations, end of year:
            Obligated balance: U.S.
            Securities: Unrealized discounts         -19         -19         -19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          90          90          90
    86.98 Outlays from permanent balances...          16          13          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         106         103         103
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         102         103         103
    90.00 Outlays...........................         106         103         103
    ---------------------------------------------------------------------------

        Expenses and refunds, inspection and grading of farm products.--The
    commodity grading programs provide grading, ex-

    [[Page 159]]

    amination, and certification services for a wide variety of fresh and
    processed food commodities using federally approved grade standards and
    purchase specifications. Commodities graded include poultry, livestock,
    meat, dairy products, and fresh and processed fruits and vegetables.
    These programs use official grade standards which reflect the relative
    quality of a particular food commodity based on laboratory testing and
    characteristics such as taste, color, weight, and physical condition.
    Producers voluntarily request grading and certification services which
    are provided on a fee for service basis.

                               WORKLOAD INDICATORS

                                         1996 actual  1997 est.   1998 est.
    Weighted average cost per cwt. (1992
    index)..............................       $0.37       $0.37       $0.36

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-9972-0-7-352    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          16             13            13             13
            Investments in US securities:
    1106      Receivables, net..............           5              3             3              3
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............          23             29            29             29
    1206    Receivables, net................          11              8             8              8
    1803  Other Federal assets: Property,
            plant and equipment, net........           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          56             54            54             54
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           4              2             2              2
    2207  Non-Federal liabilities: Unearned
            revenue (advances): Deposit
            funds...........................          12             11            11             11
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          16             13            13             13
        NET POSITION:
    3600  Other.............................          40             41            41             41
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          40             41            41             41
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          56             54            54             54
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          53          53          53
    11.3    Other than full-time permanent..           5           5           5
    11.5    Other personnel compensation....           7           8           8
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          65          66          66
    12.1  Civilian personnel benefits.......          15          15          15
    13.0  Benefits for former personnel.....           1           1           1
    21.0  Travel and transportation of
            persons.........................           6           5           5
    23.1  Rental payments to GSA............           1           1           1
    23.2  Rental payments to others.........           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           2           2
    25.2  Other services....................           6           6           6
    25.3  Purchases of goods and services
            from Government accounts........           3           3           3
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           1           1           1
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         102         103         103
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...       1,654       1,723       1,580
    1005  Full-time equivalent of overtime
            and holiday hours...............         142         139         139
    ---------------------------------------------------------------------------

                       Milk Market Orders Assessment Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administration....................          32          34          36
    00.02 Marketing service.................           5           5           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............          37          39          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

    21.90   Fund balance....................          20          19          19
    21.91   U.S. Securities: Par value......           6           6           6
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............          26          25          25
    22.00 New budget authority (gross)......          36          39          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          61          64          67
    23.95 New obligations...................         -37         -39         -42
          Unobligated balance available, end of year:

    24.90   Fund balance....................          19          19          19
    24.91   U.S. Securities: Par value......           6           6           6
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................          25          25          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          36          39          42
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          37          39          42
    73.20 Total outlays (gross).............         -36         -39         -42
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          35          38          41
    86.98 Outlays from permanent balances...           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          36          39          42
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -36         -39         -42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------
        Note.--The administration fund totals are comprised of 33 separate
    independent order accounts in 1996. The Marketing Service fund totals
    are comprised of 31 separate independent order accounts in 1996.

        The Secretary of Agriculture is authorized by the Agricultural
    Marketing Agreement Act of 1937, as amended--under certain conditions--
    to issue Federal milk marketing orders establishing minimum prices which
    handlers are required to pay for milk purchased from producers.

        Market administrators are appointed by the Secretary and are
    responsible for carrying out the terms of specific marketing orders.
    Their operating expenses, partly financed by assessments on regulated
    handlers and partly by deductions from producers, are reported in these
    schedules. These funds are collected locally, deposited in local banks,
    and disbursed directly by the market administrator.

        Expenses of local offices are met from an administrative fund and a
    marketing service fund, which are prescribed in each order. The
    administrative fund is derived from prorated handler assessments. The
    marketing service fund of the individual order disseminates market
    information to producers who are not members of a qualified cooperative.
    It also provides for the verification of the weights, sampling, and
    testing of milk from these producers. The cost of these services is
    borne by such producers.

        The maximum rates for administrative assessment and for marketing
    services are set forth in each order and adjustments below these rates
    are made from time to time upon recommendations by the market
    administrator and upon approval of the Agricultural Marketing Service to
    provide re-

    [[Page 160]]

    serves at about a 6-month operating level. Upon termination of any
    order, the statute provides for distributing the proceeds from net
    assets pro rata to contributing handlers or producers, as the case may
    be.

                               WORKLOAD INDICATORS

                                         1996 actual  1997 est.   1998 est.
    Percentage of informal rulemaking
    completed within internal timeframes         100          85          85
    Percentage of formal rulemaking
        completed within internal
        timeframes:
      Fruit & vegetable & Specialty Crop          87          85          85
      Fluid Milk Orders.................          88          85          85

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-8412-0-8-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0111  Revenue...........................          30             29            34             36
    0112  Expense...........................         -31            -32           -34            -36
                                            ------------ --------------  ------------  -------------
    0119  Net loss..........................          -1             -3
    0121  Revenue...........................           7              7             5              6
    0122  Expense...........................          -6             -5            -5             -6
                                            ------------ --------------  ------------  -------------
    0129  Net income or loss (-)............           1              2
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................          37             36            39             42
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................         -37            -37           -39            -42
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................                         -1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-8412-0-8-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Treasury
              securities, par...............           6              6             6              6
    1206  Non-Federal assets: Receivables,
            net.............................           3              3             3              3
          Other Federal assets:

    1801    Cash and other monetary assets..          17             17            17             17
    1803    Property, plant and equipment,
              net...........................           4              4             4              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          30             30            30             30
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable.........................           1              1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             1              1
        NET POSITION:
    3200  Invested capital..................          29             29            29             29
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          29             29            29             29
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          30             30            30             30
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          23          25          26
    12.1  Civilian personnel benefits.......           5           5           5
    21.0  Travel and transportation of
            persons.........................           2           2           3
    23.2  Rental payments to others.........           2           3           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           1           1           1
    99.0  Subtotal, reimbursable obligations          36          39          41
    99.5  Below reporting threshold.........           1                       1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          37          39          42
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    2001  Full-time equivalent employment...         480         487         447
    2005  Full-time equivalent of overtime
            and holiday hours...............           1           1           1
    ---------------------------------------------------------------------------

     [OFFICE OF] RISK MANAGEMENT AGENCY (FEDERAL CROP INSURANCE CORPORATION)

                                  Federal Funds

    General and special funds:

                      Administrative and Operating Expenses

        For administrative and operating expenses, as authorized by the
    Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 6933),
    [$64,000,000] $68,465,000: Provided, That not to exceed $700 shall be
    available for official reception and representation expenses, as
    authorized by 7 U.S.C. 1506(i). In addition, for sales commissions of
    agents, as authorized by section 516 (7 U.S.C. 1516), $202,571,000.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of Administrator...........                       1           1
    00.02 Research and Development..........                      39          40
    00.03 Insurance Services................                      15          17
    00.04 Program Support...................                       2           2
    00.05 Risk Compliance...................                       7           8
    00.06 Sales Commissions.................                                 203
                                               ---------   ---------  ----------
    10.00   Total obligations...............                      64         271
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      64         271
    23.95 New obligations...................                     -64        -271
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                      64         271
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          33           4           8
    73.10 New obligations...................                      64         271
    73.20 Total outlays (gross).............          -9         -60        -181
    73.40 Adjustments in expired accounts...         -20
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           4           8          98
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                      56         173
    86.93 Outlays from current balances.....           9           4           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9          60         181
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      64         271
    90.00 Outlays...........................           9          60         181
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................                      64         271
      Outlays...........................           9          60         181
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 -53
      Outlays...........................                                 -34
                                        ------------------------------------
    Total:
      Budget Authority..................                      64         218
      Outlays...........................           9          60         147
                                        ====================================

        This appropriation finances the administrative and operating
    expenses of the Risk Management Agency (RMA), which provides crop
    insurance to farmers. In 1996, due to the reorganization of USDA, a
    consolidated appropriation account was established for all FSA
    administrative expenses that included FCIC activities administered by
    FSA. The 1996 Farm Bill separated FCIC from FSA and established RMA as
    an independent agency. In 1997, a separate account for RMA/FCIC
    administrative and operating expenses was established consistent with
    the Farm Bill as reflected in these schedules.

    [[Page 161]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                      25          28
    11.3    Other than full-time permanent..                       2           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                      27          31
    12.1  Civilian personnel benefits.......                       6           7
    21.0  Travel and transportation of
            persons.........................                       2           2
    23.2  Rental payments to others.........                       1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........                       4           4
    25.2  Other services....................                      21         223
    26.0  Supplies and materials............                       1           1
    31.0  Equipment.........................                       2           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............                      64         271
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...                     580         623
    1005  Full-time equivalent of overtime
            and holiday hours...............                       3           3
    ---------------------------------------------------------------------------

                      Administrative and Operating Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-2-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.06 Sales Commissions.................                                 -53
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................                                 -53
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -53
    23.95 New obligations...................                                  53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 -53
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 -53
    73.20 Total outlays (gross).............                                  34
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                 -19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                 -34
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -53
    90.00 Outlays...........................                                 -34
    ---------------------------------------------------------------------------

        This schedule reflects proposed legislation to amend the Federal
    Crop Insurance (FCIC) Act to reduce the rate used to reimburse approved
    private-sector insurance providers and agents for the administrative and
    operating cost. The proposal would lower the reimbursement rate from 28
    percent of premiums sold for multiple-peril crop insurance in 1998 to
    24.50 percent. In addition, the proposal would specify that 10.5
    percentage points of the proposed rate would be subject to
    appropriations (the remainder is paid through the mandatory Crop
    Insurance Fund).

                                  CORPORATIONS

        The following corporations and agencies are hereby authorized to
    make expenditures, within the limits of funds and borrowing authority
    available to each such corporation or agency and in accord with law, and
    to make contracts and commitments without regard to fiscal year
    limitations as provided by section 104 of the Government Corporation
    Control Act, as amended, as may be necessary in carrying out the
    programs set forth in the budget for the current fiscal year for such
    corporation or agency, except as hereinafter provided. (Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

    Public enterprise funds:

                     Federal Crop Insurance Corporation Fund

        For payments as authorized by section 516 of the Federal Crop
    Insurance Act, as amended, such sums as may be necessary, to remain
    available until expended (7 U.S.C. 2209b). (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Delivery expenses.................         492         495         268
    01.01 Indemnities.......................       1,835       2,088       2,100
                                               ---------   ---------  ----------
    10.00   Total obligations...............       2,327       2,583       2,368
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....         216         971         569
    22.00 New budget authority (gross)......       2,291       2,558       2,368
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         791        -377
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,298       3,152       2,937
    23.95 New obligations...................      -2,327      -2,583      -2,368
    24.90 Unobligated balance available, end
            of year: Fund balance...........         971         569         569
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       1,650       1,785       1,584
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         641         773         784
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,291       2,558       2,368
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       1,800         936       1,394
    73.10 New obligations...................       2,327       2,583       2,368
    73.20 Total outlays (gross).............      -2,401      -2,502      -2,459
    73.45 Adjustments in unexpired accounts.        -791         377
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         936       1,394       1,303
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         784         757         621
    86.93 Outlays from current balances.....         891       1,059       1,061
    86.97 Outlays from new permanent
            authority.......................         509         270         274
    86.98 Outlays from permanent balances...         217         416         503
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,401       2,502       2,459
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -641        -773        -784
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,650       1,785       1,584
    90.00 Outlays...........................       1,760       1,729       1,675
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................       1,650       1,785       1,584
      Outlays...........................       1,760       1,729       1,675
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                  26
      Outlays...........................                                   4
                                        ------------------------------------

    [[Page 162]]

    Total:
      Budget Authority..................       1,650       1,785       1,610
      Outlays...........................       1,760       1,729       1,679
                                        ====================================
                                                                  ----------

        The Federal Crop Insurance Corporation (FCIC) is a wholly-owned
    government Corporation that provides crop insurance to crop producers
    against losses due to unavoidable causes and/or uncontrollable events.
    The Federal Crop Insurance Reform Act of 1994 (Reform Act) made
    significant changes in the program to provide more of the Nation's
    farmers with an on-going source of risk protection and to reduce the
    need for ad hoc disaster payment assistance.

        The Reform Act established a link between catastrophic crop
    insurance (CAT) and other farm programs by requiring producers to carry
    CAT for each insurable crop of economic significance in order to
    participate in other farm programs. The premium for this type of
    coverage is subsidized by the Federal Government with the only cost to
    farmers being a small annual processing fee. This basic level of
    coverage compensates producers for losses greater than 50 percent of the
    normal yield at 60 percent of the expected price.

        The Federal Agriculture Improvement and Reform Act of 1996 (1996
    Farm Bill) made further changes in the crop insurance program by
    mandating further expansion of the revenue insurance program. It also
    provided for the development of educational programs on risk management
    techniques which will enable farmers to improve their farming operations
    and production capabilities. Under the 1996 Farm Bill, farmers are no
    longer required to obtain catastrophic insurance to participate in other
    Federal farm programs.

        Additional protection at higher levels of coverage will continue to
    be offered. Coverage levels will be subsidized to the extent of the
    premium on at least the catastrophic level of coverage and the delivery
    costs.

        The Noninsured Assistance Program, which provides coverage
    equivalent to the catastrophic risk protection in areas where
    catastrophic risk protection is not available on specific crops which
    are produced for food or fiber, will now be administered by the Farm
    Service Agency.

        The 1996 appropriation provided sufficient funding for crop year
    1996 to insure 202.4 million acres with an estimated $1,840.0 million in
    total premium income, including $554.6 million in premium subsidy.

        The Corporation's budget is presented in accordance with generally
    accepted accounting principles, the Financial Accounting Standards Board
    (FASB) Statement No. 60, ``Accounting and Reporting by Insurance
    Enterprises,'' and Statement No. 5, ``Accounting for Contingencies.''

        The following table compares the scope of the insurance operations
    planned for 1997. Amounts in the 1995 column are as of September 30,
    1995, and pertain to the 1995 crop year.

                                            1996        1997        1998
                                          crop year   crop year   crop year
                                           actual     estimate    estimate
    Number of States....................          50          50          50
    Number of counties..................       3,022       3,022       3,022
    Insurance in force (millions).......      26,619      26,721      26,656
    Insured acreage (millions)..........         202         202         203
                                        ====================================
    Producer premium (millions)\1\......         862         899         909
    Premium subsidy (millions)\1\.......         978         981       1,005
                                        ------------------------------------
          Total premium (millions)\1\...       1,840       1,880       1,914
                                        ====================================
    Indemnities (million)\1\............       1,840       2,068       2,106
    Loss ratio..........................        1.00        1.10        1.10

        \1\ Includes amounts that will appear on the books of the reinsured
    companies. The Corporation records will only reflect the net reinsurance
    income and net reinsurance loss.

        Financing.--The Corporation is authorized under the Federal Crop
    Insurance Act, as amended, to use funds from the issuance of capital
    stock which provides working capital for the Corporation.

        Receipts, which are for deposit to this fund, come mainly from
    premiums paid by farmers. The principal payments from this fund are for
    indemnities to insured farmers, and administrative expenses for approved
    insurance providers.

        Premium subsidies are authorized by section 508(b) of the Federal
    Crop Insurance Act, as amended, and are received through appropriations.

                               PREMIUM AND SUBSIDY

                            [In millions of dollars]

                                            1996         1997        1998
                                         fiscal year fiscal year fiscal year
                                           actual      estimate    estimate
    Premiums:
      Producer premium..................         827         893         908
      Amount of subsidies...............         944         981       1,001
        Additional coverage.............         730         823         851
        Catastrophic coverage...........         214         158         150
                                        ------------------------------------
          Total premiums................       1,771       1,874       1,909
                                        ====================================
    Indemnities.........................       1,835       2,088       2,100
        Additional coverage.............       1,815       1,888       1,935
        Catastrophic coverage...........          20         200         165

        For crop years 1948 through 1995, indemnities ($14,383.0 million)
    exceeded premium income ($10,957.3 million) by $3,425.7 million; the
    loss ratio for the period was 1.31.

        The following table summarizes the insurance operations for fiscal
    years 1996, 1997 and 1998:

                 NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                            [In millions of dollars]

                                         1996 fiscal 1997 fiscal 1998 fiscal
                                            year        year        year
                                           actual     estimate    estimate
    Premiums over indemnities...........      -1,008      -1,195      -1,193
    Interest expense, net...............          -1           0           0
    Delivery expenses...................        -493        -490        -257
    Other income or expense, net (-)....          -1           0           0
    Reinsurance underwriting gain (+) or
    loss (-)............................        -176        -121        -124
    Research and Development start up
    expense.............................          -6          -5         -10
                                        ------------------------------------
    Net income or loss (-)..............      -1,685      -1,811      -1,584
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4085-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         685            641           773            784
    0102  Expense...........................      -2,848         -2,326        -2,584         -2,368
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............      -2,163         -1,685        -1,811         -1,584
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................      -2,163         -1,685        -1,811         -1,584
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4085-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       2,136          2,114         1,708          1,708
    1206  Non-Federal assets: Receivables,
            net.............................         571            735           700            700
    1803  Other Federal assets: Property,
            plant and equipment, net........           2              1             2              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,709          2,850         2,410          2,410
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           3              1             5              5
    2105    Other...........................         183            186           150            150
          Non-Federal liabilities:

    2201    Accounts payable................         221            220           200            200
    2207    Other...........................       1,617          1,632         1,262          1,262
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,024          2,039         1,617          1,617

    [[Page 163]]

        NET POSITION:
    3100  Appropriated capital..............           8              2            10             10
    3200  Invested capital..................           2              1             2              2
    3300  Cumulative results of operations..      -3,815         -3,682        -5,493         -7,077
    3500  Future funding requirements.......          -6             -6            -7             -7
    3600  Other.............................       4,496          4,496         6,281          7,865
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         685            811           793            793
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,709          2,850         2,410          2,410
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.2    Other services..................         492         495         268
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         492         495         268
          Reimbursable obligations:

            Insurance claims and
                indemnities:
    42.0      Insurance claims and
                indemnities (catastrophic)..          20         200         165
    42.0      Insurance claims and
                indemnities (reinsured).....       1,815       1,888       1,935
    99.0  Subtotal, reimbursable obligations       1,835       2,088       2,100
                                               ---------   ---------  ----------
    99.9    Total obligations...............       2,327       2,583       2,368
    ---------------------------------------------------------------------------

                     Federal Crop Insurance Corporation Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-4-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Delivery expenses.................                                  10
    01.01 Indemnities.......................                                  47
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                  57
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  57
    23.95 New obligations...................                                 -57
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................                                  26
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                  31
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                  57
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  57
    73.20 Total outlays (gross).............                                 -35
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                  22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  16
    86.97 Outlays from new permanent
            authority.......................                                  19
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                  35
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                 -31
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  26
    90.00 Outlays...........................                                   4
    ---------------------------------------------------------------------------

        This schedule reflects a key part of the Administration's proposal
    to reinforce the farm income ``safety net.'' Legislation to amend the
    Federal Crop Insurance (FCIC) Act would allow the Corporation to offer
    revenue insurance products on a nationwide basis. The FCIC Act currently
    provides for either individual or area yield-based insurance, such as
    traditional multiple peril crop insurance or the Group Risk Plan.
    Authority to offer other plans of insurance, such as revenue insurance,
    is currently limited to pilot programs or private company submissions
    under section 508(h) of the Act. This proposal would give the
    Corporation the flexibility either to develop and administer programs
    itself or to act as a facilitator for programs developed by the private
    sector. In addition, the expected loss ratio of the Corporation would be
    adjusted to a more actuarially-sound level.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-4-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                  10
    42.0  Insurance claims and indemnities..                                  47
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                  57
    ---------------------------------------------------------------------------

                               FARM SERVICE AGENCY

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                         (including transfers of funds)

        For necessary expenses for carrying out the administration and
    implementation of programs administered by the Farm Service Agency,
    [$746,440,000] $742,789,000: Provided, That the Secretary is authorized
    to use the services, facilities, and authorities (but not the funds) of
    the Commodity Credit Corporation to make program payments for all
    programs administered by the Agency: Provided further, That other funds
    made available to the Agency for authorized activities may be advanced
    to and merged with this account: Provided further, That these funds
    shall be available for employment pursuant to the second sentence of
    section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to
    exceed $1,000,000 shall be available for employment under 5 U.S.C. 3109.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Program formulation and appraisal.          36          29          27
    00.02 Inventory management and
            merchandising...................          22          20          19
    00.03 Warehouse examination.............           7           9           9
    00.04 Operation of supply adjustment,
            conservation and farm income
            programs........................         718         680         676
    00.05 Crop Loss Protection..............         100          43          44
    00.06 Farm credit activities
            (reimbursable)..................         208         208         210
    00.07 Other reimbursable activities.....          53          53          54
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,144       1,042       1,039
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,093       1,042       1,039
    22.22 Unobligated balance transferred
            from other accounts.............          52
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,145       1,042       1,039
    23.95 New obligations...................      -1,144      -1,042      -1,039
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         795         746         743
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         298         296         296
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,093       1,042       1,039
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                     151         133
    73.10 New obligations...................       1,144       1,042       1,039
    73.20 Total outlays (gross).............        -993      -1,060      -1,039
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         151         133         133
    ----------------------------------------------------------------------------

    [[Page 164]]

        Outlays (gross), detail:
    86.90 Outlays from new current authority         695         613         610
    86.93 Outlays from current balances.....                     151         133
    86.97 Outlays from new permanent
            authority.......................         298         296         296
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         993       1,060       1,039
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -264        -272        -274
    88.40     Non-Federal sources...........         -34         -24         -22
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -298        -296        -296
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         795         746         743
    90.00 Outlays...........................         695         764         743
    ---------------------------------------------------------------------------

        The Farm Service Agency (FSA) administers a variety of activities,
    such as farm income support programs through various loans and payments;
    the Conservation Reserve Program (CRP) and the Emergency Conservation
    Program; the warehouse examination function; farm ownership, farm
    operating, emergency disaster, and other loan programs; price support
    and production control programs for tobacco and peanuts; and the
    Noninsured Crop Disaster Assistance Program (NAP), which provides crop
    loss protection for growers of many crops for which crop insurance is
    not available. The Agency also assists in the administration of several
    conservation cost-share programs financed by the Commodity Credit
    Corporation (CCC), including the Environmental Quality Incentives
    Program (EQIP). In addition, FSA provides certain administrative support
    services to the Foreign Agricultural Service (FAS) and to the Risk
    Management Agency (RMA).

         This consolidated administrative expenses account includes funds to
    cover expenses of programs administered by, and functions assigned to,
    the Agency. The funds consist of a direct appropriation, transfers from
    program loan accounts under credit reform procedures, user fees, and
    advances and reimbursements from other sources. This is a consolidated
    account for administrative expenses of national, regional, State, and
    county offices.

        The Department of Agriculture Reorganization Act of 1994 was amended
    on April 4, 1996, by the Federal Agriculture Improvement and Reform Act
    of 1996 (the 1996 Act), P.L. 104-127. The 1996 Act required the
    Secretary to establish an independent Office of Risk Management to
    supervise the Federal Crop Insurance Corporation activities. The
    official transfer of the risk management functions, personnel, property,
    and funds from FSA to the newly established Risk Management Agency was
    completed by October 1, 1996.

        Program formulation and appraisal.--The supply adjustment,
    conservation, and farm income support programs, and the management and
    merchandising of commodities acquired under the support program, have a
    significant impact on the national and (to a lesser extent) the
    international economy. This activity provides for the review and
    analysis of the effectiveness of these programs.

        Inventory management and merchandising.--This activity includes: (a)
    overall management of CCC-owned commodities; (b) purchasing commodities;
    (c) donating commodities; (d) selling commodities; and (e) accounting
    for loans and commodities.

        Warehouse examination.--This activity provides for the examination
    of warehouses licensed under the U.S. Warehouse Act and non-licensed
    warehouses storing CCC-owned or pledged commodities. Examiners perform
    periodic examinations of the facilities and the warehouse records to
    ensure protection of depositors against potential losses of the stored
    commodities and to ensure compliance with the U.S. Warehouse Act and any
    CCC storage agreements.

        Operation of supply adjustment, conservation and farm income
    programs.--This activity includes all functions dealing with the
    administration of programs carried out through the farmer committee
    system of the FSA, including: (a) developing program regulations and
    procedures; (b) collecting and compiling basic data for individual
    farms; (c) establishing individual farm allotments for tobacco and
    peanuts and farm planting histories; (d) notifying producers of
    established allotments and farm planting histories; (e) determining farm
    marketing quotas for tobacco and peanuts; (f) conducting referendums and
    certifying results; (g) accepting farmer certifications and checking
    compliance for specific purposes; (h) issuing marketing cards so that
    production from allotted acreage can be marketed without penalty; (i)
    processing producer requests for conservation cost-sharing and issuing
    conservation reserve rental payments; (j) issuing checks for other
    conservation programs; (k) processing commodity loan documents and
    issuing checks; (l) processing production flexibility contract payments
    and issuing checks; and (m) certifying payment eligibility and
    monitoring payment limitations.

        Crop Loss Protection.--This activity includes administration of the
    Noninsured Crop Disaster Assistance Program (NAP) and delivery of
    catastrophic crop insurance protection (CAT) for RMA in States where a
    dual delivery system is in operation. The activities include developing
    NAP program regulations and procedures; accepting producer crop and
    production evidence for both CAT and NAP; accepting CAT service fees;
    processing producer requests for NAP assistance; providing documentation
    for NAP disaster area designations; and processing NAP payments and
    issuing indemnity checks.

        Farm Credit Activities (Reimbursable).--Provides for administering
    the direct and guaranteed loan programs covered under the Agricultural
    Credit Insurance Fund (ACIF). Activities include reviewing applications,
    servicing the loan portfolio, and providing technical assistance and
    guidance to borrowers. These administrative expenses are transferred to
    this consolidated account from the ACIF. Appropriations representing
    subsidy amounts necessary to support the individual program loan levels
    under Federal Credit Reform are made to the ACIF account.

        Other Reimbursable Activities.--FSA collects a fee or is reimbursed
    for performing a variety of services for other Federal agencies and
    others, including certain administrative support services for the Risk
    Management Agency and the Foreign Agricultural Service, and for county
    office services provided to Federal and non-Federal entities, including
    a variety of services to producers.

        The budget assumes a consolidation of certain functions of the Farm
    Service Agency (FSA) and the Natural Resources Conservation Service
    (NRCS) at the national headquarters level in 1998, including personnel,
    IRM, property and public affairs. The consolidation will foster
    operational efficiencies, as well as improved inter-agency communication
    and coordination. In addition, the number of field office service
    centers would be reduced from 2,500 to a maximum of 2,000 by the end of
    1999.

        A study will be conducted in 1997 by an independent entity to
    examine the FSA and NRCS for opportunities for further coordinating and
    reducing costs in these agencies, including alternative means of program
    delivery, such as centralized servicing for AMTA payments and CCC non-
    recourse loans, and consolidation of the two agencies' operations.

        USDA will coordinate and significantly reduce the paperwork burden
    of information collections required by the FSA,

    [[Page 165]]

    NRCS, and crop insurance activities and programs. This will similarly
    reduce the administrative burden of these agencies. The initiative
    should improve customer service and program performance by critically
    evaluating current regulations and information collections to improve
    information sharing between USDA components and the private sector,
    reduce duplication and inconsistencies, and better accomplish
    performance goals.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         136         110         105
    11.3      Other than full-time permanent          10           9           9
    11.5      Other personnel compensation..           2           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         148         123         118
    12.1    Civilian personnel benefits.....          33          28          29
    13.0    Benefits for former personnel...                       8           5
    21.0    Travel and transportation of
              persons.......................           6           5           6
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           6           6           6
    23.3    Communications, utilities, and
              miscellaneous charges.........          12          16          16
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................          31          23          24
    26.0    Supplies and materials..........           5           5           5
    31.0    Equipment.......................           2           2           2
    41.0    Grants, subsidies, and
              contributions.................         600         527         529
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         846         746         743
    99.0  Reimbursable obligations..........         298         296         296
                                               ---------   ---------  ----------
    99.9    Total obligations...............       1,144       1,042       1,039
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       3,269       2,545       2,341
    1005    Full-time equivalent of overtime
              and holiday hours.............          25          28          28
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.       3,548       3,601       3,536
    2005    Full-time equivalent of overtime
              and holiday hours.............           3           3           3
    ---------------------------------------------------------------------------

                          Conservation Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3319-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cost-sharing assistance...........           1
    00.02 Annual rental payments............       1,721          -4          -4
    00.04 Technical assistance..............           3          95          24
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,725          91          20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         122         111          20
    22.00 New budget authority (gross)......       1,782
    22.21 Unobligated balance transferred to
            other accounts..................         -68
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,836         111          20
    23.95 New obligations...................      -1,725         -91         -20
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         111          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       1,782
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           5                       7
    73.10 New obligations...................       1,725          91          20
    73.20 Total outlays (gross).............      -1,730         -84         -27
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                       7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,671
    86.93 Outlays from current balances.....          59          84          27
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,730          84          27
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,782
    90.00 Outlays...........................       1,730          84          27
    ---------------------------------------------------------------------------

                RECONCILIATION OF PROGRAM LEVEL TO APPROPRIATION

                            [In millions of dollars]

                                         1996 actual  1997 est.   1998 est.
    Annual rental payments..............       1,721          -4          -4
    Cost-sharing assistance.............           1
    Technical assistance................           3          95          24
                                        ------------------------------------
          Total program level, current
            year........................       1,725          91          20
                                        ====================================
    Add:
      Funds transferred to other
        accounts........................         +64
      Change in unobligated balances....         -11         -91         -20
                                        ------------------------------------
    Appropriation, net..................       1,782
                                        ====================================

        The Conservation Reserve Program (CRP) was mandated by sections
    1231-1244 of the Food Security Act of 1985 (Public Law 99-198), as
    amended by sections 1411-1499 of the Food, Agriculture, Conservation,
    and Trade Act of 1990 (Public Law 101-624), and the Omnibus Budget
    Reconciliation Act of 1993 (P.L. 103-66), to establish permanent cover
    on highly erodible cropland and on cropland posing environmental
    threats. The primary objectives of the CRP are to help farmers control
    critical soil erosion that occurs on about a third of America's highly
    erodible and environmentally sensitive cropland, to decrease production
    of some surplus agricultural commodities, and to increase wildlife
    habitat and water quality primarily in agricultural regions.

        The Federal Agriculture Improvement and Reform Act of 1996 (the 1996
    Act), enacted April 4, 1996, retains the CRP as part of the
    Environmental Conservation Acreage Reserve Program (ECARP) but changed
    the funding source from direct appropriation to the Commodity Credit
    Corporation. Only very minimal CCC funds were used for program
    operations in 1996 since annual rental payments had been made very early
    in the fiscal year using CRP appropriated funds.

        The CRP is authorized in all 50 States, Puerto Rico, and the Virgin
    Islands, on all highly erodible cropland, other environmentally
    sensitive cropland, and certain marginal pastureland meeting the
    eligibility criteria. In addition to cropland in areas adjacent to lakes
    and streams that can be devoted to filter strips, and cropland subject
    to overflow and suffering from scour erosion, eligible land may include
    shelterbelts, windbreaks, cropland contributing to water quality
    problems, and other lands posing environmental threats. Also eligible
    for the CRP are water quality or wildlife habitat impaired areas that do
    not meet the highly erodible land (HEL) criteria, such as the Chesapeake
    Bay, Great Lakes, and Long Island Sound watershed regions.

        The program is administered through the Commodity Credit Corporation
    (CCC) by State and local committees working under the general direction
    of the Secretary.

        In fiscal year 1996, a continuous signup began in September and is
    scheduled to be available indefinitely. The purpose of the continuous
    signup is to provide management flexibility to farmers and ranchers to
    implement certain high priority environmental practices, such as filter
    strips, riparian buffers, windbreaks, grassed waterways, or shallow
    water areas for wildlife on small acreages. There is not a competitive
    bidding

    [[Page 166]]

    process, and land can be immediately accepted once it has been
    determined that it is basically eligible.

        A participant who entered into a contract before January 1, 1995,
    may terminate the contract at any time if the contract has been in
    effect for at least 5 years. This termination is subject to a 60-day
    notice to USDA. However, CRP acres with filter strips, grass waterways,
    riparian areas, windbreaks, shelterbelts, acres having an erodibility
    index greater than 15, wetlands, and other lands with high environmental
    benefits as determined by the Secretary are ineligible for early
    withdrawal. Producers will receive prorated rental payments for
    contracts that are withdrawn before the end of the fiscal year. The 1996
    Act further stipulates that early withdrawal of a CRP contract shall not
    affect the ability of the owner or operator to submit a bid to re-enroll
    the land in the CRP at a future date.

        CRP program payments for fiscal years 1997 and 1998 are included
    under the Commodity Credit Corporation account.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3319-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3          95          24
    41.0  Grants, subsidies, and
            contributions...................       1,722          -4          -4
                                               ---------   ---------  ----------
    99.9    Total obligations...............       1,725          91          20
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3300-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          52           8
    73.20 Total outlays (gross).............         -44          -8
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          44           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          44           8
    ---------------------------------------------------------------------------

        Prior to the reorganization of USDA, Congress provided a separate
    1995 appropriation for Agricultural Stabilization and Conservation
    Service (ASCS) administrative expenses. For 1996, a consolidated
    appropriation account was enacted for all FSA administrative expenses,
    which include the activities of the former ASCS now administered by the
    FSA. The schedule shown here reflects adjustments to the 1995 ASCS
    account.

                        Agricultural Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3315-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         104
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          31           2           2
    22.00 New budget authority (gross)......          75
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         106           2           2
    23.95 New obligations...................        -104
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          75
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         158         161          61
    73.10 New obligations...................         104
    73.20 Total outlays (gross).............        -101        -100         -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         161          61          32
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          21
    86.93 Outlays from current balances.....          80         100          29
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         101         100          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          75
    90.00 Outlays...........................         101         100          29
    ---------------------------------------------------------------------------

        This program was terminated at the beginning of 1997 in accordance
    with the Federal Agriculture Improvement and Reform Act of 1996.

        The primary objectives of the program were to conserve soil and
    water resources. Along with annual agreements, cost sharing was
    authorized for long-term agreements of 3-10 years.

        The program is administered by county committees, with review and
    approval by State committees and the Secretary. Technical assistance is
    provided by the Natural Resources Conservation Service and by the Forest
    Service.

        The 1996 program level of $75 million was allocated to States based
    on the highest priority soil and water resource problems and treated 2.9
    million acres. Practices prevented approximately 12 million tons of soil
    erosion and saved 340,879 acre-feet of water.

                             State Mediation Grants

        For grants pursuant to section 502(b) of the Agricultural Credit Act
    of 1987, as amended (7 U.S.C. 5101-5106), [$2,000,000] $4,000,000.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0170-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           2           2           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2           2           4
    23.95 New obligations...................          -2          -2          -4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           2           2           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           2           2           2
    73.10 New obligations...................           2           2           4
    73.20 Total outlays (gross).............          -2          -2          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           2           2           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           2
    86.93 Outlays from current balances.....           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           2           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           2           4

    [[Page 167]]

    90.00 Outlays...........................           2           2           3
    ---------------------------------------------------------------------------

        This grant program is authorized by Title V of the Agricultural
    Credit Act of 1987, P.L. 100-233, as amended. Grants are made to States
    whose agricultural mediation programs have been certified by the Farm
    Service Agency. A grant will not exceed 70 percent of the total fiscal
    year funds that a qualifying State requires to operate and administer
    its agricultural loan mediation program. In no case will the total
    amount of a grant exceed $500,000 annually.

                                GRANT OBLIGATIONS

                                         1996 actual  1997 est.   1998 est.
    Number of grants....................          16          21          25
    Amount of grants (in millions of
    dollars)............................           2           2           4

                        [Emergency Conservation Program]

        [For an additional amount for emergency expenses resulting from the
    effects of Hurricanes Fran and Hortense and other natural disasters,
    $25,000,000, to remain available until expended: Provided, That the
    entire amount is designated by Congress as an emergency requirement
    pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended.] (Omnibus Consolidated
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3316-0-1-453      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          18          47
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          16          24           2
    22.00 New budget authority (gross)......          30          25
    22.30 Unobligated balance expiring......          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          42          49           2
    23.95 New obligations...................         -18         -47
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          24           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          30          25
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          26          18           7
    73.10 New obligations...................          18          47
    73.20 Total outlays (gross).............         -25         -58          -7
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          18           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                      16
    86.93 Outlays from current balances.....          25          42           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          25          58           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          25
    90.00 Outlays...........................          25          58           7
    ---------------------------------------------------------------------------

        This program was authorized by the Agricultural Credit Act of 1978
    (16 U.S.C. 2201-05). It provides funds for sharing the cost of emergency
    measures to deal with cases of severe damage to farmlands and rangelands
    resulting from natural disasters.

        In 1996, pursuant to P.L. 104-134, enacted April 26, 1996, $30
    million in supplemental funding was provided to the Emergency
    Conservation Program, to remain available until expended. Under the 1996
    program, cost-sharing and technical assistance were provided in 40
    States as well as the Virgin Islands and Guam to treat farmlands damaged
    by floods, hurricanes, tornadoes, and wildfires. The 1996 program
    rehabilitated approximately 1,354,417 acres of farmland damaged by these
    natural disasters as well as Hurricanes Andrew and Iniki, Typhoon Omar,
    and the Midwest Flood of 1993.

        No funding was provided in the 1997 Agriculture Appropriations Act
    for this program. However, $25 million in supplemental funding was
    provided in the 1997 Omnibus Consolidated Appropriations Act, P.L. 104-
    208, enacted September 30, 1996. The 1998 budget proposes no funding.

                                  CORPORATIONS

        The following corporations and agencies are hereby authorized to
    make expenditures, within the limits of funds and borrowing authority
    available to each such corporation or agency and in accord with law, and
    to make contracts and commitments without regard to fiscal year
    limitations as provided by section 104 of the Government Corporation
    Control Act, as amended, as may be necessary in carrying out the
    programs set forth in the budget for the current fiscal year for such
    corporation or agency, except as hereinafter provided. (Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

    Public enterprise funds:

                        Commodity Credit Corporation Fund

                      reimbursement for net realized losses

        For fiscal year [1997] 1998, such sums as may be necessary to
    reimburse the Commodity Credit Corporation for net realized losses
    sustained, but not previously reimbursed [(estimated to be
    $1,500,000,000 in the President's fiscal year 1997 Budget Request (H.
    Doc. 104-162)), but not to exceed $1,500,000,000], pursuant to section 2
    of the Act of August 17, 1961, as amended (15 U.S.C. 713a-11): Provided,
    That the total amount of all allotments and fund transfers from the
    Corporation, authorized in section 11 of the Commodity Credit
    Corporation Charter Act (15 U.S.C. 714), is reduced by $10,000,000.

            operations and maintenance for hazardous waste management

        For fiscal year [1997] 1998, the Commodity Credit Corporation shall
    not expend more than $5,000,000 for expenses to comply with the
    requirement of section 107(g) of the Comprehensive Environmental
    Response, Compensation, and Liability Act, as amended, 42 U.S.C.
    9607(g), and section 6001 of the Resource Conservation and Recovery Act,
    as amended, 42 U.S.C. 6961: Provided, That expenses shall be for
    operations and maintenance costs only and that other hazardous waste
    management costs shall be paid for by the USDA Hazardous Waste
    Management appropriation in this Act.

                                  export credit

        The Commodity Credit Corporation shall make available not less than
    $5,500,000,000 in credit guarantees under its export credit guarantee
    program extended to finance the export sales of United States
    agricultural commodities and the products thereof, as authorized by
    section 202 (a) and (b) of the Agricultural Trade Act of 1978 (7 U.S.C.
    5641).

                         emerging markets export credit

        The Commodity Credit Corporation shall make available not less than
    $200,000,000 in credit guarantees under its export guarantee program for
    credit expended to finance the export sales of United States
    agricultural commodities and the products thereof to emerging markets,
    as authorized by section 1542 of Public Law 101-624 (7 U.S.C. 5622
    note). (Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 70% customs duties on wool,
            reimbursement for costs of
            National Wool Act...............         107
        Appropriation:
    05.01 Commodity credit corporation fund.        -107

    [[Page 168]]

    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Support and related programs:

    00.01   Commodity purchases and related
              inventory transactions........         641         682         640
    00.02   Storage, transportation, and
              other obligations not included
              above.........................         512         371         829
    00.03   Feed Grains.....................       2,138       3,795       3,076
            Direct producer payments:
    00.04     Wheat.........................       1,952       1,397       1,493
    00.05     Rice..........................         455         459         490
    00.06     Cotton........................         692         604         761
    00.07     Wool and mohair...............          56
    00.08     Crop Option Pilot Program.....           5
    00.09     Noninsured Assistance Program.          60          60          60
    00.10     Oilseeds Loan Deficency.......                       2           8
    00.11     Certificates issued...........           2
    00.12     Crop disaster.................          15
    00.13     Livestock Assistance/DRAP.....          79          48
    00.14     Operating expenses:
                Conservation Reserve Program           2       1,774       1,913
    00.15     Environmental Quality
                Incentives Program--EQIP....         118         180         180
    00.16   Wetlands Reserve Program........                     119         164
    00.17   Farmland Protection Program.....          14           2          17
    00.18   Conservation Farm Option........                       2          11
    00.19   Wildlife Habitat Incentives
              Program.......................                      15          23
    00.20   Flood Risk Reduction Program....                      10
    00.21   Reimbursement Agreement &
              Transfers to State & Federal
              agencies......................          49          41          36
            Interest expenses:
    00.22     Treasury......................         247         344         337
    00.23     Other.........................          18          17          17
            Conservation Program Technical
                Assistance:
    00.25     EQIP Technical Assistance.....           6          20          20
    00.26     Other techncial Assistance....           1
                                               ---------   ---------  ----------
    00.91     Total Operating Expenses......       7,062       9,942      10,075
            Direct loans:
              Capital investment:
    01.01       Commodity loans.............       5,137       6,174       7,922
    01.02       Purchase of administrative
                  equipment.................          94          57          19
                                               ---------   ---------  ----------
    01.91     Total capital investment......       5,231       6,231       7,941
                                               ---------   ---------  ----------
    01.92     Total support & related
                programs....................      12,293      16,173      18,016
          Special activities:

            Operating expenses:
    02.01     Commodities procured--PL 480
                Titles II & III Commod Costs         506         560         560
    02.02     Other PL 480 operating
                Expenses....................         292         321         317
                                               ---------   ---------  ----------
    02.91     Total special activities......         798         881         877
                                               ---------   ---------  ----------
    10.00   Total obligations...............      13,091      17,054      18,893
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      13,184      17,071      18,893
    22.21 Unobligated balance transferred to
            other accounts..................         -93         -42
    22.22 Unobligated balance transferred
            from other accounts.............                      25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      13,091      17,054      18,893
    23.95 New obligations...................     -13,091     -17,054     -18,893
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................      10,395       1,500         784
    40.47   Portion applied to debt
              reduction.....................     -10,395      -1,500        -784
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........
    47.35   Authority to borrow rescinded...                                 -10
          Permanent:

    60.25   Appropriation (special fund,
              indefinite)...................         107
    67.10   Authority to borrow.............       4,740       8,789       9,484
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       8,337       8,282       9,419
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      13,184      17,071      18,893
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........      22,918      29,504      30,732
    72.90     Fund balance..................          83       1,437       1,437
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............      23,001      30,941      32,169
    73.10 New obligations...................      13,091      17,054      18,893
    73.20 Total outlays (gross).............     -13,610     -15,826     -18,998
    73.40 Adjustments in expired accounts...       8,459
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........      29,504      30,732      30,627
    74.90     Fund balance..................       1,437       1,437       1,437
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................      30,941      32,169      32,064
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           5                     -10
    86.93 Outlays from current balances.....
    86.97 Outlays from new permanent
            authority.......................       4,743       7,843       7,959
    86.98 Outlays from permanent balances...       8,862       7,983      11,049
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      13,610      15,826      18,998
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources-Sales to
                  special activities........        -506        -560        -560
    88.00       Other revenue...............          -4
    88.00       Advance from foreign
                  assistance programs (P.L.
                  480)......................        -908        -880        -877
              Non-Federal sources:
                (62 stat.1070): Support and
                  related programs:

    88.40         Sales and other proceeds..        -381        -116
    88.40         Assessments...............        -220         -66         -69
    88.40         Interest revenue..........        -160        -220        -190
    88.40         Other revenue.............          -7
    88.40         Loans repaid..............      -6,112      -6,407      -7,688
    88.40         Export Credit sales
                    program repayments......          -2          -3          -6
    88.40         Sales of Inventory on
                    credit terms repayments.          -2
    88.40         Interest revenue..........         -35         -30         -29
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -8,337      -8,282      -9,419
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,847       8,789       9,474
    90.00 Outlays...........................       5,273       7,544       9,579
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................       4,847       8,789       9,474
      Outlays...........................       5,273       7,544       9,579
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 -25
      Outlays...........................                                 -25
                                        ------------------------------------
    Total:
      Budget Authority..................       4,847       8,789       9,449
      Outlays...........................       5,273       7,544       9,554
                                        ====================================

                                      NOTES

        Contingent liabilities, commitments, and other obligations do not
    become charges against the statutory borrowing authority until they
    result in borrowing from Treasury.
        Excludes amounts for activities currently funded in the CCC Export
    Guarantee Loan Programs account.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
              SHORT TERM CREDIT LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         385         388         385
    1251  Repayments: Repayments and
            prepayments.....................          -2          -3          -6
    1261  Adjustments: Capitalized interest.           5
                                               ---------   ---------  ----------

    [[Page 169]]

    1290    Outstanding, end of year........         388         385         379
    ----------------------------------------------------------------------------

              COMMODITY LOANS
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       5,137       6,174       7,922
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       5,137       6,174       7,922
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,369       1,254       1,021
    1231  Disbursements: Direct loan
            disbursements...................       5,137       6,174       7,922
    1251  Repayments: Repayments and
            prepayments.....................      -6,112      -6,407      -7,687
    1264  Write-offs for default: Other
            adjustments, net................        -140
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,254       1,021       1,256
    ----------------------------------------------------------------------------

              SALES OF INVENTORY ON CREDIT
                  TERMS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          32          30          30
    1251  Repayments: Repayments and
            prepayments.....................          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          30          30          30
    ---------------------------------------------------------------------------

        The Commodity Credit Corporation (CCC) was created to: stabilize,
    support, and protect farm income and prices; help maintain balanced and
    adequate supplies of agricultural commodities, their products, foods,
    feeds, and fibers; and help in their orderly distribution. Funding
    available for transfers or reimbursable agreements under Section 11 of
    the CCC Charter Act have been reduced by $10 million in 1998 to reflect
    the direct appropriation of funds for the Emerging Markets Program
    through FAS.

        The Corporation's capital stock of $100 million is held by the U.S.
    Treasury. Under present law, up to $30 billion may be borrowed from the
    U.S. Treasury to finance operations.

        Current, indefinite appropriation authority is requested to cover
    all net realized losses. Appropriations to the Corporation for net
    realized losses have no effect on budget authority, as they are used to
    repay debt directly with the Treasury.

        Budget assumptions.--The following general assumptions form the
    basis for the Corporation's 1997 and 1998 budget estimates: (a) national
    income will rise both in 1997 and 1998 from the present level; (b) 1997
    crop production will increase from 1996 crop levels for most
    commodities; (c) generally, exports of agricultural commodities in 1998
    are expected to be higher than 1997 levels; (d) yields for the 1997
    crops are based on recent averages adjusted for trend; (e) acreage
    allotments and marketing quotas will be in effect for the 1997 crops of
    certain kinds of tobacco; and (f) poundage quotas will be in effect for
    the 1997 crop of peanuts.

        It is difficult to accurately forecast requirements for the year
    ending September 30, 1998, since the projections are subject to complex
    and unpredictable factors such as weather, other factors which affect
    the volume of production of crops not yet planted, feed and food needs
    here and overseas, and available dollar exchange.

        The Federal Agriculture Improvement and Reform Act of 1996 (the 1996
    Act) enacted April 4, 1996, retains the CRP as part of the Environmental
    Conservation Acreage Reserve Program (ECARP) but changed the funding
    source from direct appropriation to the Commodity Credit Corporation.
    Only very minimal CCC funds were used from program operations in fiscal
    year 1996 since annual rental payments had been made very early in the
    fiscal year using CRP appropriated funds. The CRP is assumed to be
    gradually increased to 36.4 million acres by 2001. The crop assumptions
    reflect a new enrollment in 1997 to add approximately 19.0 million
    acres, and enrollment of new and expiring acreage is assumed to be
    guided by eligibility and selection criteria presented in the proposed
    rule announced September 23, 1996.

        These assumptions have been developed for budget purposes as the
    best estimate of acreage bid into the program that will be both eligible
    and of high environmental quality. As such, the estimate may not reflect
    the actual acreage selected in 1997. USDA's goal is that lands selected
    for the CRP in 1997 will only be those lands where the benefits to the
    Nation of retirement are greater than the benefits of continued
    production. Land retired in 1997 also may include high-priority partial-
    field lands that are retired through the continuous signup process and
    acreage proposed by States.

        Appropriations are made to reimburse the Corporation for net
    realized losses sustained in carrying out its operations:

                                  1998 ESTIMATE

                            [In millions of dollars]

                   Program                  Gross
                                         obligations
                                                     Net outlays Net realized
                                                                loss for year
    Farm income and price support:
      Commodity loans...................       7,922         234           0
      Feed grain payments...............       3,076       3,076       3,076
      Wheat payments....................       1,493       1,493       1,493
      Rice payments.....................         490         490         490
      Cotton payments...................         761         761         761
      Export Enhancement Program........         500         500         500
      Other support and related.........         952         285         324
    Other items not distributed by
        program:
        Interest........................         354         140         135
        All other.......................         122         408         146
                                        ------------------------------------
          Total, farm income and price-
            support programs............      15,670       7,387       6,925
    Conservation programs:
      Conservation reserve program......       1,928       1,928       1,916
      Environmental quality incentives
        program.........................         200         109         109
      Wetlands reserve program..........         164         129         129
      Farmland protection program.......          18          18          18
      Conservation farm option program..          15           4           4
      Wildlife habitat incentives
        program.........................          22           4           4
                                        ------------------------------------
        Total, conservation programs....       2,347       2,192       2,180
            Total, Commodity Credit
              Corporation...............      18,017       9,579       9,105

                           programs of the corporation

        Price support, marketing assistance loans, and related stabilization
    programs.--The Corporation conducts programs to support farm income and
    prices and stabilize the market for agricultural commodities. Price
    support is provided to producers of agricultural commodities through
    loans, purchases, payments, and other means. This is done mainly under
    the Commodity Credit Corporation Charter Act, as amended, the
    Agricultural Act of 1949, as amended, and the Federal Agriculture
    Improvement and Reform Act of 1996 (the 1996 Act).

        Price support is mandatory for tobacco, peanuts, and dairy products.
    Marketing assistance loans are mandatory for wheat, feed grains,
    oilseeds, upland cotton, and rice. Loans are also required to be made
    for sugar and extra long staple cotton.

        One method of providing support is loans to and purchases from
    producers. With limited exceptions, loans made on commodities are
    nonrecourse. The commodities serve as collateral for the loan and on
    maturity the producer may deliver or forfeit such collateral to satisfy
    the loan obligation without further payment.

        Direct purchases may be made from processors as well as producers,
    depending on the commodity involved. Also, special purchases are made
    under various laws for the removal of surpluses; for example, the Act of
    August 19, 1958, as amended, and section 416 of the Agricultural Act of
    1949, as amended.

        Production flexibility contract payments.--The 1996 Act requires
    that the Corporation offer eligible producers a one-time opportunity to
    execute 7-year production flexibility contracts. Production flexibility
    contract participants who comply with applicable provisions receive
    annual payments beginning in 1996 and ending in 2002. Participants
    received a 50-percent advance payment for the 1996 crop within 30 days
    after contract approval. The balance of the 1996 payment was issued by
    September 30, 1996. In subsequent years, participants will receive final
    payments by September 30, with an

    [[Page 170]]

    option to receive advances on December 15 or January 15. Depending on
    each contract participant's prior contract-crop acreage history and
    payment yield, as well as total program participation, the participant
    shares a portion of a statutorily specified, annual dollar amount. In
    return, participants must comply with certain requirements regarding
    land conservation, wetland protection, and agricultural use. Contract
    crops, for the purposes of determining eligible cropland and payments,
    include wheat, corn, grain sorghum, barley, oats, upland cotton, and
    rice. No production adjustment requirements or related provisions are
    included in this program, except for restrictions on the planting of
    fruits and vegetables and other minor requirements. The one-time
    enrollment took place between May 1 and August 1, 1996; however,
    producers with Conservation Reserve Program (CRP) contracts will have
    the opportunity to enroll acreage currently in the CRP that meets the
    eligibility requirements for a production flexibility contract. These
    enrollments will occur as CRP contracts expire.

        Marketing assessments.--The 1949 Act mandates assessments for
    tobacco, and the 1996 Act requires such assessments for peanuts and
    sugar.

        Peanut price support program.--The 1996 Act and the Agricultural
    Adjustment Act of 1938, as amended (the 1938 Act), provide for a peanut
    loan and poundage quota program for the 1996 through 2002 peanut crops.
    The 1996 Act makes the peanut program, effectively, a no-cost program.
    The Secretary is required to provide a nonrefundable per-pound marketing
    assessment equal to 1.15 percent of the national average quota or
    additional peanut loan rate for the applicable 1996 crop and 1.2 percent
    of the national average quota or additional peanut loan rate for each of
    the applicable 1997 through 2002 crops. Assessments will be used to
    offset losses in area quota pools, and any assessments not required to
    cover these losses will be remitted to the Treasury. If the use of all
    other available authority does not produce funds sufficient to cover
    losses in area quota pools, the Secretary must increase the marketing
    assessment by an amount that will cover the losses.

        Sugar Program.--The 1996 Act requires that loans be made available
    to eligible sugar processors for the 1996 through 2002 crops of
    domestically produced sugar beets and sugarcane. The announced Tariff
    Rate Quota (TRQ) determines the type of loan in effect. If the TRQ is
    not above 1,500,000 short tons, raw value, at the time of loan approval
    and has never been above 1,500,000 short tons, raw value, at any time
    during the fiscal year, recourse loans will be in effect. If the TRQ
    exceeds 1,500,000 short tons, raw value, at the time of loan approval or
    has exceeded 1,500,000 short tons, raw value, at any time during the
    fiscal year, nonrecourse loans will be in effect.

        Options Pilot Program.--The 1996 Act authorizes the Secretary, until
    December 31, 2002, to conduct a pilot program for one or more
    agricultural commodities supported under Title I of the 1996 Act to
    ascertain whether futures and options contracts can reasonably protect
    producers from the financial risks of fluctuations in price, yield, and
    income inherent in the production and marketing of the commodities. The
    Secretary shall administer the pilot program through the Risk Management
    Agency using CCC funds. To the maximum extent practicable, the Secretary
    shall operate the pilot program in a budget neutral manner.

        The Federal Crop Insurance Reform Act of 1994 expanded current crop
    insurance authorities to provide for catastrophic coverage at 50 percent
    yield protection at a flat fee for crops currently covered by insurance
    programs. Where crop insurance is not available, producers of crops for
    food and fiber and certain other crops will be covered under the
    Noninsured Assistance Program. Effective with the 1996 crop, the Farm
    Service Agency administers the Noninsured Assistance Program, and the
    Secretary may use CCC funds to carry out the program. The program will
    reimburse producers at the same rates and terms as the catastrophic
    program where assistance is triggered by area wide disasters.

        Dairy.--The 1996 Act provides for a dairy price support program that
    sets the minimum support price for milk at $10.35 per hundredweight for
    calendar year 1996, $10.20 per hundredweight for calendar year 1997,
    $10.05 per hundredweight for calendar year 1998, and $9.90 per
    hundredweight for calendar year 1999. In lieu of the price support
    program, the 1996 Act establishes a recourse loan program beginning on
    January 1, 2000, and continuing through 2002, during which time
    processors will be eligible for recourse loans on dairy products at a
    milk equivalent rate of $9.90 per hundredweight. The Food Security Act
    of 1985, as amended (the 1985 Act), authorizes the Dairy Export
    Incentive Program (DEIP) through calendar year 2002. The DEIP provides
    subsidies to exporters of U.S. dairy products to help them compete with
    other subsidizing nations.

        Payment limitations.--The 1996 Act and the Food Security Act of
    1985, as amended, limit the amount of production flexibility contract
    payments during any fiscal year to $40,000 and the sum of marketing
    assistance gains and loan deficiency payments during any crop year to
    $75,000.

        Conservation programs.--The Environmental Conservation Acreage
    Reserve Program (ECARP) was re-established by the 1996 Act to begin in
    1996 and continue through 2002. ECARP consists of the Conservation
    Reserve Program (CRP), the Wetlands Reserve Program (WRP), and the
    Environmental Quality Incentives Program (EQIP). The 1996 Act amended
    the 1985 Act to require the use of CCC funds for these programs.

        The EQIP combines the functions of the former Agricultural
    Conservation Program (ACP), the Water Quality Incentives Program (WQIP),
    the Great Plains Conservation Program (GPCP), and the Colorado River
    Basin Salinity Control Program (CRSC). The 1996 Act provided that EQIP
    would be phased in over a 6-month interim period, ending not later than
    October 4, 1996. CCC funding of $130 million was provided for the
    interim 1996 program. Thereafter, through fiscal year 2002, $200 million
    in CCC funding must be made available annually for the program.

        The Farmland Protection Program (FPP) authorizes the Secretary to
    assist State and local governments in purchasing conservation easements.
    The Secretary shall not use more than $35 million in CCC funds to carry
    out this program. The Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997 (the 1997
    Act) limits new obligations under FPP to $2.0 million in fiscal year
    1997.

        The Wildlife Habitat Incentives Program makes available assistance
    to help landowners improve wildlife habitat on private lands. A total of
    $50 million in CRP funds must be made available for fiscal years 1996
    through 2002 for this program.

        The Conservation Farm Option Program (CFO) is a pilot program for
    producers of wheat, feed grains, upland cotton, and rice who are
    eligible for production flexibility contracts. Under this program,
    producers may consolidate their production flexibility contract, CRP,
    WRP, and EQIP payments into one annual payment if they enter into a 10-
    year contract and adopt an approved conservation farm plan. CCC must
    make available the following funding for the CFO: $7.5 million in fiscal
    year 1997, $15 million in fiscal year 1998, $25 million in fiscal year
    1999, $37.5 million in fiscal year 2000, $50 million in fiscal year
    2001, and $62.5 million in fiscal year 2002. Total authorized funding is
    $197.5 million. How-

    [[Page 171]]

    ever, the 1997 Act limits new obligations under CFO to $2.0 million in
    fiscal year 1997.

        Under the terms of the Flood Risk Reduction Program as enacted in
    the 1996 Act, during each of fiscal years 1996 through 2002, the
    Secretary may enter into a contract with a producer who has contract
    acreage in the production flexibility program that is frequently
    flooded. Producers can receive up to 95 percent of the projected
    production flexibility contract payments the producer would otherwise
    have received from the time of enrollment in the Flood Risk Reduction
    Program through September 30, 2002. In return, producers must terminate
    their production flexibility contract with respect to the enrolled
    acreage, comply with swampbuster and conservation compliance provisions,
    and forgo future disaster payments, crop insurance payments,
    conservation program payments, and loans for contract commodities,
    oilseeds, and extra long staple cotton. The 1996 Act provided that the
    Secretary shall carry out the program through the Commodity Credit
    Corporation.

        Supply and foreign purchases.--The Corporation can procure from
    domestic and foreign sources food, agricultural commodities, and
    products and related materials to supply the needs of Federal agencies,
    foreign governments, and private and international relief agencies,
    under section 5 (b) and (c) of the Commodity Credit Corporation Charter
    Act, as amended.

        Commodity exports.--The Corporation promotes the export of
    agricultural commodities and products through sales for dollars or
    foreign currency, payments, extension of credit, assumption of certain
    risks, and conduct of other operations with respect to the exportation
    of commodities. Such commodities and products may be those held in
    private trade channels as well as those acquired by the Corporation.
    These programs are carried out under the authority of the CCC Charter
    Act and other specific legislation.

        Foreign donations.--The Corporation may furnish commodities under
    the authority of section 416(b) of the Agricultural Act of 1949 to carry
    out programs of assistance in developing countries and friendly
    countries and pay costs associated with making the commodities
    available. The Corporation may also use its funds to furnish commodities
    overseas under the authority of the Food for Progress Act of 1985;
    however, not more than 500,000 metric tons of commodities may be
    provided under this authority in each fiscal year, and not more than $30
    million of the funds of the Corporation (exclusive of the costs of
    commodities) may be used for each fiscal year. In addition, under the
    Food for Progress Act of 1985, not to exceed $10 million of the
    Corporation's funds or commodities may be used each fiscal year to
    enhance the development of private sector agriculture in countries
    receiving commodities under the Food for Progress Act of 1985.

        Loan operations.--The following table reflects commodity loan
    operations of the Corporation:

                            [In millions of dollars]

                    Item                 1996 actual  1997 est.   1998 est.
    Loans outstanding, gross, start of
        year:
      Commodity Credit Corporation......       2,368       1,254       1,021
      Additional loans made.............       5,137       6,174       7,923
    Deduct:
      Loans repaid......................      -6,112      -6,407      -7,688
      Write-offs........................        -139
                                        ------------------------------------
          Total loans outstanding,
            gross, end of year..........       1,254       1,021       1,256
                                        ====================================
    Loans outstanding, gross, end of
        year:
      Commodity Credit Corporation......       1,254       1,021       1,256
                                        ------------------------------------
    Loans receivable, net...............       1,254       1,021       1,256
                                        ====================================

        Inventory operations.--The following table reflects the inventory
    operations applicable to the preceding programs:

                            AGRICULTURAL COMMODITIES

                            [In millions of dollars]

                    Item                 1996 actual  1997 est.   1998 est.
    On hand, start of year, gross.......         702         485         423
                                        ====================================
    Acquisitions:
      Purchases.........................         636         683         640
    Carrying charges:
      Charges to inventory..............           5
      Storage and handling (non-add)....        (45)        (36)        (35)
      Transportation (non-add)..........         (1)         (2)         (1)
                                        ------------------------------------
          Total acquisitions............         641         683         640
                                        ====================================
    Dispositions:
      Domestic donations to:
        Institutions....................          10           2
                                        ------------------------------------
          Total domestic donations......          10           2
                                        ====================================
      Export donations..................          99          78          80
      Sales and transfers:
        Special programs: Title II,
          Public Law 480................         433         537         537
        Title III, Public Law 480.......          74          22          23
        Other sales.....................         379         116
        Net loss or gain (-) on sales
          and transfers.................        -137         -10
                                        ------------------------------------
          Total sales and transfers.....         749         665         560
                                        ====================================
          Total dispositions............         858         745         640
                                        ====================================
    On hand, end of year, gross.........         485         423         423
                                        ------------------------------------
    On hand, end of year, net...........         485         423         423
                                        ====================================

        Other data.--The following table reflects other data which are
    applicable to price support and related programs:

                      DATA ON SUPPORT AND RELATED PROGRAMS

                            [In millions of dollars]

                    Item                 1996 actual  1997 est.   1998 est.
    Loans made..........................       5,137       6,174       7,923
    Loans repaid........................       6,112       6,407       7,688
    Loans outstanding, end of year......       1,254       1,021       1,256
    Acquisitions........................         641         683         640
    Cost of commodities sold............         749         665         560
    Cost of commodities donated.........         109          80          80
    Inventory, end of year..............         485         423         423
    Investment in loans and inventory,
    end of year.........................       1,740       1,444       1,679
    Direct producer payments............       5,902       7,239       8,034
    Net expenditures....................       5,273       7,544       9,579
    Realized losses.....................       7,765       9,002       9,105

        Operating expenses.--The Corporation carries out its functions
    through utilization of employees and facilities of other Government
    agencies. Administrative expenses are incurred by: the Farm Service
    Agency (FSA); the Foreign Agricultural Service; the Natural Resources
    Conservation Service; the Risk Management Agency; other agencies of the
    Department engaged in the Corporation's activities; and the Office of
    Inspector General for audit functions. Additional expenses are incurred
    by FSA county offices for work related to programs of the Corporation,
    other FSA expenses offset by revenue, custodian, and agency expenses of
    the Federal Reserve banks and lending agencies, and miscellaneous costs.

        Expenses are incurred for acquisition, operation, maintenance,
    improvement, or disposition of existing property that the Corporation
    owns or in which it has an interest. These expenses are treated as
    program expenses. Such program expenses include inspection, classing,
    and grading work performed on a fee basis by Federal employees or
    Federal- or State-licensed inspectors; and special services performed by
    Federal agencies within and outside this Department. Most of these
    general expenses, including storage and handling, transportation,
    inspection, classing and grading, and producer storage payments, are
    included in program costs. They are shown in the program and financing
    schedule in the entries

    [[Page 172]]

    entitled ``Storage, transportation, and other obligations not included
    above,'' and ``Producer storage payments.''

        Section 161 of the 1996 Act amended the CCC Charter Act to
    significantly limit the use of CCC funds. CCC no longer has authority to
    purchase personal property except within authorized limitations. CCC
    spending for equipment or services relating to automated data processing
    (ADP), information technologies, or related items (including
    telecommunications equipment and computer hardware and software, but
    excluding reimbursable agreements) was limited to $170 million in fiscal
    year 1996, and $275 million for the six-year period including fiscal
    years 1997 through 2002, unless additional amounts for such contracts
    and agreements are provided in advance in appropriation acts. The 1996
    Act also requires that CCC submit an itemized report to Congress on a
    quarterly basis of all expenditures, excluding program payments, of over
    $10,000.

        Section 161 of the 1996 Act also amended section 11 of the CCC
    Charter Act to limit the use of CCC funds for the transfer and allotment
    of funds to State and Federal agencies. Beginning on October 1, 1996,
    the total of these allotments and transfers under that section in a
    fiscal year, including agreements for ADP or information resource
    management activities, may not exceed the total of such alloments and
    transfers in fiscal year 1995. The obligations for these Section 11
    activities in fiscal year 1995 were $45.599 million.

        The Corporation receives reimbursement for grain requisitioned
    pursuant to Public Law 87-152 by the States from Corporation stocks to
    feed resident wildlife threatened with starvation through the
    appropriation reimbursement for net realized losses. There have been no
    requisitions in recent years, however.

                               special activities

        These activities are carried out under authority of section 5(g) of
    the Corporation's charter act and specific statutory authorizations or
    directives with respect thereto that are currently in effect or which
    may subsequently be enacted.

        A summary of such current activities not included under other
    designated activities is as follows:

                                             1998 estimate [In millions of
                                                        dollars]
                                             -----------------------------
                      Item                       Gross          Outlays
                                              obligations   (reimbursable)
    (1) Financing sales of agricultural
     commodities for foreign currencies or
     for dollars on credit terms............           123             177
    (2) Commodities supplied in connection
     with dispositions abroad (Title II)....           837             839
    (3) Commodities supplied in connection
     with dispositions abroad (Title III)...            30              31
                                             -------------  --------------

       Total................................           990           1,047
                                             -------------  --------------

        The Corporation receives appropriations or reimbursement for the
    cost of these activities as described under each.

        Activities currently being carried out are as follows (see Foreign
    Assistance programs for details of items (1), (2) and (3)).

        (1) Financing the sale and exportation of agricultural commodities
    for foreign currencies or for dollars (title I, of P.L. 480).

        (2) Commodities supplied in connection with dispositions abroad
    (title II, of P.L. 480).

        (3) Commodities supplied in connection with dispositions abroad
    (title III, of P.L. 480).

        (4) Commodities supplied in connection with dispositions abroad
    (Food for Progress Act of 1985).

                                    financing

        Borrowing authority.--The Corporation has an authorized capital
    stock of $100 million held by the U.S. Treasury and, effective in 1988,
    authority to have outstanding borrowings up to $30 billion at any one
    time.

        Funds are borrowed from the Treasury and may also be borrowed from
    private lending agencies and others. The Corporation reserves a
    sufficient amount of its borrowing authority to purchase at any time all
    notes and other obligations evidencing loans made to the Corporation by
    such agencies and others. All bonds, notes, debentures, and similar
    obligations issued by the Corporation are subject to approval by the
    Secretary of the Treasury as required by the Act of March 8, 1938.

        Interest on borrowings from the Treasury (and on capital stock) is
    paid at a rate based upon the average interest rate of all outstanding
    marketable obligations (of comparable maturity date) of the United
    States as of the preceding month. Interest is also paid on other notes
    and obligations at a rate prescribed by the Corporation and approved by
    the Secretary of the Treasury.

        The Department of Agriculture and Related Agencies Appropriation
    Act, 1966, made provision for terminating interest after June 30, 1964
    on the portion of the Corporation's borrowings from the Treasury equal
    to the unreimbursed realized losses recorded on the books of the
    Corporation after the end of the fiscal year in which such losses are
    realized.

            POSITION WITH RESPECT TO BORROWING AUTHORITY, END OF YEAR

                            [In millions of dollars]

                    Item                 1996 actual  1997 est.   1998 est.
    Statutory borrowing authority.......      30,000      30,000      30,000
    Deduct: Borrowings from Treasury....         496       6,859      15,686
    Net statutory borrowing authority
    available...........................      29,504      23,141      14,314

        Note.--Accounts payable, accrued liabilities, and other outstanding
    obligations not reflected on this table do not become charges against
    the statutory borrowing authority until they result in borrowings from
    the Treasury.

        Contract authority.--Price support and other programs required by
    statute may result in the Corporation incurring obligations in excess of
    available funds and borrowing authority. Such obligations are liquidated
    from subsequent appropriations and other funds that may become available
    to the Corporation. Any increase in obligations in excess of available
    fund resources is reported as contract authority in the year involved; a
    decrease is reported as the application of appropriations and other
    funds to liquidate the authority.

        Appropriations.--Under section 2 of Public Law 87-155 annual
    appropriations are authorized for each fiscal year to reimburse the
    Corporation for net realized losses incurred as of the close of each
    year.

        The special activities are financed as indicated in the program
    descriptions above. In addition to certain reimbursements from other
    agencies, appropriations are made for foreign assistance programs.

        Deficit.--The net realized losses of the Corporation have previously
    been reimbursed as follows:

                         SUPPORT AND RELATED PROGRAMS

                           [In millions of dollars]
                                                      1996 actual
    Realized losses, 1933 to 1996, inclusive                       244,921
     Reimbursements by the Treasury:
      Reimbursements of realized losses:
       Appropriations (57 times)............       239,479
       Note cancellations (6 times).........         2,698
       Less dividends paid to Treasury (4
        times)..............................          -138
                                             -------------  --------------

        Total reimbursements for net
         realized losses....................       242,039
                                             -------------  --------------

    Other reimbursements:
     Appropriations (2 times)...............           542
     Note cancellation (1 time).............            56
                                             -------------  --------------

      Total other reimbursements............           598
                                             -------------  --------------

    [[Page 173]]

      Total.................................                       242,637
                                             -------------  --------------

    Realized deficit as of September 30,
     1996, support and related programs.....                         2,284
                                             -------------  --------------

               SPECIAL ACTIVITIES

    Realized losses, 1948 to 1996, inclusive                        53,355
     Excess amounts appropriated to
      reimburse cost of special activities..                           578
    Transfer of P.L. 480 funds to credit
     reform account.........................                           555
     Reimbursements by the Treasury:
      Appropriations (50 times).............        53,918
      Note cancellations (4 times)..........           536
      Other reimbursements: Sale proceeds (5
       times)...............................            34
                                             -------------  --------------

       Total reimbursements.................                        54,488
                                             -------------  --------------

    Realized deficit as of September 30,
     1996, special activities...............
                                             -------------  --------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,933          1,083         1,425          1,366
    0102  Expense...........................      -3,498         -8,848       -10,427        -10,471
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............      -1,565         -7,765        -9,002         -9,105
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....        -704         -1,596          -469           -469
            Investments in US securities:
    1106      Receivables, net..............       5,473          2,489        10,028         18,362
    1107      Advances and prepayments......          66             54            54             54
          Non-Federal assets:

    1206    Receivables, net................       1,774          1,185           105             85
    1207    Advances and prepayments........           7             14            14             14
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       2,754          1,643         1,406          1,635
    1602    Interest receivable.............         236            193           188            200
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -88            -82           -80            -78
    1604    Direct loans and interest
              receivable, net...............       2,902          1,754         1,514          1,757
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       2,902          1,754         1,514          1,757
    1701    Defaulted guaranteed loans,
              gross.........................       5,653          5,552         5,504          5,480
    1702    Interest receivable.............          27             22            20             20
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -2,815         -2,815        -2,815         -2,815
    1704    Defaulted guaranteed loans and
              interest receivable, net......       2,865          2,759         2,709          2,685
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............       2,865          2,759         2,709          2,685
          Other Federal assets:

    1801    Cash and other monetary assets..         107             54            54             54
    1802    Inventories and related
              properties....................         688            485           423            423
    1803    Property, plant and equipment,
              net...........................          97             95            92             67
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      13,275          7,293        14,524         23,032
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           2              8             8              8
    2102    Interest payable................         297                          269            264
    2103    Debt............................       7,081            496         6,694         15,787
    2104    Resources payable to Treasury...       3,042          2,801         2,700          2,821
    2105    Other...........................         390            398           398            398
          Non-Federal liabilities:

    2201    Accounts payable................         188             48            48             48
    2204    Liabilities for loan guarantees.          19             19            19             19
    2207    Other...........................       1,808          2,499         3,209          2,407
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      12,827          6,269        13,345         21,752
        NET POSITION:
    3100  Appropriated capital..............         348            924         1,079          1,180
    3200  Invested capital..................         100            100           100            100
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         448          1,024         1,179          1,280
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      13,275          7,293        14,524         23,032
    -----------------------------------------------------------------------------------------------
        Note.--In addition to obligations other than liabilities, the
    Corporation does not reflect in its accounts claims by the Corporation
    on which adequate proof has not been established.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........         362         353         348
            Other services:
    25.2      Other services................         245         113         141
    25.2      Other services: Storage and
                handling....................          45          36          35
    26.0    Supplies and materials: Costs of
              Commodities Sold or Donated-PL
              480...........................         641         683         640
    31.0    Equipment.......................          94          57          19
    41.0    Grants, subsidies, and
              contributions.................       5,797       8,717       8,874
    43.0    Interest and dividends..........         264         361         354
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       7,448      10,320      10,411
          Reimbursable obligations:

    26.0    Supplies and materials: Cost of
              commodities sold or donated--
              PL 480........................         506         560         560
    33.0    Investments and loans...........       5,137       6,174       7,922
    99.0  Subtotal, reimbursable obligations       5,643       6,734       8,482
                                               ---------   ---------  ----------
    99.9    Total obligations...............      13,091      17,054      18,893
    ---------------------------------------------------------------------------

                        Commodity Credit Corporation Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-4-3-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Support and related programs:

            Operating expenses:
              Direct producer payments:
                Conservation Program: Direct
                  Producer Payments:

    00.14         Total Operating Expenses..                                 -25
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                 -25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -25
    23.95 New obligations...................                                  25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.10 Authority to borrow...............                                 -25
                                                                             -25
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 -25
    73.20 Total outlays (gross).............                                  25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                 -25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -25
    90.00 Outlays...........................                                 -25
    ---------------------------------------------------------------------------

        This schedule reflects proposed savings to offset the
    Administration's proposal to strengthen the farm program safety net.
    (See discussion under crop insurance.) This proposal would amend current
    Conservation Reserve Program (CRP) haying and grazing provisions, which
    have resulted in overgrazing in some areas because of repeated emergency
    designations, to permit haying and grazing on CRP acreage once every
    three years in exchange for a 50 percent reduction in the contract
    rental payment. The change is estimated to reduce CRP outlays by $25
    million per year.

    [[Page 174]]

            Commodity Credit Corporation Export Loans Program Account

                         (including transfers of funds)

        For administrative expenses to carry out the Commodity Credit
    Corporation's export guarantee program, GSM 102 and GSM 103,
    [$3,820,000] $3,975,000; to cover common overhead expenses as permitted
    by section 11 of the Commodity Credit Corporation Charter Act and in
    conformity with the Federal Credit Reform Act of 1990, of which not to
    exceed [$3,231,000] $3,327,000 may be transferred to and merged with the
    appropriation for the salaries and expenses of the Foreign Agricultural
    Service, and of which not to exceed [$589,000] $648,000 may be
    transferred to and merged with the appropriation for the salaries and
    expenses of the Farm Service Agency. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed Loan Subsidy...........         328         390         528
    00.07 Reestimates of guaranteed loan
            subsidy.........................          45
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........           4
    00.09 Administrative expenses...........           3           4           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............         380         394         532
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          82         620         220
    22.00 New budget authority (gross)......         999           4         350
    22.10 Resources available from
            recoveries of prior year
            obligations.....................                      38
    22.40 Capital transfer to general fund..         -81         -48         -37
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,000         614         533
    23.95 New obligations...................        -380        -394        -532
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         620         220
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           3           4           4
          Permanent:

    60.05   Appropriation (indefinite)......         424                     346
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         572
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         999           4         350
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          78         117          39
    73.10 New obligations...................         380         394         532
    73.20 Total outlays (gross).............        -342        -434        -518
    73.45 Adjustments in unexpired accounts.                     -38
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.         117          39          54
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           3           4           4
    86.97 Outlays from new permanent
            authority.......................         303                     294
    86.98 Outlays from permanent balances...          36         430         220
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         342         434         518
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Downward Reestimate.....        -572
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         427           4         350
    90.00 Outlays...........................        -230         434         518
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............       3,230       5,500       5,700
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       3,230       5,500       5,700
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       10.20        8.00        9.26
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       10.20        8.00        9.26
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........         328         390         528
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..         328         390         528
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................         339         430         514
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........         339         430         514
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority--administrative
            expenses........................           3           4           4
    3590  Outlays--adminsitrative expenses..           3           4           4
    ---------------------------------------------------------------------------

        This is the program account for the GSM-102 and GSM-103 CCC Export
    Credit Guarantee Programs. The Export Credit Guarantee Program (GSM-102)
    covers credit terms of up to 3 years. The Intermediate Export Credit
    Guarantee Program (GSM-103) covers longer credit terms of between 3 and
    10 years. Under these programs, CCC does not provide financing, but
    guarantees payments due from foreign banks and buyers. Because payment
    is guaranteed, financial institutions in the United States can offer
    competitive credit terms to foreign banks, usually with interest rates
    based on the London Inter-Bank Offered Rate (LIBOR). If the foreign bank
    fails to make any payment as agreed, the exporter or assignee must
    submit a notice of default to the CCC. A claim for loss must be filed,
    and the CCC will promptly pay claims found to be in good order. CCC
    usually guarantees 98 percent of the principal payment due and interest
    based on a percentage of the one-year Treasury rate.

        A portion of the guarantees made available under the GSM-102 program
    is provided as Supplier Credit Guarantees. Under this activity, CCC
    guarantees a portion of payment due from importers under short-term
    financing (for up to 180 days) that exporters have extended directly to
    the importers for the purchase of U.S. agricultural commodities and
    products. CCC does not provide financing, but guarantees payment due
    from an importer. A substantially smaller portion of the value of
    exports (currently 50 percent) is guaranteed under Supplier Credit
    Guarantees than under regular GSM-102 guarantees where CCC is
    guaranteeing foreign bank obligations.

        A portion of the GSM-102 guarantees is also made available as
    Facilities Guarantees. Under this activity, CCC guarantees export
    financing for capital goods and services to improve handling, marketing,
    processing, storage, or distribution of imported agricultural
    commodities and products.

        The subsidy estimates for the GSM-102 and GSM-103 programs are
    determined in large part by the obligor's sovereign or non-sovereign
    country risk grade. These grades are developed annually by the
    International Credit Risk Assessment System Committee (ICRAS). In
    unusual circumstances, an ICRAS grade for a country may change during
    the fiscal year. The default estimates for GSM guarantees are determined
    in large part by the risk premia assigned for each risk grade. The risk
    premia usually do not change from year to year.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the credit
    guarantees committed in 1992 and beyond (including modifications of
    credit guarantees that resulted from obligations or commitments in any
    year), as well

    [[Page 175]]

    as administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           3           4           4
    41.0  Grants, subsidies, and
            contributions...................         377         390         528
                                               ---------   ---------  ----------
    99.9    Total obligations...............         380         394         532
    ---------------------------------------------------------------------------

         Commodity Credit Corporation Export Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................         202         246         330
    00.02 Interest on debt to Treasury......          61
    00.07 Technical reestimate of subsidy...         471
    00.08 Technical reestimate--interest....         101
                                               ---------   ---------  ----------
    10.00   Total obligations...............         835         246         330
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....         310         689         926
    22.00 New financing authority (gross)...       1,153         483         586
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          61
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,524       1,172       1,512
    23.95 New obligations...................        -835        -246        -330
    24.90 Unobligated balance available, end
            of year: Fund balance...........         689         926       1,182
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         700
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         453         578         685
    68.47   Portion applied to debt
              reduction.....................                     -95         -99
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         453         483         586
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,153         483         586
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................         835         246         330
    73.20 Total financing disbursements
            (gross).........................        -774        -246        -330
    73.45 Adjustments in unexpired accounts.         -61
    87.00 Total financing disbursements
            (gross).........................         774         246         330
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -339        -430        -514
    88.25     Interest on uninvested funds..         -26          -8         -29
              Non-Federal sources:
    88.40       Loan origination fee........         -20         -45         -43
    88.40       Principal collections.......          -6          -1          -4
    88.40       Interest collections........         -62         -94         -95
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -453        -578        -685
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         700         -95         -99
    90.00 Financing disbursements...........         321        -332        -355
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................       5,700       5,500       5,700
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       5,700       5,500       5,700
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,874       5,323       8,052
    2231  Disbursements of new guaranteed
            loans...........................       3,312       5,500       5,700
    2251  Repayments and prepayments........      -2,664      -2,525      -3,336
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -201        -246        -330
    2264    Other adjustments, net..........           2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       5,323       8,052      10,086
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       5,269       7,650       9,643
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       1,094       1,294       1,539
    2331    Disbursements for guaranteed
              loan claims...................         201         246         330
    2351    Repayments of loans receivable..          -7          -1          -3
    2364    Other adjustments, net..........           6
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,294       1,539       1,866
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond. The amounts
    in this account are a means of financing and are not included in the
    budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4337-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         310            689           926          1,182
            Investments in US securities:
    1106      Receivables, net..............                         77
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............       1,094          1,294         1,539          1,866
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............       1,094          1,294         1,539          1,866
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,404          2,060         2,465          3,048
        LIABILITIES:
    2103  Federal liabilities: Debt.........                        851           851            851
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.       1,404          1,209         1,614          2,197
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,404          2,060         2,465          3,048
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,404          2,060         2,465          3,048
    -----------------------------------------------------------------------------------------------

        Commodity Credit Corporation Guaranteed Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Capital investment: Direct loans:
            Guarantee claims................          44           2
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              33.0).........................          44           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         134          64          62
    22.00 New budget authority (gross)......         441         214         172
    22.40 Capital transfer to general fund..        -467        -214        -172
                                               ---------   ---------  ----------

    [[Page 176]]

    23.90   Total budgetary resources
              available for obligation......         108          64          62
    23.95 New obligations...................         -44          -2
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          64          62          62
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         441         214         172
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          44           2
    73.20 Total outlays (gross).............         -44          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          44           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal.....        -163         -50         -24
    88.40       Interest received on loans..        -278        -164        -148
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -441        -214        -172
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -397        -212        -172
    ---------------------------------------------------------------------------
        Note.--Includes amounts for activities previously funded in the
    Commodity Credit Corporation Fund.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         206          91           6
    2251  Repayments and prepayments........         -95         -83          -6
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................         -20          -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          91           6
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          91           6
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       5,209       5,067       5,019
    2331    Disbursements for guaranteed
              loan claims...................          20           2
    2351    Repayments of loans receivable..        -162         -50         -24
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       5,067       5,019       4,995
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from loan guarantees committed prior to 1992. This account is
    shown on a cash basis. All new activity in this program in 1992 and
    beyond is recorded in corresponding program and financing accounts.

    Credit accounts:

               Agricultural Credit Insurance Fund Program Account

                         (including transfers of funds)

        For gross obligations for the principal amount of direct and
    guaranteed loans as authorized by 7 U.S.C. 1928-1929, to be available
    from funds in the Agricultural Credit Insurance Fund, as follows: farm
    ownership loans, [$600,000,000] $430,828,000 of which [$550,000,000]
    $400,000,000 shall be for guaranteed loans; operating loans,
    [$2,345,071,000] $2,350,000,000 of which $1,700,000,000 shall be for
    unsubsidized guaranteed loans and $200,000,000 shall be for subsidized
    guaranteed loans; Indian tribe land acquisition loans as authorized by
    25 U.S.C. 488, $1,000,000; for emergency insured loans, $25,000,000 to
    meet the needs resulting from natural disasters; [for boll weevil
    eradication program loans as authorized by 7 U.S.C. 1989, $34,653,000;]
    and for credit sales of acquired property, $25,000,000.
        For the cost of direct and guaranteed loans, including the cost of
    modifying loans as defined in section 502 of the Congressional Budget
    Act of 1974, as follows: farm ownership loans, [$27,975,000] $19,460,000
    of which [$22,055,000] $15,440,000 shall be for guaranteed loans;
    operating loans, [$96,840,000], $68,735,000 of which [$19,210,000]
    $19,890,000 shall be for unsubsidized guaranteed loans and [$18,480,000]
    $19,280,000 shall be for subsidized guaranteed loans; Indian tribe land
    acquisition loans as authorized by 25 U.S.C. 488, [$54,000] $132,000;
    for emergency insured loans, [$6,365,000] $6,008,000 to meet the needs
    resulting from natural disasters [for boll weevil eradication program
    loans as authorized by 7 U.S.C. 1989, $499,000]; and for credit sales of
    acquired property, [$2,530,000] $3,255,000.
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, [$221,046,000] $219,861,000 of
    which [$208,446,000] $209,861,000 shall be transferred to and merged
    with the ``Farm Service Agency, Salaries and Expenses'' account.

                             Dairy Indemnity Program

                         (including transfers of funds)

        For necessary expenses involved in making indemnity payments to
    dairy farmers for milk or cows producing such milk and manufacturers of
    dairy products who have been directed to remove their milk or dairy
    products from commercial markets because it contained residues of
    chemicals registered and approved for use by the Federal Government, and
    in making indemnity payments for milk, or cows producing such milk, at a
    fair market value to any dairy farmer who is directed to remove his milk
    from commercial markets because of (1) the presence of products of
    nuclear radiation or fallout if such contamination is not due to the
    fault of the farmer, or (2) residues of chemicals or toxic substances
    not included under the first sentence of the Act of August 13, 1968, as
    amended (7 U.S.C. 450j), if such chemicals or toxic substances were not
    used in a manner contrary to applicable regulations or labeling
    instructions provided at the time of use and the contamination is not
    due to the fault of the farmer, $100,000, to remain available until
    expended (7 U.S.C. 2209b): Provided, That none of the funds contained in
    this Act shall be used to make indemnity payments to any farmer whose
    milk was removed from commercial markets as a result of his willful
    failure to follow procedures prescribed by the Federal Government:
    Provided further, That this amount shall be transferred to the Commodity
    Credit Corporation: Provided further, That the Secretary is authorized
    to utilize the services, facilities, and authorities of the Commodity
    Credit Corporation for the purpose of making dairy indemnity
    disbursements. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         102         141         141
        Receipts:
    02.02 Agriculture credit insurance fund
            direct loans, downward
            reestimates of subsidies........          39
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         141         141         141
    07.99 Total balance, end of year........         141         141         141
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         142         103          43
    00.02 Guaranteed loan subsidy...........          50          60          55
    00.05 Reestimates of direct loan subsidy          41
    00.06 Interest on reestimates of direct
            loan subsidy....................          10
    00.07 Reestimates of guaranteed loan
            subsidy.........................          12
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........           1
          Administrative expenses:

    00.09   Administrative expenses--
              salaries and expenses.........         209         208         210

    [[Page 177]]

    00.10   Administrative expenses--non-
              recoverable costs.............           8          13          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............         473         384         318
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                      19          19
    22.00 New budget authority (gross)......         486         384         318
    22.22 Unobligated balance transferred
            from other accounts.............          16
    22.30 Unobligated balance expiring......         -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         492         403         337
    23.95 New obligations...................        -473        -384        -318
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          19          19          19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         422         384         318
          Permanent:

    60.05   Appropriation (indefinite)......          64
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         486         384         318
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          17          20          34
    73.10 New obligations...................         473         384         318
    73.20 Total outlays (gross).............        -473        -370        -321
    73.40 Adjustments in expired accounts...           3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          20          34          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         394         355         301
    86.93 Outlays from current balances.....          15          15          20
    86.97 Outlays from new permanent
            authority.......................          64
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         473         370         321
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         486         384         318
    90.00 Outlays...........................         473         370         321
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Farm ownership....................          89          28          31
    1150  Farm operating....................         567         470         450
    1150  Emergency disaster................         272          21          25
    1150  Indian tribe land acquisition.....           1                       1
    1150  Credit sales of acquired property.                      14          25
    1150  Boll weevil eradication...........                      35
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         929         568         532
        Direct loan subsidy (in percent):
    1320  Farm ownership....................       19.04       21.03       13.04
    1320  Farm operating....................       12.98       12.59        6.57
    1320  Emergency disaster................       29.34       30.41       24.03
    1320  Indian tribe land acquisition.....       23.24       24.12       13.18
    1320  Credit sales of acquired property.        0.00       18.06       13.02
    1320  Boll weevil eradication...........        0.00        1.44        3.19
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       15.92       15.61        8.08
        Direct loan subsidy budget authority:
    1330  Farm ownership....................          14           6           4
    1330  Farm operating....................          74          59          30
    1330  Emergency disaster................          81           6           6
    1330  Indian tribe land acquisition.....
    1330  Credit sales of acquired property.                       2           3
    1330  Boll weevil eradication...........                       1
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         169          74          43
        Direct loan subsidy outlays:
    1340  Farm ownership....................          15           8           4
    1340  Farm operating....................          71          63          31
    1340  Emergency disaster................          50          30           6
    1340  Indian tribe land acquisition.....
    1340  Credit sales of acquired property.                       2           3
    1340  Boll weevil eradication...........
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         136         103          44
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Farm ownership, unsubsidized......         535         598         400
    2150  Farm operating, unsubsidized......       1,125       1,745       1,700
    2150  Farm operating, subsidized........         191         204         200
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       1,851       2,547       2,300
        Guaranteed loan subsidy (in percent):
    2320  Farm ownership, unsubsidized......        3.74        3.69        3.86
    2320  Farm operating, unsubsidized......        1.11        1.10        1.17
    2320  Farm operating, subsidized........        9.12        9.08        9.64
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        2.36        2.34        2.37
        Guaranteed loan subsidy budget authority:
    2330  Farmer ownership, unsubsidized....          20          22          16
    2330  Farm operating, unsubsidized......          12          19          20
    2330  Farm operating, subsidized........          17          18          19
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          49          59          55
        Guaranteed loan subsidy outlays:
    2340  Farmer ownership, unsubsidized....          20          14          17
    2340  Farm operating, unsubsidized......          12          16          20
    2340  Farm operating, subsidized........          17          16          19
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........          49          46          56
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         222         221         220
    3590  Outlays...........................         221         221         220
    ---------------------------------------------------------------------------

        The Agricultural Credit Insurance Fund Program Account's loans are
    authorized by title III of the Consolidated Farm and Rural Development
    Act, as amended.

        This program account includes subsidies to provide direct and
    guaranteed loans for farm ownership, farm operating, emergency, and soil
    and water loans to individuals. Associations, Indian tribes, and tribal
    corporations are eligible for the following types of loans: Indian land
    acquisition, and flood prevention.

        Additional funding for emergency disaster loans was provided in
    fiscal year 1996 through the Secretary's interchange authority, and a
    fiscal year 1996 supplemental appropriation for emergency disaster loans
    was included in the 1997 Appropriations Act (P.L. 104-180), with that
    funding to be available until expended.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including credit sales of acquired property), as well as administrative
    expenses of this program. The subsidy amounts are estimated on a present
    value basis; the administrative expenses are estimated on a cash basis.

        Under the Dairy Indemnity Program (DIP), payments are made to
    farmers and manufactuers of dairy products who are directed to remove
    their milk or milk products from commercial markets because they contain
    residues of chemicals that have been registered and approved by the
    Federal Government, other chemicals, nuclear radiation, or nuclear
    fallout. Indemnification may also be paid for cows producing such milk.

        In 1997, an estimated $292 thousand will be paid to producers and
    manufacturers who file claims under the program.

        The 1998 budget requests $100 thousand for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........         222         221         220
    41.0  Grants, subsidies, and
            contributions...................         251         163          98
                                               ---------   ---------  ----------
    99.9    Total obligations...............         473         384         318
    ---------------------------------------------------------------------------

    [[Page 178]]

        Agricultural Credit Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         833         662         532
    00.02 Advances on behalf of borrowers...           2           2           2
    00.04 Interest on Treasury borrowing....         155         108         119
    00.08 Subsidy reestimate paid to reciept
            account.........................          24
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,014         772         653
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....         314         288         390
    22.00 New financing authority (gross)...       1,513       1,275       1,127
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
    22.60 Redemption of debt................        -531        -400        -400
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,302       1,163       1,117
    23.95 New obligations...................      -1,014        -772        -653
    24.90 Unobligated balance available, end
            of year: Fund balance...........         288         390         464
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         833         663         532
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         674         617         600
    68.10   Receivables from program account           6          -5          -5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         680         612         595
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,513       1,275       1,127
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Obligated
              balance.......................          40          68          33
    72.95   Receivables from program account           9          15          10
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          49          83          43
    73.10 New obligations...................       1,014         772         653
    73.20 Total financing disbursements
            (gross).........................        -974        -812        -675
    73.45 Adjustments in unexpired accounts.          -6
          Unpaid obligations, end of year:

    74.90   Obligated balance: Obligated
              balance.......................          68          33          16
    74.95   Receivables from program account          15          10           5
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          83          43          21
    87.00 Total financing disbursements
            (gross).........................         974         812         675
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............        -191        -100         -43
    88.25     Interest on uninvested funds..         -67         -62         -57
              Non-Federal sources:
    88.40       Repayments of principal.....        -348        -410        -455
    88.40       Non-Federal sources.........         -68         -45         -45
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -674        -617        -600
    88.95 Change in receivables from program
            accounts........................          -6           5           5
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         833         663         532
    90.00 Financing disbursements...........         300         195          75
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         929         663         532
    1112  Unobligated direct loan limitation         -96
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         833         663         532
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,655       2,026       2,222
    1231  Disbursements: Direct loan
            disbursements...................         801         667         540
    1251  Repayments: Repayments and
            prepayments.....................        -416        -455        -500
    1263  Write-offs for default: Direct
            loans...........................         -14         -16         -17
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,026       2,222       2,245
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    credit sales of acquired property that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

        This account finances direct loans for farm ownership, farm
    operating, emergency disaster, and credit sales of acquired property.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4212-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net         363            356           349            342
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,655          2,026         2,222          2,245
    1402    Interest receivable.............          57             20            20             20
    1403    Accounts receivable from
              foreclosed property...........        -448             16            20             20
    1405    Allowance for subsidy cost (-)..                       -551
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,264          1,511         2,262          2,285
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,627          1,867         2,611          2,627
        LIABILITIES:
    2103  Federal liabilities: Debt.........       1,615          1,850         2,596          2,612
    2207  Non-Federal liabilities: Other....          12             17            15             15
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,627          1,867         2,611          2,627
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,627          1,867         2,611          2,627
    -----------------------------------------------------------------------------------------------

      Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................          31          35          39
    00.02 Interest assistance on guaranteed
            loans...........................          51          50          52
    00.07 Negative subsidy transferred to
            receipt account.................          15
                                               ---------   ---------  ----------
    10.00   Total obligations...............          97          85          91
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          79          98         113
    22.00 New financing authority (gross)...         107         100          91
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         196         198         204
    23.95 New obligations...................         -97         -85         -91
    24.90 Unobligated balance available, end
            of year: Fund balance...........          98         113         113
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    60.05 Appropriation (indefinite)........          15
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          92         100          91
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         107         100          91
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Obligated
            balance.........................         124         144         128

    [[Page 179]]

    73.10 New obligations...................          97          85          91
    73.20 Total financing disbursements
            (gross).........................         -67        -101         -92
    73.45 Adjustments in unexpired accounts.         -10
    74.90 Unpaid obligations, end of year:
            Obligated balance: Obligated
            balance.........................         144         128         127
    87.00 Total financing disbursements
            (gross).........................          67         101          92
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -63         -60         -55
    88.25     Interest on uninvested funds..         -15         -15         -15
    88.40     Fees and premiums.............         -14         -25         -21
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -92        -100         -91
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          15
    90.00 Financing disbursements...........         -24           1           1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       1,851       2,547       2,300
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       1,851       2,547       2,300
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,979       5,705       6,828
    2231  Disbursements of new guaranteed
            loans...........................       1,768       2,378       2,375
    2251  Repayments and prepayments........      -1,007      -1,255      -1,366
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -35
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       5,705       6,828       7,837
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       5,134       6,145       7,053
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond. The amounts
    in this account are a means of financing and are not included in the
    budget totals.

        This account finances commitments made for farm ownership and
    operating guaranteed loan programs.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4213-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         202            242           291            341
            Investments in US securities:
    1106      Receivables, net..............
    1206  Non-Federal assets: Receivables,
            net.............................
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         202            242           291            341
        LIABILITIES:
    2102  Federal liabilities: Interest
            payable.........................
          Non-Federal liabilities:

    2201    Accounts payable................         124            144           175            204
    2203    Debt............................                         15
    2204    Liabilities for loan guarantees.          78             83           116            137
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         202            242           291            341
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         202            242           291            341
    -----------------------------------------------------------------------------------------------

             Agricultural Credit Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.01   Purchase of loans from investors                       1           1
    00.04   Purchase of guaranteed loans
              from investors................           1           1           1
    00.07   Disbursement of loan repayments
              to investors..................                       1           1
    00.08   Loan recoverable costs..........          17          30          30
                                               ---------   ---------  ----------
    00.91     Total capital investment......          18          33          33
          Operating expenses:

    01.03   Interest on FFB borrowings......          67
    01.07   Loss settlement expenses on
              guaranteed loans..............          15          12          11
    01.08   Admininstrative expenses--DOJ
              fees..........................           3           1           1
    01.09   Costs incident to acq prop......           4           4           4
    01.13   Interest assistance--guaranteed
              loans.........................           2           2           2
    01.17   Unclassified Costs..............           5           4           4
                                               ---------   ---------  ----------
    01.91     Total operating expenses......          96          23          22
                                               ---------   ---------  ----------
    10.00   Total obligations...............         114          56          55
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....         806         347         341
    22.00 New budget authority (gross)......                      50          50
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          24
    22.40 Capital transfer to general fund..        -200
    22.60 Redemption of debt................        -169
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         461         397         391
    23.95 New obligations...................        -114         -56         -55
    24.90 Unobligated balance available, end
            of year: Fund balance...........         347         341         336
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,301       1,291       1,240
    68.27   Capital transfer to general fund      -1,301      -1,241      -1,190
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................                      50          50
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                      50          50
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         172          99         112
    73.10 New obligations...................         114          56          55
    73.20 Total outlays (gross).............        -163         -43        -167
    73.45 Adjustments in unexpired accounts.         -24
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.          99         112
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                      43          50
    86.98 Outlays from permanent balances...         163                     117
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         163          43         167
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Rent on acquired property...          -7          -7          -6
    88.40       Guaranteed lns purchased
                  from holders--principal...          -1          -1          -1
    88.40       Interest on loans...........        -470        -450        -450
    88.40       Guaranteed loss recoveries..          -1          -1          -1
    88.40       Loan repayments recd on
                  behalf of investors.......          -1          -1          -1
    88.40       Interest on judgments.......          -2          -1          -1
    88.40       Repayments on loans--
                  principal.................        -748        -750        -700
    88.40       Judgments--principal........         -11         -10          -9
    88.40       Shared appreciation
                  recapture.................          -4          -3          -4
    88.40       Sale of acquired property/
                  chattels..................         -48         -60         -60
    88.40       Miscellaneous income........          -3          -2          -1
    88.40       Undistributed receipts......          -5          -5          -6
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,301      -1,291      -1,240
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,301      -1,241      -1,190

    [[Page 180]]

    90.00 Outlays...........................      -1,138      -1,248      -1,073
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      10,234       8,783       7,498
    1232  Disbursements: Purchase of loans
            assets from the public..........           5           5           5
    1251  Repayments: Repayments and
            prepayments.....................        -743        -707        -652
    1261  Adjustments: Capitalized interest.          55          50          50
          Write-offs for default:

    1263    Direct loans....................        -663        -600        -500
    1264    Other adjustments, net\1\.......        -105         -33          12
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       8,783       7,498       6,413
    ---------------------------------------------------------------------------
        \1\ Amounts shown are based on payment of delinquent installments,
    advances on behalf of borrowers, acquired property and chattels, loans
    in kind, and judgments.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       1,316       1,173         963
    2231  Disbursements of new guaranteed
            loans...........................           2           2
    2251  Repayments and prepayments........        -295        -200        -100
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -17         -12          -5
    2264    Other adjustments, net..........         167
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       1,173         963         858
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       1,059         870         772
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records for the farm loan programs all cash flows to and from the
    Government resulting from direct loans obligated, loan guarantees
    committed, and grants prior to 1992. New loan activity in 1992 and
    beyond (including credit sales of acquired property that resulted from
    obligations or commitments in any year) is recorded in corresponding
    program and financing accounts.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4140-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         479            437           398            362
    0102  Expense...........................       1,328         -1,704         1,510          1,008
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............       1,807         -1,267         1,908          1,370
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4140-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         979            446           200            200
    1206  Non-Federal assets: Receivables,
            net.............................
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............      10,426          8,783         7,498          6,413
    1602    Interest receivable.............         549            414           100            597
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,552         -2,474        -1,500         -1,000
    1604    Direct loans and interest
              receivable, net...............       9,423          6,723         6,098          6,010
    1606    Foreclosed property.............         301            267           231            250
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       9,724          6,990         6,329          6,260
    1901  Other Federal assets: Other assets           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      10,704          7,436         6,529          6,460
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................          48
    2103    Debt............................       1,470
    2104    Resources payable to Treasury...       8,798          7,084         6,183          6,114
          Non-Federal liabilities:

    2201    Accounts payable................         100             89            98             98
    2202    Interest payable................           1                            1              1
    2203    Debt............................           2              2             2              2
    2204    Liabilities for loan guarantees.         236            207           200            200
    2207    Other...........................          49             54            45             45
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      10,704          7,436         6,529          6,460
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      10,704          7,436         6,529          6,460
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          13           9          12
    33.0  Investments and loans.............          32          45          41
    43.0  Interest and dividends............          69           2           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............         114          56          55
    ---------------------------------------------------------------------------

                     NATURAL RESOURCES CONSERVATION SERVICE

                                  Federal Funds

    General and special funds:

                             Conservation Operations

        For necessary expenses for carrying out the provisions of the Act of
    April 27, 1935 (16 U.S.C. 590a-590f) including preparation of
    conservation plans and establishment of measures to conserve soil and
    water (including farm irrigation and land drainage and such special
    measures for soil and water management as may be necessary to prevent
    floods and the siltation of reservoirs and to control agricultural
    related pollutants); administration of research, investigation, and
    surveys of watersheds of rivers and other waterways, for small watershed
    investigations and planning, and for technical assistance to carry out
    preventive measures, in accordance with the Watershed Protection and
    Flood Prevention Act (16 U.S.C.1001-1009), and the Flood Control Act (33
    U.S.C. 701); operation of conservation plant materials centers;
    classification and mapping of soil; dissemination of information;
    acquisition of lands, water, and interests therein for use in the plant
    materials program by donation, exchange, or purchase at a nominal cost
    not to exceed $100 pursuant to the Act of August 3, 1956 (7 U.S.C.
    428a); purchase and erection or alteration or improvement of permanent
    and temporary buildings; and operation and maintenance of aircraft,
    [$619,742,000] $722,268,000, to remain available until expended (7
    U.S.C. 2209b), of which not less than [$5,835,000] $5,888,000 is for
    snow survey and water forecasting and not less than [$8,825,000]
    $8,891,000 is for operation and establishment of the plant materials
    centers: Provided, That appropriations hereunder shall be available
    pursuant to 7 U.S.C. 2250 for construction and improvement of buildings
    and public improvements at plant materials centers, except that the cost
    of alterations and improvements to other buildings and other public
    improvements shall not exceed $250,000: Provided further, That when
    buildings or other structures are erected on non-Federal land, that the
    right to use such land is obtained as provided in 7 U.S.C. 2250a:
    Provided further, That this appropriation shall be available for
    technical assistance and related expenses to carry out programs
    authorized by section 202(c) of title II of the Colorado River Basin
    Salinity Control Act of 1974, as amended (43 U.S.C. 1592(c)): Provided
    further, That up to $5,000,000 may be used for agreements with
    conservation districts and other State and local entities for training
    expenses to assist with

    [[Page 181]]

    the above noted activities: Provided further, That no part of this
    appropriation may be expended for soil and water conservation operations
    under the Act of April 27, 1935 (16 U.S.C. 590a-590f) in demonstration
    projects: Provided further, That this appropriation shall be available
    for employment pursuant to the second sentence of section 706(a) of the
    Organic Act of 1944 (7 U.S.C. 2225) and not to exceed $25,000 shall be
    available for employment under 5 U.S.C. 3109: Provided further, That
    qualified local engineers may be temporarily employed at per diem rates
    to perform the technical planning work of the Service (16 U.S.C. 590e-
    2).

                        [Watershed Surveys and Planning]

        [For necessary expenses to conduct research, investigation, and
    surveys of watersheds of rivers and other waterways, and for small
    watershed investigations and planning, in accordance with the Watershed
    Protection and Flood Prevention Act approved August 4, 1954, as amended
    (16 U.S.C. 1001-1009), $12,381,000: Provided, That this appropriation
    shall be available for employment pursuant to the second sentence of
    section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to
    exceed $110,000 shall be available for employment under 5 U.S.C. 3109.]
    (7 U.S.C. 2201-02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Technical Assistance............         543         532         549
    00.02   Soil Surveys....................          76          77          82
    00.03   Snow Survey and Water
              Forecasting...................           6           6           6
    00.04   Plant Materials Centers.........           9           9           9
    00.05   Water Resource Assistance.......          14          12          76
                                               ---------   ---------  ----------
    00.91     Total, direct program.........         648         636         722
    01.01 Reimbursable program..............          64         149         136
                                               ---------   ---------  ----------
    10.00   Total obligations...............         712         785         858
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           7           3
    22.00 New budget authority (gross)......         708         781         858
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         715         784         858
    23.95 New obligations...................        -712        -785        -858
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         644         632         722
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          64         149         136
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         708         781         858
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          85         107          83
    73.10 New obligations...................         712         785         858
    73.20 Total outlays (gross).............        -690        -810        -854
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         107          83          87
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         575         557         635
    86.93 Outlays from current balances.....          51         104          83
    86.97 Outlays from new permanent
            authority.......................          64         149         136
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         690         810         854
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -49        -126        -109
    88.40     Non-Federal sources...........         -15         -23         -27
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -64        -149        -136
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         644         632         722
    90.00 Outlays...........................         626         661         718
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Conservation operations...............         630         620         722
      Watershed surveys and planning........          14          12
      River basin surveys and investigations           1
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Conservation operations...............         611         635         703
      Watershed surveys and planning........          14          13          15
      River basin surveys and investigations           1
    ---------------------------------------------------------------------------

        Technical assistance.--Technical assistance is provided through
    2,955 conservation districts or special districts to land users and
    decisionmakers, including individual landowners and operators, community
    groups, units of government, Indian tribes, and others for the planning
    of conservation programs and installation of needed conservation systems
    on the land, including design, layout, installation, and consultation
    services.

        The budget assumes a consolidation of certain functions of the Farm
    Service Agency (FSA) and the Natural Resources Conservation Service
    (NRCS) at the national headquarters level in 1998, including personnel,
    IRM, property and public affairs. The consolidation will foster
    operational efficiencies, as well as improved inter-agency communication
    and coordination. In addition, the number of field office service
    centers would be reduced from 2,500 to a maximum of 2,000 by the end of
    1999.

        A study will be conducted in 1997 by an independent entity to
    examine the FSA and NRCS for opportunities for further coordinating and
    reducing costs in these agencies, including alternative means of program
    delivery, such as centralized servicing for AMTA payments and CCC non-
    recourse loans, and further consolidation of the two agencies'
    operations.

        Combinations of needed soil and water conservation systems are
    planned in relation to each other to achieve well-balanced conservation
    programs. Technicians explain the various soil conditions, develop
    alternative uses and treatments, help to evaluate the costs and returns
    of conservation work, and furnish onsite assistance to farmers,
    ranchers, and others in applying the needed treatments. About 70 percent
    of the total annual investment in conservation practices applied through
    the conservation technical assistance program is made by private
    landusers. During 1998, the National Resources Conservation Service will
    continue to provide technical assistance as needed for the Colorado
    River Basin Salinity Control Program, ongoing activities of the Great
    Plains Conservation Program, support for enrolled acres in the
    Conservation Reserve Program, the highly erodible land and wetland
    conservation provisions of the Food Security Act of 1985 as amended by
    the Food, Agriculture, Conservation and Trade Act of 1990, and the
    Conservation provisions of the Federal Agriculture Improvement and
    Reform Act of 1996.

                              MAIN WORKLOAD FACTORS

                                          1996 est.   1997 est.   1998 est.
    Decisionmakers receiving technical
    services............................   1,000,000   1,050,000   1,160,000
    Acres treated with conservation
    technical assistance................      66,000      66,000      70,000

        The enhancement of conservation district employee skills and
    rangeland conservationists will be accelerated in 1998 with additional
    training through NRCS funds. Improving the skills of those in the
    conservation districts will better permit the NRCS staff to target their
    expertise, emphasizing setting standards & providing certification, for
    other rather than directly implementing most activities themselves (in
    National Performance Review parlance, ``steering'', rather than
    ``rowing'').

        Also included in this item are the inventory and monitoring,
    resource appraisal, and program development activities. Resource
    inventories are conducted to provide soil, water, and related resource
    data for evaluating land-use changes and

    [[Page 182]]

    trends; and for guidance in the development and implementation of
    Federal, State, and local resource conservation programs. Resource
    appraisal and program development provides for periodic reports to the
    public and Congress as required by the Soil and Water Resources
    Conservation Act of 1977 as amended.

        Technical assistance will be targeted in 1998 through the use of
    area-wide watershed plans to achieve the goals of the Government
    Performance and Results Act. Technical assistance will be increased by
    $3 million for watershed and rangeland local council assistance. NRCS
    will fund certain high-priority activities, as a result, including area-
    wide planning on a watershed basis, a grazing lands initiative, Native
    American assistance, a wetlands initiative and more rapid development of
    Geographic Information Systems.

        Soil surveys.--Soil surveys and investigations are made of the
    Nation's soil resources, with interpretations and publications that
    provide physical land facts needed for program development, resource
    conservation planning, installation of planned practices, and for use by
    other Federal, State, and local agencies in making land-use decisions.
    National leadership is provided for digitizing soil surveys in
    cooperation with States, and other users of soil survey data.

                              MAIN WORKLOAD FACTORS

                                         1996 actual  1997 est.   1998 est.
    Acres mapped annually (millions)....        17.7        17.0        17.0
    Soil surveys ready for publication
    (number)............................          33          55          55

        Snow survey water forecasting.--Water supply forecasts prepared from
    snow surveys in western states are used in making efficient seasonal use
    of water for irrigation, flood control, fish and wildlife, recreation,
    power generation, municipal and industrial water supply, and water
    quality management.

        Operation of plant materials centers.--The selection and evaluation
    of plant materials are made at 26 plant materials centers through field
    trials to determine their suitability for erosion control, conservation,
    and other environmental improvements. Native plant species will be
    preferred and exotic species introductions phased out for this program.

        Water Resource Assistance.--The Department cooperates with other
    agencies and the States in planning small watersheds to reduce the
    damage from floodwater, sediment, agricultural run-off, and erosion and
    for the conservation, development, utilization, and disposal of water.
    Program activities will be accelerated for high priority natural
    resource concerns such as: water quality and wetlands restoration. This
    account will be used to develop plans to target agency resources to
    achieve the goals of the Government Performance and Results Act.

        Technical assistance for watershed project design and implementation
    to assist States and their political subdivisions and other localities
    to reduce damage from floodwater, sediment, and erosion, for the
    conservation, development, utilization, and disposal of water, and for
    conservation and proper utilization of lands. This technical assistance
    will be coupled with the financial assistance included in the Watershed
    and Flood Prevention operations account. Technical assistance was
    displayed directly in Watershed and Flood Prevention operations account
    in previous years.

        The Department makes surveys of proposed small watershed projects,
    and work plans are prepared in cooperation with local sponsors. These
    plans outline the soil and water management problems in the watershed,
    the steps that have been or are authorized to be taken to alleviate
    these problems, the proposed works of improvement to be installed, the
    estimated benefits and costs, cost sharing, operation and maintenance
    arrangements, and other information necessary to justify Federal
    participation in project development. Watershed planning will emphasize
    water quality protection and improvement. This emphasis will better
    enable States to focus on watersheds in fulfilling the requirements of
    the Clean Water Act and in maintaining clean water. Program activities
    will be accelerated for high priority natural resource concerns such as:
    water quality and wetlands restoration.

                              MAIN WORKLOAD FACTORS

                                         1996 actual  1997 est.   1998 est.
    Activity:
      Application for planning
        assistance: on hand, cumulative,
        start of year...................         280         285
    Status of planning:
      Approved for planning during year.           7          10          11
        Locally implemented.............        (--)         (3)         (6)
        Federally implemented...........         (7)         (7)         (5)
      Planning completed during year....          14           9          13
        Locally implemented.............         (1)         (3)         (6)
        Federally implemented...........        (13)         (6)         (7)
      Planning in process...............          84          84          84
        Locally implemented.............        (22)        (22)        (22)
        Federally implemented...........        (62)        (62)        (62)
      Status of projects in operations:
        Active projects.................         532         523         509
        Approved for operations during
          year..........................          13          14           7
    USDA Cooperative Studies:
      (1) Surveys in progress, start of
        year............................         136         154         163
      (2) Surveys initiated during year.          36          24          20
      (3) Surveys worked during year....         172         178         183
      (4) Surveys completed during year.          18          15          10
      (5) Surveys in progress, end of
        year............................         154         163         173
    Flood Plain Management Assist.
        Program:
      (1) States involved...............          26          27          29
      (2) Completed studies.............          11          10          10
      (3) Ongoing studies...............          55          50          40
      (4) Cumulative total completed....         597         607         617

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         349         336         379
    11.3      Other than full-time permanent          11          11          12
    11.5      Other personnel compensation..           8           8           9
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         368         355         400
    12.1    Civilian personnel benefits.....          94          93         105
    13.0    Benefits for former personnel...           3           3           3
    21.0    Travel and transportation of
              persons.......................          14          13          15
    22.0    Transportation of things........           6           6           6
    23.2    Rental payments to others.......          10          10          12
    23.3    Communications, utilities, and
              miscellaneous charges.........          19          18          20
    24.0    Printing and reproduction.......           3           3           3
    25.2    Other services..................          69          76          90
    26.0    Supplies and materials..........          13          13          14
    31.0    Equipment.......................          46          45          52
    32.0    Land and structures.............           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         646         636         721
    99.0  Reimbursable obligations..........          63         149         137
    99.5  Below reporting threshold.........           3
                                               ---------   ---------  ----------
    99.9    Total obligations...............         712         785         858
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       8,989       8,762       9,473
    1005    Full-time equivalent of overtime
              and holiday hours.............          17          17          25
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         798       1,550       1,915
    ---------------------------------------------------------------------------

                    Watershed and Flood Prevention Operations

        For necessary expenses to carry out preventive measures, including
    but not limited to research, engineering operations, methods of
    cultivation, the growing of vegetation, rehabilitation of existing works

    [[Page 183]]

    and changes in use of land, and high priority projects authorized by the
    Flood Control Act (33 U.S.C. 701, 16 U.S.C. 1006a) in accordance with
    the Watershed Protection and Flood Prevention Act approved August 4,
    1954, as amended (16 U.S.C. 1001-1005, 1007-1009), the provisions of the
    Act of April 27, 1935 (16 U.S.C. 590a-f), and in accordance with the
    provisions of laws relating to the activities of the Department,
    [$101,036,000] $40,000,000, to remain available until expended (7 U.S.C.
    2209b) [(of which up to $15,000,000 may be available for the watersheds
    authorized under the Flood Control Act approved June 22, 1936 (33 U.S.C.
    701, 16 U.S.C. 1006a), as amended and supplemented]: Provided, That
    [this appropriation shall be available for employment pursuant to the
    second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
    2225), and not to exceed $200,000 shall be available for employment
    under 5 U.S.C. 3109] up to $15,000,000 for the cost of direct loans may
    be transferred to the Rural Utilities Service for rural water and waste
    disposal projects, and rural development projects as authorized by 7
    U.S.C. 1926, 1928, and 1932 and approved under the Watershed and Flood
    Prevention Act: Provided: That such costs, including the cost of
    modifying such loans, shall be as defined in section 502 of the
    Congressional Budget Act of 1974: Provided further, That not to exceed
    $1,000,000 of this appropriation is available to carry out the purposes
    of the Endangered Species Act of 1973 (Public Law 93-205), as amended,
    including cooperative efforts as contemplated by that Act to relocate
    endangered or threatened species to other suitable habitats as may be
    necessary to expedite project construction. (7 U.S.C. 2201-02; 33 U.S.C.
    701b-1, 701b-11; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)
        [For an additional amount to repair damages to the waterways and
    watersheds resulting from the effects of Hurricanes Fran and Hortense
    and other natural disasters, $63,000,000, to remain available until
    expended: Provided, That the entire amount is designated by Congress as
    an emergency requirement pursuant to section 251(b)(2)(D)(i) of the
    Balanced Budget and Emergency Deficit Control Act of 1985, as amended.]
    (Omnibus Consolidated Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Watershed Operations (P.L. 534).          15          18
    00.03   Emergency Watershed Protection
              Operations....................         140         137
    00.04   Small Watershed Operations (P.L.
              566)..........................          82          93          40
                                               ---------   ---------  ----------
    00.91     Total direct program..........         237         248          40
    01.01 Reimbursable program..............          17          30          24
                                               ---------   ---------  ----------
    10.00   Total obligations...............         254         278          64
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         140          85           1
    22.00 New budget authority (gross)......         198         194          64
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         338         279          65
    23.95 New obligations...................        -254        -278         -64
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          85           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         181         164          40
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          17          30          24
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         198         194          64
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         204         181         146
    73.10 New obligations...................         254         278          64
    73.20 Total outlays (gross).............        -277        -313         -94
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         181         146         116
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         144         107          12
    86.93 Outlays from current balances.....         116         176          58
    86.97 Outlays from new permanent
            authority.......................          17          30          24
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         277         313          94
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3          -6         -10
    88.40     Non-Federal sources...........         -14         -24         -14
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -17         -30         -24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         181         164          40
    90.00 Outlays...........................         259         283          70
    ---------------------------------------------------------------------------

        These programs provide for cooperation between the Federal
    Government and States and their political subdivisions to reduce damage
    from floodwater, sediment, and erosion, for the conservation,
    development, utilization, and disposal of water, and for the
    conservation and proper utilization of land. Funds in Watershed and
    Flood Prevention Operations could be used for either flood prevention
    projects or flood damage rehabilitation efforts, depending upon the
    needs and opportunities. Technical assistance expenses for the program
    ($60 million) have been included as part of Conservation Operations
    beginning in 1998.

        Watershed operations authorized by Public Law 534.--The Department
    cooperates with soil conservation districts and other local
    organizations in planning and installing works of improvement for flood
    prevention in 11 watersheds authorized by the Flood Control Act of 1944.
    The Federal Government shares the cost of works of improvement for flood
    prevention, agricultural water management, recreation, and fish and
    wildlife development. No funds are directly proposed for this activity;
    however worthwhile projects, those with high net social benefits and
    environmental objectives consistent with current Administrations
    priorities, can be continued under the Small Watershed Operations
    authorized by Public Law 566.

        Within the 11 authorized projects, 433 subwatershed areas have been
    identified for planning purposes. Installation progress in these
    subwatersheds is as follows:

                              MAIN WORKLOAD FACTORS

                                         1996 actual  1997 est.   1998 est.
    Active subwatersheds................          97          97          97
      Projects continuing post-instal
        assistance......................         242         242         242
                                        ------------------------------------
          Total operational
            subwatersheds...............         339         339         339
      Unserviced applications...........          33          33          33
      Planning in progress..............          26          26          26
    Terminated in planning..............           7           7           7
    Withdrawn applications..............          28          28          28
                                        ------------------------------------
          Total subwatersheds...........         433         433         433
                                        ====================================

        Emergency watershed protection operations.--This program authorizes
    the Secretary of Agriculture to undertake such emergency measures for
    runoff retardation and soil erosion prevention as may be needed to
    safeguard life and property from floods and the products of erosion on
    any watershed whenever natural elements or forces cause a sudden
    impairment of that watershed. An emergency is considered to exist when a
    watershed is suddenly impaired by flood, fire, wind, earthquake, or
    other natural cause and consequently life and property are endangered by
    floodwater, erosion, or sediment discharge. The emergency area need not
    be declared a national disaster area to be eligible for emergency
    watershed protection. Emergency watershed protection is applicable to
    small scale, localized disasters as well as large scale disasters. State
    environmental, natural resource, fish and game, and other agencies
    participate in planning and coordinating emergency work.

    [[Page 184]]

        Small watershed operations authorized by Public Law 566.--The
    Department provides technical and financial assistance to local
    organizations to install measures for watershed protection, flood
    prevention, agricultural water management, recreation, and fish and
    wildlife enhancement. Expenses for technical assistance will be
    displayed as part of the Conservation Operations account beginning in
    1998. Significant reforms will be carried out in 1997 to make this
    program environmentally beneficial, with high returns to society
    resulting from the investment. High priority P.L. 534 projects will be
    eligible to compete for funding for P.L. 566 funding.

        Watershed work plans are prepared by sponsoring local organizations
    with the Department's assistance or through State and local resources.
    After work plans are approved by the Department or Congress (projects
    where the estimated Federal contribution will exceed $5 million require
    congressional approval), financial assistance is provided for specific
    works of improvements.

        The following tabulation shows the status of Public Law 566
    projects:

                              MAIN WORKLOAD FACTORS

                                         1996 actual  1997 est.   1998 est.
    Status of operational projects:
      Projects receiving land treatment.         174         174         174
      Structural projects...............         297         294         285
      Land treatment and structural.....          61          55          50
                                        ------------------------------------
          Subtotal active projects......         532         523         509
      Projects continuing post-instal
        assistance......................         893         915         930
      Inactive projects.................         152         152         152
      Completed projects................          27          28          30
                                        ------------------------------------
          Total operational projects....       1,604       1,618       1,621
                                        ------------------------------------
      New projects approved during year.          13          14           7
                                        ====================================

        Loan Services. In 1998, local sponsors will have an alternative
    funding source to finance their projects. For projects that produce
    rural water supply or primarily offer rural development benefits, these
    loans may be a useful and appropriate alternative. Approved Public Law
    566 and 534 projects may immediately receive loans through rural
    Development (particularly the water and waste loans) to complete their
    projects. Public Law 566 financial assistance would be transferred to
    the Rural Utility Service and other rural development agencies to fund
    loans for new and existing Small Watershed Projects. These loans are
    subsidized depending upon the wealth of the community. In this fashion,
    the loans differ from the previous loans offered through the
    Agricultural Credit Insurance Fund. If $15 million were used as subsidy
    costs for loans, USDA could offer $155 million in loans to implement
    roughly 75 projects.

        Loans through the Agricultural Credit Insurance Fund have been made
    in previous years to the local sponsors in order to fund the local cost
    of Public Law 566 or 534 projects. No funding for these loans is assumed
    in 1998.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          58          55
    11.3      Other than full-time permanent           1           1
    11.5      Other personnel compensation..           4           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          63          59
    12.1    Civilian personnel benefits.....          14          13
    21.0    Travel and transportation of
              persons.......................           3           3
    23.2    Rental payments to others.......           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           2
    24.0    Printing and reproduction.......           1           1
            Other services:
    25.2      Other services................          13          15
    25.2      Other services................          77          88          20
    26.0    Supplies and materials..........           2           2
    31.0    Equipment.......................           6           6
    32.0    Land and structures.............          24
    41.0    Grants, subsidies, and
              contributions.................          28          54          20
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         236         245          40
    99.0  Reimbursable obligations..........          16          30          24
          Allocation Account:

    11.1    Personnel compensation: Full-
              time permanent................                       1
    25.2    Other services..................                       1
                                               ---------   ---------  ----------
    99.0      Subtotal, allocation account..                       2
    99.5  Below reporting threshold.........           2           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         254         278          64
    ---------------------------------------------------------------------------
    Obligations are distributed as follows:
      Natural Resources Conservation Service
      Forest Service........................
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       1,436       1,281
    1005    Full-time equivalent of overtime
              and holiday hours.............          44          32
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          24          43
    ---------------------------------------------------------------------------

                      Resource Conservation and Development

        For necessary expenses in planning and carrying out projects for
    resource conservation and development and for sound land use pursuant to
    the provisions of section 32(e) of title III of the Bankhead-Jones Farm
    Tenant Act, as amended (7 U.S.C. 1010-1011; 76 Stat. 607), the Act of
    April 27, 1935 (16 U.S.C. 590a-f), and the Agriculture and Food Act of
    1981 (16 U.S.C. 3451-3461), [$29,377,000] $47,700,000, to remain
    available until expended (7 U.S.C. 2209b): Provided, That this
    appropriation shall be available for employment pursuant to the second
    sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225),
    and not to exceed $50,000 shall be available for employment under 5
    U.S.C. 3109. (7 U.S.C. 2201-02; 33 U.S.C. 701b-11; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Watershed Coordinators..........                                  13
    00.02   Technical Assistance/Rangeland
              Coordinators..................          30          30          35
                                               ---------   ---------  ----------
    00.91     Total direct program..........          30          30          48
    01.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          31          31          49
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           2           1
    22.00 New budget authority (gross)......          30          30          49
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          32          31          49
    23.95 New obligations...................         -31         -31         -49
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          29          29          48
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          30          30          49
    ----------------------------------------------------------------------------

    [[Page 185]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           6           6           7
    73.10 New obligations...................          31          31          49
    73.20 Total outlays (gross).............         -31         -30         -50
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           6           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          25          26          44
    86.93 Outlays from current balances.....           5           3           5
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          31          30          50
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          29          29          48
    90.00 Outlays...........................          30          29          49
    ---------------------------------------------------------------------------

        Under this program, the Department assists States, local units of
    government, groups and individuals in developing area plans for resource
    conservation and development (RC and D).

        RC and D areas are provided technical assistance to help States and
    local units of government prepare plans for resource development and
    economic improvement and to plan and install community-type conservation
    projects or measures. Financial contributions, loans, and other Federal
    assistance may be used to help carry out measures specified in RC and D
    area plans. Loans are made through the farm loan program of the Farm
    Service Agency, formerly the Farmers Home Administration, to qualified
    local organizations to help finance their share of the costs of
    installing the measures. No loans are assumed in 1998. Program financial
    resources are focused on the RC and D coordinators who assist the local
    area councils. These coordinators help the area councils develop plans
    and proposals to compete for financial assistance from other Federal,
    State and private sources.

        In 1998, funds are provided in the RC&D program for funding local,
    non-Federal watershed and rangeland coordinators to assist in watershed
    planning and rangeland conservation throughout the country, including
    for grazing lands assistance, the Bay-Delta region (CA), and the salmon
    recovery sites (CA, OR, WA, ID). The goal in funding these coordinators
    is to better enable the spectrum of community interests to solve their
    natural resource problems and concerns locally and together. The
    additional $18 million added to RC&D could fund 25 States with
    coordinators for over 400 high-priority watersheds or rangelands. These
    estimates assume a cost-share contribution from the watershed or
    rangeland councils or steering committee served, and an eventual
    ``graduation'' from Federal support (in 3 years) as the local community
    members gain funding through other proposals and sources.

        The following tabulation shows the status of RC and D areas
    authorized to receive technical and financial assistance.

                              MAIN WORKLOAD FACTORS

                                         1996 actual  1997 est.   1998 est.
    Areas authorized at beginning of
    year................................         277         289         289
    Areas authorized at end of year.....         289         289         289
    Project plans written...............       2,050       2,050       2,050
    Projects being implemented..........       2,146       2,146       2,146
    Projects completed..................       2,050       2,050       2,050

                    Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          15          15          15
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          16          16          16
    12.1    Civilian personnel benefits.....           3           4           4
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           5           5           5
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
    41.0    Grants, subsidies, and
              contributions.................                                  18
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          29          30          48
    99.0  Reimbursable obligations..........           1           1           1
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          31          31          49
    ---------------------------------------------------------------------------
     --------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         386         386         386
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           5           5           5
    ---------------------------------------------------------------------------

                   Outreach for Socially Disadvantaged Farmers

        For grants and contracts pursuant to section 2501 of the Food,
    Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279),
    [$1,000,000] $5,000,000, to remain available until expended.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           1           1           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1           1           5
    23.95 New obligations...................          -1          -1          -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           1           1           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.           5           3
    73.10 New obligations...................           1           1           5
    73.20 Total outlays (gross).............          -3          -4          -5
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           5
    86.93 Outlays from current balances.....           2           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           4           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           5
    90.00 Outlays...........................           3           4           5
    ---------------------------------------------------------------------------

        Farm Outreach and Assistance Grants.--This program is authorized
    under section 2501 of Title XXV of the Food, Agriculture, Conservation,
    and Trade Act of 1990. The Secretary of Agriculture is empowered to make
    grants to eligible community-based organizations with demonstrated
    experience in providing education or other agriculture-related services
    to socially disadvantaged farmers and ranchers in their area of
    influence. Also eligible are the 1890 Land-Grant Colleges, Tuskegee
    University, Indian tribal community colleges and post-secondary
    education facilities serving Hispanics.

    [[Page 186]]

        In 1997, additional funds will be provided through the Fund for
    Rural America to enhance program effectiveness.

        In 1998, the increase will support funding for 28 entities
    consisting of 1890/1862 Land Grant Institutions, Community Based
    Organizations, Hispanic Servicing Institutions, and Native American
    Community Colleges, that through partnership agreements with USDA
    provide outreach, training, and technical assistance and sound farm
    management and production to small farmers and ranchers by providing
    assistance in custom farm plans, production, crop diversification,
    marketing practices, farm accounting and recordkeeping. The overall
    objective of the program is to enhance the ability of small and minority
    producers to operate a farming or ranching enterprise independently and
    produce income adequate to service debts, maintain farm operations and
    provide a reasonable standard of living. Services are provided by non-
    federal employees who are employed by the entities.

                                GRANT OBLIGATIONS

                                         1996 actual  1997 est.   1998 est.
    Number of grants....................          10          12          28
    Amount of grants (in millions of
    dollars)............................           1           1           5

                        Great Plains Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          34          22          13
    73.20 Total outlays (gross).............         -12          -9          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          22          13           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          12           9           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          12           9           6
    ---------------------------------------------------------------------------

        This program provides cost-share assistance to participating
    landowners or operators in the Great Plains area in the development and
    installation of long-term conservation plans and practices for their
    land under contracts entered into in prior years. It is a voluntary
    program in 556 designated counties of 10 Great Plains States. Contracts
    with individual landowners range in time from 3 to 10 years.

                              MAIN WORKLOAD FACTORS

                                         1996 actual  1997 est.   1998 est.
    Program participants:
      Number of new contracts during
        year............................           5
      Number of contracts serviced
        during year.....................       6,846       5,846       4,646
      Number of acres under contracts...  17,777,700  14,198,500  12,164,000

        As of September 30, 1996, there were 5,846 active contracts on hand.
    Co-landowners or operators finance the entire cost of installing
    recurring management-type practices and pay a specified part of the
    cost-shared practices installed on their land. Program regulations
    provide that cost-share rates offered in any contract shall not exceed
    80 percent of the cost of installing eligible practices within the
    designated county. There is a cost-sharing limitation of $35 thousand
    for any contract.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          19
    ---------------------------------------------------------------------------

                           Forestry Incentives Program

        For necessary expenses, not otherwise provided for, to carry out the
    program of forestry incentives, as authorized in the Cooperative
    Forestry Assistance Act of 1978 (16 U.S.C. 2101), including technical
    assistance and related expenses, $6,325,000, to remain available until
    expended, as authorized by that Act. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3336-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           7           7           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1
    22.00 New budget authority (gross)......           6           6           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           6           6
    23.95 New obligations...................          -7          -7          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           6           6           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          15          11           8
    73.10 New obligations...................           7           7           6
    73.20 Total outlays (gross).............         -11         -10          -8
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          11           8           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           3           3           3
    86.93 Outlays from current balances.....           8           7           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          11          10           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6           6
    90.00 Outlays...........................          11          10           8
    ---------------------------------------------------------------------------

        The Forestry Incentives program was authorized by the Cooperative
    Forestry Assistance Act of 1978 (16 U.S.C. 2101). The objectives of the
    program are to bring private, nonindustrial forest land under improved
    management, to increase timber production, to ensure adequate supplies
    of timber products, and to enhance other forest resources. In selecting
    sites for cost-share assistance, the program will maximize its
    effectiveness by selecting those plots that would otherwise not have
    made the forest stand improvement or plantings without Federal
    assistance. Acreage selected will be targeted to provide the maximum
    environmental benefits, particularly to benefit water quality and
    wildlife habitat.

        The Forestry Incentives Program shares up to 65 percent of the cost
    of tree planting and timberstand improvement. The percentage cost-shared
    depends on the rate set in a particular State and county by the Natural
    Resources Conservation Service (NRCS), after consulting with the State
    forester. The program is available in designated counties based on a
    Forest Service survey of total eligible private timberland available for
    production of timber products. Technical assistance is provided by
    Forest Service.

        The 1996 program provided funding for 149,503 acres of tree
    planting, and 33,725 acres in timber stand improve-P

    [[Page 187]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3336-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           1           1           1
    41.0  Grants, subsidies, and
            contributions...................           6           6           5
                                               ---------   ---------  ----------
    99.9    Total obligations...............           7           7           6
    ---------------------------------------------------------------------------

                               Water Bank Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3320-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1
    23.95 New obligations...................          -1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          47          40          31
    73.10 New obligations...................           1
    73.20 Total outlays (gross).............          -7         -10          -9
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          40          31          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           7          10           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           7          10           9
    ---------------------------------------------------------------------------

        The objectives of the Water Bank Program are to conserve water;
    preserve, maintain, and improve the Nation's wetlands; increase
    waterfowl habitat in migratory waterfowl nesting, breeding, and feeding
    areas in the United States; and secure recreational and environmental
    benefits for the Nation. The program was authorized by the Water Bank
    Act of 1970, as amended by Public Law 96-182, approved January 2, 1980.
    The Water Bank Extension Act of 1994 extends for one year 1985
    agreements entered into under the Water Bank Act of 1970, and due to
    expire on December 31, 1995. Funding for the expiring 1985 Water Bank
    agreements were transferred from the Wetlands Reserve Program 1995
    appropriation to this account as authorized under the Water Bank
    Extension Act of 1994. Congress did not provide funding for this account
    in 1997. For 1998, USDA does not request program funding.

        Under the Water Bank Program, the Secretary of Agriculture, through
    designated county offices, uses program funds to enter into 10-year
    agreements with landowners and operators for the conservation of
    specified wetlands. Provisions exist to renew agreements for additional
    periods, to make annual payments on agreements, and under certain
    conditions to increase payment rates in the fifth year of a contract or
    at the time of renewal. During the period of the agreement, the
    landowner agrees not to drain, burn, fill, or otherwise destroy the
    wetland character of such areas.

        During 1996, approximately 36 agreements are expected on
    approximately 5,248 acres.

                  Colorado River Basin Salinity Control Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3318-0-1-304      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1
    22.00 New budget authority (gross)......           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4
    23.95 New obligations...................          -4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           9           8           2
    73.10 New obligations...................           4
    73.20 Total outlays (gross).............          -4          -6          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           8           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1
    86.93 Outlays from current balances.....           3           6           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           6           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3
    90.00 Outlays...........................           4           6           2
    ---------------------------------------------------------------------------

        The Colorado River Basin Salinity Control Program (CRBSC), was
    authorized under section 202(c) of Title II of the Colorado River Basin
    Salinity Control Act, as amended by section 334, subtitle D, Title III
    of the Federal Agriculture Improvement Act of 1996. The FAIR Act,
    combined authority of the Agricultural Conservation Program (ACP), Water
    Quality Incentive Program (WQIP), Great Plains Conservation Program
    (GPCP), and the Colorado River Basin Salinity Control Program (CRBSC),
    into the Environmental Quality Incentive Program (EQIP). The FAIR Act
    also repealed CRBSC authority, while maintaining program account
    balances until expended.

        Beginning in 1996, EQIP was implemented on an interim program level
    for CRBSC. Program funding in 1996 will provide cost-share assistance to
    landowners and others in the Colorado River Basin States to include:
    Arizona, California, Colorado, Nevada, New Mexico, Utah and Wyoming. The
    main objective is to enhance the supply and quality of water in the
    Colorado River for delivery to downstream users in the U.S. and Mexico.

        Practices are recommended by the Secretary of Agriculture.

        The 1996 program focused on five project areas in Colorado, Utah,
    and Wyoming.

        The funded level of approximately $2.7 million will fund the current
    five existing projects. Technical assistance funds have been provided
    directly within the Conservation Operations account.

        Under this program, 30 percent of cost-share funds will be
    reimbursed to the U.S. Treasury by the Colorado River Basin States.

        Future funding targeted towards salinity efforts will be provided by
    the Commodity Credit Corporation (CCC) for EQIP beginning 1997.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3318-0-1-304      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................
    12.1  Civilian personnel benefits.......

    [[Page 188]]

    25.2  Other services....................
    41.0  Grants, subsidies, and
            contributions...................           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............           4
    ---------------------------------------------------------------------------

                            Wetlands Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Restoration Costs.................          11
    00.02 Easement Payments.................          92
    00.03 Technical Assistance..............          12          12          18
    00.04 Easement Overhead Costs...........           8
    00.05 Cooperative Agreements............           5
                                               ---------   ---------  ----------
    10.00   Total obligations...............         128          12          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          83          32          19
    22.00 New budget authority (gross)......          77
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         160          32          19
    23.95 New obligations...................        -128         -12         -18
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          32          19           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          77
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          60          80
    73.10 New obligations...................         128          12          18
    73.20 Total outlays (gross).............        -109         -92         -17
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          80                       1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          26
    86.93 Outlays from current balances.....          83          92          17
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         109          92          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          77
    90.00 Outlays...........................         109          92          17
    ---------------------------------------------------------------------------

        The Wetlands Reserve Program is authorized by Title XIV, Section
    1438 of the Food, Agriculture, Conservation, and Trade Act of 1990 (P.L.
    101-624), as amended by the Omnibus Budget Reconciliation Act of 1993
    (P.L. 103-66), as amended by the Federal Agriculture Improvement and
    Reform Act of 1996. The Fair Act authorized program funding of the WRP
    under the Commodity Credit Corporation (CCC) beginning FY 1997. The 1996
    Fair Act also repealed old authority for the WRP, while maintaining
    program account balances until expended. Funding for the program will
    now be provided by the Commodity Credit Corporation CCC. The primary
    objectives of the program are to preserve and restore wetlands, improve
    wildlife habitat, and protect migratory waterfowl.

        The Secretary of Agriculture, through designated county offices,
    uses program funds to enter into contracts with landowners that operate
    farmed or converted wetlands, farmed wetlands, or prior converted
    wetlands and adjoining land or riparian corridors. The contracts are for
    both permanent and non-permanent easements program participants will
    receive payments for wetlands easements, in a lump sum or annual
    installment payments for permanent easements, and annual installment
    payments under non-permanent easements. Compensation will be in cash as
    specified in the contract, but not to exceed the fair market value of
    the land. The program provides cost-share assistance to landowners for
    carrying out the establishment of conservation measures and practices.
    The program cost-shares 75 percent to 100 percent of eligible costs of
    an easement. The program also provides reimbursement to the landowner
    for overhead costs associated with acquiring an easement. Technical
    assistance will be largely funded within the account.

        Under the 1992 program, 42,230 acres were enrolled in 9 pilot
    States. No funding was provided for operating a fiscal year 1993
    program.

        The 1994 program provided funding for enrolling 75,000 acres in 20
    States, including the nine pilot States. The 1995 program provided
    funding for enrolling 115,944 acres under multiple sign-ups to eleviate
    a back-log of 1994 easement opportunities. The 1995 appropriation was
    amended by the Water Bank Extension Act of 1994 to provide $889,800 for
    expiring 1985 water bank agreements. Funds were transferred from the WRP
    account to the Water Bank Account as authorized under the Water Bank
    Extension Act of 1994. Under the 1996 program, $5 million of WRP funds
    were transferred to the Fish and Wildlife Foundation under a interagency
    agreement of joint partnership. The Foundation will provide additional
    matching funds for the acquisition of wetland easements.

        The 1996 budget provided funding for enrolling an estimated 80,000
    acres. Beginning in 1997, program funding will be provided under the
    Commodity Credit Corporation (CCC). Funds under this account will remain
    until expended.

        The proposed 1998 Funding for WRP activities through CCC is for 212
    thousand acres (or $162 million in CCC Funds).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           8           7           8
    12.1  Civilian personnel benefits.......           2           1           2
    23.2  Rental payments to others.........           1                       1
    25.4  Operation and maintenance of
            facilities......................           6           4           7
    32.0  Land and structures...............         111
                                               ---------   ---------  ----------
    99.9    Total obligations...............         128          12          18
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         178         170         268
    ---------------------------------------------------------------------------

                            Rural Clean Water Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3337-0-1-304      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           3           3           3
    23.95 New obligations...................
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           3           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           3           3           2
    73.20 Total outlays (gross).............                      -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           2           1
    ----------------------------------------------------------------------------

    [[Page 189]]

        Outlays (gross), detail:
    86.93 Outlays from current balances.....                       1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                       1           1
    ---------------------------------------------------------------------------

        This experimental Rural Clean Water Program, authorized by Public
    Law 96-108 and Public Law 96-528, was a cooperative endeavor among
    farmers, various USDA agencies, and other organizations to develop and
    test means of controlling agricultural nonpoint source water pollution
    in rural areas.

        Recommended project areas were developed by local and State
    committees and approved by the Secretary of Agriculture in consultation
    with the Administrator of the Environmental Protection Agency. Full
    funding was provided in previous appropriations for all approved
    projects. The implementation period for all projects has ended, and no
    additional obligations will be incurred. Payment of prior year
    obligations is expected to continue through calendar year 1999. Similar
    activities will be carried out through mandatory Environmental Quality
    Incentives Program.

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           2           2           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....           9           7           5
    23.95 New obligations...................          -2          -2          -2
    24.90 Unobligated balance available, end
            of year: Fund balance...........           7           5           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           2           2           2
    73.20 Total financing disbursements
            (gross).........................          -2          -2          -2
    87.00 Total financing disbursements
            (gross).........................           2           2           2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........           2           2           2
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          17          17          17
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          17          17          17
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          17          17          17
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4177-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           9              8             7              6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           9              8             7              6
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Miscellaneous contributed trust
            funds...........................          22
        Appropriation:
    05.01 Miscellaneous contributed trust
            funds...........................         -21
                                               ---------   ---------  ----------
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            25.2)...........................                      21
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                      21
    22.00 New budget authority (gross)......          21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          21          21
    23.95 New obligations...................                     -21
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................          21
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                  13
    73.10 New obligations...................                      21
    73.20 Total outlays (gross).............                      -8         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                      13           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...                       8          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          21
    90.00 Outlays...........................                       8          10
    ---------------------------------------------------------------------------

        Funds received from State and local organizations, and others are
    available for work under cooperative agreements for soil survey,
    watershed protection, and resource conservation and development
    activities.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           4           3           1
    ---------------------------------------------------------------------------

    [[Page 190]]

                                RURAL DEVELOPMENT

                                  Federal Funds

    General and special funds:

                       Rural Community Advancement Program

        For the cost of direct loans, loan guarantees, and grants, as
    authorized by 7 U.S.C. 1926, 1926a, 1926c, and 1932, $688,570,000, to
    remain available until expended, of which $30,037,000 shall be for rural
    community programs described in section 381E(d)(1) of the Consolidated
    Farm and Rural Development Act, as amended: of which $608,080,000 shall
    be for the rural utilities programs described in section 381E(d)(2) of
    such Act: of which $50,453,000 shall be for the rural business and
    cooperative development programs described in section 381E(d)(3) of such
    Act: Provided, That section 381E(d)(3)(B) of such Act is amended by
    inserting after the phrase, ``business and industry'', the words,
    ``direct and'': Provided further, That of the amount appropriated for
    rural utilities programs, not to exceed $25,000,000 shall be for water
    and waste disposal systems to benefit the Colonias along the United
    States/Mexico border, including grants pursuant to section 306C of such
    Act; not to exceed $15,000,000 shall be for technical assistance grants
    for rural waste systems pursuant to section 306(a)(14) of such Act; and
    not to exceed $5,150,000 shall be for contracting with qualified
    national organizations for a circuit rider program to provide technical
    assistance for rural water systems: Provided further, That of the total
    amounts appropriated, not to exceed $32,163,600 shall be available
    through June 30, 1998 for empowerment zones and enterprise communities,
    as authorized by Public Law 103-66, of which $1,614,600 shall be for
    rural community programs described in section 381E(d)(1) of such Act; of
    which $21,952,000 shall be for the rural utilities programs described in
    section 381E(d)(2) of such Act; of which $8,597,000 shall be for the
    rural business and cooperative development programs described in section
    381E(d)(3) of such Act: Provided further, That any obligated and
    unobligated balances available for prior years for the ``Rural Water and
    Waste Disposal Grants,'' ``Rural Water and Waste Disposal Loans Program
    Account,'' ``Emergency Community Water Assistance Grants,'' ``Solid
    Waste Management Grants,'' the community facility grant program in the
    ``Rural Housing Assistance Program'' Account, ``Community Facility Loans
    Program Account,'' ``Rural Business Enterprise Grants,'' ``Rural
    Business and Industry Loans Program Account,'' and ``Local Technical
    Assistance and Planning Grants'' shall be transferred to and merged with
    this account.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Water and waste disposal direct
            loan subsidy....................                                  72
    00.02 Water and waste disposal grants...                                 484
    00.03 Solid waste management grants.....                                   3
    00.04 Community facility direct loan
            subsidy.........................                                  18
    00.05 Community facility guaranteed loan
            subsidy.........................                                   1
    00.06 Community facility grants.........                                   9
    00.07 Business and Industry guranteed
            loan subsidy....................                                   6
    00.08 Rural business enterprise grants..                                  40
    00.10 Mandatory grants to States........                                  29
    00.11 Matching grants to States.........                                  27
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                 689
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................
    22.00 New budget authority (gross)......                                 689
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                 689
    23.95 New obligations...................                                -689
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 689
                                                                             689
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 689
    73.20 Total outlays (gross).............                                -680
    73.32 Obligated balance transferred from
            other accounts..................                               1,582
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                               1,591
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  60
    86.93 Outlays from current balances.....                                 620
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                 680
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 689
    90.00 Outlays...........................                                 680
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct water and waste disposal
            loan levels.....................                                 734
    1150  Direct community facility loan
            levels..........................                                 210
    1150  Direct business and industry loan
            levels..........................                                  50
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                                 994
        Direct loan subsidy (in percent):
    1320  Direct water and waste disposal
            loans subsidy rate..............                                9.76
    1320  Direct community facility loans
            subsidy rate....................                                8.38
    1320  Direct business and industry loans
            subsidy rate....................                               -7.16
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                                9.05
        Direct loan subsidy budget authority:
    1330  Direct water and waste disposal
            loans subsidy budget authority..                                  72
    1330  Direct community facility loans
            subsidy budget authority........                                  18
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..                                  90
        Direct loan subsidy outlays:
    1340  Direct water and waste disposal
            loans subsidy outlays...........                                 112
    1340  Direct community facility loans
            subsidy outlays.................                                  23
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........                                 135
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Water and waste disposal loan
            guarantee levels................                                  75
    2150  Community facility loan guarantee
            levels..........................                                 209
    2150  Business and Industry loan
            guarantee levels................                                 610
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                                 894
        Guaranteed loan subsidy (in percent):
    2320  Guaranteed water and waste
            disposal loan subsidy rate......                               -1.90
    2320  Guranteed community facility loan
            subsidy rate....................                                0.40
    2320  Guaranteed business and industry
            loan subsidy rate...............                                0.97
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                                0.08
        Guaranteed loan subsidy budget authority:
    2330  Guaranteed community facility
            loans subsidy budget authority..                                   1
    2330  Guaranteed business and industry
            loans subsidy budget authority..                                   6
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..                                   7
        Guaranteed loan subsidy outlays:
    2340  Guaranteed community facility loan
            subsidy outlays.................                                   1
    2340  Guranteed business and industry
            loan subsidy outlays............                                   6
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                                   7
    ---------------------------------------------------------------------------

        This account would consolidate under the Rural Community Advancement
    Program (RCAP) funding for the direct and guaranteed water and waste
    disposal loans, water and waste disposal grants, emergency community
    water assistance grants, solid waste management grants, direct and
    guaranteed community facility loans, community facility grants, direct
    and guaranteed business and industry loans, rural business enterprise
    grants, and rural business opportunity grants. This proposal is in
    accordance with the provisions set forth in the Federal Agriculture
    Improvement and Reform Act of 1996, Public Law 104-127 (the 1996 Act).
    Consolidating funding for these 12 loan and grant programs under RCAP
    will provide greater flexibility to tailor financial assistance to
    applicant needs.

    [[Page 191]]

        RCAP will be composed of the following five subaccounts: the Rural
    Community Facilities Account, the Rural Utilities Account, the Rural
    Business and Cooperative Development Account, the National Reserve
    Account, and the Federally Recognized Indian Tribe Account. The funding,
    except the 12.5 percent of the funding in the National Office Reserve
    Account and the 3 percent of the funding in the Federally Recognized
    Indian Tribe Account, will be allocated to Rural Development State
    Directors for their priority-setting on a state-by-state basis. State
    Directors are authorized to transfer not more than 25 percent of the
    amount in the account that is allocated for the State for the fiscal
    year to any other account in which amounts are allocated for the State
    for the fiscal year, with up to 10 percent of funds allowed to be re-
    allocated nation-wide.

        In addition, five percent of RCAP funds will be made available as
    block grants to States that request such grants, consistent with the
    1996 Act. Further, five percent of the remaining amount available for
    allocation may be made available for matching grants.

                             RURAL UTILITIES SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses of the Rural Utilities Service, including
    administering the programs authorized by the Rural Electrification Act
    of 1936, as amended, and the Consolidated Farm and Rural Development
    Act, as amended, and cooperative agreements, [$33,195,000] $33,000,000:
    Provided, That this appropriation shall be available for employment
    pursuant to the second sentence of 706(a) of the Organic Act of 1944,
    and not to exceed $105,000 may be used for employment under 5 U.S.C.
    3109. (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1981-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          18          33          33
    01.01 Reimbursable program..............          47          34          37
                                               ---------   ---------  ----------
    10.00   Total obligations...............          65          67          70
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          65          67          70
    23.95 New obligations...................         -65         -67         -70
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          18          33          33
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          47          34          37
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          65          67          70
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                      14          15
    73.10 New obligations...................          65          67          70
    73.20 Total outlays (gross).............         -51         -66         -66
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          14          15          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4          26          26
    86.93 Outlays from current balances.....                      13           6
    86.97 Outlays from new permanent
            authority.......................          47          27          29
    86.98 Outlays from permanent balances...                                   5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          51          66          66
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                     -34         -37
    88.45     Offsetting governmental
                collections.................         -47
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -47         -34         -37
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          18          33          33
    90.00 Outlays...........................           4          33          30
    ---------------------------------------------------------------------------

        The Rural Utilities Service (RUS), under authority of the Rural
    Electrification Act of 1936, as amended, and the Consolidated Farm and
    Rural Development Act, makes grants, direct loans, and guarantees loans
    made by other qualified lenders, to suppliers of electric,
    telecommunications, and water/wastewater/waste disposal services in
    rural areas. RUS also provides technical assistance to rural communities
    concerning water and waste disposal services. In addition, RUS makes
    grants and loans to provide access to advanced telecommunications
    services for distance learning and telemedicine facilities.

        The electric and telecommunications loan and grant programs are
    administered in the Washington, DC, offices of RUS. In addition, RUS
    general field representatives visit borrowers periodically and maintain
    liaison between borrowers and headquarters. RUS administers the water
    and waste programs through the Washington headquarters, with the loan
    making and servicing activities being performed by the Rural Development
    field office staff.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1981-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          14          21          20
    11.5      Other personnel compensation..           2           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          16          22          21
    12.1    Civilian personnel benefits.....                       5           5
    21.0    Travel and transportation of
              persons.......................                       1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    24.0    Printing and reproduction.......                       1           1
    25.2    Other services..................           1           3           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          18          33          33
    99.0  Reimbursable obligations..........          47          34          36
    99.5  Below reporting threshold.........                                   1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          65          67          70
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1981-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         236         385         368
    1005    Full-time equivalent of overtime
              and holiday hours.............           1           1           1
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.         529         400         415
    2005    Full-time equivalent of overtime
              and holiday hours.............           1           1           1
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3100-0-1-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.           6
    73.20 Total outlays (gross).............          -6
    ----------------------------------------------------------------------------

    [[Page 192]]

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           4
    ---------------------------------------------------------------------------

        In 1996, the Rural Electrification Administration became part of the
    Rural Utilities Service (RUS) along with certain programs formerly
    administered by the Rural Development Administration.

                      [Rural Utilities Assistance Program]

                        [(including transfers of funds)]

        [For the cost of direct loans, loan guarantees, and grants, as
    authorized by 7 U.S.C. 1926, 1928, and 1932, except for 381E, 381H, 381N
    of the Consolidated Farm and Rural Development Act, $566,935,000, to
    remain available until expended, for direct loans and loan guarantees
    and grants for rural water and waste disposal, and solid waste
    management grants of the Rural Utilities Service: Provided, That the
    cost of direct loans and loan guarantees shall be as defined in section
    502 of the Congressional Budget Act of 1974, as amended: Provided
    further, That the amounts appropriated shall be transferred to loan
    program and grant accounts as determined by the Secretary: Provided
    further, That, through June 30, 1997, of the total amount appropriated,
    $18,700,000 shall be available for the costs of direct loans, loan
    guarantees, and grants to be made available for empowerment zones and
    enterprise communities, as authorized by Public Law 103-66: Provided
    further, That, of the total amount appropriated, not to exceed
    $18,700,000 shall be for water and waste disposal systems to benefit the
    Colonias along the United States/Mexico border, including grants
    pursuant to section 306C of the Consolidated Farm and Rural Development
    Act, as amended: Provided further, That, of the total amount
    appropriated, not to exceed $5,200,000 shall be available for
    contracting with qualified national organizations for a circuit rider
    program to provide technical assistance for rural water systems:
    Provided further, That an amount not less than that available in fiscal
    year 1996 be set aside and made available for ongoing technical
    assistance under sections 306(a)(14) (7 U.S.C. 1926) and 310(B)(b) of
    the Consolidated Farm and Rural Development Act (7 U.S.C. 1932):
    Provided further, That of the total amount appropriated, not to exceed
    $8,750,000 shall be for water and waste disposal systems pursuant to
    section 757 of Public Law 104-127: Provided further, That
    notwithstanding section 306(a)(7) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(7)), the town of Berlin, New
    Hampshire, shall be eligible during fiscal year 1997 for a grant under
    the rural utilities assistance program.] (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1982-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative Expenses...........          13
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          13
    23.95 New obligations...................         -13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Appropriation:

    40.00   Appropriation...................         501         567
    40.00   Appropriation...................          11
    41.00 Transferred to other accounts.....        -535        -568
    42.00 Transferred from other accounts...          36
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          13
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          13          -1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          13
    73.20 Total outlays (gross).............         -13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          13
    90.00 Outlays...........................          13
    ---------------------------------------------------------------------------

        In 1996 and 1997, funding for direct and guaranteed water and waste
    disposal loans, rural water and waste disposal grants, and solid waste
    management grants was provided under the Rural Utilities Assistance
    Program and transferred to the Rural Water and Waste Disposal Loans
    Program Account, Rural Water and Waste Disposal Grants Account, and
    Solid Waste Management Grants Account for administration. In 1998,
    funding is requested to be appropriated for these programs to the Rural
    Community Advancement Program and all balances be transferred from the
    Rural Utilities Assistance Program Account to the Rural Community
    Advancement Program Account.

        In 1996, funding for salaries and expenses associated with this
    program was appropriated to this account and transferred to the Rural
    Utilities Service, Salaries and expenses account. In 1997, funding for
    salaries and expenses associated with this program was appropriated to
    the Rural Utilities Service Salaries and expenses account and also is
    requested to be appropriated to that account in 1998.

                   Distance Learning and Medical Link Program

        For the cost of direct loans and grants, as authorized by 7 U.S.C.
    950aaa et seq., as amended, [$9,000,000] $21,000,000, to remain
    available until expended, to be available for loans and grants for
    telemedicine and distance learning services in rural areas: Provided,
    That the costs of direct loans shall be as defined in section 502 of the
    Congressional Budget Act of 1974. (Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Distance Learning and Medical Link
            Grants..........................           8           7          21
    00.02 Distance Learning and Medical Link
            Treasury Rate Loans.............                       2
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           8           9          21
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           8           9          21
    23.95 New obligations...................          -8          -9         -21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           8           9          21
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          20          18           3
    73.10 New obligations...................           8           9          21
    73.20 Total outlays (gross).............         -10         -24         -19
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          18           3           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                       6          16
    86.93 Outlays from current balances.....          10          18           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10          24          19
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           8           9          21

    [[Page 193]]

    90.00 Outlays...........................          10          24          19
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................                     150         150
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                     150         150
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................                    1.02        0.02
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                    1.02        0.02
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........                       2
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..                       2
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................                       1           1
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........                       1           1
    ---------------------------------------------------------------------------

        The loan and grant program provides access to advanced
    telecommunications services for improved education and health care in
    rural areas throughout the country. The loans and grants help education
    and health care providers bring the most modern technology, level of
    care, and education to rural America so its citizens can compete
    regionally, nationally, and globally.

                          Solid Waste Management Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2045-0-1-304      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           2           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2           3
    23.95 New obligations...................          -2          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    42.00 Transferred from other accounts...           2           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           4           4           4
    73.10 New obligations...................           2           3
    73.20 Total outlays (gross).............          -3          -3
    73.31 Obligated balance transferred to
            other accounts..................                                  -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           3
    90.00 Outlays...........................           3           3
    ---------------------------------------------------------------------------

        This grant program is authorized under Section 310B(b) of the
    Consolidated Farm and Rural Development Act, as amended (7 U.S.C. 1932).
    Grants are made to non-profit organizations to provide technical
    assistance to local and regional governments for the purpose of reducing
    or eliminating pollution of water resources, and for improving the
    planning and management of solid waste disposal facilities.

        In 1998, funding is requested to be appropriated for the solid waste
    management grants to the Rural Community Advancement Program and all
    balances be transferred from this account to the Rural Community
    Advancement Program Account.

                   Emergency Community Water Assistance Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2046-0-1-451      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           4           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       1
    22.00 New budget authority (gross)......           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           1
    23.95 New obligations...................          -4          -1
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    42.00 Transferred from other accounts...           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          18          14           8
    73.10 New obligations...................           4           1
    73.20 Total outlays (gross).............          -8          -7
    73.31 Obligated balance transferred to
            other accounts..................                                  -8
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          14           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           8           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5
    90.00 Outlays...........................           8           7
    ---------------------------------------------------------------------------

        These grant programs are authorized under Section 306A of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a) and 7
    U.S.C. 1926(b)) as amended. Grants are made to public bodies and private
    nonprofit organizations for construction or extension of waterlines,
    repair or maintenance of existing systems, replacement of equipment, and
    payment of costs to correct emergency situations. No program is proposed
    for 1998. However, this grant program is included in the Rural Community
    Advancement Program.

                      Rural Water and Waste Disposal Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2066-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         394         503
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           2           5
    22.00 New budget authority (gross)......         391         498
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         399         503
    23.95 New obligations...................        -394        -503
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    42.00 Transferred from other accounts...         391         498
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       1,211       1,175       1,206
    73.10 New obligations...................         394         503
    73.20 Total outlays (gross).............        -423        -472
    73.31 Obligated balance transferred to
            other accounts..................                              -1,206
    73.45 Adjustments in unexpired accounts.          -7

    [[Page 194]]

    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       1,175       1,206
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          19          20
    86.93 Outlays from current balances.....         404         452
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         423         472
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         391         498
    90.00 Outlays...........................         423         472
    ---------------------------------------------------------------------------

        This grant program is authorized under section 306(a)(2) of the
    Consolidated Farm and Rural Development Act, as amended. Grants are
    authorized to be made to associations, including nonprofit corporations,
    public and quasi-public agencies, and certain Indian tribes to finance
    development, storage, treatment, purification, or distribution of water
    or the collection, treatment, or disposal of waste in rural areas. The
    amount of any development grant may not exceed 75 percent of the
    eligible development cost of the project.

        The major objectives of the rural water and waste disposal grant
    program are: (1) to provide assistance to attain basic human amenities;
    (2) to alleviate health hazards; (3) to promote stability of rural areas
    by meeting the need for new and improved rural water and waste disposal
    systems; and (4) to meet national safe drinking water and clean water
    standards.

        In 1998, funding is requested to be appropriated for the rural water
    and waste disposal grants to the Rural Community Advancement Program and
    all balances be transferred from this account to the Rural Community
    Advancement Program Account.

    Credit accounts:

              Rural Water and Waste Disposal Loans Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1980-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         136          68
    00.02 Reestimates of direct loan subsidy          84
    00.03 Interest on reestimates of direct
            loan subsidy....................          12
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         232          68
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       6
    22.00 New budget authority (gross)......         233          67
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.22 Unobligated balance transferred
            from other accounts.............           2
    22.30 Unobligated balance expiring......                      -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         239          68
    23.95 New obligations...................        -232         -68
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    42.00   Transferred from other accounts.         137          67
          Permanent:

    60.05   Appropriation (indefinite)......          96
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         233          67
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                     292         243
    73.10 New obligations...................         232          68
    73.20 Total outlays (gross).............        -197        -117
    73.31 Obligated balance transferred to
            other accounts..................                                -243
    73.32 Obligated balance transferred from
            other accounts..................         262
    73.40 Adjustments in expired accounts...          -1
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         292         243
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           9           2
    86.93 Outlays from current balances.....          92         115
    86.97 Outlays from new permanent
            authority.......................          96
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         197         117
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         233          67
    90.00 Outlays...........................         197         117
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1980-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         608         740
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         608         740
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       22.50        9.02
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       22.50        9.02
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........         137          67
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         137          67
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................         102         117
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         102         117
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............          75          75
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....          75          75
        Guaranteed loan subsidy (in percent):
    2320  Guaranteed Subsidy rate...........       -1.18       -1.09
    ---------------------------------------------------------------------------

        This account provides funding to local governments and nonprofit
    organizations for the development of storage, treatment, purification,
    or distribution of water or collection, treatment, or disposal of waste
    in rural areas.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond, as
    well as administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

        In 1998, funding is requested to be appropriated for the direct and
    guaranteed water and waste loan programs to the Rural Community
    Advancement Program and all balances from the Rural Water and Waste
    Disposal Loans Program Account be transferred to the Rural Community
    Advancement Program account. Funding for salaries and expenses
    associated with this program is requested to be appropriated to the
    Rural Utilities Service Salaries and expenses account.

    [[Page 195]]

          Rural Water and Waste Disposal Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................         605         755         734
    00.02 Interest on Treasury Borrowing....         105         149         204
                                               ---------   ---------  ----------
    10.00   Total obligations...............         710         904         938
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         747         904         938
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          28
    22.60 Redemption of debt................         -65
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         710         904         938
    23.95 New obligations...................        -710        -904        -938
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         417         758         764
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         300         195         215
    68.10   Receivables from program account          30         -49         -41
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         330         146         174
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         747         904         938
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........                   1,215       1,132
    72.90     Obligated balance.............                     152         281
    72.95   Receivables from program account         262         292         243
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         262       1,659       1,656
    73.10 New obligations...................         710         904         938
    73.20 Total financing disbursements
            (gross).........................        -756        -907        -910
    73.32 Obligated balance transferred from
            other accounts..................       1,470
    73.45 Adjustments in unexpired accounts.         -28
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........       1,215       1,132       1,187
    74.90     Obligated balance.............         152         281         295
    74.95   Receivables from program account         292         243         202
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       1,659       1,656       1,684
    87.00 Total financing disbursements
            (gross).........................         756         907         910
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -197        -117        -113
    88.25     Interest on uninvested funds..         -30          -9         -14
              Non-Federal sources:
    88.40       Repayment of principal......         -16         -12         -16
    88.40       Interest received on loans..         -54         -57         -72
    88.40       Miscelleneous offsetting
                  collections...............          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -300        -195        -215
    88.95 Change in receivables from program
            accounts........................         -30          49          41
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         417         758         764
    90.00 Financing disbursements...........         456         712         695
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         608         745         734
    1113  Unobligated limitation carried
            forward.........................          -3
    1131  Direct loan obligations exempt
            from limitation.................                      10
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         605         755         734
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                   1,615       2,362
    1231  Disbursements: Direct loan
            disbursements...................         650         759         706
    1251  Repayments: Repayments and
            prepayments.....................         -16         -12         -16
    1264  Write-offs for default: Other
            adjustments, net................         981
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,615       2,362       3,052
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals. Loans made prior to 1992 are recorded in the Rural Development
    Insurance Fund Liquidating Account.

        The water and waste disposal program makes loans and grants to
    finance water and waste disposal facilities in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4226-0-1-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         122            152           280            294
            Investments in US securities:
    1106      Receivables, net..............         262            292           243            202
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         979          1,615         2,361          3,050
    1402    Interest receivable.............          14             23            57             72
    1405    Allowance for subsidy cost (-)..         -77           -324          -331           -360
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         916          1,314         2,087          2,762
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,300          1,758         2,610          3,258
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       1,035          1,460         2,361          3,050
    2103    Debt............................           3              6             6              6
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,038          1,466         2,367          3,056
        NET POSITION:
    3100  Appropriated capital..............         262            292           243            202
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         262            292           243            202
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,300          1,758         2,610          3,258
    -----------------------------------------------------------------------------------------------

        Rural Water and Waste Disposal Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Investment in secondary market....                                   1
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                   1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          24
    22.00 New financing authority (gross)...                                   1
    22.21 Unobligated balance transferred to
            other accounts..................         -24
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                   1
    23.95 New obligations...................                                  -1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                   1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                   1
    73.20 Total financing disbursements
            (gross).........................                                  -1
    87.00 Total financing disbursements
            (gross).........................                                   1
    ----------------------------------------------------------------------------

    [[Page 196]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Fees....................                                  -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          75          75          75
    2112  Uncommitted loan guarantee
            limitation......................         -16
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          59          75          75
    2199  Guaranteed amount of guaranteed
            loan commitments................          47          60          60
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         494           8          31
    2231  Disbursements of new guaranteed
            loans...........................           1          24          50
    2251  Repayments and prepayments........                      -1          -1
    2264  Adjustments: Other adjustments,
            net.............................        -487
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           8          31          80
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           6          25          64
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         387
    2364    Other adjustments, net..........        -387
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals. Loans made prior to 1992 are recorded in the Rural
    Development Insurance Fund Liquidating Account.

        This account finances loan guarantee commitments for water systems,
    and waste disposal facilities in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4218-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          24
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          24
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.          24
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          24
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          24
    -----------------------------------------------------------------------------------------------

       Rural Electrification and Telecommunications Loans Program Account

                         (including transfers of funds)

        Insured loans pursuant to the authority of section 305 of the Rural
    Electrification Act of 1936, as amended (7 U.S.C. 935), shall be made as
    follows: 5 percent rural electrification loans, $125,000,000; 5 percent
    rural telecommunications loans, [$75,000,000] $40,000,000; cost of money
    rural telecommunications loans, $300,000,000; municipal rate rural
    electric loans, [$525,000,000] $400,000,000; and loans made pursuant to
    section 306 of that Act, rural electric, $300,000,000, and rural
    telecommunications, $120,000,000, to remain available until expended.
        For the cost, as defined in section 502 of the Congressional Budget
    Act of 1974, including the cost of modifying loans, of direct and
    guaranteed loans authorized by the Rural Electrification Act of 1936, as
    amended (7 U.S.C. 935 and 936), as follows: cost of [direct loans,
    $4,818,000; cost of municipal rate loans, $28,245,000; cost of money
    rural telecommunications loans, $60,000; cost of loans guaranteed
    pursuant to section 306, $2,790,000] rural electric loans, $28,965,000,
    and the cost of telecommunications loans, $1,628,000: Provided, That
    notwithstanding section 305(d)(2) of the Rural Electrification Act of
    1936, borrower interest rates may exceed 7 percent per year.
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, [$29,982,000] $34,398,000, which
    shall be transferred to and merged with the appropriation for ``Salaries
    and Expenses.''. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          39          40          40
        Receipts:
    02.01 Rural electrification and
            telephone loans, negative
            subsidies.......................           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          40          40          40
    07.99 Total balance, end of year........          40          40          40
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          94          36          31
    00.05 Reestimate of the direct loan
            subsidy.........................           8
    00.06 Interest on reestimates of direct
            loan subsidy....................           2
    00.09 Administrative expenses subject to
            limitation......................          30          30          34
                                               ---------   ---------  ----------
    10.00   Total obligations...............         134          66          65
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         135          66          65
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         134          66          65
    23.95 New obligations...................        -134         -66         -65
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         125          66          65
          Permanent:

    60.05   Appropriation (indefinite)......          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         135          66          65
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         217         225         154
    73.10 New obligations...................         134          66          65
    73.20 Total outlays (gross).............        -119        -137        -108
    73.40 Adjustments in expired accounts...          -7
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         225         154         111
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          40          35          38
    86.93 Outlays from current balances.....          79         102          70
                                               ---------   ---------  ----------

    [[Page 197]]

    87.00   Total outlays (gross)...........         119         137         108
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         135          66          65
    90.00 Outlays...........................         119         137         108
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loans, electric............          91          69         125
    1150  Direct loans, municipal rate
            electric........................         545         456         400
    1150  Direct loans, telecommunications..          71          75          40
    1150  Direct loans, Treasury rate
            telecommunications..............         217         300         300
    1150  Direct loans, FFB electric........         187         300         300
    1150  Direct loans, FFB
            telecommunications..............          78         120         120
                                               ---------   ---------  ----------
    1159    Total direct loan levels........       1,189       1,320       1,285
        Direct loan subsidy (in percent):
    1320  Direct loans, electric............       23.37        5.27        7.46
    1320  Direct loans, municipal rate
            electric........................       10.44        6.20        4.22
    1320  Direct loans, telecommunications..       19.59        1.59        3.92
    1320  Direct loans, Treasury rate
            telecommunicataions.............        0.02        0.02        0.02
    1320  Direct loans, FFB electric........        0.84        0.93        0.92
    1320  Direct loans, FFB
            telecommunications..............       -0.05       -0.07       -0.07
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        7.87        2.72        2.18
        Direct loan subsidy budget authority:
    1330  Direct loans, electric............          21           4           9
    1330  Direct loans, municipal rate
            electric........................          57          28          17
    1330  Direct loans, telecommunications..          14           1           2
    1330  Treasury rate telecommunications
            subsidy budget authority........
    1330  Direct loans, FFB electric........           2           3           3
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..          94          36          31
        Direct loan subsidy outlays:
    1340  Direct loans, electric............          41          29          12
    1340  Direct loans, municipal rate
            electric........................          32          43          43
    1340  Direct loans, telecommunications..          10          32          16
    1340  Treasury rate telecommunications
            subsidy outlays.................
    1340  Direct loans, FFB electric........           6           3           2
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........          89         107          73
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................          30          30          34
    3590  Outlays...........................          30          30          34
    ---------------------------------------------------------------------------

        The Rural Utilities Service conducts the rural electrification and
    the rural telecommunications loan programs. The rural electrification
    loan program is financed through RUS direct loans for the operation of
    generating plants, electric transmission, and distribution lines or
    systems. The rural telecommunications loan program is financed through
    RUS direct loans for construction, expansion, and operation of
    telecommunications lines and facilities or systems.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for rural electrification and telecommunications programs, the
    subsidy costs associated with the direct loans obligated in 1992 and
    beyond (including modifications of direct loans or loan guarantees that
    resulted from obligations or commitments in any year), as well as
    administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........          30          30          34
    41.0  Grants, subsidies, and
            contributions...................         102          36          31
    43.0  Interest and dividends............           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............         134          66          65
    ---------------------------------------------------------------------------

       Rural Electrification and Telecommunications Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans, electric............         272          69          75
    00.02 Direct loans, Municipal rate
            electric........................         319         456         400
    00.03 Direct loans, telecommunications..         130          75          40
    00.04 Direct loans, Treasury rate
            telecommunications..............                     300         300
    00.05 Direct loans, FFB electric........         112         300         300
    00.06 Direct loans, FFB
            telecommunications..............          32         120         120
    00.07 Interest on Treasury borrowing....         148         311         414
    00.08 Negative subsidy..................           1
    00.09 Payment of Downward Reestimate....          45
    00.10 Payment of Interest to downward
            Reestimate......................          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,069       1,631       1,649
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...       1,069       1,631       1,649
    23.95 New obligations...................      -1,069      -1,631      -1,649
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         717       1,228       1,158
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         344         476         538
    68.10   Receivables from program account           8         -73         -47
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         352         403         491
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,069       1,631       1,649
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Unpaid
              obligations...................       3,241       3,268       3,165
    72.95   Receivables from program account         217         225         152
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       3,458       3,493       3,317
    73.10 New obligations...................       1,069       1,631       1,649
    73.20 Total financing disbursements
            (gross).........................      -1,034      -1,807      -1,795
          Unpaid obligations, end of year:

    74.90   Obligated balance: Unpaid
              obligations...................       3,268       3,165       3,066
    74.95   Receivables from program account         225         152         105
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       3,493       3,317       3,171
    87.00 Total financing disbursements
            (gross).........................       1,034       1,807       1,795
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payment from program account          -2
    88.00       Federal sources.............                    -107         -74
    88.25     Interest on uninvested funds..         -46
              Non-Federal sources:
    88.40       Repayment of principal......         -96         -62         -82
    88.40       Interest received on loans..        -200        -307        -382
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -344        -476        -538
    88.95 Change in receivables from program
            accounts........................          -8          73          47
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         717       1,228       1,158
    90.00 Financing disbursements...........         690       1,331       1,257
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........       1,189       1,319       1,235
    1112  Unobligated direct loan limitation        -324
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         865       1,319       1,235
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,740       3,506       4,921
    1231  Disbursements: Direct loan
            disbursements...................         861       1,479       1,379
    1251  Repayments: Repayments and
            prepayments.....................         -95         -64         -82
                                               ---------   ---------  ----------

    [[Page 198]]

    1290    Outstanding, end of year........       3,506       4,921       6,218
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from electric and telecommunication direct loans obligated in
    1992 and beyond (including modifications of direct loans that resulted
    from obligations in any year). The amounts in this account are a means
    of financing and are not included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4208-0-3-271    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         163             -9            -9
            Investments in US securities:
    1106      Receivables, net..............       2,098            165          -179
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       2,452          3,068         4,024
    1405    Allowance for subsidy cost (-)..        -270           -122          -117
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       2,182          2,946         3,907
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,443          3,102         3,719
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       2,097              2          -302
    2103    Debt............................       2,367          2,945         3,907
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,464          2,947         3,605
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,464          2,947         3,605
    --------------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          31              9             9
            Investments in US securities:
    1106      Receivables, net..............       1,074             41             7
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         288            438           897
    1405    Allowance for subsidy cost (-)..         -28            -36           -85
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         260            402           812
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,365            452           828
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       1,067             41             7
    2103    Debt............................         298            403           813
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,365            444           820
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,365            444           820
    -----------------------------------------------------------------------------------------------

        Rural Electrification and Telecommunications Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest expense on certificates
            of beneficial ownership.........         291         291         291
    00.02 Interest expense, FFB direct......       1,207         938         848
    00.03 Other interest expense............         617         193         228
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              43.0).........................       2,115       1,422       1,367
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

    21.47   Authority to borrow.............                   1,661
    21.90   Fund balance....................                     138
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............                   1,799
    22.00 New budget authority (gross)......       3,521       2,057       1,882
    22.40 Capital transfer to general fund..         600      -2,434        -515
    22.70 Balance of authority to borrow
            withdrawn.......................        -207
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,914       1,422       1,367
    23.95 New obligations...................      -2,115      -1,422      -1,367
          Unobligated balance available, end of year:

    24.47   Authority to borrow.............       1,661
    24.90   Fund balance....................         138
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................       1,799
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    41.00   Transferred to other accounts...                                  -6
          Permanent:

            Spending authority from
                offsetting collections:
    68.00     Offsetting collections (cash).       3,790       3,250       2,658
    68.47     Portion applied to debt
                reduction...................        -269      -1,193        -770
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total)...................       3,521       2,057       1,888
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,521       2,057       1,882
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........       1,286                   1,136
    72.90     Fund balance..................       1,565       2,077
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       2,851       2,077       1,136
    73.10 New obligations...................       2,115       1,422       1,367
    73.20 Total outlays (gross).............      -2,289      -2,363      -1,958
    73.40 Adjustments in expired accounts...        -600
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........                   1,136         545
    74.90     Fund balance..................       2,077
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       2,077       1,136         545
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  -6
    86.97 Outlays from new permanent
            authority.......................       3,521       2,057       1,888
    86.98 Outlays from permanent balances...      -1,232         306          76
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,289       2,363       1,958
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Loans repaid................      -1,886      -1,582      -1,111
    88.40       Interest from loans.........      -1,904      -1,668      -1,547
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,790      -3,250      -2,658
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -269      -1,193        -776
    90.00 Outlays...........................      -1,501        -887        -700
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      33,101      30,459      29,809
    1231  Disbursements: Direct loan
            disbursements...................         114         940         596
    1251  Repayments: Repayments and
            prepayments.....................      -1,886      -1,590      -1,119
    1264  Write-offs for default: Other
            adjustments, net................        -870
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      30,459      29,809      29,286
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         705         691         670

    [[Page 199]]

    2251  Repayments and prepayments........         -14         -21         -24
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         691         670         646
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         691         670         646
    ---------------------------------------------------------------------------

                              STATUS OF AGENCY DEBT

                            [In millions of dollars]

                                         1996 actual  1997 est.   1998 est.
    Agency Debt Held by FFB:
      Outstanding FFB Direct, start of
        year............................      16,049      15,449      15,136
      Outstanding CBO's, start of year..       4,599       4,599       4,599
      New agency borrowing, FFB Direct..          73
      New agency borrowing, CBO's.......
      Repayments and prepayments, FFB
        Direct..........................        -673        -313        -336
      Repayments and prepayments, CBO's.
                                        ------------------------------------
      Outstanding FFB Direct, end of
        year............................      15,449      15,136      14,800
      Outstanding CBO's, end of year....       4,599       4,599       4,599
                                        ====================================

        As required by the Federal Credit Reform Act of 1990, this account
    records, for rural electrification and telecommunications programs, all
    cash flows to and from the Government resulting from direct loans
    obligated and loan guarantees committed prior to 1992. All new activity
    in RETRF in 1992 and beyond is recorded in corresponding program and
    financing accounts.
        The Rural Utilities Service will continue to service all loans in
    this account providing business management and technical assistance to
    the borrowers on a regular basis over the life of the loans.
        Rural electric.--This program is financed through RUS direct loans
    for the construction and operation of generating plants, electric
    transmission, and distribution lines or systems.

                           ELECTRIC PROGRAM STATISTICS

                              [dollars in millions]

                                         1996 actual  1997 est.   1998 est.
    Cumulative RUS financed direct loans      21,862      21,862      21,862
    Cumulative FFB financed direct loans      27,443      27,443      27,443
    Cumulative RUS funds advanced.......      21,814      21,827      21,838
    Unadvanced RUS funds, end of year...          49          35          25
    Cumulative RUS principal repaid.....      11,360      12,039      12,628
    Cumulative RUS interest paid........       9,888      10,307      10,699
    Cumulative loan guarantee
    commitments\1\......................         960         960         960
    Number of borrowers.................         887         855         830
        \1\ Represents loans financed by private lenders, including
    refinanced direct loans, FFB.

        Rural telecommunications.--This loan program is financed through RUS
    direct loans for the construction, expansion, and operation of
    telecommunications lines and facilities or systems.

                      TELECOMMUNICATIONS PROGRAM STATISTICS

                              [dollars in millions]

                                         1996 actual  1997 est.   1998 est.
    Cumulative RUS financed direct loans       6,074       6,074       6,074
    Cumulative FFB financed direct loans         616         616         616
    Cumulative RUS funds advanced.......       5,801       5,906       6,000
    Unadvanced RUS funds, end of period.         273         168          74
    Cumulative RUS principal repaid.....       2,710       2,854       3,000
    Cumulative RUS interest paid........       2,291       2,426       2,560
    Cumulative loan guarantee
    commitments \1\.....................           3           3           3
    Number of borrowers.................         897         900         905

        \1\ Other lenders--privately financed direct loans, FFB.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
              ELECTRIC PROGRAM:
    0111  Revenue...........................       1,782          1,803         1,532          1,407
    0112  Expense...........................      -2,782         -2,750        -1,365         -1,335
                                            ------------ --------------  ------------  -------------
    0119  Net income or loss (-)............      -1,000           -947           167             72
              TELEPHONE PROGRAM:
    0121  Revenue...........................         173            159           181            183
    0122  Expense...........................         -96            -91           -66            -64
                                            ------------ --------------  ------------  -------------
    0129  Net income or loss (-)............          77             68           115            119
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................       1,955          1,962         1,713          1,590
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................      -2,878         -2,841        -1,431         -1,399
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................        -923           -879           282            191
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,397          1,915         1,915          2,071
            Investments in US securities:
    1106      Receivables, net..............          67             67             2              2
    1206  Non-Federal assets: Receivables,
            net.............................         194            194             7              7
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............      33,101         27,073        26,445         25,967
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -4,724         -4,724        -4,733         -4,766
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      28,377         22,349        21,712         21,201
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      30,035         24,525        23,636         23,281
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         304            304
    2103    Debt............................      28,863         24,948        24,278         23,627
          Non-Federal liabilities:

    2201    Accounts payable................          33             33
    2207    Other...........................       2,863          2,863         2,863          2,863
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      32,063         28,148        27,141         26,490
        NET POSITION:
    3100  Appropriated capital..............       1,896          1,896         1,741          1,741
    3300  Cumulative results of operations..      -3,923         -5,518        -5,245         -4,950
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -2,027         -3,622        -3,504         -3,209
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      30,036         24,526        23,637         23,281
    --------------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         168            300           300            288
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............         592            592           592            592
    1206    Receivables, net................          12             12
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       3,386          3,386         3,364          3,319
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -15            -15           -15            -14
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       3,371          3,371         3,349          3,305
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,143          4,275         4,241          4,185
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           3              3
    2103    Debt............................       2,428          2,428         2,107          1,807
          Non-Federal liabilities:

    2201    Accounts payable................           2              2
    2207    Other...........................          22             22            13
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,456          2,456         2,120          1,807
        NET POSITION:
    3100  Appropriated capital..............         730            730           653            653
    3300  Cumulative results of operations..         957          1,089         1,468          1,726
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,687          1,819         2,121          2,379
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,142          4,274         4,241          4,185
    -----------------------------------------------------------------------------------------------

                      Rural Telephone Bank Program Account

        The Rural Telephone Bank is hereby authorized to make such
    expenditures, within the limits of funds available to such corporation

    [[Page 200]]

    in accord with law, and to make such contracts and commitments without
    regard to fiscal year limitations as provided by section 104 of the
    Government Corporation Control Act, as amended, as may be necessary in
    carrying out its authorized programs for the current fiscal year. During
    fiscal year [1997] 1998 and within the resources and authority
    available, gross obligations for the principal amount of direct loans
    shall be $175,000,000.
        For the cost, as defined in section 502 of the Congressional Budget
    Act of 1974, including the cost of modifying loans, of direct loans
    authorized by the Rural Electrification Act of 1936, as amended (7
    U.S.C. 935), [$2,328,000] $3,710,000.
        In addition, for administrative expenses necessary to carry out the
    loan programs, [$3,500,000] $3,000,000. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           7           2           4
    00.09 Administrative expenses subject to
            limitation......................           4           4           3
                                               ---------   ---------  ----------
    10.00   Total obligations...............          11           6           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....           2           2
    22.00 New budget authority (gross)......          12           6           7
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13           8           7
    23.95 New obligations...................         -11          -6          -7
    24.90 Unobligated balance available, end
            of year: Fund balance...........           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           9           6           7
          Permanent:

    60.05   Appropriation (indefinite)......           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12           6           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           4          11           7
    73.10 New obligations...................          11           6           7
    73.20 Total outlays (gross).............          -4          -9          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          11           7           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           4           3
    86.93 Outlays from current balances.....                       2           3
    86.98 Outlays from permanent balances...                       3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           9           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12           6           7
    90.00 Outlays...........................           4           9           6
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         126         176         175
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         126         176         175
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................        2.87        1.32        2.12
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        2.87        1.32        2.12
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........           3           2           4
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..           3           2           4
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................                       2           3
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........                       2           3
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           4           4           3
    3590  Outlays...........................           4           4           3
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the Rural Telephone Bank, the subsidy costs associated with
    the direct loans obligated in 1992 and beyond as well as administrative
    expenses for the program. The subsidy amounts are estimated on a present
    value basis; administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           4           4           4
    41.0  Grants, subsidies, and
            contributions...................           7           2           3
                                               ---------   ---------  ----------
    99.9    Total obligations...............          11           6           7
    ---------------------------------------------------------------------------

               Rural Telephone Bank Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         126         176         175
    00.03 Interest on Treasury borrowing....          14          18          31
                                               ---------   ---------  ----------
    10.00   Total obligations...............         140         194         206
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         141         194         206
    23.95 New obligations...................        -140        -194        -206
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         207         161         148
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          22          36          57
    68.10   Receivables from program account           7          -3           1
    68.47   Portion applied to debt
              reduction.....................         -95
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         -66          33          58
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         141         194         206
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Obligated
              balance.......................         581         656         657
    72.95   Receivables from program account           4          11           8
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         585         667         665
    73.10 New obligations...................         140         194         206
    73.20 Total financing disbursements
            (gross).........................         -58        -195        -269
          Unpaid obligations, end of year:

    74.90   Obligated balance: Obligated
              balance.......................         656         657         593
    74.95   Receivables from program account          11           8           9
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         667         665         602
    87.00 Total financing disbursements
            (gross).........................          58         195         269
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payment from
                Program Account.............                      -2          -3
    88.25     Interest on uninvested funds..          -6
              Non-Federal sources:
    88.40       Principal received on loans.          -5          -3          -8
    88.40       Interest received on loans..          -9         -23         -35
    88.40       Sale of RTB Stock...........          -2          -8         -11
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -22         -36         -57
    88.95 Change in receivables from program
            accounts........................          -7           3          -1
    ----------------------------------------------------------------------------

    [[Page 201]]

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         112         161         148
    90.00 Financing disbursements...........          37         159         212
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         126         176         175
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         126         176         175
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         151         191         361
    1231  Disbursements: Direct loan
            disbursements...................          45         173         238
    1251  Repayments: Repayments and
            prepayments.....................          -5          -3          -7
    1264  Write-offs for default: Other
            adjustments, net................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         191         361         592
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4210-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          90                           70             58
            Investments in US securities:
    1106      Program Account...............           4             10             8              9
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         118            158           328            558
    1402    Interest receivable.............                                       23             35
    1405    Allowance for subsidy cost (-)..          -4             -8           -54            -84
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         114            150           297            509
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         208            160           375            576
        LIABILITIES:
    2103  Federal liabilities: Debt.........         203            152           367            567
    2201  Non-Federal liabilities: Accounts
            payable.........................           5              8             8              9
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         208            160           375            576
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         208            160           375            576
    -----------------------------------------------------------------------------------------------

                    Rural Telephone Bank Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest expense..................          32          28           7
    00.02 Dividends.........................          10          10          11
    00.03 RTB Equity fund...................          83
                                               ---------   ---------  ----------
    10.00   Total obligations...............         125          38          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                                 412
    22.00 New budget authority (gross)......         111         521         157
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          18
    22.40 Capital transfer to general fund..                                -545
    22.70 Balance of authority to borrow
            withdrawn.......................          -4         -71          -7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         125         450          17
    23.95 New obligations...................        -125         -38         -18
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....                     412
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         218         621         228
    68.27   Capital transfer to general fund         -30         -40         -11
    68.47   Portion applied to debt
              reduction.....................         -77         -60         -60
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         111         521         157
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         111         521         157
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........         238         233         162
    72.90     Fund balance..................          58          15          25
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         296         248         187
    73.10 New obligations...................         125          38          18
    73.20 Total outlays (gross).............        -154         -99         -66
    73.45 Adjustments in unexpired accounts.         -18
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........         233         162         138
    74.90     Fund balance..................          15          25           1
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         248         187         139
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         111          99          66
    86.98 Outlays from permanent balances...          43
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         154          99          66
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                    -412
              Non-Federal sources:
    88.40       Loans repaid................        -117        -105        -125
    88.40       Interest from loans.........        -100        -101        -102
    88.40       Sales of stock..............          -1          -3          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -218        -621        -228
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -107        -100         -71
    90.00 Outlays...........................         -63        -522        -162
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,414       1,328       1,283
    1231  Disbursements: Direct loan
            disbursements...................          31          60          30
    1251  Repayments: Repayments and
            prepayments.....................        -117        -105        -125
    1264  Write-offs for default: Other
            adjustments, net................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,328       1,283       1,188
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the Rural Telephone Bank, all cash flows to and from the
    Government resulting from direct loans obligated prior to 1992. This
    account is shown on a cash basis. All new activity in this program in
    1992 and beyond (including modifications of direct loans or loan
    guarantees that resulted from obligations or commitments in any year) is
    recorded in corresponding program and financing accounts.

        The Rural Telephone Bank (RTB) provides a supplemental source of
    financing for rural telecommunications borrowers. The Bank charges an
    interest rate based on the cost of money to the Bank, as prescribed by
    law, but not less than 5 percent per annum. The composite interest rate
    on cumulative loans through September 30, 1996, was 7.08 percent. The
    long-term interest rate on advances made during 1996 for loans approved
    after October 1, 1987, was 6.05 percent.

        Equity capital of the Bank consists of class A stock purchased by
    the United States of $574 million with a 2 percent dividend and classes
    B and C stock purchased by bank borrowers, organizations eligible to
    become borrowers and organi-

    [[Page 202]]

    zations controlled by borrowers. The Bank has borrowed $759 million from
    the Treasury. A total of $76,663,381, at interest rates ranging from
    9.125 percent to 10.625 percent was repaid during the fiscal year. The
    outstanding balance of $388,274,125, is at interest rates of 7.25
    percent to 9.125 percent. The $574 million purchase of capital stock has
    been financed through appropriations.

        In accordance with section 406(c) of the Rural Electrification Act
    of 1936, as amended, the first redemption of class A stock occurred on
    September 30, 1996. In accordance with resolution 96-3, $18,000,000 of
    class A stock was redeemed. Redemption of class A stock will occur in
    1997 as allowed by law, toward the full privatization of the Rural
    Telephone Bank required by law.

        Administrative support is provided for the general operations of the
    Bank by RUS employees and the Office of the General Counsel.

        Bank loans totaled $126 million in 1996. After almost 24 years in
    operation, loans to 650 borrowers have been approved, totaling over $3.4
    billion.

                               PROGRAM STATISTICS

                              [Dollars in millions]

                                         1996 actual  1997 est.   1998 est.
    Cumulative net loans................       3,425       3,621       3,796
    Cumulative loan funds, advanced.....       2,545       2,778       3,046
    Unadvanced loan funds, end of year..         880         842         749
    Cumulative principal repaid.........       1,060       1,167       1,300
    Cumulative interest paid............       1,923       2,046       2,104
    Number of borrowers.................         564         564         564
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         104            100           101            101
    0102  Expense...........................         -37            -31           -28             -6
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          67             69            73             95
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          58             15           437              1
    1206  Non-Federal assets: Receivables,
            net.............................           5              4             6              6
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,414          1,328         1,283          1,188
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -9             -8            -8             -7
    1604    Direct loans and interest
              receivable, net...............       1,405          1,320         1,275          1,181
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,405          1,320         1,275          1,181
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,468          1,339         1,718          1,188
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................          15             16            16             16
    2103    Debt............................         465            388           328            268
    2105    Other...........................                                      413            412
          Non-Federal liabilities:

    2201    Accounts payable................           2              2             2              2
    2207    Other...........................         394            359           414            490
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         876            765         1,173          1,188
        NET POSITION:
    3100  Appropriated capital..............         592            574           545
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         592            574           545
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,468          1,339         1,718          1,188
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          83
    43.0  Interest and dividends............          42          38          18
                                               ---------   ---------  ----------
    99.9    Total obligations...............         125          38          18
    ---------------------------------------------------------------------------

        Distance Learning and Medical Link Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................                     150         150
    00.02 Interest on Treasury Borrowing....                       1           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............                     151         156
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                     151         156
    23.95 New obligations...................                    -151        -156
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                     143         134
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                       7          23
    68.10   Receivables from program account                       1          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................                       8          22
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                     151         156
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.47   Obligated balance: Authority to
              borrow........................                                 105
    72.95   Receivables from program account                                   1
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............                                 106
    73.10 New obligations...................                     151         156
    73.20 Total financing disbursements
            (gross).........................                     -45        -120
          Unpaid obligations, end of year:

    74.47   Obligated balance: Authority to
              borrow........................                     105         142
    74.95   Receivables from program account                       1
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................                     106         142
    87.00 Total financing disbursements
            (gross).........................                      45         120
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                                  -1
              Non-Federal sources:
    88.40       Repayment of principal......                      -3         -13
    88.40       Interest received on loans..                      -4          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -7         -23
    88.95 Change in receivables from program
            accounts........................                      -1           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     143         134
    90.00 Financing disbursements...........                      38          97
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                     150         150
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                     150         150
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                                  42
    1231  Disbursements: Direct loan
            disbursements...................                      45         120
    1251  Repayments: Repayments and
            prepayments.....................                      -3         -13
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                      42         149
    ---------------------------------------------------------------------------

    [[Page 203]]

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4146-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....
            Investments in US securities:
    1106      Receivables, net..............                                        1
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                       42            149
    1402    Interest receivable.............                                        4              9
    1405    Allowance for subsidy cost (-)..                                       -3             -9
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                       43            149
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                       44            149
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................                                       42            149
    2203  Non-Federal liabilities: Liability
            for deposit funds...............
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                       42            149
        NET POSITION:
    3100  Appropriated capital..............                                        1
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                        1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                       43            149
    -----------------------------------------------------------------------------------------------

                Rural Development Insurance Fund Program Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2082-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           8           8           8
    07.99 Total balance, end of year........           8           8           8
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2082-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           7
    22.21 Unobligated balance transferred to
            other accounts..................          -7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......
    23.95 New obligations...................
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         295
    73.20 Total outlays (gross).............
    73.31 Obligated balance transferred to
            other accounts..................        -295
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond, as
    well as administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

        In 1994, this program account was administered by the Rural
    Development Administration. Under reorganization of the Department of
    Agriculture, the water and waste direct and guaranteed loan programs are
    administered through the Rural Utilities Service's Rural Water and Waste
    Disposal Loans Program Account; the community facility direct and
    guaranteed loan programs are administered through the Rural Housing
    Service's Rural Community Facility Loans Program Account; and the
    business and industry direct and guaranteed loan programs are
    administered through the Rural Business-Cooperative Service's Rural
    Business and Industry Loans Program Account.

        On October 1, 1995, all balances in this account were transferred to
    the appropriate above-cited accounts.

         Rural Development Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4217-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Obligated
            balance.........................       1,704
    73.20 Total financing disbursements
            (gross).........................
    73.31 Obligated balance transferred to
            other accounts..................      -1,704
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4217-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,218
    1264  Write-offs for default: Other
            adjustments, net................      -1,218
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

        This account finances direct loans for water systems, waste disposal
    facilities, community facilities, and businesses and industries in rural
    areas. Communities unable to afford low interest loans for water and
    waste disposal facilities are also able to obtain RUS grants.

        In 1996, these loans were transferred to the Rural Water and Waste
    Disposal Loans Direct Financing Account in the Rural Utilities Service
    and the Rural Community Facility Loans Direct Financing Account in the
    Rural Housing Service.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4217-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,998
            Investments in US securities:
    1106      Receivables, net..............         295
    1206  Non-Federal assets: Receivables,
            net.............................          16
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,218
    1402    Interest receivable.............          36
    1405    Allowance for subsidy cost (-)..        -167
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,087
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,396

    [[Page 204]]

        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       1,998
    2103    Debt............................       1,103
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,101
        NET POSITION:
    3100  Appropriated capital..............         295
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         295
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,396
    -----------------------------------------------------------------------------------------------

              Rural Development Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Purchase of loans from investors           1                       3
    00.03   Redemption of public CBO debt...           3
    00.04   Purchase of guaranteed loans
              from investors................           1           1           1
    00.05   Interest on guaranteed loans
              purchased from investors......          -1           1           1
                                               ---------   ---------  ----------
    00.91     Total operating expenses......           4           2           5
          Capital investment:

    01.01   Interest on FFB borrowings......         515         515         515
    01.02   Interest on certificates of
              beneficial ownership..........                       1           1
    01.03   Premium interest for investors..           1
    01.05   Interest on Treasury borrowings.         121         138         134
    01.06   Loss settlement expense on
              guaranteed loans..............           5           9           7
    01.09   Undistributed charges...........           2
                                               ---------   ---------  ----------
    01.91     Total capital investment......         644         663         657
                                               ---------   ---------  ----------
    10.00   Total obligations...............         648         665         662
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....                      23
    22.00 New budget authority (gross)......         697         669         682
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    22.60 Redemption of debt................          -3          -1          -1
    22.70 Balance of authority to borrow
            withdrawn.......................         -27         -26         -19
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         672         665         662
    23.95 New obligations...................        -648        -665        -662
    24.90 Unobligated balance available, end
            of year: Fund balance...........          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........         550         250         300
    60.47 Portion applied to debt reduction.        -325         -30         -50
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........         225         220         250
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         472         449         432
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         697         669         682
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........          31
    72.90     Fund balance..................         297         293         258
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         328         293         258
    73.10 New obligations...................         648         665         662
    73.20 Total outlays (gross).............        -678        -701        -664
    73.45 Adjustments in unexpired accounts.          -5
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.         293         258         257
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         697         669         682
    86.98 Outlays from permanent balances...         -19          32         -18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         678         701         664
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments on loans held by
                  fund......................        -204        -196        -188
    88.40       Repayments of guaranteed
                  loans purchased from
                  investors.................          -6          -6          -6
    88.40       Interest revenue............        -249        -242        -233
    88.40       Loan repayments on behalf of
                  investors.................          -1
    88.40       Interest income on
                  investment................          -9          -5          -5
    88.40       Guaranteed loss recoveries..          -1
    88.40       Other revenue...............          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -472        -449        -432
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         225         220         250
    90.00 Outlays...........................         206         252         232
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,471       4,348       4,183
          Disbursements:

    1231    Direct loan disbursements.......          11          35
    1232    Purchase of loans assets from
              the public....................           1                       3
    1251  Repayments: Repayments and
            prepayments.....................        -204        -196        -188
    1261  Adjustments: Capitalized interest.           1
          Write-offs for default:

    1263    Direct loans....................          -5          -4          -4
    1264    Other adjustments, net..........          73
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,348       4,183       3,994
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         602         499         425
    2231  Disbursements of new guaranteed
            loans...........................           1          18
    2251  Repayments and prepayments........         -84         -70         -62
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -20         -22         -19
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         499         425         344
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         407         347         282
    ---------------------------------------------------------------------------

        The Rural Development Insurance Fund (RDIF) was established on
    October 1, 1972, pursuant to section 116 of the Rural Development Act of
    1972 (Public Law 92-419).

        The fund is used to insure or guarantee loans for water systems and
    waste disposal facilities, community facilities, and industrial
    development in rural areas. Communities unable to afford low interest
    loans for water and waste disposal facilities are also able to obtain
    water and waste disposal grants.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated and loan guarantees committed
    prior to 1992. All new activity in this program is recorded in
    corresponding program accounts and financing accounts.

        In 1994, these loan programs were administered by the Rural
    Development Administration. Under reorganization of the Department of
    Agriculture, the water and waste direct and guaranteed loan programs are
    administered by the Rural Utilities Service, the community facility
    direct and guaranteed loan programs are adminsitered by the Rural
    Housing Service, and the business and industry direct and guaranteed

    [[Page 205]]

    loan programs are administered by the Rural Business-Cooperative
    Service.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4155-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         253            264           248            238
    0102  Expense...........................        -675           -642          -618           -585
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............        -422           -378          -370           -347
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4155-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         297            316           284            301
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............          34             34            34             34
    1206    Receivables, net................          65             63           174            168
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       4,471          4,349         4,183          3,994
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,694         -1,666        -1,602         -1,514
    1604    Direct loans and interest
              receivable, net...............       2,777          2,683         2,581          2,480
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       2,777          2,683         2,581          2,480
    1901  Other Federal assets: Other assets         171            155           140            127
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,344          3,251         3,213          3,110
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................          -1             -1            -1
    2103    Debt............................       5,156          4,831         4,801          4,751
    2104    Resources payable to Treasury...          66             60            50             41
    2105    Other...........................          24             23            18             18
          Non-Federal liabilities:

    2201    Public..........................         132            137           125            120
    2202    Interest payable................         146            121           138            134
    2203    Debt............................           7              3             3              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       5,530          5,174         5,134          5,066
        NET POSITION:
    3300  Cumulative results of operations..      -2,186         -1,924        -1,923         -1,956
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -2,186         -1,924        -1,923         -1,956
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,344          3,250         3,211          3,110
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           5           9           7
    33.0  Investments and loans.............           2           1           4
    43.0  Interest and dividends............         639         655         651
    92.0  Undistributed.....................           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............         648         665         662
    ---------------------------------------------------------------------------

            Rural Communication Development Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest expense..................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              43.0).........................           3           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1           1           1
    22.00 New budget authority (gross)......           3           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           4           4
    23.95 New obligations...................          -3          -3          -3
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........           1           2           2
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           3           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........          -1
    72.90     Fund balance..................           2           1           2
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............           1           1           2
    73.10 New obligations...................           3           3           3
    73.20 Total outlays (gross).............          -3          -3          -3
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           1           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           2           2           2
    86.98 Outlays from permanent balances...           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           3           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -2          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           2           2
    90.00 Outlays...........................           1           2           2
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          10           9           9
    1251  Repayments: Repayments and
            prepayments.....................          -1                      -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           9           9           8
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           5           5           5
    2251  Repayments and prepayments........                                  -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           5           5           4
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           5           5           4
    ---------------------------------------------------------------------------

        The Rural Communication Development Fund was established pursuant to
    the Secretary's Memorandum No. 1988, approved May 22, 1979. No loans
    have been made through this account since before 1992.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4142-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           1              1             1              1
    0102  Expense...........................          -3             -3            -3             -3
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          -2             -2            -2             -2
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4142-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           2              2             2              2

    [[Page 206]]

          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          10             10             9              9
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -3             -3            -3             -3
    1604    Direct loans and interest
              receivable, net...............           7              7             6              6
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           7              7             6              6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           9              9             8              8
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           1              1             1              1
    2103    Debt............................          25             25            25             25
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           1              1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          27             27            27             27
        NET POSITION:
    3100  Appropriated capital..............           9             11            13             14
    3300  Cumulative results of operations..         -27            -29           -32            -33
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         -18            -18           -19            -19
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           9              9             8              8
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                        Rural Telephone Bank Equity Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8139-0-7-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         301         413
        Receipts:
    02.01 Rural Telephone Bank Trust Fund...          83
    02.02 Interest on investments...........          29
                                               ---------   ---------  ----------
    02.99   Total receipts..................         112
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         413         413
        Appropriation:
    05.01 Rural Telephone Bank Equity Fund..                    -413
    07.99 Total balance, end of year........         413
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8139-0-7-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Program Activity..................                     413
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................                     413
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     413
    23.95 New obligations...................                    -413
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................                     413
                                                                 413
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                     413
    73.20 Total outlays (gross).............                    -413
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                     413
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     413
    90.00 Outlays...........................                     413
    ---------------------------------------------------------------------------

        The Rural Telephone Bank Equity Fund was established in 1993. Class
    B Stock equity funds transferred to this account include: (1) five
    percent of each loan repayment received in the financing account and (2)
    current class B Stock purchases in the liquidating account.

        This account will be abolished in 1997 pursuant to section 718 of
    Public Law 104-180, Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997. The
    balances in this account will be transferred to the Rural Telephone Bank
    Liquidating account.

                              RURAL HOUSING SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses of the Rural Housing Service, including
    administering the programs authorized by the Consolidated Farm and Rural
    Development Act, as amended, title V of the Housing Act of 1949, as
    amended, and cooperative agreements, [$60,743,000] $58,804,000:
    Provided, That this appropriation shall be available for employment
    pursuant to the second sentence of 706(a) of the Organic Act of 1944,
    and not to exceed $520,000 may be used for employment under 5 U.S.C.
    3109. (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1952-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          42          61          59
    01.01 Reimbursable program..............         436         422         411
                                               ---------   ---------  ----------
    10.00   Total obligations...............         478         483         470
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         483         483         470
    22.30 Unobligated balance expiring......          -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         478         483         470
    23.95 New obligations...................        -478        -483        -470
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          47          61          59
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         436         422         411
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         483         483         470
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                      64         111
    73.10 New obligations...................         478         483         470
    73.20 Total outlays (gross).............        -414        -436        -462
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          64         111         119
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          36          50          48
    86.93 Outlays from current balances.....                       4           9
    86.97 Outlays from new permanent
            authority.......................         378         346         337
    86.98 Outlays from permanent balances...                      36          68
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         414         436         462
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                    -422        -411
    88.45     Offsetting governmental
                collections.................        -436
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -436        -422        -411
    ----------------------------------------------------------------------------

    [[Page 207]]

        Net budget authority and outlays:
    89.00 Budget authority..................          47          61          59
    90.00 Outlays...........................         -22          14          51
    ---------------------------------------------------------------------------

        The Secretary's reorganization plan established the Rural Housing
    Service (RHS). This agency was formed from the Rural Housing section of
    Farmers Home Administration and the Community Facilities Division of the
    Rural Development Administration. RHS delivers rural housing and
    community facility programs through a system of State, area, and local
    offices. In 1997, a new Dedicated Loan Origination and Servicing System
    (DLOS) will be implemented to centralize and streamline the servicing
    activities of the agency. This innovation will significantly reduce the
    cost of operating the individual housing loan programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1952-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          24          33          32
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          27          36          35
    12.1    Civilian personnel benefits.....           6          11          10
    21.0    Travel and transportation of
              persons.......................           2           2           2
    22.0    Transportation of things........                                   1
    23.2    Rental payments to others.......           1           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           3           3
    25.2    Other services..................           1           3           2
    25.3    Purchases of goods and services
              from Government accounts......           1           2           2
    25.7    Operation and maintenance of
              equipment.....................           1           2           2
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          42          63          61
    99.0  Reimbursable obligations..........         436         420         408
    99.5  Below reporting threshold.........                                   1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         478         483         470
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1952-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         611         832         778
    1005    Full-time equivalent of overtime
              and holiday hours.............           2           3           3
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.       6,299       5,756       5,454
    2005    Full-time equivalent of overtime
              and holiday hours.............          20          19          19
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2001-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Reimbursable Program..............           2
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              21.0).........................           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2
    23.95 New obligations...................          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         113          36
    73.10 New obligations...................           2
    73.20 Total outlays (gross).............         -74         -36
    73.40 Adjustments in expired accounts...          -3
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.          36
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          74          36
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.45   Offsetting collections (cash)
              from: Offsetting governmental
              collections...................          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          72          36
    ---------------------------------------------------------------------------

        These funds were used to administer the direct loan, loan guarantee,
    and grant programs of the Farmers Home Administration and the Rural
    Development Administration.

        In 1995, under the reorganization by the Secretary of Agriculture
    the Agency has been eliminated and activities previously administered
    through this account transferred to other Department accounts.

                    Rural Housing Assistance [Program] Grants

                         (including transfers of funds)

        [For the cost of direct loans, loan guarantees, agreements, and
    grants, as authorized by 7 U.S.C. 1926, 42 U.S.C. 1472, 1474, 1479,
    1486, and 1490(a), except for sections 381E, 381H, 381N of the
    Consolidated Farm and Rural Development Act, $130,433,000, to remain
    available until expended, for direct loans and loan guarantees for
    community facilities, community facilities grant program, rental
    assistance associated with and direct loans for new construction of
    section 515 rental housing, rural housing for domestic farm labor
    grants, supervisory and technical assistance grants, very low-income
    housing repair grants, rural community fire protection grants, rural
    housing preservation grants, and compensation for construction defects
    of the Rural Housing Service: Provided, That the cost of direct loans
    and loan guarantees shall be as defined in section 502 of the
    Congressional Budget Act of 1974, as amended: Provided further, That the
    amounts appropriated shall be transferred to loan program and grant
    accounts as determined by the Secretary: Provided further, That of the
    funds made available in this paragraph not more than $1,200,000 shall be
    available for the multi-family rural housing loan guarantee program as
    authorized by section 5 of Public Law 104-120: Provided further, That if
    such funds are not obligated for multi-family rural housing loan
    guarantees by June 30, 1997, they remain available for other authorized
    purposes under this head: Provided further, That of the total amount
    appropriated, not to exceed $1,200,000 shall be available for the cost
    of direct loans, loan guarantees, and grants to be made available for
    empowerment zones and enterprise communities as authorized by Public Law
    103-66: Provided further, That if such funds are not obligated for
    empowerment zones and enterprise communities by June 30, 1997, they
    remain available for other authorized purposes under this head.]
        For grants and contracts for housing for domestic farm labor, very
    low-income housing repair, mutual and self-help housing, supervisory and
    technical assistance, compensation for construction defects, and rural
    housing preservation made by the Rural Housing Service as authorized by
    42 U.S.C. 1474, 1479(c), 1486, 1490c, 1490e, and 1490m, $70,900,000, to
    remain available until expended: Provided, That any obligated and
    unobligated balances available from prior years in ``Rural Housing for
    Domestic Farm Labor,'' ``Mutual and Self-Help Housing Grants,''
    ``Supervisory and Technical Assistance Grants,'' ``Very Low-Income
    Housing Repair Grants,'' ``Compensation for Construction Defects'' and
    ``Rural Housing Preservation Grants'' shall be transferred to and merged
    with this account: Provided further, That of the total amount
    appropriated, $3,000,000 shall be for empowerment zones and enterprise
    communities, as authorized by Public Law 103-66: Provided further, That
    if such funds are not obligated for empowerment zones and enterprise
    communities by June 30, 1998, they shall remain available for other
    authorized purposes under this head. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1997.)

    [[Page 208]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1953-0-1-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Community Facility Grants.........                       7
    00.02 Domestic Farm Labor Grants........                                  10
    00.03 Very Low-Income Housing Repair
            Grants..........................                                  25
    00.04 Mutual and Self-Help Housing
            Grants..........................                                  26
    00.06 Compensation for Construction
            Defects.........................                                   1
    00.07 Rural Housing Preservation Grants.                                  10
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                       7          72
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                       8          71
    22.22 Unobligated balance transferred
            from other accounts.............                                   1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       8          72
    23.95 New obligations...................                      -7         -72
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                     130          71
    41.00 Transferred to other accounts.....                    -122
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........                       7          71
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                       8          71
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                   6
    73.10 New obligations...................                       7          72
    73.20 Total outlays (gross).............                      -1         -75
    73.31 Obligated balance transferred to
            other accounts..................                                  -6
    73.32 Obligated balance transferred from
            other accounts..................                                  71
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                       6          67
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                       1          32
    86.93 Outlays from current balances.....                                  43
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       1          75
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       8          71
    90.00 Outlays...........................                       1          75
    ---------------------------------------------------------------------------

        This account consolidates six housing grant programs into one
    account. This consolidation provides more flexibility for distributing
    rural housing assistance.

        The rural housing for domestic farm labor grant program is
    authorized under section 516 of the Housing Act of 1949, as amended.
    Grants and contracts are made to public and private nonprofit
    organizations for low-rent housing and related facilities for domestic
    farm labor. Grant assistance may not exceed 90 percent of the cost of a
    project, and may be used for construction of new structures, site
    acquisition and development, rehabilitation of existing structures, and
    purchase of furnishings and equipment for dwellings, dining halls,
    community rooms, and infirmaries.

        The very low-income housing repair grant program is authorized under
    section 504 of the Housing Act of 1949, as amended. This grant program
    enables very low-income elderly residents in rural areas to improve or
    modernize their dwellings, to make the dwelling safer or more sanitary,
    or to remove health and safety hazards.

        The mutual and self-help housing grant program is authorized under
    section 523 of the Housing Act of 1949, as amended. Grants and contracts
    are made for the purpose of providing technical and supervisory
    assistance to groups of families to enable them to build their own homes
    through the mutual exchange of labor. This program is typically used in
    conjunction with the section 502 direct loan program and enables
    borrowers to borrow less money on the section 502 loans, thereby
    spreading that limited resource to more eligible and needy applicants.

        The supervisory and technical assistance grant program is carried
    out under the provisions of section 509(f) and 525 of the Housing Act of
    1949, as amended. Under section 509, grants are made to public and
    private nonprofit organizations for packaging loan applications for
    housing under sections 502, 504, 514/516, 515, and 533 of the Housing
    Act of 1949, as amended. The assistance is to be directed to underserved
    areas where at least 20 percent or more of the population is at or below
    the poverty level, and at least 10 percent or more of the population
    resides in substandard housing. Under section 525, grants are made to
    public and private nonprofit organizations and other associations for
    the developing, conducting, administering or coordinating of technical
    and supervisory assistance programs to demonstrate the benefits of
    Federal, State, and local housing programs for low-income families in
    rural areas.

        The compensation for construction defects program is carried out
    under the provisions of section 509(c) of the Housing Act of 1949, as
    amended. The Secretary of Agriculture is authorized to make expenditures
    to correct structural defects, or to pay claims of owners arising from
    such defects on newly constructed dwellings purchased with RHS financial
    assistance. Requests for compensation for construction defects must be
    made within 18 months after the date financial assistance was granted.

        The rural housing preservation grant program is authorized under
    section 533 of the Housing Act of 1949, as amended. Grants are made to
    eligible nonprofit groups, Indian tribes, or government agencies for
    rehabilitation of single family housing owned by low- and very low-
    income families and the rehabilitation of rental and cooperative housing
    for low- and very low-income families.

                            Rental Assistance Program

        For rental assistance agreements entered into or renewed pursuant to
    the authority under section 521(a)(2) or agreements entered into in lieu
    of debt forgiveness or payments for eligible households as authorized by
    section 502(c)(5)(D) of the Housing Act of 1949, as amended,
    [$493,870,000] $593,397,000; and in addition such sums as may be
    necessary, as authorized by section 521(c) of the Act, to liquidate debt
    incurred prior to fiscal year 1992 to carry out the rental assistance
    program under section 521(a)(2) of the Act: Provided, That of this
    amount not more than $5,900,000 shall be available for debt forgiveness
    or payments for eligible households as authorized by section
    502(c)(5)(D) of the Act, and not to exceed $10,000 per project for
    advances to nonprofit organizations or public agencies to cover direct
    costs (other than purchase price) incurred in purchasing projects
    pursuant to section 502(c)(5)(C) of the Act: Provided further, That
    agreements entered into or renewed during fiscal year [1997] 1998 shall
    be funded for a five-year period, although the life of any such
    agreement may be extended to fully utilize amounts obligated.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0137-0-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         540         524         593
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         541         524         593
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         540         524         593
    23.95 New obligations...................        -540        -524        -593
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         541         494         593

    [[Page 209]]

    40.05 Appropriation (indefinite)........         165         128          83
    40.47 Portion applied to debt reduction.        -165        -128         -83
    42.00 Transferred from other accounts...                      30
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........         541         524         593
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         541         524         593
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.40     Appropriation.................       1,306       1,529       1,650
    72.47     Authority to borrow...........       1,169       1,004         877
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       2,475       2,533       2,527
    73.10 New obligations...................         540         524         593
    73.20 Total outlays (gross).............        -482        -531        -553
    73.40 Adjustments in expired accounts...          -1
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Appropriation.................       1,529       1,650       1,774
    74.47     Authority to borrow...........       1,004         877         794
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       2,533       2,527       2,568
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          19          18          21
    86.93 Outlays from current balances.....         298         385         449
    86.98 Outlays from permanent balances...         165         128          83
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         482         531         553
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         541         524         593
    90.00 Outlays...........................         482         531         553
    ---------------------------------------------------------------------------

        The rental assistance program is authorized under section 521(a)(2)
    of the Housing Act of 1949, as amended, and is designed to reduce rents
    paid by very low-income and low-income families living in RHS-financed
    rural rental and farm labor housing projects. Funding under this account
    is provided for renewals of existing rental assistance contracts,
    assistance for newly constructed units financed by the section 515 rural
    rental and cooperative housing program or the 514/516 farm labor housing
    loan and grant programs, and for additional servicing assistance for
    existing projects. Assistance is also provided in lieu of debt
    forgiveness or payments for eligible households to subsidize tenant
    rents in projects purchased by eligible nonprofit organizations or
    public agencies as authorized by section 502(c)(5)(D) of the Act.

        From 1978 through 1991, the rental assistance program was funded
    under the Rural Housing Insurance Fund. Beginning in 1992, pursuant to
    Credit Reform, a separate grant account was established for this
    program.

        Included in the request is $52 million for the conversion of the
    HUD's section 8 contracts to USDA's section 521 rental assistance
    program contracts. The Administration believes USDA's budget-based
    approach to rental assistance on multifamily housing is more cost-
    efficient than HUD's ``automatic'' annual rent adjustments.

                         Rural Housing Voucher Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2002-0-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           5           4           3
    73.20 Total outlays (gross).............          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           4           3           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           1           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        Prior year outlays reflect funding for rental assistance for newly
    constructed units provided in limited amounts in 1984 and 1985. From
    1986 through 1991 rental assistance for newly constructed units, as well
    as existing rental assistance contract renewals and additional servicing
    assistance for existing projects, had been funded under the Rural
    Housing Insurance Fund. Beginning in 1992, pursuant to Credit Reform, a
    separate grant account was established for the rental assistance
    program.

                      Rural Housing for Domestic Farm Labor

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2004-0-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          10           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          10           6
    23.95 New obligations...................         -10          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          10
    42.00 Transferred from other accounts...                       6
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          10           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          51          42          29
    73.10 New obligations...................          10           6
    73.20 Total outlays (gross).............         -20         -20
    73.31 Obligated balance transferred to
            other accounts..................                                 -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          42          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                       1
    86.93 Outlays from current balances.....          20          19
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10           6
    90.00 Outlays...........................          19          20
    ---------------------------------------------------------------------------

        This grant program is authorized under section 516 of the Housing
    Act of 1949, as amended. Grants are made to public and private nonprofit
    organizations for low-rent housing and related facilities for domestic
    farm labor. Grant assistance may not exceed 90 percent of the cost of a
    project, and may be used for construction of new structures, site
    acquisition and development, rehabilitation of existing structures, and
    purchase of furnishings and equipment for dwellings, dining halls,
    community rooms, and infirmaries.

        In 1998, the funding for rural housing for domestic farm labor
    grants is requested to be appropriated to the Rural Housing Assistance
    Grants Account. Also, requested is all balances in this account be
    transferred to the Rural Housing Assistance Grants account.

                      [Mutual and Self-Help Housing Grants]

        [For grants and contracts pursuant to section 523(b)(1)(A) of the
    Housing Act of 1949 (42 U.S.C. 1490c), $26,000,000, to remain available
    until expended (7 U.S.C. 2209b).] (Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act, 1997.)

    [[Page 210]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2006-0-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          13          26
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          13          26
    23.95 New obligations...................         -13         -26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          13          26
                                                      13          26
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          18          16          24
    73.10 New obligations...................          13          26
    73.20 Total outlays (gross).............         -15         -17
    73.31 Obligated balance transferred to
            other accounts..................                                 -24
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          16          24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           5
    86.93 Outlays from current balances.....          11          12
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          15          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          13          26
    90.00 Outlays...........................          15          17
    ---------------------------------------------------------------------------

        This program is authorized under section 523 of the Housing Act of
    1949, as amended. Grants and contracts are made for the purpose of
    providing technical and supervisory assistance to groups of families to
    enable them to build their own homes through the mutual exchange of
    labor.

        In 1998, the funding for mutual and self-housing grants is requested
    to be appropriated to the Rural Housing Assistance Grants account. Also,
    requested is all balances in this account be transferred to the Rural
    Housing Assistance Grants account.

                   Supervisory and Technical Assistance Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2009-0-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           3           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           5           2
    23.95 New obligations...................          -3          -2
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           3           2
    73.10 New obligations...................           3           2
    73.20 Total outlays (gross).............          -1          -3
    73.31 Obligated balance transferred to
            other accounts..................                                  -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           1           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           3
    ---------------------------------------------------------------------------

        This program is carried out under the provisions of sections 509(f)
    and 525 of the Housing Act of 1949, as amended. Under section 509,
    grants are made to public and private nonprofit organizations for
    packaging loan applications for housing under sections 502, 504, 514/
    516, 515, and 533 of the Housing Act of 1949, as amended. The assistance
    is to be directed to underserved areas where at least 20 percent or more
    of the population is at or below the poverty level, and at least 10
    percent or more of the population resides in substandard housing. Under
    section 525, grants are made to public and private nonprofit
    organizations and other associations for the developing, conducting,
    administering or coordinating of technical and supervisory assistance
    programs to demonstrate the benefits of Federal, State, and local
    housing programs for low-income families in rural areas.

        In 1998, funding for supervisory and technical assistance grants is
    requested to be appropriated to the Rural Housing Assistance Grants
    account. Also, requested is all balances in this account be transferred
    to the Rural Housing Assistance Grants account.

                      Very Low-Income Housing Repair Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2064-0-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          26          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       1
    22.00 New budget authority (gross)......          26          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          26          17
    23.95 New obligations...................         -26         -17
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          26
    42.00 Transferred from other accounts...                      16
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          26          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          26          16
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           4           3           1
    73.10 New obligations...................          26          17
    73.20 Total outlays (gross).............         -25         -19
    73.31 Obligated balance transferred to
            other accounts..................                                  -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          25          15
    86.93 Outlays from current balances.....                       4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          25          19
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          26          16
    90.00 Outlays...........................          25          19
    ---------------------------------------------------------------------------

        This program is authorized under section 504 of the Housing Act of
    1949, as amended. This grant program enables very low-income elderly
    residents in rural areas to improve or modernize their dwellings, to
    make the dwelling safer or more sanitary, or to remove health and safety
    hazards.

        In 1998, the funding for very low-income housing repair grants is
    requested to be appropriated to the Rural Housing Assistance Grants
    account. Also, requested is all balances in this account be transferred
    to the Rural Housing Assistance Grants account.

    [[Page 211]]

                     Rural Community Fire Protection Grants

        For grants pursuant to section 7 of the Cooperative Forestry
    Assistance Act of 1978 (Public Law 95-313), $2,000,000 to fund up to 50
    percent of the cost of organizing, training, and equipping rural
    volunteer fire departments.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2067-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           2           1           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2           1           2
    23.95 New obligations...................          -2          -1          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           2                       2
    42.00 Transferred from other accounts...                       1
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........           2           1           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           2           1           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           3           2           1
    73.10 New obligations...................           2           1           2
    73.20 Total outlays (gross).............          -3          -2          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           2           1           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1                       1
    86.93 Outlays from current balances.....           2           2           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           2           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           1           2
    90.00 Outlays...........................           3           2           2
    ---------------------------------------------------------------------------

        This assistance was authorized by section 7 of the Cooperative
    Forestry Assistance Act of 1978 (16 U.S.C. 2106). Grants are made to
    public bodies to organize, train, and equip local firefighting forces,
    including those of Indian tribes or other Native American groups, to
    prevent, control, and suppress fires threatening human lives, crops,
    livestock, farmsteads or other improvements, pastures, orchards,
    wildlife, rangeland, woodland, and other resources in rural areas.

        In 1997, funding for the Rural Community Fire Protection grant
    program was appropriated to the Rural Housing Assistance Program and
    transferred to this account for administration. In 1998, funding for
    these grants is requested to be appropriated to this account.

                        Rural Housing Preservation Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2070-0-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          11           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11           7
    23.95 New obligations...................         -11          -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          11
    42.00 Transferred from other accounts...                       7
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          11           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          34          24          15
    73.10 New obligations...................          11           7
    73.20 Total outlays (gross).............         -21         -16
    73.31 Obligated balance transferred to
            other accounts..................                                 -15
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          24          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          21          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11           7
    90.00 Outlays...........................          21          16
    ---------------------------------------------------------------------------

        This grant program is authorized under section 533 of the Housing
    Act of 1949, as amended. Grants are made to eligible private nonprofit
    groups, Indian tribes, or government agencies for rehabilitation of
    single family housing owned by low- and very low-income families and the
    rehabilitation of rental and cooperative housing for low- and very low-
    income families.

        In 1998, the funding for rural housing preservation grants is
    requested to be appropriated to the Rural Housing Assistance Grants
    account. Also, requested is all balances in this account be transferred
    to the Rural Housing Assistance Grants account.

                      Compensation for Construction Defects

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2071-0-1-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           2           2           1
    22.21 Unobligated balance transferred to
            other accounts..................                                  -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           2
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        This program is carried out under the provisions of section 509(c)
    of the Housing Act of 1949, as amended. The Secretary of Agriculture is
    authorized to make expenditures to correct structural defects, or to pay
    claims of owners arising from such defects on newly constructed
    dwellings purchased with RHS financial assistance. Requests for
    compensation for construction defects must be made within 18 months
    after the date financial assistance was granted.

        In 1998, the funding for compensation for construction defects is
    requested to be appropriated to the Rural Housing Assistance Grants
    account. Also, requested is all balances in this account be transferred
    to the Rural Housing Assistance Grants account.

    Credit accounts:

                 Rural Community Facility Loans Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1951-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          35          11
    00.02 Guaranteed loan subsidy...........           3           1
    00.03 Reestimates of direct loan subsidy           9
    00.04 Interest on reestimates of direct
            loan subsidy....................           1
    00.07 Administrative expenses...........           9
                                               ---------   ---------  ----------

    [[Page 212]]

    10.00   Total obligations...............          57          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       5
    22.00 New budget authority (gross)......          57          12
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other accounts.............           5
    22.30 Unobligated balance expiring......          -1          -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          62          12
    23.95 New obligations...................         -57         -12
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          47
    42.00   Transferred from other accounts.                      12
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........          47          12
          Permanent:

    60.05   Appropriation (indefinite)......          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          57          12
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                      52          41
    73.10 New obligations...................          57          12
    73.20 Total outlays (gross).............         -37         -23
    73.31 Obligated balance transferred to
            other accounts..................                                 -41
    73.32 Obligated balance transferred from
            other accounts..................          33
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          52          41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          15           2
    86.93 Outlays from current balances.....          12          21
    86.97 Outlays from new permanent
            authority.......................          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          37          23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          57          12
    90.00 Outlays...........................          37          23
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1951-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         208         137
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         208         137
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       16.80        8.73
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       16.80        8.73
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........          35          11
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..          35          11
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................          15          21
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........          15          21
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............          75          74
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....          75          74
        Guaranteed loan subsidy (in percent):
    2320  Guaranteed subsidy rate...........        4.76        0.41
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        4.76        0.41
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........           3           1
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           3           1
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           3           1
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           3           1
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           9
    3590  Outlays...........................           9
    ---------------------------------------------------------------------------

        This account provides funding to local governments and nonprofit
    organizations for the construction and improvement of community
    facilities providing essential services in rural areas, such as
    hospitals and fire stations.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond, as
    well as administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

        In 1998, funding is requested to be appropriated for the direct and
    guaranteed community facility loan programs to the Rural Community
    Advancement Program and all balances from the Community Facility Loans
    Program Account be transferred to the Rural Community Advancement
    Program account. Funding for salaries and expenses associated with the
    program is requested to be appropriated to the Rural Housing Service,
    Salaries and Expenses account.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1951-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           9
    41.0  Grants, subsidies, and
            contributions...................          48          12
                                               ---------   ---------  ----------
    99.9    Total obligations...............          57          12
    ---------------------------------------------------------------------------

             Rural Community Facility Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................         208         137         209
    00.02 Interest on Treasury Borrowing....          27          32          45
    00.03 Recertified checks................           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         236         169         254
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         237         169         254
    23.95 New obligations...................        -236        -169        -254
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         188         131         204
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          61          48          56
    68.10   Receivables from program account          19         -10          -6
    68.47   Portion applied to debt
              reduction.....................         -31
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          49          38          50
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         237         169         254
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........                      75          71
    72.90     Obligated balance.............                     222         212
    72.95   Receivables from program account          33          52          42
                                               ---------   ---------  ----------

    [[Page 213]]

    72.99     Total unpaid obligations,
                start of year...............          33         349         325
    73.10 New obligations...................         236         169         254
    73.20 Total financing disbursements
            (gross).........................        -147        -193        -224
    73.32 Obligated balance transferred from
            other accounts..................         234
    73.40 Adjustments in expired accounts...          -7
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........          75          71          80
    74.90     Obligated balance.............         222         212         239
    74.95   Receivables from program account          52          42          36
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         349         325         355
    87.00 Total financing disbursements
            (gross).........................         147         193         224
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -26         -22         -23
    88.25     Interest on uninvested funds..         -10          -1          -2
              Non-Federal sources:
    88.40       Repayment of principal......         -10          -8         -10
    88.40       Interest received on loans..         -14         -17         -21
    88.40       Miscellaneous offsetting
                  collections...............          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -61         -48         -56
    88.95 Change in receivables from program
            accounts........................         -19          10           6
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         157         131         204
    90.00 Financing disbursements...........          86         145         168
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         208         137         209
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         208         137         209
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                     348         501
    1231  Disbursements: Direct loan
            disbursements...................         118         161         180
    1251  Repayments: Repayments and
            prepayments.....................         -10          -8         -10
    1264  Write-offs for default: Other
            adjustments, net................         240
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         348         501         671
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals. Loans made prior to 1992 are recorded in the Rural Development
    Insurance Fund Liquidating Account.

        This account provides funding to non-profit organizations and local
    governments for the construction and improvement of community facilities
    providing essential services in rural areas, such as hospitals,
    telecommunications applications, child care centers and fire stations.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4225-0-1-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                         75            71             80
            Investments in US securities:
    1106      Receivables, net..............                         52            42             36
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                        348           501            670
    1402    Interest receivable.............                          4            17             21
    1405    Allowance for subsidy cost (-)..                        -50           -87            -99
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                        302           431            592
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                        429           544            708
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................                        375           501            670
    2203  Non-Federal liabilities: Liability
            for deposit funds...............                          2             1              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                        377           502            672
        NET POSITION:
    3100  Appropriated capital..............                         52            42             36
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                         52            42             36
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                        429           544            708
    -----------------------------------------------------------------------------------------------

           Rural Community Facility Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Subsidy reestimate paid to reciept
            account.........................           1
    00.03 Investment in secondary market....                                   1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           1                       1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....                       7           9
    22.00 New financing authority (gross)...           4           2           3
    22.22 Unobligated balance transferred
            from other accounts.............           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8           9          12
    23.95 New obligations...................          -1                      -1
    24.90 Unobligated balance available, end
            of year: Fund balance...........           7           9          11
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           4           2           3
                                                       4           2           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           1                       1
    73.20 Total financing disbursements
            (gross).........................          -1                      -1
    87.00 Total financing disbursements
            (gross).........................           1                       1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3          -2          -1
    88.25     Interest on uninvested funds..                                  -2
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -4          -2          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -3          -2          -2
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          75          74         209
    2112  Uncommitted loan guarantee
            limitation......................         -19
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          56          74         209
    2199  Guaranteed amount of guaranteed
            loan commitments................          45          59         168
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                      94         143
    2231  Disbursements of new guaranteed
            loans...........................          45          54          77
    2251  Repayments and prepayments........          -5          -5          -8
    2264  Adjustments: Other adjustments,
            net.............................          54
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          94         143         212
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          75         114         169
    ---------------------------------------------------------------------------

    [[Page 214]]

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals. Loans made prior to 1992 are recorded in the Rural
    Development Insurance Fund Liquidating Account.

        This account finances loan guarantee commitments for essential
    community facilities in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4228-0-1-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                          8             9             12
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                          8             9             12
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                          8             9             12
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          8             9             12
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                          8             9             12
    -----------------------------------------------------------------------------------------------

                  Rural Housing Insurance Fund Program Account

                         (including transfers of funds)

        For gross obligations for the principal amount of direct and
    guaranteed loans as authorized by title V of the Housing Act of 1949, as
    amended, to be available from funds in the rural housing insurance fund,
    as follows: [$3,300,000,000] $4,000,000,000 for loans to section 502
    borrowers, as determined by the Secretary, of which [$2,300,000,000]
    $3,000,000,000 shall be for unsubsidized guaranteed loans; [$35,000,000]
    $30,000,000 for section 504 housing repair loans; [$15,000,000]
    $15,001,000 for section 514 farm labor housing; [$58,654,000]
    $128,640,000 for section 515 rental housing; $600,000 for section 524
    site loans; [$50,000,000] $25,004,000 for credit sales of acquired
    property; and [$600,000] $587,000 for section 523 self-help housing land
    development loans.
        For the cost of direct and guaranteed loans, including the cost of
    modifying loans, as defined in section 502 of the Congressional Budget
    Act of 1974, as follows: section 502 loans, [$89,210,000] $135,000,000,
    of which [$6,210,000] $6,900,000 shall be for unsubsidized guaranteed
    loans; section 504 housing repair loans, [$11,081,000] $10,308,000;
    section 514 farm labor housing, [$6,885,000] $7,388,000; section 515
    rental housing, [$28,987,000] $68,745,000; credit sales of acquired
    property, [$4,050,000] $3,493,000; and section 523 self-help housing
    land development loans, [$17,000] $20,000: Provided, That of the total
    amount available, $3,603,600 shall be for empowerment zones and
    enterprise communities as authorized by Public Law 103-66: Provided
    further, That if such funds are not obligated for empowerment zones and
    enterprise communities by June 30, 1998, they shall remain available for
    other authorized purposes under this head.
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, [$366,205,000] $354,785,000, which
    shall be transferred to and merged with the appropriation for ``Rural
    Housing Service, Salaries and Expenses''. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                      41          41
        Receipts:
    02.01 Rural housing insurance fund,
            downward reestimates of
            subsidies.......................          41
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          41          41          41
    07.99 Total balance, end of year........          41          41          41
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         249         190         218
    00.02 Guaranteed loan subsidy...........           4           7           7
    00.05 Reestimates of direct loan subsidy          46
    00.06 Interest on reestimates of direct
            loan subsidy....................           8
    00.09 Administrative expenses--salaries,
            expenses........................         373         366         355
    00.10 Administrative expenses--
            nonrecoverable expenses.........          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............         690         563         580
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       6
    22.00 New budget authority (gross)......         700         557         580
    22.30 Unobligated balance expiring......          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         696         563         580
    23.95 New obligations...................        -690        -563        -580
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         646         507         580
    42.00   Transferred from other accounts.                      50
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         646         557         580
          Permanent:

    60.05   Appropriation (indefinite)......          54
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         700         557         580
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         269         231         168
    73.10 New obligations...................         690         563         580
    73.20 Total outlays (gross).............        -725        -626        -609
    73.40 Adjustments in expired accounts...          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         231         168         139
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         512         463         487
    86.93 Outlays from current balances.....         159         163         122
    86.97 Outlays from new permanent
            authority.......................          54
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         725         626         609
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         700         557         580
    90.00 Outlays...........................         725         626         609
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................         700         557         580
      Outlays...........................         725         626         609
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         700         557         580
      Outlays...........................         725         626         609
                                        ====================================

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Single family housing.............       1,051         585       1,000
    1150  Multi-family housing..............         151         153         128
    1150  Housing repair....................          42          30          30
    1150  Farm labor housing................          15          15          15
    1150  Site development..................           1           1           1
    1150  Credit sales of acquired property.                      28          25

    [[Page 215]]

    1150  Self-help housing.................                       1           1
                                               ---------   ---------  ----------
    1159    Total direct loan levels........       1,260         813       1,200
        Direct loan subsidy (in percent):
    1320  Single family housing.............       14.30       14.18       12.81
    1320  Multi-family housing..............       53.80       51.24       53.44
    1320  Housing repair....................       37.55       36.63       34.36
    1320  Farm labor housing................       56.80       47.77       49.25
    1320  Site development..................       -1.51       -1.02       -1.19
    1320  Credit sales of acquired property.       17.43       14.28       13.97
    1320  Self-help housing.................        5.21        2.87        3.41
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       20.38       22.30       18.17
        Direct loan subsidy budget authority:
    1330  Single family housing.............         150          83         128
    1330  Multi-family housing..............          81          78          69
    1330  Housing repair....................          16          11          10
    1330  Farm labor housing................           9           7           7
    1330  Site development..................
    1330  Credit Sales on acquired property.                       4           3
    1330  Self-help housing.................
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         256         183         218
        Direct loan subsidy outlays:
    1340  Single family housing.............         134         100         123
    1340  Multi-family housing..............         130         127         102
    1340  Housing repair....................          12          10          12
    1340  Farm labor housing................          11           6           7
    1340  Site Development..................
    1340  Credit sales of acquired property.                       4           3
    1340  Self-help housing.................
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         287         247         247
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Single family housing--
            unsubsidized....................       1,700       2,700       3,000
    2150  Multifamily Housing...............          13          13
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       1,713       2,713       3,000
        Guaranteed loan subsidy (in percent):
    2320  Single family housing--
            unsubsidized....................        0.23        0.23        0.23
    2320  Multi Family Housing..............        6.10        5.88        6.09
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        0.24        0.26        0.23
        Guaranteed loan subsidy budget authority:
    2330  Single family housing--
            unsubsidized....................           3           6           7
    2330  Multi Family Housing..............           1           1
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           4           7           7
        Guaranteed loan subsidy outlays:
    2340  Single family housing--
            unsubsidized....................           3           4           7
    2340  Multi Family Housing..............                       1
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           3           5           7
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         386         366         355
    3590  Outlays...........................         381         373         355
    ---------------------------------------------------------------------------

        Rural housing insurance fund--This fund was established in 1965
    (Public Law 89-117) pursuant to section 517 of title V of the Housing
    Act of 1949, as amended.

        The major programs funded through the Rural Housing Insurance Fund
    Program account are: section 502 very low and low to moderate income
    homeownership loans and guarantees; section 504 very low-income housing
    repair loans; section 514 domestic farm labor housing loans; section 515
    rural rental housing loans; section 524 housing site loans, and credit
    sales of acquired property. The section 523 self-help housing land
    development loan program is included under this heading beginning with
    the 1997 budget. Previously, this loan program was accounted for under
    the separate heading of ``Self-Help Housing Land Development Fund
    Program Account.''

        Loan programs are limited to rural areas that include towns,
    villages, and other places which are not part of an urban area and that
    have a population not in excess of 2,500 inhabitants, or is in excess of
    2,500 but not in excess of 10,000 if rural in character, or has a
    population in excess of 10,000 but not more than 20,000 and is not
    within a standard metropolitan statistical area and has a serious lack
    of mortgage credit for low- and moderate-income borrowers.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including credit sales of acquired property), as well as administrative
    expenses of this program. The subsidy amounts are estimated on a present
    value basis; the administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........         383         366         355
    41.0  Grants, subsidies, and
            contributions...................         307         197         225
                                               ---------   ---------  ----------
    99.9    Total obligations...............         690         563         580
    ---------------------------------------------------------------------------

                  Rural Housing Insurance Fund Program Account

                  (Legislative proposal, not subject to PAYGO)

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-2-1-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Multi-family housing..............                                  21
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                                  21
        Direct loan subsidy (in percent):
    1320  Multi-family housing..............                               -7.61
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                               -7.61
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Single family housing, unsub,
            refinancing.....................                                 100
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                                 100
        Guaranteed loan subsidy (in percent):
    2320  Single family housing, unsub,
            refinancing.....................                                0.02
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                                0.02
    ---------------------------------------------------------------------------

        Proposed legislation to amend the Housing Act of 1949, would provide
    for additional direct loans for the section 515 rural rental housing
    loan program as a result of a ``balloon'' payment in year 30, lowering
    the cost of the program. A new section 502 guaranteed rural housing loan
    program is also proposed for refinancing of direct single family home
    loans to facilitate the graduation of direct loan borrowers into the
    private sector. These loans will be provided only to borrowers who do
    not qualify for conventional private sector financing without the
    federal guarantee.

           Rural Housing Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................       1,218         993       1,200
    00.02 Advances on behalf of borrowers...           6          30          28
    00.03 Collateral acquired by default....                       3           4
    00.04 Interest on Treasury borrowing....         424         483         544
    00.05 Subsidy reestimate paid to receipt
            account.........................          35
    00.06 Other expenses....................           8
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,691       1,509       1,776
    ----------------------------------------------------------------------------

    [[Page 216]]

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...       1,691       1,509       1,776
    23.95 New obligations...................      -1,691      -1,509      -1,776
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         983       1,021       1,263
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         866         863         967
    68.10   Receivables from program account         -43         -54         -32
    68.47   Portion applied to debt
              reduction.....................        -115        -321        -422
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         708         488         513
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,691       1,509       1,776
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........          14          33          25
    72.90     Obligated balance.............         265         334         250
    72.95   Receivables from program account         264         221         167
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         543         588         442
    73.10 New obligations...................       1,691       1,509       1,776
    73.20 Total financing disbursements
            (gross).........................      -1,634      -1,655      -1,784
    73.40 Adjustments in expired accounts...         -13
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........          33          25          35
    74.90     Obligated balance.............         334         250         264
    74.95   Receivables from program account         221         167         135
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         588         442         434
    87.00 Total financing disbursements
            (gross).........................       1,634       1,655       1,784
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -342        -264        -251
    88.25     Interest on uninvested funds..         -69         -78         -81
              Non-Federal sources:
    88.40       Repayments of principal.....        -136        -174        -215
    88.40       Interest received on loans..        -288        -330        -400
    88.40       Repayments on advances......          -2          -3          -4
    88.40       Proceeds on sale of acquired
                  property..................          -8         -14         -16
    88.40       Fees and miscellaneous
                  collections...............         -21
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -866        -863        -967
    88.95 Change in receivables from program
            accounts........................          43          54          32
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         868         700         841
    90.00 Financing disbursements...........         768         792         817
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........       1,260         852       1,200
    1112  Unobligated direct loan limitation          -3
    1113  Unobligated limitation carried
            forward.........................         -39
    1131  Direct loan obligations exempt
            from limitation.................                     141
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,218         993       1,200
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       6,797       7,800       8,786
    1231  Disbursements: Direct loan
            disbursements...................       1,153       1,138       1,208
    1251  Repayments: Repayments and
            prepayments.....................        -138        -177        -219
    1261  Adjustments: Capitalized interest.          10          11          12
          Write-offs for default:

    1263    Direct loans....................         -12         -16         -18
    1264    Other adjustments, net..........         -10          30          28
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       7,800       8,786       9,797
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond including
    credit sales of acquired property. The amounts in this account are a
    means of financing and are not included in the budget totals.

        This account finances direct rural housing loans for: section 502
    very low- and low-to-moderate-income home ownership loan program;
    section 504 very low income housing repair loan program; section 514
    domestic farm labor housing loan program; section 515 rural rental
    housing loan program; sections 523 self-help housing loans, and 524 site
    development loans; and credit sales of acquired property.

        Loan programs are limited to rural areas that include towns,
    villages and other places which are not part of an urban area and that
    have a population not in excess of 2,500 inhabitants, or is in excess of
    2,500 but not in excess of 10,000 if rural in character, or has a
    population in excess of 10,000 but not more than 20,000 and is not
    within a standard metropolitan statistical area and has a serious lack
    of mortgage credit for low and moderate-income borrowers.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4215-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         265            334           250            264
            Investments in US securities:
    1106      Receivables, net..............         264            221           167            135
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       6,797          7,800         8,786          9,797
    1402    Interest receivable.............          28             39            46             54
    1404    Foreclosed property.............           5             10            15             23
    1405    Allowance for subsidy cost (-)..      -1,962         -2,202        -2,405         -2,612
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       4,868          5,647         6,442          7,262
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       5,397          6,202         6,859          7,661
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................
    2103    Debt............................       5,113          5,950         6,657          7,488
    2104    Resources payable to Treasury...         264            221           167            135
    2105    Other...........................
    2207  Non-Federal liabilities: Other....          20             31            35             39
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       5,397          6,202         6,859          7,662
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       5,397          6,202         6,859          7,662
    -----------------------------------------------------------------------------------------------

           Rural Housing Insurance Fund Direct Loan Financing Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-2-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                                  21
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                  21
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                  21
    23.95 New obligations...................                                 -21
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                                  21
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  21
    73.20 Total financing disbursements
            (gross).........................                                  -3

    [[Page 217]]

    74.47 Unpaid obligations, end of year:
            Obligated balance: Authority to
            borrow..........................                                  18
    87.00 Total financing disbursements
            (gross).........................                                   3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                  21
    90.00 Financing disbursements...........                                   3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-2-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                                  21
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                                  21
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................                                   3
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                   3
    ---------------------------------------------------------------------------

        This account reflects the additional principal amount of section 515
    rural rental housing loans that can be obligated under the legislative
    proposal to institute a balloon payment requirement in year 30, for what
    was previously a 50 year loan program. The debt service requirement will
    remain the same as if the loan had a 50 year term, until the balloon
    payment in year 30.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4215-2-3-371    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                                       3
    1405    Allowance for subsidy cost (-)..
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                                       3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                                       3
        LIABILITIES:
    2103  Federal liabilities: Debt.........                                                       3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                                       3
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                                       3
    -----------------------------------------------------------------------------------------------

         Rural Housing Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................           3          13          21
    00.02 Subsidy reestimate paid to receipt
            account.........................           5
                                               ---------   ---------  ----------
    10.00   Total obligations...............           8          13          21
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          52          65          85
    22.00 New financing authority (gross)...          21          33          39
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          73          98         124
    23.95 New obligations...................          -8         -13         -21
    24.90 Unobligated balance available, end
            of year: Fund balance...........          65          85         102
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          20          31          39
    68.10   Receivables from program account           1           2
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          21          33          39
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          21          33          39
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.95 Unpaid obligations, start of year:
            Receivables from program account                       1           3
    73.10 New obligations...................           8          13          21
    73.20 Total financing disbursements
            (gross).........................          -8         -13         -21
    74.95 Unpaid obligations, end of year:
            Receivables from program account           1           3           3
    87.00 Total financing disbursements
            (gross).........................           8          13          21
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3          -5          -7
    88.25     Interest on uninvested funds..          -4          -5          -6
    88.40     Non-Federal sources: guarantee
                fees........................         -13         -21         -26
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -20         -31         -39
    88.95 Change in receivables from program
            accounts........................          -1          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -12         -18         -18
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       1,713       2,713       3,000
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       1,713       2,713       3,000
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       2,085       3,503       5,682
    2231  Disbursements of new guaranteed
            loans...........................       1,496       2,319       2,874
    2251  Repayments and prepayments........         -74        -126        -203
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................          -4         -14         -23
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,503       5,682       8,330
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,153       5,114       7,497
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loan commitments made in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals.

        This account finances the nonsubsidized guaranteed section 502 low-
    to-moderate-income home ownership loan program and section 538 multi-
    family housing loan program. The guaranteed programs enable RHS to
    utilize private sector resources for the making and servicing of loans
    while the Agency provides a financial guarantee to encourage private
    sector activity.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4216-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          52             64            82            100
            Investments in US securities:
    1106      Receivables, net..............                          1             3              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          52             65            85            102

    [[Page 218]]

        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.          52             65            85            102
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          52             65            85            102
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          52             65            85            102
    -----------------------------------------------------------------------------------------------

         Rural Housing Insurance Fund Guaranteed Loan Financing Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-2-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                   1
    24.90 Unobligated balance available, end
            of year: Fund balance...........                                   1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                   1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources:
              guarantee fees................                                  -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                                  -1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-2-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                                 100
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                                 100
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........
    2231  Disbursements of new guaranteed
            loans...........................                                  70
    2251  Repayments and prepayments........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                                  70
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                                  63
    ---------------------------------------------------------------------------

        This account reflects the additional guaranteed loan level requested
    under the legislative proposal to create a section 502 guaranteed
    housing loan program for the purpose of refinancing section 502 direct
    loans made in prior years. These loans will be made when graduation to
    private credit cannot be accomplished without the provision of the
    Agency's guarantee.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loan commitments made in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4216-2-3-371    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                                       1
    1405  Net value of assets related to
            post-1991 direct loans
            receivable: Allowance for
            subsidy cost (-)................      -1,962         -2,202        -2,405         -2,612
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      -1,962         -2,202        -2,405         -2,611
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                                                       1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                                       1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                                       1
    -----------------------------------------------------------------------------------------------

                Rural Housing Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.02   Advances on behalf of borrowers.          47         110         100
    00.03   Purchase of loans from investors                                   1
    00.04   Purchases of certificates of
              beneficial ownership..........           8
    00.05   Collateral acquired by default..           2           4           3
    00.06   Judgements......................           1           2           2
    00.07   Unclassified recoverable costs..           3
                                               ---------   ---------  ----------
    00.91     Total capital investment......          61         116         106
          Operating expenses:

    01.02   Interest on certificates of
              beneficial ownership..........           1           1           1
    01.03   Interest on FFB borrowings......       2,482       1,891       1,274
    01.05   Interest on Treasury borrowings.           1
    01.06   Interest credits on loans sold
              to investors..................           3           3           2
    01.07   Interest subsidy obligated for
              guaranteed loans..............           1
    01.08   Undistributed charges...........           3
                                               ---------   ---------  ----------
    01.91     Total operating expenses......       2,491       1,895       1,277
                                               ---------   ---------  ----------
    10.00   Total obligations...............       2,552       2,011       1,383
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       3,006       2,349       1,498
    22.70 Balance of authority to borrow
            withdrawn.......................        -454        -339        -115
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,552       2,011       1,383
    23.95 New obligations...................      -2,552      -2,011      -1,383
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........       3,520       5,200       3,240
    60.47 Portion applied to debt reduction.        -514      -2,851      -1,742
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........       3,006       2,349       1,498
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,621       2,425       2,288
    68.47   Portion applied to debt
              reduction.....................      -2,621      -2,425      -2,288
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,006       2,349       1,498
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........       1,054         594         255
    72.90     Fund balance..................          95         418         465
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       1,149       1,012         720
    73.10 New obligations...................       2,552       2,011       1,383
    73.20 Total outlays (gross).............      -2,683      -2,303      -1,557
    73.40 Adjustments in expired accounts...          -6
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........         594         255         140
    74.90     Fund balance..................         418         465         406
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       1,012         720         546
    ----------------------------------------------------------------------------

    [[Page 219]]

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       1,984       1,776       1,262
    86.98 Outlays from permanent balances...         699         527         295
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,683       2,303       1,557
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of loans and
                  advances..................      -1,310      -1,208      -1,158
    88.40       Proceeds from sale of
                  acquired property.........         -66         -55         -54
    88.40       Payments on judgments.......          -6          -6          -6
    88.40       Interest payments from
                  borrowers.................      -1,115      -1,033        -954
    88.40       Recapture of subsidies......        -109        -115        -108
    88.40       Fees and other revenue......          -5          -5          -5
    88.40       Occupancy surcharges
                  collected.................          -3          -3          -3
    88.40       Undistributed receipts......          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,621      -2,425      -2,288
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         385         -76        -790
    90.00 Outlays...........................          62        -122        -731
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      23,675      22,185      20,876
          Disbursements:

    1231    Direct loan disbursements.......           2           1
    1232    Purchase of loans assets from
              the public....................           1                       1
    1251  Repayments: Repayments and
            prepayments.....................      -1,298      -1,208      -1,158
    1261  Adjustments: Capitalized interest.          38          35          31
          Write-offs for default:

    1263    Direct loans....................        -103         -97         -91
    1264    Other adjustments, net..........        -130         -40         -41
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      22,185      20,876      19,618
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          36          32          30
    2251  Repayments and prepayments........          -2          -2          -2
    2264  Adjustments: Other adjustments,
            net.............................          -2                      -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          32          30          27
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          29          27          25
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated and loan guarantees committed
    prior to 1992. New loan activity in 1992 and beyond (including credit
    sales of acquired property that resulted from obligations or commitments
    in any year) is recorded in corresponding program and financing
    accounts.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4141-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,245          2,484         2,039          1,882
    0102  Expense...........................      -2,975         -2,670        -2,080         -1,468
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............      -1,730           -186           -41            414
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4141-0-3-371    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          95            418           465            406
            Investments in US securities:
    1106      Receivables, net..............
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............
    1206    Receivables, net................
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............      23,675         22,185        20,876         19,618
    1602    Interest receivable.............         223            203           195            174
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -9,891         -8,621        -8,114         -7,622
    1604    Direct loans and interest
              receivable, net...............      14,007         13,767        12,957         12,170
    1606    Foreclosed property.............          80             65            64             59
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      14,087         13,832        13,021         12,229
    1701    Guaranteed loans purchased from
              holders.......................           1
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -1
    1704    Defaulted guaranteed loans and
              interest receivable, net......
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............
          Other Federal assets:

    1803    Property, plant and equipment,
              net...........................           2
    1901    Other assets....................       9,024          5,693           895
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      23,208         19,943        14,381         12,635
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           1              1             1              1
    2102    Interest payable................       1,111            979           693            519
    2103    Debt............................      21,940         18,805        13,530          9,500
    2104    Resources payable to Treasury...                                                   2,460
          Non-Federal liabilities:

    2201    Accounts payable................          10             11            10              9
    2202    Interest payable................           1              1             1              1
    2203    Debt............................          19             11            11             10
    2207    Other...........................         126            135           135            135
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      23,208         19,943        14,381         12,635
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      23,208         19,943        14,381         12,635
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3
    33.0  Investments and loans.............          61         116         106
    41.0  Grants, subsidies, and
            contributions...................           3           3           2
    43.0  Interest and dividends............       2,485       1,892       1,275
                                               ---------   ---------  ----------
    99.9    Total obligations...............       2,552       2,011       1,383
    ---------------------------------------------------------------------------

                       RURAL BUSINESS-COOPERATIVE SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses of the Rural Business-Cooperative Service,
    including administering the programs authorized by the Consolidated Farm
    and Rural Development Act, as amended; section 1323 of the Food Security
    Act of 1985; the Cooperative Marketing Act of 1926; for activities
    relating to the marketing aspects of cooperatives, including economic
    research findings, as authorized by the Agricultural Marketing Act of
    1946; for activities with institutions concerning the development and
    operation of agricultural cooperatives; and cooperative agreements;
    [$25,680,000] $27,482,000: Provided, That this appropriation shall be
    available for employment pursuant to the second sentence of 706(a) of
    the Organic Act of 1944, and not to exceed $260,000 may be used for
    employment under 5 U.S.C. 3109. (Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act, 1997.)

    [[Page 220]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1903-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           8          25          27
    01.01 Reimbursable program..............          20           1           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          28          26          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          29          26          31
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          28          26          31
    23.95 New obligations...................         -28         -26         -31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           9          25          27
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          20           1           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          29          26          31
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.                       8           9
    73.10 New obligations...................          28          26          31
    73.20 Total outlays (gross).............         -20         -25         -29
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           8           9          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1          18          19
    86.93 Outlays from current balances.....                       6           7
    86.97 Outlays from new permanent
            authority.......................          19           1           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          25          29
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -20          -1          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9          25          27
    90.00 Outlays...........................           1          24          25
    ---------------------------------------------------------------------------

        The Secretary's reorganization plan established the Rural Business-
    Cooperative Service (RBS). RBS includes programs from the former Rural
    Development Administration, rural development programs from the former
    Rural Electrification Administration, and the Agricultural Cooperative
    Service. This Agency delivers loan and grant programs and technical
    assistance to cooperatives and rural businesses.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1903-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........           4          13          11
    11.3      Other than full-time permanent                       1           1
    11.5      Other personnel compensation..                       1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation           4          15          13
    12.1    Civilian personnel benefits.....           1           4           3
    21.0    Travel and transportation of
              persons.......................                       1           3
    23.2    Rental payments to others.......                       1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........                       1
    25.2    Other services..................           2           3           6
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           7          25          26
    99.0  Reimbursable obligations..........          20           1           3
    99.5  Below reporting threshold.........           1                       2
                                               ---------   ---------  ----------
    99.9    Total obligations...............          28          26          31
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1903-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.          99         328         296
    1005    Full-time equivalent of overtime
              and holiday hours.............                       3           3
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.         232           8          38
    2005    Full-time equivalent of overtime
              and holiday hours.............           3
    ---------------------------------------------------------------------------

                 [Rural Business-Cooperative Assistance Program]

                        [(including transfers of funds)]

        [For the cost of direct loans, loan guarantees, and grants, as
    authorized by 7 U.S.C. 1926, 1928, and 1932, except for 381E, 381H, 381N
    of the Consolidated Farm and Rural Development Act, $51,400,000, to
    remain available until expended, for direct loans and loan guarantees
    for business and industry assistance, rural business grants, rural
    cooperative development grants, and rural business opportunity grants of
    the Rural Business-Cooperative Service: Provided, That the cost of
    direct loans and loan guarantees shall be as defined in section 502 of
    the Congressional Budget Act of 1974, as amended: Provided further, That
    $500,000 shall be available for grants to qualified nonprofit
    organizations as authorized under section 310B(c)(2) of the Consolidated
    Farm and Rural Development Act (7 U.S.C. 1932): Provided further, That
    the amounts appropriated shall be transferred to loan program and grant
    accounts as determined by the Secretary: Provided further, That, of the
    total amount appropriated, not to exceed $3,000,000 shall be available
    for cooperative development: Provided further, That, of the total amount
    appropriated, not to exceed $148,000 shall be available for the cost of
    direct loans, loan guarantees, and grants to be made available for
    business and industry loans for empowerment zones and enterprise
    communities as authorized by Public Law 103-66 and rural development
    loans for empowerment zones and enterprise communities as authorized by
    title XIII of the Omnibus Budget Reconciliation Act of 1993: Provided
    further, That if such funds are not obligated for empowerment zones and
    enterprise communities by June 30, 1997, they remain available for other
    authorized purposes under this head.] (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1905-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                      51
    41.00 Transferred to other accounts.....                     -51
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        In 1997, funding for direct and guaranteed business and industry
    loans, rural business enterprise grants, rural cooperative development
    grants, and rural business opportunity grants was provided under the
    Rural Business-Cooperative Assistance Program and transferred to the
    Rural Business and Industry Loans Program account, Rural Business
    Enterprise Grants account, Rural Cooperative Development Grants account,
    and Rural Business Opportunity Grants account for administration. In
    1998, funding for these programs, with the exception of the rural
    cooperative development grants, is requested to be appropriated to the
    Rural Community Advancement Program account. Funding for the rural
    cooperative development grants is requested to be appropriated to the
    Rural Cooperative Development Grants account.

    [[Page 221]]

                              Salaries and Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3400-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          17           7           3
    73.20 Total outlays (gross).............         -10          -4          -3
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           7           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...          10           4           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          10           4           3
    ---------------------------------------------------------------------------

        Beginning in 1995, programs and services formerly provided by the
    Rural Development Administration are included in the Rural Utilities
    Service, the Rural Housing Service, and the Rural Business-Cooperative
    Service.

                      Rural Cooperative Development Grants

        For rural cooperative development grants authorized under section
    310B(e) of the Consolidated Farm and Rural Development Act, as amended
    (7 U.S.C. 1932), $3,000,000, of which up to $1,300,000 may be available
    for cooperative agreements for appropriate technology transfer for rural
    areas program.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1900-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural cooperative development
            grants..........................           1           2           2
    00.02 Appropriate technology program....           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           2           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2           3           3
    23.95 New obligations...................          -2          -3          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           2                       3
    42.00 Transferred from other accounts...                       3
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........           2           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           2           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           2           2           2
    73.10 New obligations...................           2           3           3
    73.20 Total outlays (gross).............          -2          -3          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           1
    86.93 Outlays from current balances.....           1           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           3           3
    90.00 Outlays...........................           2           3           3
    ---------------------------------------------------------------------------

        Grants for rural technology and cooperative development were
    authorized under section 310B(f) of the Consolidated Farm and Rural
    Development Act and were repealed by Public Law 104-127, April 4, 1996.
    These grants were made available in 1996. Grants for rural cooperative
    development were authorized under section 310B(e) of the Consolidated
    Farm and Rural Development Act by Public Law 104-127, April 4, 1996.
    These grants are made available to nonprofit corporations and
    institutions of higher education to fund the establishment and operation
    of centers for rural cooperative development. The primary purpose of the
    centers is the improvement of economic conditions of rural areas through
    the development of new cooperatives and improving operations of existing
    cooperatives. RBS can fund up to 75 percent of any project and
    associated administrative costs and requires at least a 25 percent
    matching share from the applicant which must be from non-Federal
    sources.

        The amount for Appropriate Technology Transfer to Rural Areas
    (ATTRA) program was first authorized by the Food Security Act of 1985.
    The program encourages agricultural producers to adopt sustainable
    agricultural practices.

                 Local Technical Assistance and Planning Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1901-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                       1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                       1
    23.95 New obligations...................                      -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    42.00 Transferred from other accounts...                       1
                                                                   1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                       1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       1
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        In 1996, no funding was provided for local technical assistance and
    planning grants. The Federal Agriculture Improvement and Reform Act of
    1996, Public Law 104-127, repealed the grant program and replaced it
    with the rural business opportunity grant program. This account reflects
    the funding for a rural business opportunity grant program since no
    local technical assistance and planning grants were ever made.

        This grant program, authorized through section 306(a)(11) of the
    Consolidated Farm and Rural Development Act, as amended, is designed to
    assist in the economic development of rural areas by providing technical
    assistance for business development and economic development planning.
    Grant funds may be used to identify and analyze business opportunities
    that would use local economic and human resources; provide technical
    assistance to existing or prospective rural entrepreneurs; establish
    business support centers and otherwise assist in the creation of new
    rural businesses; and, to conduct regional, community and local economic
    development planning and coordination, and leadership development.

        These grants are designed to stimulate economic development and
    rural employment while challenging State, local, and private sources to
    invest in rural economic development activities thus allowing program
    grant funds to reach a broader range of rural economic development
    efforts.

        In 1998, the rural business opportunity grant program is included in
    the Rural Community Advancement Program. The appropriation request for
    the Rural Community Advancement Program also requests that all balances
    be transferred from this account to the Rural Community Advancement
    Program account.

    [[Page 222]]

    General and Special Funds--Continued

                        Rural Business Enterprise Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2065-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          45          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          45          41
    23.95 New obligations...................         -45         -41
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          45
    42.00 Transferred from other accounts...                      41
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          45          41
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          45          41
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          70          78          74
    73.10 New obligations...................          45          41
    73.20 Total outlays (gross).............         -37         -45
    73.31 Obligated balance transferred to
            other accounts..................                                 -74
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          78          74
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           5           5
    86.93 Outlays from current balances.....          32          40
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          37          45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          45          41
    90.00 Outlays...........................          37          45
    ---------------------------------------------------------------------------

        This grant program is authorized under sections 310(B)(c) and
    310B(j) of the Consolidated Farm and Rural Development Act, as amended.
    These grants enable public and private nonprofit organizations to
    operate rural economic development projects. In general, these grants
    provide investments in the human and physical resources of rural
    communities. Past projects have enabled rural communities to acquire and
    develop land, create technical assistance programs, encourage small
    business growth and create revolving loan funds.

        In 1998, funding is requested to be appropriated for the rural
    business enterprise grants to the Rural Community Advancement Program
    and all balances be transferred from this account to the Rural Community
    Advancement Program account.

                        Rural Economic Development Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................                      20          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                      45          45
    22.00 New budget authority (gross)......          45          20          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          45          65          56
    23.95 New obligations...................                     -20         -11
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          45          45          45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          45           2           8
    68.10   Change in orders on hand from
              Federal sources...............                      18           3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          45          20          11
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          45          20          11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.95 Unpaid obligations, start of year:
            Orders on hand from Federal
            sources.........................                                  18
    73.10 New obligations...................                      20          11
    73.20 Total outlays (gross).............                      -2          -8
    74.95 Unpaid obligations, end of year:
            Orders on hand from Federal
            sources.........................                      18          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                       2           8
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -45          -2          -8
    88.95 Change in orders on hand from
            Federal sources.................                     -18          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -45
    ---------------------------------------------------------------------------

        This grant program is authorized under section 313 of the Rural
    Electrification Act, as amended, and provides funds for the purpose of
    promoting rural economic development and job creation projects,
    including funding for project feasibility studies, start-up costs,
    incubator projects and other expenses for the purpose of fostering rural
    development.

        Funding for this program is provided from the interest differential
    on Rural Utilities Service borrowers' cushion of credit accounts. In
    1998, funding in this account will be used for both grants and direct
    loans. The budget authority necessary to support the loans will be
    transferred to the Rural Economic Development Loans Program account.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....                      18           3
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                       2           8
                                               ---------   ---------  ----------
    99.9    Total obligations...............                      20          11
    ---------------------------------------------------------------------------

    Credit accounts:

                Rural Business and Industry Loans Program Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1902-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                       2           2
        Receipts:
    02.01 Downward reestimates and negative
            subsidies.......................           2
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           2           2           2
    07.99 Total balance, end of year........           2           2           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1902-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........           6           6
    00.09 Administrative expenses...........          15
                                               ---------   ---------  ----------
    10.00   Total obligations...............          21           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          21           6
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20           6
    23.95 New obligations...................         -21          -6
    ----------------------------------------------------------------------------

    [[Page 223]]

        New budget authority (gross), detail:
    40.00 Appropriation.....................          21
    42.00 Transferred from other accounts...                       6
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          21           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          21           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          21           6
    73.20 Total outlays (gross).............         -20          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          20           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          21           6
    90.00 Outlays...........................          20           6
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1902-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................                      50
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                      50
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................        0.00        0.51
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        0.00        0.51
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............         638         688
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....         638         688
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................        0.00        0.93
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        0.00        0.93
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........           6           6
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           6           6
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           5           6
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           5           6
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................          15
    3590  Outlays...........................          15
    ---------------------------------------------------------------------------

        Business and industry loans are made to public, private, or
    cooperative organizations, Indian tribes or tribal groups, corporate
    entities, or individuals for the purpose of improving the economic
    climate in rural areas.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond, as
    well as administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

        In 1998 funding for the direct and guaranteed business and industry
    loan programs is requested to be appropriated to the Rural Community
    Advancement Program. Funding for salaries and expenses associated with
    this program is requested to be appropriated to the Rural Business-
    Cooperative Service Salaries and Expenses account.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1902-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           6           6
    41.0  Grants, subsidies, and
            contributions...................          15
                                               ---------   ---------  ----------
    99.9    Total obligations...............          21           6
    ---------------------------------------------------------------------------

           Rural Business and Industry Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                      50          50
    00.03 Interest on Treasury borrowing....                                   1
                                               ---------   ---------  ----------
    10.00   Total obligations...............                      50          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                      50          51
    23.95 New obligations...................                     -50         -51
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                      50          51
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Obligated
            balance.........................                                  38
    73.10 New obligations...................                      50          51
    73.20 Total financing disbursements
            (gross).........................                     -12         -33
    74.90 Unpaid obligations, end of year:
            Obligated balance: Obligated
            balance.........................                      38          55
    87.00 Total financing disbursements
            (gross).........................                      12          33
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      50          51
    90.00 Financing disbursements...........                      12          33
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                      50          50
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                      50          50
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                                  12
    1231  Disbursements: Direct loan
            disbursements...................                      12          33
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                      12          45
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals. Loans made prior to 1992 are recorded in the Rural Development
    Insurance Fund Liquidating Account.

        Business and industry loans are made to public, private, or
    cooperative organizations, Indian tribes or tribal groups, corporate
    entities, or individuals for the purpose of improving the economic
    climate in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4223-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                       12             45
    1402    Interest receivable.............                                                       1
    1405    Allowance for subsidy cost (-)..                                       -2             -8
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                       10             38
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                       10             38
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............                                       10             38
                                            ------------ --------------  ------------  -------------

    [[Page 224]]

    2999    Total liabilities...............                                       10             38
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                       10             38
    -----------------------------------------------------------------------------------------------

         Rural Business and Industry Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................           1           1           2
    00.03 Investment in secondary market....           2           8          15
    00.06 Subsidy reestimate paid to receipt
            account.........................           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           4           9          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....                      28          33
    22.00 New financing authority (gross)...          12          14          13
    22.22 Unobligated balance transferred
            from other accounts.............          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          32          42          46
    23.95 New obligations...................          -4          -9         -17
    24.90 Unobligated balance available, end
            of year: Fund balance...........          28          33          29
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          12          14          13
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           4           9          17
    73.20 Total financing disbursements
            (gross).........................          -4          -9         -17
    87.00 Total financing disbursements
            (gross).........................           4           9          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -5          -6          -7
    88.25     Interest on uninvested funds..          -2           3           3
    88.40     Non-Federal sources...........          -5         -11          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -12         -14         -13
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -9          -5           4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         638         688         610
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         638         688         610
    2199  Guaranteed amount of guaranteed
            loan commitments................         511         551         488
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         433         723       1,185
    2231  Disbursements of new guaranteed
            loans...........................         339         543         609
    2251  Repayments and prepayments........         -48         -80        -131
          Adjustments:

    2263    Terminations for default that
              result in claim payments......          -1          -1          -2
    2264    Other adjustments, net..........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         723       1,185       1,661
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         579         949       1,330
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals. Loans made prior to 1992 are recorded in the Rural
    Development Insurance Fund Liquidating Account.

        This account finances loan guarantee commitments for industrial
    development in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4227-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          20             28            33             29
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          20             28            33             29
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.          20             28            33             29
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          20             28            33             29
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          20             28            33             29
    -----------------------------------------------------------------------------------------------

                   Rural Development Loan Fund Program Account

                         (including transfers of funds)

        For the cost of direct loans, [$17,270,000] $16,888,000, as
    authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a)):
    Provided, That such costs, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974: Provided further, That these funds are available to subsidize
    gross obligations for the principal amount of direct loans of
    [$37,544,000] $35,000,000: Provided further, That through June 30,
    [1997] 1998, of the total amount appropriated [$3,345,000] $3,618,750
    shall be available for the cost of direct loans, for empowerment zones
    and enterprise communities, as authorized by title XIII of the Omnibus
    Budget Reconciliation Act of 1993, to subsidize gross obligations for
    the principal amount of direct loans, [$7,246,000] $7,500,000.
        In addition, for administrative expenses to carry out the direct
    loan programs, $3,482,000 shall be transferred to and merged with the
    appropriation for ``Salaries and Expenses''. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          22          17          17
    00.06 Reestimates of direct loan subsidy           2
    00.09 Administrative expense............           2                       3
                                               ---------   ---------  ----------
    10.00   Total obligations...............          26          17          20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          26          17          20
    23.95 New obligations...................         -26         -17         -20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          24          17          20
          Permanent:

    60.05   Appropriation (indefinite)......           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          26          17          20
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          84          74          55
    73.10 New obligations...................          26          17          20

    [[Page 225]]

    73.20 Total outlays (gross).............         -35         -37         -28
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          74          55          47
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           2           1           4
    86.93 Outlays from current balances.....          31          36          24
    86.97 Outlays from new permanent
            authority.......................           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          37          28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          26          17          20
    90.00 Outlays...........................          35          37          28
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................          38          37          35
                                               ---------   ---------  ----------
    1159    Total direct loan levels........          38          37          35
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       59.50       46.51       48.25
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       59.50       46.51       48.25
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........          22          17          17
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..          22          17          17
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................          34          37          25
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........          34          37          25
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1                       3
    3590  Outlays...........................           1                       3
    ---------------------------------------------------------------------------

        This account finances loans to intermediary borrowers, who in turn
    relend the funds to small rural businesses, community development
    corporations, and other organizations for the purpose of improving
    economic opportunities in rural areas.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated in 1992 and beyond, as well as administrative expenses
    of this program. The subsidy amounts are estimated on a present value
    basis; the administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           1                       3
    41.0  Grants, subsidies, and
            contributions...................          25          17          17
                                               ---------   ---------  ----------
    99.9    Total obligations...............          26          17          20
    ---------------------------------------------------------------------------

            Rural Development Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          38          37          35
    00.03 Interest on Treasury borrowing....           5           5           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............          43          42          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          43          43          42
    23.95 New obligations...................         -43         -42         -42
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          17          24          22
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          36          38          28
    68.10   Receivables from program account         -10         -19          -8
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          26          19          20
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          43          43          42
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Obligated
              balance.......................          69          59          48
    72.95   Receivables from program account          84          74          55
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         153         133         103
    73.10 New obligations...................          43          42          42
    73.20 Total financing disbursements
            (gross).........................         -62         -72         -53
    73.40 Adjustments in expired accounts...          -1
          Unpaid obligations, end of year:

    74.90   Obligated balance: Obligated
              balance.......................          59          48          45
    74.95   Receivables from program account          74          55          47
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         133         103          92
    87.00 Total financing disbursements
            (gross).........................          62          72          53
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -34         -37         -25
    88.25     Interest on uninvested funds..          -2
    88.40     Non-Federal sources...........                      -1          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -36         -38         -28
    88.95 Change in receivables from program
            accounts........................          10          19           8
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          17          24          22
    90.00 Financing disbursements...........          26          34          25
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          38          37          35
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          38          37          35
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          74         131         197
    1231  Disbursements: Direct loan
            disbursements...................          57          67          46
    1251  Repayments: Repayments and
            prepayments.....................                      -1          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         131         197         241
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

        This account finances loans to intermediary borrowers, who in turn
    relend the funds to small rural businesses, community development
    corporations, or other organizations for the purpose of improving
    economic opportunities in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4219-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          26             17             8              7
            Investments in US securities:
    1106      Receivables, net..............          84             74            55             47
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          74            131           197            241
    1402    Interest receivable.............                          1             1              1
    1405    Allowance for subsidy cost (-)..         -39            -71          -103           -122
                                            ------------ --------------  ------------  -------------

    [[Page 226]]

    1499      Net present value of assets
                related to direct loans.....          35             61            95            120
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         145            152           158            174
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...          61             78           103            127
    2105    Other...........................          84             74            55             47
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         145            152           158            174
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         145            152           158            174
    -----------------------------------------------------------------------------------------------

                 Rural Development Loan Fund Liquidating Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           7           7           6
                                               ---------   ---------  ----------
    03.00 Offsetting Collections............           3           2           1
    04.00 Total: Balances and collections...          10           9           7
        Appropriation:
    05.01 Unobligated balance returned to
            receipts........................          -3          -3          -2
    07.99 Total balance, end of year........           7           6           5
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           6           4           4
    68.26   Spending authority from
              offsetting collections
              (balances)....................           3           3           2
    68.27   Capital transfer to general fund          -6          -5          -5
    68.45   Portion not available for
              obligation (limitation on
              obligations)..................          -3          -2          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          10           6           3
    73.20 Total outlays (gross).............          -5          -3          -1
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           6           3           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           5           3           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -6          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -6          -4          -4
    90.00 Outlays...........................          -1          -1          -3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          85          84          82
    1231  Disbursements: Direct loan
            disbursements...................           3           2           1
    1251  Repayments: Repayments and
            prepayments.....................          -4          -4          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          84          82          80
    ---------------------------------------------------------------------------
        \1\ Amounts shown include advances on behalf of borrowers.

        Loans from the Rural Development Loan Fund are made to intermediary
    borrowers (i.e., small investment groups), who in turn relend the funds
    to small rural businesses, community development corporations, or other
    organizations for the purpose of improving economic opportunities in
    rural areas. Through the use of local intermediaries, this program is
    able to serve small-scale enterprises and give preference to those
    communities with the greatest need.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated prior to 1992. New loan activity
    in 1992 and beyond is recorded in corresponding program and financing
    accounts.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4233-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           1              1             1              1
    0102  Expense...........................          -1              6
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............                          7             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4233-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          14              9             5              3
    1206  Non-Federal assets: Receivables,
            net.............................
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          85             85            84             82
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -49            -42           -41            -41
    1604    Direct loans and interest
              receivable, net...............          36             43            43             41
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          36             43            43             41
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          50             52            48             44
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          50             52            48             44
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          50             52            48             44
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          50             52            48             44
    -----------------------------------------------------------------------------------------------

                Rural Economic Development Loans Program Account

                         (including transfers of funds)

        For the principal amount of direct loans, as authorized under
    section 313 of the Rural Electrification Act, as amended, for the
    purpose of promoting rural economic development and job creation
    projects, [$12,865,000] $25,000,000.
        For the cost of direct loans, including the cost of modifying loans
    as defined in section 502 of the Congressional Budget Act of 1974,
    [$2,830,000. In addition, for administrative expenses necessary to carry
    out the direct loan program, $654,000, which shall be transferred to and
    merged with the appropriation for ``Salaries and Expenses.''] up to
    $5,977,500, to be derived by transfer from interest on the cushion of
    credit payments, as authorized by section 313 of the Rural
    Electrification Act of 1936, as amended, to remain available until
    expended. (Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Subsidy...............           2           2           6
    00.05 Reestimates of direct loan subsidy           1
    00.09 Administrative expenses subj. to
            limitation......................           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           4           3           6
    ----------------------------------------------------------------------------

    [[Page 227]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           5           3           6
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           3           6
    23.95 New obligations...................          -4          -3          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           4           3
    42.00   Transferred from other accounts.                                   6
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........           4           3           6
          Permanent:

    60.05   Appropriation (indefinite)......           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           5           3           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           3           4           3
    73.10 New obligations...................           4           3           6
    73.20 Total outlays (gross).............          -4          -4          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           4           3           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           1
    86.93 Outlays from current balances.....           2           3           2
    86.97 Outlays from new permanent
            authority.......................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           4           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           3           6
    90.00 Outlays...........................           3           4           3
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................           9          12          25
                                               ---------   ---------  ----------
    1159    Total direct loan levels........           9          12          25
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       28.48       22.93       23.91
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       28.48       22.93       23.91
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........           3           3           6
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..           3           3           6
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................           3           3           3
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........           3           3           3
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1
    3590  Outlays...........................           1           1
    ---------------------------------------------------------------------------

        Rural economic development loans are made for the purpose of
    promoting rural economic development and job creation projects. Loans
    are made to electric and telecommunication borrowers, who in turn
    finance rural development projects in their service areas.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated in 1992 and beyond, as well as administrative expenses
    of this program. The subsidy amounts are estimated on a present value
    basis; the administrative expenses are estimated on a cash basis.

        In 1998, funding for this program will be transferred to this
    account from the cushion of credit payments program in the Rural
    Electrification and Telephone Revolving Fund Liquidating Account.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           1           1
    41.0  Grants, subsidies, and
            contributions...................           3           2           6
                                               ---------   ---------  ----------
    99.9    Total obligations...............           4           3           6
    ---------------------------------------------------------------------------

            Rural Economic Development Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................           9          12          25
    00.02 Interest Expense..................           3           3           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          12          15          29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....                       3           3
    22.00 New financing authority (gross)...          14          15          29
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14          18          32
    23.95 New obligations...................         -12         -15         -29
    24.90 Unobligated balance available, end
            of year: Fund balance...........           3           3           3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..           7           8          17
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           6           8           9
    68.10   Receivables from program account           1          -1           3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................           7           7          12
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          14          15          29
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.47     Authority to borrow...........           3           3
    72.90     Unpaid Obligations............           6           7          11
    72.95   Receivables from program account           3           4           3
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          12          14          14
    73.10 New obligations...................          12          15          29
    73.20 Total financing disbursements
            (gross).........................         -10         -16         -18
          Unpaid obligations, end of year:

            Obligated balance:
    74.47     Authority to borrow...........           3
    74.90     Unpaid Obligations............           7          11          18
    74.95   Receivables from program account           4           3           6
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          14          14          24
    87.00 Total financing disbursements
            (gross).........................          10          16          18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Funds: Program Account          -2          -4          -3
    88.25     Interest on uninvested funds..          -1
    88.40     Non-Federal sources: Repayment
                of Principal................          -3          -4          -6
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -6          -8          -9
    88.95 Change in receivables from program
            accounts........................          -1           1          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           7           8          17
    90.00 Financing disbursements...........           3           8           9
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........           9          12          25
                                               ---------   ---------  ----------

    [[Page 228]]

    1150    Total direct loan obligations...           9          12          25
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          31          35          44
    1231  Disbursements: Direct loan
            disbursements...................           7          13          14
    1251  Repayments: Repayments and
            prepayments.....................          -3          -4          -6
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          35          44          52
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4176-0-3-452    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           6              8             7              6
            Investments in US securities:
    1106      Program Account...............           3              4             3              6
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          31             35            44             52
    1405    Allowance for subsidy cost (-)..          -7             -8            -9             -8
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          24             27            35             44
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          33             39            45             56
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...          30             35            42             50
    2105    Other...........................           3              4             3              6
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          33             39            45             56
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          33             39            45             56
    -----------------------------------------------------------------------------------------------

              Rural Economic Development Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3104-0-1-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....           5           7           9
    22.00 New budget authority (gross)......           2           2           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8           9          11
    24.90 Unobligated balance available, end
            of year: Fund balance...........           7           9          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           2           2           2
                                                       2           2           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.           1           2           4
    73.20 Total outlays (gross).............           1           2           2
    73.45 Adjustments in unexpired accounts.          -1
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.           2           4           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...          -1          -2          -2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources:
              Repayment of Principal........          -2          -2          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -1          -4          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3104-0-1-271      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           8           7           6
    1231  Disbursements: Direct loan
            disbursements...................                       1
    1251  Repayments: Repayments and
            prepayments.....................          -1          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           7           6           4
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated prior to 1992. All new activity in
    this program is recorded in corresponding program accounts and financing
    accounts.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-3104-0-1-271    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           3              5             7              9
    1601  Net value of assets related to
            pre-1992 direct loans receivable
            and acquired defaulted
            guaranteed loans receivable:
            Direct loans, gross.............           8              7             6              4
    1801  Other Federal assets: Cash and
            other monetary assets...........                          1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          11             13            13             13
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          11             13            13             13
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          11             13            13             13
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          11             13            13             13
    -----------------------------------------------------------------------------------------------

      Alternative Agricultural Research and Commercialization Corporation
                                 Revolving Fund

        For necessary expenses to carry out the Alternative Agricultural
    Research and Commercialization Act of 1990 (7 U.S.C. 5901-5908),
    [$7,000,000] $10,000,000 is appropriated to the alternative agricultural
    research and commercialization corporation revolving fund. (Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative expense............           1           1           1
    00.02 Program activity..................           7           6           9
                                               ---------   ---------  ----------
    10.00   Total obligations...............           8           7          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1
    22.00 New budget authority (gross)......           6           7          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           7          10
    23.95 New obligations...................          -8          -7         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           6           7          10
    ----------------------------------------------------------------------------

    [[Page 229]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           7           6           5
    73.10 New obligations...................           8           7          10
    73.20 Total outlays (gross).............          -9          -8          -8
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           6           5           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           3           3           3
    86.93 Outlays from current balances.....           6           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9           8           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           7          10
    90.00 Outlays...........................           9           8           8
    ---------------------------------------------------------------------------

        Funds support programs authorized by the Alternative Agricultural
    Research and Commercialization Act of 1990 (7 U.S.C. 5901 et seq.). This
    Act authorizes the provision of assistance on a competitive basis to
    foster the development and commercialization of new nonfood, nonfeed
    products derived from agricultural and forestry material and animal by-
    products. Development of nontraditional uses provides an opportunity to
    improve U.S. competitiveness in foreign markets, create development and
    employment opportunities in rural areas, address environmental concerns
    and lower farm program costs. Programs are managed by the Alternative
    Agricultural Research and Commercialization Corporation. Program policy
    and oversight is provided by an eleven member Board, eight of whom are
    private sector scientists, producers and business experts.

        In 1998, the corporation expects to participate in 22 new investment
    partnerships, invest in 7 new businesses, create 1,700 new jobs, and
    have 8 products it has supported enter the market.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    33.0  Investments and loans.............           4           4           4
    41.0  Grants, subsidies, and
            contributions...................           3           2           5
                                               ---------   ---------  ----------
    99.9    Total obligations...............           8           7          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           7          11          11
    ---------------------------------------------------------------------------

            National Sheep Industry Improvement Center Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4202-0-3-452      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                      20          20
    22.00 New budget authority (gross)......          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20          20          20
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          20          20          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................          20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          20
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        The Federal Agriculture Improvement Act of 1996 established the
    National Sheep Industry Improvement Center to promote activities to
    strengthen and enhance production or marketing of sheep and goat
    products in the United States. The Center may provide loans or grants to
    eligible entities to provide assistance to the industry for
    infrastructure development, business development, production, resource
    development, and market and environmental research. The 1996 Act
    provided up to $20 million in mandatory funding for the establishment
    and operation of the Center and authorized additional discretionary
    funding of $30 million.

                          FOREIGN AGRICULTURAL SERVICE

                                  Federal Funds

    General and special funds:

             Foreign Agricultural Service and General Sales Manager

                         (including transfers of funds)

        For necessary expenses of the Foreign Agricultural Service,
    including carrying out title VI of the Agricultural Act of 1954, as
    amended (7 U.S.C. 1761-1768), market development activities abroad, and
    for enabling the Secretary to coordinate and integrate activities of the
    Department in connection with foreign agricultural work, including not
    to exceed $128,000 for representation allowances and for expenses
    pursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C.
    1766), [$135,561,000] $150,942,000 to remain available until September
    30, 1999, of which [$3,231,000] $3,327,000 may be transferred from the
    Export Loan Program account in this Act, and [$1,035,000] $1,066,000 may
    be transferred from the Public Law 480 program account in this Act and
    $10,000,000 shall be used for carrying out activities authorized under
    section 1542(d) of the Food, Agriculture, Trade and Conservation Act of
    1990, as amended (7 U.S.C. 5622 note): Provided, That no CCC funds shall
    be used for carrying out these activities: Provided further, That up to
    $3,000,000 shall be available in fiscal year 1999 for overseas
    inflation, subject to documentation by USDA of actual overseas inflation
    and deflation: Provided further, [Provided,] That the Service may
    utilize advances of funds, or reimburse this appropriation for
    expenditures made on behalf of Federal agencies, public and private
    organizations and institutions under agreements executed pursuant to the
    agricultural food production assistance programs (7 U.S.C. 1736) and the
    foreign assistance programs of the International Development Cooperation
    Administration (22 U.S.C. 2392).
        None of the funds in the foregoing paragraph shall be available to
    promote the sale or export of tobacco or tobacco products. (Agriculture,
    Rural Development, Food and Drug Administration and Related Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Strategic Outreach and Market
              Intelligence..................          26          28          38
    00.02   Market Development and Promotion          60          68          62
    00.03   Market Access...................          14          14          16
    00.04   Price Credit and Risk Assistance           6          11          11
    00.05   Long-term Market Development....          10          10          20
                                               ---------   ---------  ----------
    00.91     Total direct program..........         116         131         147
    01.01 Reimbursable program..............          59          59          39
                                               ---------   ---------  ----------
    10.00   Total obligations...............         175         190         186
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           5           8           8
    22.00 New budget authority (gross)......         179         190         186
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         184         198         194
    23.95 New obligations...................        -175        -190        -186
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           8           8           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         116         131         147

    [[Page 230]]

    42.00   Transferred from other accounts.           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         120         131         147
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          59          59          39
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         179         190         186
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          16          33          43
    73.10 New obligations...................         175         190         186
    73.20 Total outlays (gross).............        -158        -180        -179
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          33          43          50
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          78         111         122
    86.93 Outlays from current balances.....          21          10          18
    86.97 Outlays from new permanent
            authority.......................          59          59          39
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         158         180         179
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -59         -59         -39
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         120         131         147
    90.00 Outlays...........................          99         121         140
    ---------------------------------------------------------------------------

        The mission of the Foreign Agricultural Service (FAS) is to open,
    expand and maintain global market opportunities through international
    trade, cooperation, and sustainable development activities which secure
    the long-term economic vitality and global competitiveness of America's
    rural communities and related food and agricultural enterprises.

        FAS is fulfilling its mission by assisting American agriculture to
    increase the value of farm, food, and fish, and forestry exports 50
    percent over 1994 levels by the year 2000. To meet this goal, FAS
    conducts a demand-driven export strategy, deploying five major policy
    objectives to execute the strategy, while integrating commodity and
    country market priorities for allocating scarce export assistance
    resources. These objectives include:

        Strategic Outreach and Market Intelligence.--FAS strategic outreach
    efforts focus on facilitating export readiness and help link both
    export-ready and new-to-export firms to market entry opportunities, and
    increase domestic awareness of export opportunities/global consumer
    quality and product safety expectations. Additionally, FAS provides U.S.
    farmers and traders with information on world agricultural production
    and trade that they can use to adjust to changes in world demand for
    U.S. agricultural products. This is done through a continuous program of
    reporting by 62 posts located throughout the world covering some 128
    countries. Starting in 1998, FAS will compensate for overseas inflation
    through an advance appropriation, contingent upon the results of actual,
    rather than estimated overseas inflation (changes in exchange rates) and
    by making funds appropriated to the account good for 2 rather than one
    year only. Funds are also provided for computer equipment and support,
    which were previously funded through CCC.

        In 1995, FAS began implementing a comprehensive telecommunications
    initiative to take advantage of emerging Internet technology. FAS
    Online--FAS's web server on the Internet (www.fas.usda.gov)--is the most
    visible part of this initiative. FAS Online is important to the FAS
    outreach effort as it permits the Agency to share large volumes of
    information with worldwide customers previously not reached through
    conventional means.

        Market Development and Promotion.--FAS develops foreign markets for
    U.S. farm products through aggressive market expansion activities. It
    provides services to the U.S. and foreign agricultural trade sectors
    that are necessary to establish, build and maintain overseas markets for
    U.S. agricultural products. The largest of FAS's promotional programs
    are the Foreign Market Development Cooperator Program and the Market
    Access Program. In addition, FAS sponsors U.S. participation in several
    major trade shows and a number of single-industry exhibitions each year.
    FAS has 14 Agricultural Trade Offices (ATO) in operation at key foreign
    trading centers to assist U.S. exporters, trade groups and state export
    marketing officials in trade promotion. FAS will consider the benefits--
    in the form of rental credits--received by private cooperators that use
    ATO space when allocating direct assistance to cooperators. Cost-share
    rates for the Cooperator Program also will increase in 1998.

        Market Access.--FAS initiates, directs and coordinates the
    Department's formulation of trade policies and programs with the goal of
    maintaining and expanding world markets for U.S. agricultural products.
    It monitors international compliance with bilateral and multilateral
    trade agreements. It identifies restrictive tariff and trade practices
    which act as barriers to the import of U.S. agricultural commodities,
    then supports negotiations to remove them. It acts to counter and
    eliminate unfair trade practices of other countries that hinder U.S.
    agricultural exports to those markets. In virtually every foreign
    market, U.S. agricultural exports are subject to import duties and non-
    tariff trade restrictions. Trade information sent to Washington from FAS
    personnel overseas is used to map strategies for improving market
    access, pursuing U.S. rights under trade agreements, and developing
    programs and policies to make U.S. farm products more competitive.

        Price/Credit and Risk Assistance.--FAS administers a number of
    price/credit and risk assistance programs designed to develop overseas
    markets and expand the levels of U.S. agricultural commodities. These
    programs include CCC Export Credit Guarantee Programs, export subsidy
    programs, including the Export Enhancement Program and Dairy Export
    Incentive Program, and food assistance activities such as Public Law
    480, Food for Progress and the Section 416(b) program. These programs
    are designed to help developing nations make the transition from
    concessional financing to cash purchases, give U.S. producers the
    ability to counter export subsidies of foreign competitors and allow
    U.S. exporters to compete with sales terms offered by foreign
    competitors. In 1998, activity will focus on the new Suppliers and
    Facilities Export Credit programs as well as the PL. 480 Title I private
    sector initiative.

        Long-term Market Development.--FAS works to enhance U.S.
    agriculture's competitiveness by providing linkages to world resources
    and international organizations and building a spirit of cooperation.
    These linkages produce new technologies that are vital to improving the
    agricultural demand base and producing new and alternative products.
    Direct program activities include the administration of the Cochran
    Fellowship Program and management of USDA's bilateral exchange and
    cooperative research programs with foreign governments and institutions.
    Another activity is the Emerging Markets Program, under which technical
    assistance and related activities in emerging markets are aimed at
    enhancing their food and rural business systems, and expanding U.S.
    agricultural exports. Funds for the Emerging Markets Program ($10
    million) formerly provided through CCC will be provided directly through
    the FAS appropriation this year.

    [[Page 231]]

    At the request of the Agency for International Development,
    international organizations and foreign governments, technical
    assistance and training in agriculture and rural development are
    provided on a reimbursable or advance of funds basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          37          42          42
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           1           1           1
    11.8      Special personal services
                payments....................           2           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          42          47          47
    12.1    Civilian personnel benefits.....          11          12          12
    21.0    Travel and transportation of
              persons.......................           4           4           5
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           8           9           9
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          44          52          65
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           3
    41.0    Grants, subsidies, and
              contributions.................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         116         131         147
    99.0  Reimbursable obligations..........          59          59          39
                                               ---------   ---------  ----------
    99.9    Total obligations...............         175         190         186
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         760         760         760
    1005    Full-time equivalent of overtime
              and holiday hours.............           2           2           2
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         125         125         125
    ---------------------------------------------------------------------------

            Scientific Activities Overseas (Foreign Currency Program)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1404-0-1-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                       1           1
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           6           5           5
    73.20 Total outlays (gross).............          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           5           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           1           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        As authorized by the Agricultural Trade Development and Assistance
    Act of 1954 (Public Law 480), as amended, USDA uses foreign currencies
    to support research on problems of mutual interest to the United States
    and participating foreign countries. After 1991 no new foreign currency
    programs have been or are proposed to be initiated.

                           FOREIGN ASSISTANCE PROGRAMS

        The funds and facilities of the Commodity Credit Corporation may, by
    law, be used in carrying out programs to encourage the export of
    agricultural commodities.

        Included in this category are the following activities carried out
    under the Agricultural Trade Development and Assistance Act of 1954,
    Public Law 480, 83rd Congress, as amended (P.L. 480): Financing sales of
    agricultural commodities to developing countries for dollars on credit
    terms, or for local currencies (including for local currencies on credit
    terms) for use under sec. 104 (title I); for dispositions abroad (titles
    II and III); and for furnishing commodities to carry out the Food for
    Progress Act of 1985, as amended. Agreements may provide for commodities
    to be made available on a multi-year basis.

                    Public Law 480 Program and Grant Accounts

                         (including transfers of funds)

        For expenses during the current fiscal year, not otherwise
    recoverable, and unrecovered prior years' costs, including interest
    thereon, under the Agricultural Trade Development and Assistance Act of
    1954, as amended (7 U.S.C. 1691, 1701-1715, 1721-1726, 1727-1727f, 1731-
    1736g), as follows: (1) [$226,900,000] $112,899,000 for Public Law 480
    title I credit, including Food for Progress programs; (2) [$13,905,000]
    $10,250,000 is hereby appropriated for ocean freight differential costs
    for the shipment of agricultural commodities pursuant to title I of said
    Act and the Food for Progress Act of 1985, as amended; (3) $837,000,000
    is hereby appropriated for commodities supplied in connection with
    dispositions abroad pursuant to title II of said Act; and (4)
    [$29,500,000] $30,000,000 is hereby appropriated for commodities
    supplied in connection with dispositions abroad pursuant to title III of
    said Act: Provided, That not to exceed 15 percent of the funds made
    available to carry out any title of said Act may be used to carry out
    any other title of said Act: Provided further, That such sums shall
    remain available until expended (7 U.S.C. 2209b).
        For the cost, as defined in section 502 of the Congressional Budget
    Act of 1974, of direct credit agreements as authorized by the
    Agricultural Trade Development and Assistance Act of 1954, as amended,
    and the Food for Progress Act of 1985, as amended, including the cost of
    modifying credit agreements under said Act, [$185,589,000] $87,869,000.
        In addition, for administrative expenses to carry out the Public Law
    480 title I credit program, and the Food for Progress Act of 1985, as
    amended, to the extent funds appropriated for Public Law 480 are
    utilized, [$1,780,000] $1,881,000. (Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act, 1997.)

               Public Law 480 Grants--Titles I (OFD), II, and III

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ocean freight differential........          23          14          10
    00.02 Commodities supplied in connection
            with dispositions abroad........         864         837         837
    00.03 Commodities supplied in connection
            with dispositions abroad........          53          30          30
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         940         881         877
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          44          26          26
    22.00 New budget authority (gross)......         836         881         877
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.22 Unobligated balance transferred
            from other accounts.............          72
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         964         907         903

    [[Page 232]]

    23.95 New obligations...................        -940        -881        -877
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          26          26          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         836         881         877
                                                     836         881         877
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         423         552         337
    73.10 New obligations...................         940         881         877
    73.20 Total outlays (gross).............        -798      -1,096        -881
    73.45 Adjustments in unexpired accounts.         -12
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         552         337         332
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         498         553         550
    86.93 Outlays from current balances.....         300         543         331
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         798       1,096         881
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         836         881         877
    90.00 Outlays...........................         798       1,096         881
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................         836         881         877
      Outlays...........................         798       1,096         881
    Rescission proposal:
      Budget Authority..................                      -4
      Outlays...........................                      -2          -1
                                        ------------------------------------
    Total:
      Budget Authority..................         836         877         877
      Outlays...........................         798       1,094         880
                                        ====================================

        This account includes the non-credit components of Public Law 480:
    title I ocean freight differential, title II, and title III.

    Credit accounts:

                         Public Law 480 Program Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                      37          37
        Receipts:
    02.01 Downward reestimates of subsidies.          37
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          37          37          37
    07.99 Total balance, end of year........          37          37          37
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         227         186          88
    00.09 Administrative expenses...........           2           2           2
                                               ---------   ---------  ----------
    10.00   Total obligations...............         229         188          90
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           9           7           7
    22.00 New budget authority (gross)......         238         188          90
    22.21 Unobligated balance transferred to
            other accounts..................         -12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         235         195          97
    23.95 New obligations...................        -229        -188         -90
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           7           7           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         238         188          90
                                                     238         188          90
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         163         106         106
    73.10 New obligations...................         229         188          90
    73.20 Total outlays (gross).............        -286        -188        -135
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         106         106          61
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         140         108          52
    86.93 Outlays from current balances.....         146          80          83
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         286         188         135
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         238         188          90
    90.00 Outlays...........................         286         188         135
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................         238         188          90
      Outlays...........................         286         188         135
    Rescission proposal:
      Budget Authority..................                     -46
      Outlays...........................                     -26         -17
                                        ------------------------------------
    Total:
      Budget Authority..................         238         142          90
      Outlays...........................         286         162         118
                                        ====================================

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         291         227         113
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         291         227         113
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       81.06       81.79       77.83
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       81.06       81.79       77.83
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........         236         186          88
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         236         186          88
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................         284         186          88
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         284         186          88
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           2           2           2
    3590  Outlays from new authority........           2           2           2
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the P.L. 480 Program, the subsidy costs associated with the
    direct loans obligated in 1992 and beyond (including modifications of
    direct loans that resulted from obligation in any year), as well as
    administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis. An explanation of credit reform, including a
    discussion of how subsidies are calculated, is included in the Federal
    Credit section of the Summary Information chapter.

    [[Page 233]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           2           2           2
    41.0  Grants, subsidies, and
            contributions...................         227         186          88
                                               ---------   ---------  ----------
    99.9    Total obligations...............         229         188          90
    ---------------------------------------------------------------------------

                 Public Law 480 Direct Credit Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         295         227         113
    00.02 Interest on Treasury borrowing....          11          16          14
    00.03 Reestimate on direct loan subsidy.          29
    00.04 Interest reestimate on direct loan
            subsidy.........................           8
                                               ---------   ---------  ----------
    10.00   Total obligations...............         343         243         127
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         344         243         127
    23.95 New obligations...................        -343        -243        -127
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          98          21          24
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         329         232         183
    68.10   Receivables from program account         -77          -2         -45
    68.47   Portion applied to debt
              reduction.....................          -6          -8         -35
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         246         222         103
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         344         243         127
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Obligated
              balance.......................          50          60          42
    72.95   Receivable from program account.         185         108         106
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         235         168         148
    73.10 New obligations...................         343         243         127
    73.20 Total financing disbursements
            (gross).........................        -410        -263        -200
          Unpaid obligations, end of year:

    74.90   Obligated balance: fund balance.          60          42          14
    74.95   Receivables from program account         108         106          61
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         168         148          75
    87.00 Total financing disbursements
            (gross).........................         410         263         200
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................        -299        -184        -132
    88.00       Interest from Treasury......          -8
    88.40     Interest received on loans....         -22         -38         -42
    88.45     Offsetting governmental
                collections--Jordan Debt
                Forgiveness.................                     -10          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -329        -232        -183
    88.95 Change in receivables from program
            accounts........................          77           2          45
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          92          13         -11
    90.00 Financing disbursements...........          82          31          17
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         291         227         113
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         291         227         113
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,024       1,264       1,474
    1231  Disbursements: Direct loan
            disbursements...................         240         228         169
    1264  Write-offs for default: Other
            adjustments, net--Jordan........                     -18         -44
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,264       1,474       1,599
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4049-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          50             60            42             14
            Investments in US securities:
    1106      Receivables, net..............         153            137           106             61
          Net value of assets related to
              post-1991 direct loans
              receivable:

            Direct loans receivable, gross:
    1401      Direct loans receivable, gross       1,024          1,264         1,492          1,643
    1401      Direct loans receivable,
                gross--Jordan...............                                      -18            -44
    1405    Allowance for subsidy cost (-)..        -769           -969        -1,156         -1,246
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         255            295           318            353
    1901  Other Federal assets: Other assets
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         458            492           466            428
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          21              6             6              6
    2103    Debt............................         292            383           404            430
    2105    Other...........................           3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         316            389           410            436
        NET POSITION:
    3100  Appropriated capital..............         142            103           318            318
          Cumulative results of operations:

    3300    Cumulative results of operations                                     -244           -263
    3300    Cumulative results of
              operations--Jordan............                                      -18            -62
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         142            103            56             -7
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         458            492           466            429
    -----------------------------------------------------------------------------------------------

                        Debt Reduction--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to Liquidating Account....                                  34
    00.02 Interest on debt to Treasury......           2           2           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............           2           2          38
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...           2           2          38
    23.95 New obligations...................          -2          -2         -38
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..           1           1          32
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           6
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           2           2          38
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           2           2          38
    73.20 Total financing disbursements
            (gross).........................          -2          -2         -38
    87.00 Total financing disbursements
            (gross).........................           2           2          38
    ----------------------------------------------------------------------------

    [[Page 234]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal collections.....          -1          -1          -6
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           1           1          32
    90.00 Financing disbursements...........           1           1          32
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          66          66          66
    1233  Disbursements: Purchase of loans
            assets from a liquidating
            account.........................                                  34
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          66          66         100
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4143-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          66             66            66            100
    1405    Allowance for subsidy cost (-)..         -33            -33           -33            -33
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          33             33            33             67
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          33             33            33             67
        LIABILITIES:
    2103  Federal liabilities: Debt.........          33             33            33             67
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          33             33            33             67
    -----------------------------------------------------------------------------------------------

           P.L. 480 Title I Food for Progress Credits, Program Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2273-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                      38          38
        Receipts:
    02.01 Downward reestimates of subsidies.          38
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          38          38          38
    07.99 Total balance, end of year........          38          38          38
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2273-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1          29           4
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          28
    22.21 Unobligated balance transferred to
            other accounts..................                     -25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          29           4           4
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          29           4           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          28
    73.45 Adjustments in unexpired accounts.         -28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2273-0-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........          28
        Direct loan subsidy outlays:
    1349  Total subsidy outlays.............
    ---------------------------------------------------------------------------

        As part of a comprehensive package of U.S. assistance for Russia
    announced by the President in April 1993, $385,000,000 was transferred
    from CCC to Food for Progress under provisions of the Secretary of
    Agriculture's Interchange Authority (7 U.S.C. 2257) for commodity and
    related transportation assistance.

        Sales under the credit portion of the Food for Progress program for
    Russia carry a term of fifteen years, including a seven-year grace
    period. The interest rates are three percent during the grace period and
    four percent thereafter. Funding for commodity and ocean freight
    financing is under P.L. 480 Title I FFP and is subject to credit reform
    budgeting. All shipments were completed in 1995.

          P.L. 480 Title I Food for Progress Credits, Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4078-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest to Treasury on borrowings          15           3           3
    00.07 Technical reestimate of subsidy...          35
    00.08 Technical reestimate--interest....           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          54           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          77          38
    22.00 New financing authority (gross)...          25          13          13
    22.40 Capital transfer to general fund..                     -38
    22.60 Redemption of debt................          -9         -10         -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          93           3           3
    23.95 New obligations...................         -54          -3          -3
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          38
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          25          13          13
                                                      25          13          13
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          54           3           3
    73.20 Total financing disbursements
            (gross).........................         -54          -3          -3
    87.00 Total financing disbursements
            (gross).........................          54           3           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..         -12

    [[Page 235]]

    88.40     Interest collections..........         -13         -13         -13
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -25         -13         -13
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          30         -10         -10
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4078-0-3-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         508         508         508
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         508         508         508
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4078-0-3-351    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          77
            Investments in US securities:
    1106      Receivables, net..............          27
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         508            508           508
    1405    Allowance for subsidy cost (-)..        -351           -351          -351
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         157            157           157
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         261            157           157
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................          11
    2103    Debt............................         225            225           225
    2105    Other...........................          27
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         263            225           225
        NET POSITION:
    3600  Other.............................          -2            -68           -68
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          -2            -68           -68
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         261            157           157
    -----------------------------------------------------------------------------------------------

      Expenses, Public Law 480, Foreign Assistance Programs, Agriculture,
                               Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         139         128           5
    22.00 New budget authority (gross)......                       5          37
    22.40 Capital transfer to general fund..         -11        -128
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         128           5          42
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         128           5          42
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

            Offsetting collections (cash):
    68.00     Offsetting collections (cash).         572         540         483
    68.00     Offsetting collections--
                Treasury Debt Restructuring
                Program account.............                       5          37
    68.27   Capital transfer to general fund        -572        -540        -483
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................                       5          37
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                       5          37
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources--Debt
                  Reduction.................                                 -34
    88.00       Federal sources--Jordan.....                      -5          -3
    88.40     Principal and interest
                collections.................        -572        -540        -483
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -572        -545        -520
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -572        -540        -483
    90.00 Outlays...........................        -572        -545        -520
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      10,077       9,767       9,438
          Repayments:

            Repayments and prepayments:
    1251      Repayments and prepayments....        -310        -320        -283
    1251      Repayments and prepayments--
                debt reduction..............                                 -34
          Write-offs for default:

    1263    Direct loans....................                      -9         -14
    1264    Other adjustments, net..........                                -228
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       9,767       9,438       8,879
    ---------------------------------------------------------------------------

                               Program Activities

                            [In millions of dollars]

                                         1996 actual  1997 est.   1998 est.
    Ocean freight differential (title I)          23          14          10
    Commodities supplied in connection
    with dispositions abroad (title II).         864         837         837
    Commodies supplied in connection
    with dispositions abroad (title III)          53          30          30
                                        ------------------------------------
          Total program level...........         940         881         877
                                        ====================================

     RECONCILIATION OF PROGRAM LEVEL TO PROGRAM COSTS FUNDED BY P.L. 480 OR
                                       CCC

                            [In millions of dollars]

                                         1996 actual  1997 est.   1998 est.
                   Title I

    Commodity costs.....................         280         227         113
    Ocean freight differential and ocean
    transportation......................          23          14          10
                                        ------------------------------------
          Total program level, current
            year........................         303         241         123
    Prior year obligations financed.....         158         134         100
    Obligations financed in succeeding
    years...............................        -164        -139         -76
                                        ------------------------------------
          Total program costs, funded
            program level...............         297         236         147
                                        ====================================
                  Title II

    Commodity costs.....................         512         538         537
    Ocean and inland transportation.....         352         299         300
                                        ------------------------------------
          Total program level, current
            year........................         864         837         837
    Prior year obligations financed.....         192         441         303
    Current year obligations financed in
    succeeding years....................        -369        -301        -301
                                        ------------------------------------
          Total program costs, funded
            program level...............         686         977         839
                                        ====================================
                  Title III

    Commodity costs.....................          51          22          23
    Ocean and inland transportation.....           2           7           7
                                        ------------------------------------
          Total program level, current
            year........................          53          30          30
    Prior year obligations financed.....         102          64          22
    Current year obligations financed in
    succeeding years....................         -53         -21         -21
                                        ------------------------------------
          Total program costs, funded
            program level...............         102          73          31
                                        ====================================

        Financing sales of agricultural commodities to developing countries
    for dollars on credit terms, or for local currencies

    [[Page 236]]

    (including for local currencies on credit terms) for use under sec. 104;
    and for furnishing commodities to carry out the Food for Progress Act of
    1985, as amended (title I).--Funds appropriated for P.L. 480 are used to
    finance all sales made pursuant to agreements concluded under the
    authority of Title I. The Corporation may serve as the purchasing or
    shipping agent, or both, for the importing country or may award
    contracts for freight agent services on behalf of the Corporation to
    handle shipping of commodities under P.L. 480.

        Sales are made to developing countries as defined in section 402(4)
    of P.L. 480 and must not displace expected commercial sales (secs.
    403(e) and (h)). Agreements are made with developing countries for
    delivery in accordance with the terms of the agreement.

        When U.S.-flag vessels are required to ship commodities under this
    title, the Corporation will pay the difference between U.S.-flag rates
    and foreign-flag rates. In limited cases, full transportation costs to
    port-of-entry or point-of-entry abroad may be included along with the
    cost of the commodity in the amount financed by CCC in order to ensure
    that U.S. food aid can reach the most needy recipients.

        Financing sales of agricultural commodities for dollars on credit
    terms (title I).--Payment by developing countries or private entities
    may be made over a period of not more than 30 years with a deferral of
    principal payments for up to 5 years. Interest accrues at a concessional
    rate as determined appropriate.

        Section 411 of P.L. 480 authorizes the President to waive payments
    of principal and interest under dollar credit sales agreements for
    countries that meet certain enumerated requirements. Such debt relief
    may be provided only if the President notifies Congress and may not
    exceed the amount approved for such purpose in an Act appropriating
    funds to carry out P.L. 480.

        Financing sales of agricultural commodities for local currency,
    including for local currency on credit terms.--Payment by a recipient
    country may be made in local currencies for use in carrying out
    activities under section 104 of P.L. 480.

        Foreign currency received in payment for credit extended may be used
    for payment of U.S. obligations abroad, subject to the appropriation
    process. The P.L. 480 program is reimbursed for the dollar value of
    currencies so used.

        The financing of sales of agricultural commodities for local
    currencies on credit terms is subject to the same terms that are
    applicable to dollar credit financing.

        Furnishing commodities to carry out the Food for Progress Act of
    1985, as amended (title I).--Funds appropriated to carry out title I may
    be used to furnish commodities to carry out the Food for Progress Act of
    1985. Such commodities may be furnished on credit terms or on a grant
    basis in order to assist developing countries and countries that are
    emerging democracies that have made a commitment to introduce and expand
    free enterprise elements in their agricultural economies.

        The following table reflects the composition of the combined
    appropriations (in millions of dollars):

                        SALES FOR DOLLARS ON CREDIT TERMS

                            [In millions of dollars]

                                         1996 actual  1997 est.   1998 est.
    Item:
      Expenses of shipments (Title I):
        Commodity costs:
          Long-term credit..............         280         227         113
                                        ------------------------------------
              Total commodity costs.....         280         227         113
                                        ====================================
        Ocean freight and freight
          differential (support of U.S.
          Merchant Marine):
          Long-term credit..............          23          14          10
                                        ------------------------------------
              Total ocean freight and
                freight differential....          23          14          10
                                        ------------------------------------
      Total expenses of shipments.......         303         241         123
                                        ====================================
    Appropriation--Title I loan subsidy.         236         179          88
                                        ====================================
    Appropriation--Ocean freight
    differential........................          25          14          10
                                        ====================================
    Title I credit not subsidized
    through appropriation...............          44          48          25
                                        ====================================

        Commodities supplied in connection with dispositions abroad (title
    II).--Under title II, agricultural commodities are furnished to meet
    famine or other emergency relief needs, combat malnutrition, carry out
    activities to alleviate the causes of hunger, mortality and morbidity,
    promote economic and community development, promote sound environmental
    practices, and carry out feeding programs. Agricultural commodities are
    provided through governments for emergencies only, and for non-
    emergencies through public and private agencies, including
    intergovernmental organizations.

        The Corporation is authorized to pay the costs of acquisition,
    packaging, processing, enrichment, preservation, fortification,
    transportation, handling, and other incidental costs incurred up to the
    time of delivery at U.S. ports. The Corporation also pays ocean freight
    charges, and pays transportation costs to points of entry other than
    ports in the case of landlocked countries, where carriers to a specific
    country are not available, where ports cannot be used effectively, or
    where a substantial savings in costs or time can be effected, and pays
    general average contributions arising from ocean transport. In addition,
    transportation costs from designated points of entry or ports of entry
    abroad to storage and distribution sites and associated storage and
    distribution costs may be paid for commodities made available to meet
    urgent and extraordinary relief requirements.

        The following table reflects the composition of the appropriations
    (in millions of dollars):

           COMMODITIES SUPPLIED IN CONNECTION WITH DISPOSITIONS ABROAD

                                   (TITLE II)

                            [In millions of dollars]

                                         1996 actual  1997 est.   1998 est.
    Item:
      Expenses of shipments:
        Commodity Credit Corporation
          stocks and other costs in
          connection with commodities
          supplied......................         512         538         537
        Ocean transportation............         352         299         300
                                        ------------------------------------
          Total program costs...........         864         837         837
                                        ====================================
          Appropriation or estimate.....         864         837         837
                                        ====================================

        Commodities supplied in connection with dispositions abroad (title
    III).--Under title III, agricultural commodities are furnished to least
    developed countries as defined in section 302(a). They are provided
    through foreign governments for direct feeding, development of emergency
    food reserves or may be sold with the proceeds of such sale used by the
    recipient country for specific economic development purposes.

        The Corporation may pay, in connection with furnishing commodities
    under title III, the same cost items as authorized under title II. The
    following table reflects the composition of the appropriations (in
    millions of dollars):

    [[Page 237]]

           COMMODITIES SUPPLIED IN CONNECTION WITH DISPOSITIONS ABROAD

                                   (TITLE III)

                            [In millions of dollars]

                                         1996 Actual  1997 est.   1998 est.
    Item:
      Expenses of shipments:
        Commodity Credit Corporation
          stocks and other costs in
          connections with commodities
          supplied......................          51          22          23
        Ocean transportatioan...........           2           7           7
                                        ------------------------------------
          Total program costs...........          53          30          30
                                        ====================================
          Appropriation or estimate.....          53          30          30
                                        ====================================

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-2274-0-1-151    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         142            128
            Investments in US securities:
    1106      Receivables, net..............                          5
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

            Direct loans, gross:
    1601      Direct loans, gross...........      10,077          9,767         9,447          9,155
    1601      Direct loans, adjustment--Debt
                Reduction...................                                                    -262
    1601      Direct loans, gross--Jordan...                                       -9            -14
    1602    Interest receivable.............         104            131           131            131
    1603    Allowance, loans receivable (-).      -6,032         -5,680        -5,580         -5,417
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       4,149          4,218         3,989          3,593
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,291          4,351         3,989          3,593
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       4,291          4,351         3,998          3,869
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,291          4,351         3,998          3,869
        NET POSITION:
          Cumulative results of operations:

    3300    Cumulative results of
              operations--Debt Reduction....                                                    -262
    3300    Cumulative results of
              operations--Jordan............                                       -9            -14
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                       -9           -276
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,291          4,351         3,989          3,593
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                   3
        Receipts:
    02.01 Deposits of miscellaneous
            contributed funds, International
            Cooperation and Development.....           1           4           4
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           1           4           7
        Appropriation:
    05.01 Miscellaneous contributed funds...          -1          -1          -1
    07.99 Total balance, end of year........                       3           6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           5           5           5
    22.00 New budget authority (gross)......           1           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6           6           6
    23.95 New obligations...................          -1          -1          -1
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           5           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           1           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           1
    90.00 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        Miscellaneous funds are received from other Federal agencies,
    international organizations, and from Saudi Arabia, Spain, and
    developing countries, for USDA development assistance and international
    research projects (22 U.S.C. 2392).

                            FOOD AND CONSUMER SERVICE

                                  Federal Funds

    General and special funds:

                           Food Program Administration

        For necessary administrative expenses of the domestic food programs
    funded under this Act, [$106,128,000] $105,501,000, of which $5,000,000
    shall be available only for simplifying procedures, reducing overhead
    costs, tightening regulations, improving food stamp coupon handling, and
    assistance in the prevention, identification, and prosecution of fraud
    and other violations of law: Provided, That this appropriation shall be
    available for employment pursuant to the second sentence of section
    706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed
    $150,000 shall be available for employment under 5 U.S.C. 3109.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Food program administration.....         107         106         106
    03.02 Reimbursable program: Other.......           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         108         107         107
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         109         107         107
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         108         107         107
    23.95 New obligations...................        -108        -107        -107
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         108         106         106
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         109         107         107
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           9           8           8
    73.10 New obligations...................         108         107         107
    73.20 Total outlays (gross).............        -108        -107        -107
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           8           8           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         100          99          99

    [[Page 238]]

    86.93 Outlays from current balances.....           7           7           7
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         108         107         107
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         108         106         106
    90.00 Outlays...........................         107         106         106
    ---------------------------------------------------------------------------

        Food program administration funds the Federal operating expenses of
    the Food and Consumer Service.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          76          75          76
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          79          78          79
    12.1    Civilian personnel benefits.....          15          15          15
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           1
    25.2    Other services..................           6           6           6
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         105         104         104
    99.0  Reimbursable obligations..........           1           1           1
    99.5  Below reporting threshold.........           2           2           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............         108         107         107
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...       1,609       1,597       1,601
    1005  Full-time equivalent of overtime
            and holiday hours...............           3           3           3
    ---------------------------------------------------------------------------

                  The Center for Nutrition Policy and Promotion

        For necessary expenses for the Center for Nutrition Policy and
    Promotion to develop and implement programs to strengthen nutrition
    research information and education in the United States, $2,499,000:
    Provided, That this appropriation shall be available for employment
    pursuant to the second sentence of section 706(a) of the Organic Act of
    1944 (7 U.S.C. 2225), and not to exceed $150,000 shall be available for
    employment under 5 U.S.C. 3109.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3506-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program: The Center for
            Nutrition Policy and Promotion..                                   2
    02.01 Reimbursable program..............           3           2
                                               ---------   ---------  ----------
    10.00   Total obligations...............           3           2           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           3           2           2
    23.95 New obligations...................          -3          -2          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................                                   2
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           3           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           3           2           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1
    73.10 New obligations...................           3           2           2
    73.20 Total outlays (gross).............          -3          -2          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                   2
    86.97 Outlays from new permanent
            authority.......................           3           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           2           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -3          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   2
    90.00 Outlays...........................                                   2
    ---------------------------------------------------------------------------

        The Center for Nutrition Policy and Promotion is charged with the
    linking of nutrition science with the needs of American consumers and to
    coordinate nutrition promotion policy analysis.

        The Center for Nutrition Policy and Promotion was funded within the
    Food Program Administration account in 1996 and 1997.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3506-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Direct obligations: Personnel
            compensation: Full-time
            permanent.......................                                   2
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................           3           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............           3           2           2
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3506-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                                  34
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          32          35
    ---------------------------------------------------------------------------

                               Food Stamp Program

        For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
    2011 et seq.), [$27,618,029,000: Provided, That funds provided herein
    shall] and to remain available through September 30, [1997] 1998, in
    accordance with section 18(a) of the Food Stamp Act: [Provided further,
    That $100,000,000 of the foregoing amount], $27,551,479,000; of which
    $2,500,000,000 shall be placed in reserve for use only in such amounts
    and at such times as may become necessary to carry out program
    operations[: Provided further, That not to exceed $3,000,000 of the
    funds made available under this heading shall be used for studies and
    evaluations:]; of which $1,204,000,000 shall be available for nutrition
    assistance for Puerto Rico as authorized by 7 U.S.C. 2028; of which
    $100,000,000 shall be available to carry out the Emergency Food
    Assistance Program as authorized by section 27 of the Food Stamp Act:
    Provided [further], That funds provided herein shall be expended in
    accordance with section 16 of the Food Stamp Act: Provided further, That
    this appropriation shall be subject to any work registration or workfare
    requirements as may be required by law[: Provided further, That
    $1,174,000,000 of the foregoing amount shall be available for nutrition
    assistance for Puerto Rico as authorized by 7 U.S.C. 2028].

    [[Page 239]]

        For necessary expenses to carry out the Food Stamp Act for the first
    quarter of fiscal year 1999, $6,600,000,000, to remain available through
    January 31, 1999. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Properly issued benefits........      20,805      19,701      20,101
    00.02   Estimated State erroneous
              issuances.....................       1,588       1,483       1,490
    00.03   State administration............       1,614       1,766       1,812
    00.04   Employment and training program.         180         187         191
    00.05   Other program costs.............          67          78          70
    00.06   Puerto Rico.....................       1,143       1,174       1,204
    00.07   Food distribution program on
              indian reservations
              (Commodities in lieu of food
              stamps).......................          44          47          57
    00.08   Food distribution program on
              Indian reservations
              (Cooperator administrative
              expense)......................          20          18          18
    00.09   The emergency food assistance
              program (commodities).........                     100         100
    00.10   Modified Food Stamp Program in
              American Samoa................           5           5           5
    00.11   Community Food Project..........           1           3           3
                                               ---------   ---------  ----------
    00.91     Total direct program..........      25,467      24,562      25,051
    01.01 Reimbursable program..............                      85          85
                                               ---------   ---------  ----------
    10.00   Total obligations...............      25,467      24,647      25,136
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      27,691      27,703      27,636
    22.30 Unobligated balance expiring......      -2,224      -3,056      -2,500
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      25,467      24,562      25,136
    23.95 New obligations...................     -25,467     -24,647     -25,136
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................      27,661      27,618      27,551
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          30          85          85
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      27,691      27,703      27,636
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         310         420         482
    73.10 New obligations...................      25,467      24,647      25,136
    73.20 Total outlays (gross).............     -25,452     -24,585     -25,129
    73.40 Adjustments in expired accounts...          95
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         420         482         489
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority      25,142      24,165      24,647
    86.93 Outlays from current balances.....         310         420         482
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      25,452      24,585      25,129
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -30         -85         -85
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      27,661      27,618      27,551
    90.00 Outlays...........................      25,422      24,500      25,044
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................      27,661      27,618      27,551
      Outlays...........................      25,422      24,500      25,044
    Supplemental proposal:
      Budget Authority..................
      Outlays...........................                      -6
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                     365         845
      Outlays...........................                     362         836
                                        ------------------------------------
    Total:
      Budget Authority..................      27,661      27,983      28,396
      Outlays...........................      25,422      24,856      25,880
                                        ====================================

        The Food Stamp Program is the primary source of nutrition assistance
    for low-income Americans.

        Some of these funds provide a grant to Puerto Rico in lieu of the
    food stamp program which gives the Commonwealth flexibility to continue
    a food assistance program tailored to the needs of its low income
    households.

        Funds in this account are also used to carry out the Emergency Food
    Assistance Act of 1983 and for food distribution and administrative
    expenses for native Americans under section 4(b) of the Food Stamp Act.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           3           3           3
    21.0    Travel and transportation of
              persons.......................           1           1           1
    22.0    Transportation of things........           5           5           4
    24.0    Printing and reproduction.......          11          27          21
    25.1    Advisory and assistance services          11           3          11
    25.2    Other services..................          35          38          41
    26.0    Supplies and materials..........          45         148         157
    31.0    Equipment.......................                                   1
    41.0    Grants, subsidies, and
              contributions.................      25,326      24,337      24,812
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..      25,437      24,562      25,051
    99.0  Reimbursable obligations..........          30          85          85
                                               ---------   ---------  ----------
    99.9    Total obligations...............      25,467      24,647      25,136
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          56          56          56
    ---------------------------------------------------------------------------

                               Food Stamp Program

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-4-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Properly issued benefits........                     330         712
    00.02   Estimated State erroneous
              issuances.....................                      25          53
    00.03   Employment and training program.                      10          40
    00.05   Other Technical Fixes...........                                  40
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                     365         845
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     365         845
    23.95 New obligations...................                    -365        -845
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                     365         845
                                                                 365         845
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                   3
    73.10 New obligations...................                     365         845
    73.20 Total outlays (gross).............                    -362        -836
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                       3          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                     362         833
    86.93 Outlays from current balances.....                                   3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                     362         836
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     365         845
    90.00 Outlays...........................                     362         836
    ---------------------------------------------------------------------------

    [[Page 240]]

        The Administration is proposing to restore Food Stamps for those
    looking for, but who cannot find a job as well as providing States with
    new funding to support an expanded work program with rigorous
    requirements and tough sanctions. Also, the proposal would continue to
    provide legal immigrants with benefits until the period August 1 to
    September 30, 1997. Finally, the Administration would restore the link
    between benefits and rising living costs. The shelter deduction and
    vehicle asset limit would each be increased and then indexed and the
    standard deduction would be reindexed.

                            Child Nutrition Programs

                         (including transfers of funds)

        For necessary expenses to carry out the National School Lunch Act
    (42 U.S.C. 1751 [1769b] et seq.), except section 21, and the Child
    Nutrition Act of 1966 (42 U.S.C. 1772) et seq. [1785, and 1789]); except
    sections 17 and [19; $8,653,297,000] 21; $7,782,766,000, to remain
    available through September 30, [1998] 1999 of which [$3,219,544,000]
    $2,631,375,000 is hereby appropriated and [$5,433,753,000]
    $5,151,391,000 shall be derived by transfer from funds available under
    section 32 of the Act of August 24, 1935 (7 U.S.C. 612c): Provided, That
    [not to exceed $1,000,000 of the funds made available under this heading
    shall be used for studies and evaluations: Provided further, That] up to
    [$4,031,000] $4,124,000 shall be available for independent verification
    of school food service claims. (Agriculture, Rural Development, Food and
    Drug Administration, and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          School lunch program:

    00.01   Above 185% of poverty...........         603         626         651
    00.02   130-185% of poverty.............         392         407         423
    00.03   Below 130% of poverty...........       3,698       3,837       3,992
                                               ---------   ---------  ----------
    00.91   Subtotal, school lunch..........       4,693       4,870       5,066
          School breakfast program:

    01.01   Above 185% of poverty...........          30          32          34
    01.02   130-185% of poverty.............          56          60          63
    01.03   Below 130% of poverty...........       1,036       1,098       1,168
                                               ---------   ---------  ----------
    01.91   Subtotal, school breakfast......       1,122       1,190       1,265
          Child and adult care feeding program:

    02.01   Above 185% of poverty...........         681         601         416
    02.02   130-185% of poverty.............          46          60          64
    02.03   Below 130% of poverty...........         803         836         901
    02.04   Audits..........................          23          29          31
                                               ---------   ---------  ----------
    02.91   Subtotal, child and adult care
              feeding.......................       1,553       1,526       1,412
    03.01 Summer feeding....................         258         255         277
    03.02 Special milk program..............          19          19          20
    03.03 State administrative expenses.....         100         110         112
    03.04 Commodity procurement.............         277         297         330
          Discretionary activities:

    04.01   School meals initiative.........          13          12          10
    04.02   Coordinated Review..............           4           4           4
    04.03   Nutrition studies and surveys...           3           3           3
    04.04   Nutrition education and training                       4          10
    04.05   Computer support and processing.           7           7           7
    04.06 Demonstrations....................           4           4           4
                                               ---------   ---------  ----------
    04.91   Subtotal, discretionary
              activities....................          31          34          38
          Activities with permanent appropriations:

    05.01   Homeless children nutrition
              program.......................           2           3           3
    05.02   Boarder babies and information
              clearinghouse.................           1           1           1
    05.03   Nutrition education, training
              and food service mgmt. inst...          11           2           2
    05.04   School breakfast and summer food
              service program start-up
              grants........................           2
                                               ---------   ---------  ----------
    05.91   Subtotal, activities with
              permanent appropriations......          16           6           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............       8,069       8,307       8,526
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         141         385         737
    22.00 New budget authority (gross)......       7,966       8,659       7,789
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         370
    22.30 Unobligated balance expiring......         -24
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       8,453       9,044       8,526
    23.95 New obligations...................      -8,069      -8,307      -8,526
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         385         737
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       2,348       3,219       2,632
          Permanent:

    60.00   Appropriation...................          20           6           6
    62.00   Transferred from other accounts.       5,598       5,434       5,151
                                               ---------   ---------  ----------
    63.00     Appropriation (total).........       5,618       5,440       5,157
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       7,966       8,659       7,789
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       1,267       1,078       1,127
    73.10 New obligations...................       8,069       8,307       8,526
    73.20 Total outlays (gross).............      -7,875      -8,258      -8,500
    73.40 Adjustments in expired accounts...         -13
    73.45 Adjustments in unexpired accounts.        -370
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       1,078       1,127       1,153
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         873       1,355       1,479
    86.93 Outlays from current balances.....       1,395       1,463       1,864
    86.97 Outlays from new permanent
            authority.......................       5,607       5,440       5,157
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,875       8,258       8,500
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,966       8,659       7,789
    90.00 Outlays...........................       7,875       8,258       8,500
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................       7,966       8,659       7,789
      Outlays...........................       7,875       8,258       8,500
    Supplemental proposal:
      Budget Authority..................                       6
      Outlays...........................                       6
                                        ------------------------------------
    Total:
      Budget Authority..................       7,966       8,665       7,789
      Outlays...........................       7,875       8,264       8,500
                                        ====================================

        Payments are made for cash and commodity meal subsidies through the
    School Lunch, School Breakfast, Summer Food Service, and Child and Adult
    Care Food programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           5           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    21.0  Travel and transportation of
            persons.........................           1           1           1
    24.0  Printing and reproduction.........           2           2           2
    25.1  Advisory and assistance services..           3           3           3
    25.2  Other services....................           9           9           7
    26.0  Supplies and materials
            (Commodities)...................         278         297         330
    41.0  Grants, subsidies, and
            contributions...................       7,770       7,989       8,177
                                               ---------   ---------  ----------
    99.9    Total obligations...............       8,069       8,307       8,526
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         109         118         109
    ---------------------------------------------------------------------------

    [[Page 241]]

    Special Supplemental Nutrition Program for Women, Infants, and Children
                                      (WIC)

        For necessary expenses to carry out the special supplemental
    nutrition program as authorized by section 17 of the Child Nutrition Act
    of 1966 (42 U.S.C. 1786), [$3,729,807,000] $4,108,000,000, to remain
    available through September 30, [1998: Provided, That none of the funds
    made available under this heading may be used to begin more than two
    studies and evaluations: Provided further, That] 1999, of which up to
    [$6,750,000] $12,000,000 may be used to carry out the farmers' market
    nutrition program from any funds not needed to maintain current caseload
    levels[: Provided further, That once the amount for fiscal year 1996
    carryover funds has been determined by the Secretary, any funds in
    excess of $100,000,000 may be transferred by the Secretary of
    Agriculture to the Rural Utilities Assistance Program and/or to the
    Rural Housing Insurance Fund for the cost of direct section 502 loans,
    including the cost of modifying loans, as defined in section 502 of the
    Congressional Budget Act of 1974]; and of which $100,000,000, to remain
    available until expended, shall be placed in reserve to be used only in
    such amounts and in such manner as the Secretary determines necessary,
    notwithstanding section 17(i) of such Act, for food benefits, should
    food cost increases exceed budget estimates: Provided, That
    notwithstanding sections 17 (g), (h) and (i) of such Act, the Secretary
    shall adjust fiscal year 1998 State allocations to reflect food funds
    available to the State from fiscal year 1997 under section
    17(i)(3)(A)(ii) and 17(i)(3)(D): Provided further, That the Secretary
    shall allocate funds recovered from fiscal year 1997 first to States to
    maintain stability funding levels, as defined by regulations promulgated
    under section 17(g), and then to give first priority for the allocation
    of any remaining funds to States whose funding is less than their fair
    share of funds, as defined by regulations promulgated under section
    17(g): Provided further, That none of the funds in this Act shall be
    available to pay administrative expenses of WIC clinics except those
    that have an announced policy of prohibiting smoking within the space
    used to carry out the program: Provided further, That none of the funds
    provided in this account shall be available for the purchase of infant
    formula except in accordance with the cost containment and competitive
    bidding requirements specified in section 17 of the Child Nutrition Act
    of 1966 [(42 U.S.C. 1786)]: Provided further, That State agencies
    required to procure infant formula using a competitive bidding system
    may use funds appropriated by this Act to purchase infant formula under
    a cost containment contract entered into after September 30, 1996 only
    if the contract was awarded to the bidder offering the lowest net price,
    as defined by section 17(b)(20) of the Child Nutrition Act of 1966,
    unless the State agency demonstrates to the satisfaction of the
    Secretary that the weighted average retail price for different brands of
    infant formula in the State does not vary by more than five percent.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 WIC Program.......................       3,714       3,875       4,108
    01.01 Reimbursable Program--CDC.........           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............       3,715       3,875       4,108
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                     118
    22.00 New budget authority (gross)......       3,695       3,730       4,108
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         140          27         100
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,834       3,875       4,208
    23.95 New obligations...................      -3,715      -3,875      -4,108
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         118                     100
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       3,730       3,730       4,108
    41.00   Transferred to other accounts...         -36
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........       3,694       3,730       4,108
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,695       3,730       4,108
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         336         239         319
    73.10 New obligations...................       3,715       3,875       4,108
    73.20 Total outlays (gross).............      -3,679      -3,769      -3,988
    73.40 Adjustments in expired accounts...           7
    73.45 Adjustments in unexpired accounts.        -140         -27        -100
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         239         319         339
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       3,482       3,557       3,724
    86.93 Outlays from current balances.....         196         212         264
    86.97 Outlays from new permanent
            authority.......................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,679       3,769       3,988
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,694       3,730       4,108
    90.00 Outlays...........................       3,679       3,769       3,988
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................       3,694       3,730       4,108
      Outlays...........................       3,678       3,769       3,988
    Supplemental proposal:
      Budget Authority..................                     100
      Outlays...........................                      91           9
                                        ------------------------------------
    Total:
      Budget Authority..................       3,694       3,830       4,108
      Outlays...........................       3,678       3,860       3,997
                                        ====================================

        The Special Supplemental Nutrition Program (WIC) provides at-risk
    pregnant and post-partum women, infants, and children with nutrition
    assistance, nutrition education and counseling, and health and
    immunization referrals.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           3           3           3
    41.0    Grants, subsidies, and
              contributions.................       3,712       3,872       4,105
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       3,715       3,875       4,108
    99.0  Reimbursable obligations..........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............       3,715       3,875       4,108
    ---------------------------------------------------------------------------

                          Commodity Assistance Program

        For necessary expenses to carry out the commodity supplemental food
    program as authorized by section 4(a) of the Agriculture and Consumer
    Protection Act of 1973 (7 U.S.C. 612c (note)), the Emergency Food
    Assistance Act of 1983, as amended, [and] section 110 of the Hunger
    Prevention Act of 1988, $166,000,000 the Nutrition Program for the
    Elderly as authorized by section 311 of the Older Americans Act of 1965,
    as amended (42 U.S.C. 3030a), and Special Assistance for the nuclear
    affected islands as authorized by the Omnibus Insular Areas Act of 1992,
    and for non-presidentially declared disasters, $272,165,000, to remain
    available through September 30, [1998] 1999: Provided, That none of
    these funds shall be available to reimburse the Commodity Credit
    Corporation for commodities donated to the program.

                  [Food Donations Programs for Selected Groups]

        [For necessary expenses to carry out section 4(a) of the Agriculture
    and Consumer Protection Act of 1973 (7 U.S.C. 612c (note)), and

    [[Page 242]]

    section 311 of the Older Americans Act of 1965, as amended (42 U.S.C.
    3030a), $141,250,000, to remain available through September 30, 1998.]
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Commodity supplemental food program:

    00.01   Commodity procurement...........          66          74          69
    00.02   Administrative costs............          21          18          17
                                               ---------   ---------  ----------
    01.92   Subtotal, commodity supplemental
              food program..................          87          92          86
          The emergency food assistance program:

    02.01   Administrative costs............          31          45          45
    02.02   Commodity Procurement...........          16          45
                                               ---------   ---------  ----------
    02.92   Subtotal, the emergency food
              assistance program............          47          90          45
    03.01 Commodities for soup kitchens.....          33
    04.01 Pacific Island Assistance.........           1           1           1
    05.01 Nutrition Program for the Elderly.         148         143         140
                                               ---------   ---------  ----------
    10.00   Total obligations...............         316         326         272
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          13          19
    22.00 New budget authority (gross)......         317         307         272
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4           2
    22.30 Unobligated balance expiring......           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         335         328         272
    23.95 New obligations...................        -316        -326        -272
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00   Appropriation...................         317         307         272
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         317         307         272
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          53          59          41
    73.10 New obligations...................         316         326         272
    73.20 Total outlays (gross).............        -301        -342        -276
    73.40 Adjustments in expired accounts...          -4
    73.45 Adjustments in unexpired accounts.          -4          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          59          41          37
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         255         281         239
    86.93 Outlays from current balances.....          46          61          37
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         301         342         276
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         317         307         272
    90.00 Outlays...........................         301         342         276
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Commodity assistance program..........         166         166         272
      Food donations programs for selected
        groups..............................         215         141
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Commodity assistance program..........         136         169         276
      Food donations programs for selected
        groups..............................         204         173
      Commodity supplemental food program...          16
      Temporary emergency food assistance
        program.............................           8
    ---------------------------------------------------------------------------

        The Commodity Assistance Programs include the Commodity Supplemental
    Food Program (CSFP), the Nutrition Program for the Elderly (NPE), the
    Emergency Food Assistance Program and Pacific Island Assistance.

        The CSFP provides food packages for low income women, infants, and
    children as well as low income elderly persons. It also funds State
    administrative expenses. The NPE provides cash and commodities for per-
    meal reimbursement for elderly persons served in senior citizens'
    centers and similar settings.

        The Emergency Food Assistance Program provides cash to support State
    administrative activities and maintain the storage and distribution
    pipeline for USDA and privately donated commodities.

        Assistance is also provided to residents of the Nuclear Affected
    Islands and Palau and funds are made available for non-presidentially
    declared disasters.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials
            (commodities)...................         123         126          76
    41.0  Grants, subsidies, and
            contributions...................         193         200         196
                                               ---------   ---------  ----------
    99.9    Total obligations...............         316         326         272
    ---------------------------------------------------------------------------

                                 FOREST SERVICE

                                  Federal Funds

    General and special funds:

                             National Forest System

        For necessary expenses of the Forest Service, not otherwise provided
    for, for management, protection, improvement, and utilization of the
    National Forest System, for ecosystem planning, inventory, and
    monitoring, and for administrative expenses associated with the
    management of funds provided under the heads ``Forest and Rangeland
    Research,'' ``State and Private Forestry,'' ``National Forest System,''
    ``Wildland Fire Management,'' ``Reconstruction and Construction,'' and
    ``Land Acquisition,'' [$1,274,781,000] $1,325,672,000, to remain
    available until expended, [and including] which shall include 50 per
    centum of all monies received during [the] prior fiscal [year] years as
    fees collected under the Land and Water Conservation Fund Act of 1965,
    as amended, in accordance with section 4 of the Act (16 U.S.C. 460l-
    6a(i)): Provided, That up to $5,000,000 of the funds provided herein for
    road maintenance shall be available for the planned obliteration of
    roads which are no longer needed: Provided further, That funds may be
    used to construct or reconstruct facilities of the Forest Service:
    Provided further, That no more than $250,000 shall be used on any single
    project, exclusive of planning and design costs: Provided further, That
    the Forest Service shall report annually to Congress the amount
    obligated for each project, and the total dollars obligated during the
    year. (Department of the Interior and Related Agencies Appropriations
    Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          61          67          67
        Receipts:
    02.01 Fees, operation and maintenance of
            recreational facilities.........           6           5           5
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          67          72          72
        Appropriation:
    05.01 National forest system............                      -5         -72
    07.99 Total balance, end of year........          67          67
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   National Forest System..........       1,257       1,254       1,331
    00.04   Flood Supplemental..............           4          17
                                               ---------   ---------  ----------
    00.91     Total direct program..........       1,261       1,271       1,331
    01.01 Reimbursable program..............          99          90          90
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,360       1,361       1,421
    ----------------------------------------------------------------------------

    [[Page 243]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         114         142         187
    22.00 New budget authority (gross)......       1,383       1,386       1,425
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.22 Unobligated balance transferred
            from other accounts.............           2          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,502       1,548       1,612
    23.95 New obligations...................      -1,360      -1,361      -1,421
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         142         187         191
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       1,283       1,270       1,253
    40.25   Appropriation (special fund,
              indefinite)...................                       5          72
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........       1,283       1,275       1,325
          Permanent:

    62.00   Transferred from other accounts.           1          16          15
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          99          95          85
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,383       1,386       1,425
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         191         163         111
    73.10 New obligations...................       1,360       1,361       1,421
    73.20 Total outlays (gross).............      -1,387      -1,413      -1,444
    73.45 Adjustments in unexpired accounts.          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         163         111          88
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,097       1,084       1,153
    86.93 Outlays from current balances.....         191         218         191
    86.97 Outlays from new permanent
            authority.......................          99         111         100
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,387       1,413       1,444
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -80         -85         -75
    88.40     Non-Federal sources...........         -19         -10         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -99         -95         -85
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,284       1,291       1,340
    90.00 Outlays...........................       1,286       1,318       1,359
    ---------------------------------------------------------------------------

        The 156 National Forests, 20 National Grasslands, and nine land
    utilization projects located in 44 States, Puerto Rico and the Virgin
    Islands are managed under multiple-use and sustained-yield principles.
    The natural resources of timber, minerals, range, wildlife, outdoor
    recreation, watershed, and soil are used in a planned combination that
    will best meet the needs of the Nation without impairing productivity of
    the land or damaging the environment. These management and utilization
    principles are recognized in the Multiple-Use, Sustained-Yield Act of
    1960 (16 U.S.C. 528-531) and use an ecological approach to managing the
    National Forest System.

        National Forest System (NFS) operations and maintenance provide for
    the delivery of goods and services associated with the principal NFS
    programs of land management planning, inventory, and monitoring,
    recreation use, wildlife and fisheries habitat management, rangeland
    management, forestland management, soil, water, and air management,
    minerals and geology management, landownership management,
    infrastructure management, law enforcement, and general administration.
    These programs maintain the capability to manage natural resources in a
    manner consistent with ecological principles and responsibilities. The
    general administration activity also provides line management and
    support to programs financed by the Forest and Rangeland Research, State
    and Private Forestry, National Forest System, Wildland Fire Management,
    Reconstruction and Construction, and Land Acquisition appropriations.

                             Performance Indicators

                                         1996 actual  1997 est.   1998 est.
    Area administered and protected
    (million acres).....................         192         192         192
    Timber sales offered (billion board
    feet)...............................         4.0         4.2         3.8
    Reforestation (appropriated)
    (thousand acres)....................       129.9        96.9       104.0
    Timber stand improvement
    (appropriated) (thousand acres).....       130.4        51.0       106.4
    Recreation: Seasonal capacity
    available (million people-at-one-
    time)...............................         157         157         157
    Soil and water resource improvements
    (thousand acres)....................        25.4        25.4        26.6
    Roads maintained (thousand miles)...       377.6       380.2       380.2
    Wildlife habitat restored or
    enhanced (hundred acres)............       104.7        96.7        96.7
    Anadromous fish streams habitat
    restored or enhanced (miles)........         631         501         520

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         585         608         643
    11.3      Other than full-time permanent          47          48          51
    11.5      Other personnel compensation..          20          21          21
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         652         677         715
    12.1    Civilian personnel benefits.....         152         158         167
    13.0    Benefits for former personnel...          12          13          13
    21.0    Travel and transportation of
              persons.......................          35          33          34
    22.0    Transportation of things........           8           8           8
    23.1    Rental payments to GSA..........          20          20          20
    23.2    Rental payments to others.......          21          20          20
    23.3    Communications, utilities, and
              miscellaneous charges.........          40          38          39
    24.0    Printing and reproduction.......           5           5           5
    25.2    Other services..................         229         217         224
    26.0    Supplies and materials..........          57          54          56
    31.0    Equipment.......................          24          23          24
    32.0    Land and structures.............           3           3           3
    42.0    Insurance claims and indemnities           3           2           3
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       1,261       1,271       1,331
    99.0  Reimbursable obligations..........          99          90          90
                                               ---------   ---------  ----------
    99.9    Total obligations...............       1,360       1,361       1,421
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.      19,288      19,308      19,330
    1005    Full-time equivalent of overtime
              and holiday hours.............         304         351         344
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.         433         508         508
    2005    Full-time equivalent of overtime
              and holiday hours.............          29          34          34
    ---------------------------------------------------------------------------

                         Reconstruction and Construction

        For necessary expenses of the Forest Service, not otherwise provided
    for, [$174,974,000] $146,084,000, to remain available until expended for
    construction, reconstruction and acquisition of buildings and other
    facilities, and for construction, reconstruction and repair of forest
    roads and trails by the Forest Service as authorized by 16 U.S.C. 532-
    538 and 23 U.S.C. 101 and 205[: Provided, That not to exceed
    $50,000,000, to remain available until expended, may be obligated for
    the construction of forest roads by timber purchasers: Provided further,
    That funds appropriated under this head for the construction of the
    Wayne National Forest Supervisor's Office may be granted to the Ohio
    State Highway Patrol as the federal share of the cost of construction of
    a new facility to be occupied jointly by the Forest Service and the Ohio
    State Highway Patrol: Provided further, That an agreed upon lease of
    space in the new facility shall be provided to the Forest Service
    without charge for the life of the building]. (Department of the
    Interior and Related Agencies Appropriations Act, 1997.)

    [[Page 244]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Construction of facilities......          62          51          55
    00.02   Road and trail construction.....         110          89          98
    00.03   Flood Supplemental..............           7          43          11
                                               ---------   ---------  ----------
    00.91     Total construction............         179         183         164
    01.01 Reimbursable program..............           7           7           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............         186         190         171
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          67         114         106
    22.00 New budget authority (gross)......         233         182         153
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         300         296         259
    23.95 New obligations...................        -186        -190        -171
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         114         106          88
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         226         175         146
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           7           7           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         233         182         153
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         121          96         120
    73.10 New obligations...................         186         190         171
    73.20 Total outlays (gross).............        -211        -166        -164
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          96         120         127
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          83          99          82
    86.93 Outlays from current balances.....         121          60          75
    86.97 Outlays from new permanent
            authority.......................           7           7           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         211         166         164
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -6          -7          -7
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -7          -7          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         226         175         146
    90.00 Outlays...........................         204         159         157
    ---------------------------------------------------------------------------

        Facilities.--Provides for reconstruction, rehabilitation, upgrade,
    construction, and acquisition of facilities necessary to: safely meet
    recreation demand while protecting environmental values and other
    resource uses of the National Forests; carry out National Forest and
    State and Private Forestry programs, including fire lookouts, offices,
    dwellings and barracks for employee housing, service, and storage
    buildings, tree nursery buildings, dams, and other forest resource
    management projects; manage Forest and Rangeland Research laboratories
    and related facilities, and for procurement and installation of
    necessary initial equipment needed to put the facility into operating
    condition.

        Roads and trails.--Roads and trails are essential to the protection
    and management of the National Forest System, as well as providing
    access to National Forest System areas for recreation and utilization of
    their resources. Roads also may be constructed and/or reconstructed by a
    timber purchaser as a requirement of the timber sale contract. (16
    U.S.C. 535, 1608).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          50          48          44
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          54          52          48
    12.1    Civilian personnel benefits.....          12          12          11
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           3           3           3
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........           2           2           2
    23.2    Rental payments to others.......           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           3
    25.2    Other services..................          64          68          59
    26.0    Supplies and materials..........           7           7           6
    31.0    Equipment.......................           2           3           2
    32.0    Land and structures.............          25          26          23
    41.0    Grants, subsidies, and
              contributions.................           3           3           3
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         179         183         164
    99.0  Reimbursable obligations..........           7           7           7
                                               ---------   ---------  ----------
    99.9    Total obligations...............         186         190         171
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       1,429       1,346       1,199
    1005    Full-time equivalent of overtime
              and holiday hours.............          32          30          27
        Reimbursable:
          Total compensable workyears:

    2001    Full-time equivalent employment.          20          23          23
    2005    Full-time equivalent of overtime
              and holiday hours.............           1           1           1
    ---------------------------------------------------------------------------

                          Forest and Rangeland Research

        For necessary expenses of forest and rangeland research as
    authorized by law, [$179,786,000] $179,781,000, to remain available
    until expended.

         Gifts, Donations and Bequests for Forest and Rangeland Research

        For expenses authorized by 16 U.S.C. 1643(b), $92,000, to remain
    available until expended, to be derived from the fund established
    pursuant to the above Act. (Department of the Interior and Related
    Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.06 Forest and Rangeland Research.....         174         175         175
    01.01 Reimbursable program..............          15          15          15
                                               ---------   ---------  ----------
    10.00   Total obligations...............         189         190         190
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          10          14          19
    22.00 New budget authority (gross)......         193         195         195
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         202         209         214
    23.95 New obligations...................        -189        -190        -190
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          14          19          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         178         180         180

    [[Page 245]]

          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          15          15          15
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         193         195         195
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          67          58          53
    73.10 New obligations...................         189         190         190
    73.20 Total outlays (gross).............        -198        -195        -207
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          58          53          36
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         116         122         122
    86.93 Outlays from current balances.....          67          58          70
    86.97 Outlays from new permanent
            authority.......................          15          15          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         198         195         207
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -13         -14         -14
    88.40     Non-Federal sources...........          -2          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -15         -15         -15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         178         180         180
    90.00 Outlays...........................         182         180         192
    ---------------------------------------------------------------------------

        The mission of Forest and Rangeland Research is to serve society by
    developing and communicating the scientific information and technology
    needed to protect, manage, use, and sustain the natural resources of the
    Nation's forests and rangelands. This information is essential for
    formulating policy and wisely managing and conserving both public and
    private forests and rangelands. Research is the key to sustaining our
    forest and rangeland productivity and health while providing a quality
    environment. Forest and Rangeland Research is conducted and disseminated
    through seven Forest and Range Experiment Station headquarters and their
    laboratories, the Forest Products Laboratory, and the International
    Institute of Tropical Forestry.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          91          90          91
    11.3      Other than full-time permanent           7           7           7
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          99          98          99
    12.1    Civilian personnel benefits.....          22          21          22
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           5           6           5
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           6           6
    24.0    Printing and reproduction.......           1           1           1
    25.5    Research and development
              contracts.....................          25          26          25
    26.0    Supplies and materials..........           7           7           7
    31.0    Equipment.......................           5           5           5
    41.0    Grants, subsidies, and
              contributions.................           2           2           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         174         175         175
    99.0  Reimbursable obligations..........          15          15          15
                                               ---------   ---------  ----------
    99.9    Total obligations...............         189         190         190
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       2,353       2,242       2,223
    1005    Full-time equivalent of overtime
              and holiday hours.............          12          12          11
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          77          77          74
    ---------------------------------------------------------------------------

                           State and Private Forestry

        For necessary expenses of cooperating with[,] and providing
    technical and financial assistance to States, Territories, possessions,
    and others, and for forest [pest] health management [activities],
    cooperative forestry, and education and land conservation activities,
    [$155,461,000] $156,408,000, to remain available until expended, as
    authorized by law[: Provided, That of funds available under this heading
    for Pacific Northwest Assistance in this or prior appropriations Acts.
    $750,000 shall be provided to the World Forestry Center for purposes of
    continuing scientific research and other authorized efforts regarding
    the land exchange efforts in the Umpqua River Basin region]. (Department
    of the Interior and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.05   Forest health management........          64          67          77
    00.06   Cooperative forestry............         112          91          82
                                               ---------   ---------  ----------
    00.91     Total direct program..........         176         158         159
    01.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         177         159         160
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          40          26          23
    22.00 New budget authority (gross)......         159         156         157
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         203         182         180
    23.95 New obligations...................        -177        -159        -160
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          26          23          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         158         155         156
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         159         156         157
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         131         144         132
    73.10 New obligations...................         177         159         160
    73.20 Total outlays (gross).............        -160        -171        -157
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         144         132         135
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         119         116         117
    86.93 Outlays from current balances.....          40          54          39
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         160         171         157
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         158         155         156
    90.00 Outlays...........................         159         170         156
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      State and private forestry............         137         155         157
      Emergency pest suppression fund.......          17
    ----------------------------------------------------------------------------

    [[Page 246]]

    Distribution of outlays by account:
      State and private forestry............         149
      Emergency pest suppression fund.......          11
    ---------------------------------------------------------------------------

        State and Private Forestry programs provide assistance to manage,
    use, and protect forest resources on State, urban, and private lands to
    meet domestic and international demands for goods and services.
    Assistance is provided to a wide range of customers including all
    States, Puerto Rico, the Virgin Islands, Guam, the Northern Mariana
    Islands and the Trust Terrority of the Pacific.

        Forest health management.--Includes Federal lands, cooperative
    lands, and cooperative fire management programs.

        Cooperative Forestry.--Includes forest stewardship, the stewardship
    incentives program, the forest legacy program, urban and community
    forestry, economic action programs, and the Pacific Northwest community
    assistance programs. Forest stewardship includes: the forest resource
    management; and the seedlings, nursery, and tree improvement programs.
    Economic action programs include the economic recovery, rural
    development, and forest products conservation and recycling programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          28          28          28
    11.3      Other than full-time permanent           1           2           2
    11.5      Other personnel compensation..           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          30          30          30
    12.1    Civilian personnel benefits.....           5           5           5
    13.0    Benefits for former personnel...           1
    21.0    Travel and transportation of
              persons.......................           3           3           3
    23.1    Rental payments to GSA..........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          40          35          35
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................           1           1           1
    32.0    Land and structures.............           5           5           5
    41.0    Grants, subsidies, and
              contributions.................          86          74          75
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         176         158         159
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         177         159         160
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.         684         798         871
    1005    Full-time equivalent of overtime
              and holiday hours.............          11          13          14
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           6           9           9
    ---------------------------------------------------------------------------

                            Wildland Fire Management

        For necessary expenses for forest fire presuppression activities on
    National Forest System lands, for emergency fire suppression on or
    adjacent to such lands or other lands under fire protection agreement,
    and for emergency rehabilitation of burned over National Forest System
    lands, [$530,016,000] $514,311,000 to remain available until expended:
    Provided, That unexpended balances of amounts previously appropriated
    under any other headings for Forest Service fire activities are
    transferred to and merged with this appropriation and subject to the
    same terms and conditions: Provided further, That such funds are
    available for repayment of advances from other appropriations accounts
    previously transferred for such purposes. (Department of the Interior
    and Related Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fire management...................         583         751         514
    01.01 Reimbursable program..............          27          27          27
                                               ---------   ---------  ----------
    10.00   Total obligations...............         610         778         541
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          18
    22.00 New budget authority (gross)......         512         778         541
    22.50 Deficiency........................          79
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         609         778         541
    23.95 New obligations...................        -610        -778        -541
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         485         830         514
    40.48   Portion applied to liquidate
              deficiencies..................                     -79
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         485         751         514
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          27          27          27
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         512         778         541
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          93         210         204
    73.10 New obligations...................         610         778         541
    73.20 Total outlays (gross).............        -493        -784        -535
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         210         204         210
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         373         626         383
    86.93 Outlays from current balances.....          93         131         125
    86.97 Outlays from new permanent
            authority.......................          27          27          27
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         493         784         535
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -6          -6
    88.40     Non-Federal sources...........         -27         -21         -21
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -27         -27         -27
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         485         751         514
    90.00 Outlays...........................         466         757         508
    91.90 Unpaid obligations, end of year:
            Deficiency......................          79
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Wildland fire management..............         211         529         514
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Wildland fire management..............           3         515         495
      Forest Service fire protection........         259
      Emergency Forest Service firefighting
        fund................................         203
    ---------------------------------------------------------------------------

        Wildland fire management.--This appropriation provides funding for
    Forest Service fire management, presuppression, and suppression on
    National Forest System lands, adjacent State and private lands, and
    other lands under fire protection agreement.

        Preparedness.--To protect National Forest System (NFS) lands from
    damage by wildfires commensurate with the threat to life, values at
    risk, public values, and management objectives.

    [[Page 247]]

        Preparedness provides the basic fire organization and capability to
    prevent forest fires and to take prompt, effective initial attack
    suppression operations action on wildfires. This funding covers expenses
    associated with planning, prevention, detection, information and
    education; pre-incident training; equipment and supply purchase and
    replacement; and other preparedness activities including the base salary
    and travel of the regular Forest Service firefighting organization.
    Through this program the Forest Service also assists other Federal
    agencies and States with training programs, planning assistance, sharing
    joint equipment use contracts and interagency fire coordination centers.

        Fire Operations.--To efficiently suppress wildland fires on or
    threatening National Forest System (NFS) lands or other lands under fire
    protection agreement. Fire Operation provides funds for all hazardous
    fuel reduction program activities including planning and implementing,
    mechanical treatments, prescribed fire, and monitoring of fuel treatment
    accomplishments. Fuel treatment activities are performed to minimize the
    potential for large, destructive wildfires.

        Fire Operation funds are used to immediately and efficiently
    rehabilitate severely burned NFS lands to prevent further destruction of
    natural resources, including soil loss and flooding. Funds are used to
    increase the level of fire preparedness when predicted or actual burning
    conditions exceed normal levels.

        Contingency Funds.--This budget requests $5.8 billion in government-
    wide contingent funding for 1998, which represents the 1991-1997 average
    annual emergency spending under the BEA. This fund will be available to
    this and other accounts as the need arises. Please see the Emergency
    Requirements for Natural Disasters account in the Funds Appropriated to
    the President Chapter for more detailed information. The requested
    amount for future years will be based on average annual emergency
    funding under the BEA.

        The base programs, such as Wildland Fire Management, will have
    access to the proposed contingency fund once all current appropriations
    in the affected account/accounts have been obligated, and a Presidential
    decision has been made to make additional funds available. The fund is
    meant to be flexible enough to respond to a variety of disasters and
    thus does not reserve to dedicate specific amounts within the total for
    the eligible programs. The flexibility of the fund is essential to meet
    the full range of Federal disaster funding requirements.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          80          83          81
    11.3      Other than full-time permanent          18          18          18
    11.5      Other personnel compensation..          62          65          63
    11.8      Special personal services
                payments....................          18          19          19
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         178         185         181
    12.1    Civilian personnel benefits.....          79          83          81
    13.0    Benefits for former personnel...          18          18          18
    21.0    Travel and transportation of
              persons.......................          38          20          10
    22.0    Transportation of things........           9           5           2
    23.1    Rental payments to GSA..........           2           2           2
    23.2    Rental payments to others.......           5           3           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          22          12           6
    24.0    Printing and reproduction.......           1           1
    25.2    Other services..................         135         372         187
    26.0    Supplies and materials..........          79          42          21
    31.0    Equipment.......................          13           7           4
    32.0    Land and structures.............           1
    41.0    Grants, subsidies, and
              contributions.................           1
    42.0    Insurance claims and indemnities           2           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         583         751         514
    99.0  Reimbursable obligations..........          27          27          27
                                               ---------   ---------  ----------
    99.9    Total obligations...............         610         778         541
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...       5,909       5,953       5,998
    1005  Full-time equivalent of overtime
            and holiday hours...............       2,507       2,613       2,546
    ---------------------------------------------------------------------------

               Payments to States--Northern Spotted Owl Guarantee

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1117-0-1-806      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                     130         125
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     130         125
    23.95 New obligations...................                    -130        -125
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........                     130         125
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                     130         125
    73.20 Total outlays (gross).............                    -130        -125
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                     130         125
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     130         125
    90.00 Outlays...........................                     130         125
    ---------------------------------------------------------------------------

        Payments to States, Northern Spotted Owl Guarantee.--For payment to
    the States of Oregon, Washington, and California for the benefit of
    counties in which National Forests are situated and that are affected by
    decisions related to the northern spotted owl, pursuant to section 13982
    of Public Law 103-66 as amended by Public Law 103-443.

                     Southeast Alaska Economic Disaster Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1108-0-1-451      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          50          47          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                      60          13
    22.00 New budget authority (gross)......         110
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         110          60          13
    23.95 New obligations...................         -50         -47         -13
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          60          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         110
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                      27          27
    73.10 New obligations...................          50          47          13
    73.20 Total outlays (gross).............         -23         -47         -20
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          27          27          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          23
    86.93 Outlays from current balances.....                      47          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          23          47          20
    ----------------------------------------------------------------------------

    [[Page 248]]

        Net budget authority and outlays:
    89.00 Budget authority..................         110
    90.00 Outlays...........................          23          47          20
    ---------------------------------------------------------------------------

        Public Law 104-134 established this appropriation to provide
    assistance to employ former timber workers in Wrangell and Sitka and for
    related community development projects in Sitka, Wrangell, and
    Ketchican. There is $10 million scheduled for this in 1998. In addition,
    a sum of $10 million will be allocated to selected organized and
    unorganized boroughs in Southeast Alaska. Distribution to the
    unorganized boroughs is based on the proportion of 1995 timber receipts
    from each borough.

                              Range Betterment Fund

        For necessary expenses of range rehabilitation, protection, and
    improvement, 50 per centum of all moneys received during the prior
    fiscal year, as fees for grazing domestic livestock on lands in National
    Forests in the sixteen Western States, pursuant to section 401(b)(1) of
    Public Law 94-579, as amended, to remain available until expended, of
    which not to exceed 6 per centum shall be available for administrative
    expenses associated with on-the-ground range rehabilitation, protection,
    and improvements. (Department of the Interior and Related Agencies
    Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           2           2           2
        Receipts:
    02.01 Cooperative range improvements....           4           3           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           6           5           5
        Appropriation:
    05.01 Range betterment fund.............          -4          -3          -3
    07.99 Total balance, end of year........           2           2           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           4           4           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           2           1
    22.00 New budget authority (gross)......           3           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           4           3
    23.95 New obligations...................          -4          -4          -3
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.25 Appropriation (special fund,
            indefinite).....................           4           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           1           1
    73.10 New obligations...................           4           4           3
    73.20 Total outlays (gross).............          -5          -3          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           1           1           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           3           3
    86.93 Outlays from current balances.....           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           3           3
    90.00 Outlays...........................           5           3           3
    ---------------------------------------------------------------------------

        Fifty percent of the grazing fees from the National Forests in the
    16 western States, once appropriated, are used to protect and improve
    the productivity of the range, mainly by revegetation, construction, and
    maintenance of improvements. Capital improvement funding is currently
    being collected under the authority of the Federal Land Policy and
    Management Act of 1976 (43 U.S.C. 1751), as amended.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           1           1           1
    11.3    Other than full-time permanent..           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           2           1           1
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           2           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           4           4           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...          55          46          45
    1005  Full-time equivalent of overtime
            and holiday hours...............           2           2           2
    ---------------------------------------------------------------------------

                            Land Acquisition Accounts

                               [land acquisition]

        [For expenses necessary to carry out the provisions of the Land and
    Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l-4-11),
    including administrative expenses, and for acquisition of land or
    waters, or interest therein, in accordance with statutory authority
    applicable to the Forest Service, $40,575,000, to be derived from the
    Land and Water Conservation Fund, to remain available until expended.]

            [acquisition of lands for national forests special acts]

        [For acquisition of lands within the exterior boundaries of the
    Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National
    Forest, Nevada; and the Angeles, San Bernardino, Sequoia, and Cleveland
    National Forests, California, as authorized by law, $1,069,000, to be
    derived from forest receipts.]

                [acquisition of lands to complete land exchanges]

        [For acquisition of lands, such sums, to be derived from funds
    deposited by State, county, or municipal governments, public school
    districts, or other public school authorities pursuant to the Act of
    December 4, 1967, as amended (16 U.S.C. 484a), to remain available until
    expended.]
        For acquisition of lands, waters, or interests therein, as
    authorized by law, $42,336,000, to remain available until expended, to
    be derived as follows: from the Land and Water Conservation Fund, as
    amended (16 U.S.C. 460l, 4-11, 516-67a, and 555), $41,057,000; from
    forest receipts (54 Stat. 402 and 58 Stat. 227-229), $1,069,000; and
    from funds deposited by State, county, or municipal governments, public
    school districts, or other public school authorities pursuant to the Act
    of December 4, 1967 (16 U.S.C. 484a), $210,000. (16 U.S.C. 4601-4-11,
    4601-516-617a, 555a; P.L. 96-586; P.L. 76-589, 76-591; 78-310, and 16
    U.S.C. 484a; Department of the Interior and Related Agencies
    Appropriations Act, 1997.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                       1           1
        Receipts:
    02.01 National forest lands under
            special acts....................           2           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           2           2           2

    [[Page 249]]

        Appropriation:
    05.01 Land acquisition accounts.........          -1          -1          -1
    07.99 Total balance, end of year........           1           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          40          40          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          12          13          15
    22.00 New budget authority (gross)......          41          42          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          55          57
    23.95 New obligations...................         -40         -40         -41
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          13          15          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Appropriation (special fund, definite):

    40.20   Appropriation (LWCF)............          40          41          41
    40.20   Appropriation (special fund,
              definite).....................           1           1           1
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          41          42          42
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          41          42          42
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          25          15           7
    73.10 New obligations...................          40          40          41
    73.20 Total outlays (gross).............         -50         -48         -45
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          15           7           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          25          36          36
    86.93 Outlays from current balances.....          25          12           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          50          48          45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          41          42          42
    90.00 Outlays...........................          49          48          45
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Land acquisition accounts.........                                  42
      Land Acquisition..................          39          40
      Acquisition of Lands for National
        Forest, Special Acts............           1           1
    ------------------------------------------------------------------------
    Distribution of outlays by account:
      Land acquisition accounts.........
      Land Acquisition..................          48
      Acquisition of Lands for National
        Forest, Special Acts............           1
      Acquisition of Lands To Complete
        Land Exchanges..................           1
    ------------------------------------------------------------------------

        This appropriation consolidates three land acquisition authorities
    for acquisition of lands, waters, or interest therein, as authorized by
    law.

        Land and water conservation fund.--Recreation lands and interests
    are acquired within areas of the National Forest System, wilderness,
    wildlife and fisheries habitat management areas, and endangered species
    and other areas for public outdoor recreation purposes.

        Acquisition of lands for national forests (Special Acts).--On the
    basis of various public laws and agreements with certain counties in
    Utah, Nevada, and California, National Forest receipts, including the
    portions which would normally be paid to the State to benefit county
    roads and schools, are used by the Federal Government for purchase of
    privately owned lands within the National Forest boundaries to aid in
    the control of soil erosion and flood damage.

        Acquisition of lands to complete land exchanges.--Deposits made by
    State, county, or municipal governments, public school districts, or
    other public school authorities for cash equalization of certain land
    exchanges are used, as appropriated, to acquire similar lands suitable
    for National Forest System purposes in the same State as the National
    Forest lands conveyed in the land exchange.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           5           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    21.0  Travel and transportation of
            persons.........................           1
    32.0  Land and structures...............          33          34          35
                                               ---------   ---------  ----------
    99.9    Total obligations...............          40          40          41
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-300      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...         121         120         122
    1005  Full-time equivalent of overtime
            and holiday hours...............           1           1           1
    ---------------------------------------------------------------------------

                             Forest Service Receipts

        The following tables describe the sources and uses of Forest Service
    collections from the perspective of the total Forest Service program.
    The earnings table is a significant measure of the level of program
    activity in a given year. The disposition table shows the distribution
    of collections among the various funds and accounts in the context of
    the overall program. The earnings data are presented on the basis of
    gross collections and credits. These data may differ from amounts in
    receipt accounts, which are recorded on a cash basis, net of transfers
    and adjustments.

        Receipts are collected from the sale and use of resources in the
    National Forests and the National Grasslands. Some receipts, including
    those for trust funds, are used directly for programs under a permanent
    appropriation. Other receipts are appropriated annually by Congress,
    collected and transferred to other Federal agencies, or deposited in the
    General Fund of the U.S. Treasury, as indicated below.

                                    EARNINGS

                            (In millions of dollars)

                                         1996 Actual  1997 Est.   1998 Est.
    Collections from National Forests:
      Power.............................           2           2           2
      Minerals..........................           2           2           2
      Land Uses.........................           4          12          18
      Timber............................         378         361         365
      Brush Disposal....................          18          37          32
      Recreation........................          48          48          48
      Other.............................         153         151         152
    Credits from National Forests:
      Purchaser Constructed Roads.......        [41]        [55]
                                        ------------------------------------
          Total earnings, National
            Forests.....................         605         613         618
    Collections from National
        Grasslands:
      Minerals..........................          15          23          24
      Grazing...........................           1           1           1
      Other.............................                       1           1
                                        ------------------------------------
          Total earnings, National
            Grasslands..................          16          24          25
    Other Collections:
      Cooperative Work Other............          43          53          53
    Amounts included above that are
        collected by other Federal
        Agencies for the Forest Service:
      Department of Interior (from Land
        and Water Conservation Fund for
        land acquisition)...............          37          37          30
      Department of Treasury (from
        customs duties for Reforestation
        Trust Fund).....................          30          30          30
    Collected by Forest Service for the
    Department of the Interior (Oregon
    and California Lands)...............          11          11          11
    ------------------------------------------------------------------------

                             DISPOSITION OF RECEIPTS

                     (Program level in millions of dollars)

                                         1996 Actual  1997 Est.   1998 Est.
    Permanent Special Fund
        Appropriations:
      Timber Salvage Fund...............         195         190         100

    [[Page 250]]

      Brush Disposal....................          18          37          32
      Timber Roads, Purchaser Election..           6           6           6
      Recreation Fee Collection Costs...           2           2           2
      Recreation Fee Demonstration
        Program.........................                                   3
      Payments to States and Counties
        \1\.............................         279         125         127
      Operation and Maintenance of
        Quarters........................           6           8           7
      Road and Trail Construction.......                      66
      Forest Ecosystem Restoration and
        Maintenance Fund (proposed).....                                 121
    Permanent Trust Fund Appropriations:
      Cooperative Work Trust Fund (KV)..         153         219         198
      Cooperative Work Other............          43          53          53
      Reforestation Trust Fund..........          30          30          30
    Available from Annual
        Appropriations:
      Range Betterment Fund.............           4           3           3
      National Forest System:
        Recreation Facilities
          Maintenance...................           6           6           6
        Midewan Tallgrass Prairie.......
      Land Acquisition..................          40          42          42
    Deposits to the General Fund:
      National Grasslands Receipts......           4          15          12
      National Forest Receipts..........          68          82          95
    ------------------------------------------------------------------------
        \1\ Additional payments in 1997 and 1998 are through the Payments to
    States--Northern Spotted Owl Guarantee account.

                     Forest Service Permanent Appropriations

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         361         294         306
        Receipts:
    02.01 National forests fund, Agriculture         -79
    02.03 Payments to States, National
            Forest Fund.....................         274         124         125
    02.04 Timber roads, purchaser elections.           6           6           4
    02.05 Road and trails for States,
            National Forest Fund............          36          66          66
    02.06 Timber salvage sales..............         181         167         155
    02.07 Deposits, brush disposal..........          18          37          32
    02.08 Recreational fee demonstration
            program.........................                       3          16
    02.09 Rents and charges for quarters....           6           7           7
    02.10 National Grasslands...............          12           5           6
    02.11 Miscellaneous special funds,
            Forest Service..................           6           3           3
    02.12 National forests fund, Interior...          10           9          10
    02.13 Road and trails for States,
            National Forest Fund,
            legislative proposal............                                  67
    02.14 Timber salvage sales, legislative
            proposal........................                                 -67
                                               ---------   ---------  ----------
    02.99   Total receipts..................         470         427         424
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         831         721         730
        Appropriation:
    05.01 Forest Service permanent
            appropriations..................        -537        -415        -411
    05.02 Forest Service permanent
            appropriations, legislative
            proposal........................                                 -16
                                               ---------   ---------  ----------
    05.99 Subtotal appropriation............        -537        -415        -427
    07.99 Total balance, end of year........         294         306         303
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payments to States, National
            forest fund.....................         272         122         122
    00.02 Payment to Minnesota..............           1           1           1
    00.03 Payments to counties, National
            Grasslands......................           4           4           4
    00.04 Recreation fee collection costs...           1           1           1
    00.05 Recreation demonstration pilot
            project.........................                       3
    00.06 Timber purchaser roads constructed
            by Forest Service...............           3           6           4
    00.07 Timber salvage sales..............         204         203         154
    00.08 Roads and trails for States.......          36          66          66
    00.09 Expenses, brush disposal..........          25          37          32
    00.10 Restoration of forest lands and
            improvements....................           1           1           1
    00.11 Operation and maintenance of
            quarters........................           6           7           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............         555         451         392
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         287         269         233
    22.00 New budget authority (gross)......         537         415         411
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         824         684         644
    23.95 New obligations...................        -555        -451        -392
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         269         233         252
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................         537         415         411
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          33          33          33
    73.10 New obligations...................         555         451         392
    73.20 Total outlays (gross).............        -555        -451        -392
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          33          33          33
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         487         415         392
    86.98 Outlays from permanent balances...          68          36
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         555         451         392
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         537         415         411
    90.00 Outlays...........................         555         451         392
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Payments to States, National
        Forest Fund.....................         279         122         122
      Payment to Minnesota..............           1           1           1
      Payments to counties, National
        Grasslands......................           4           4           4
      Recreation fee collection costs...           1           1           1
      Recreation fee demonstration
        program.........................           0           3
      Timber purchaser roads constructed
        by Forest Service...............           6           6           6
      Roads and Trails for States.......          36          66          66
      Timber salvage sales..............         181         167         171
      Expenses, brush disposal..........          18          37          32
      Restoration of Forestlands and
        Improvements....................           5           1           1
      Operation and Maintenance of
        Quarters........................           6           7           7
    ------------------------------------------------------------------------
    Distribution of outlays by account:
      Payments to States, National
        Forest Fund.....................         272         122         122
      Payment to Minnesota..............           1           1           1
      Payments to counties, National
        Grasslands......................           4           4           4
      Recreation fee collection costs...           1           1           1
      Recreation fee demonstration
        program.........................           0           3
      Timber purchaser roads constructed
        by Forest Service...............           3           6           4
      Timber salvage sales..............         204         203         154
      Roads and Trails for States.......          36          66          66
      Expenses, brush disposal..........          25          37          32
      Restoration of Forestlands and
        Improvements....................           1           1           1
      Operation and Maintenance of
        Quarters........................           6           7           7
    ------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................         537         415         411
      Outlays...........................         555         451         392
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                  16
      Outlays...........................                                  16
                                        ------------------------------------
    Total:
      Budget Authority..................         537         415         427
      Outlays...........................         555         451         408
                                        ====================================

        Fees, operation and maintenance of recreation facilities.--Fees
    collected at developed recreation facilities; 50 percent of the fees
    collected are available for use, when appropriated, for operation and
    maintenance of fee facilities.

        Operation and maintenance of quarters.--Quarters rental deductions
    are collected from employees occupying Forest Service facilities.
    Amounts are deposited into a special fund and are available for the
    maintenance and operation of employee-occupied quarters. (5 U.S.C. 5911)

        Resource management, timber receipts.--Funds in this special account
    are available for trail maintenance, reconstruc-

    [[Page 251]]

    tion, and construction; wildlife and fisheries habitat management; soil,
    water, and air management; cultural/heritage resource management;
    wilderness management; reforestation; and timber sale administration and
    management.

        Recreation fee demonstration program.--Pursuant to Sec. 315 of Title
    III--General Provisions, Omnibus Consolidated Rescissions and
    Appropriations Act of 1996, Public Law 104-134 of April 26, 1996,
    amounts collected at the fee demonstration areas, sites, or projects are
    available for maintenance and development of recreation facilities.

        Midewin National Tallgrass Prairie rental fee account.--Monies
    received under a special use authorization (issued under subsection (b)
    of Public Law 104-106, Title XXIX, Subtitle A, Section 2915, after
    distribution to the State of Illinois and affected counties pursuant to
    the Act of May 23, 1908) are available to cover the cost to the United
    States of prairie improvement work at the Midewin National Tallgrass
    Prairie.

        Receipts for construction of administrative improvements, Taos, New
    Mexico land conveyance, Forest Service.--Funds collected from the sale
    of land, when appropriated, are available to construct administrative
    facilities at Taos, New Mexico. (Sec. 1(b)(1), Public Law 103-132)

        Payment to Minnesota.--At the close of each fiscal year, the State
    of Minnesota is paid 0.75 percent of the appraised value of certain
    Superior National Forest lands in the counties of Cook Lake and St.
    Louis for distribution to these counties (16 U.S.C. 577g).

        Payments to counties, National Grasslands.--Of the revenues received
    in a calendar year from the use of National Grasslands, 25 percent is
    paid to the counties in which such land is situated for funding local
    schools and roads (7 U.S.C. 1012).

        Payments to States, National Forests Fund.--With minor exceptions,
    25 percent of the money received from the National Forests, including
    all the collections under 16 U.S.C. 576b, and all amounts allowed any
    timber purchaser for construction of roads, is paid at the end of each
    fiscal year to the States for funding local schools and roads of the
    county in which such forests are situated (16 U.S.C. 500 and 97 Stat.
    1123).

        Expenses, brush disposal.--Funds from payments by purchasers of
    National Forest timber to dispose of or treat slash and other debris
    that result from cutting operations (16 U.S.C. 490).

        Licensee programs, Forest Service.--Funds from fees for the use of
    characters by private enterprises are collected under regulations
    promulgated by the Secretary as follows:
            Smokey Bear.--For furthering the nationwide forest fire
        prevention campaign (16 U.S.C. 580(2)).
            Woodsy Owl.--For promoting wise use of the environment and
        programs which foster maintenance and improvement of environmental
        quality (16 U.S.C. 580(1)).

        Restoration of forest lands and improvements.--Funds from claim
    settlements involving damage to lands or improvements and from
    forfeiture of deposits and bonds by permittees and timber purchasers are
    used for the restoration made necessary by the action which led to the
    settlement of forfeiture (16 U.S.C. 579c).

        Timber purchaser roads constructed by Forest Service.--Funds from
    timber receipts for Government constructed permanent roads for
    purchasers of timber who qualify as small businesses and elect to have
    the Forest Service construct the roads designated under the timber sale
    contract where costs exceed $20,000 (16 U.S.C. 472a(i)).

        Strawberry Valley land exchange.--Funds from the sale or exchange of
    authorized lands and the need for administrative sites and improvements
    by the Uinta National Forest.

        Recreation fee collection costs.--Under authority of Section
    10002(b) of the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66),
    which amended Section 4(i)(1) of the L&WCF Act, the Secretaries of
    Agriculture and Interior are authorized to withhold a portion of all
    recreation fees collected (not to exceed 15 percent), to be available
    during the current fiscal year, without further appropriation to cover
    fee collection costs.

        Tongass timber supply fund.--Funds from sales of Alaska timber to
    maintain the timber supply from the Tongass National Forest at a
    specified level (16 U.S.C. 539d).

        Forest Ecosystem Restoration and Maintenance Fund (FERM).--Proposed
    legislation, to be transmitted later, would transfer an estimated $55
    million of receipts from the Salvage Sale Fund to the new Forest
    Ecosystem Restoration and Maintenance Fund, which would fund a broad
    range of ecosystem enhancements. The proposed legislation also would
    direct that receipts collected in the Road and Trail Fund (10 percent of
    National Forest System revenues) be transferred in 1998 and subsequent
    years to the new FERM.

        Timber salvage sales.--Funds salvage timber sale preparation.
    Expenditures from the timber salvage sale fund for preparing and
    offering new sales are limited to $100 million for 1998.

        Purchaser Road Credits.--The budget eliminates purchaser road
    credits beginning in 1998. These credits are an unnecessary complicating
    factor to the Forest Service fiscal and budgetary systems. To compensate
    for the future unavailability of road credits, purchasers will be
    required to construct or reconstruct any necessary roads as a condition
    of the sale contract. Their competitive timber bids are expected to
    decline by the amount of the credits. This result is simpler to
    administer.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................         209         179         169
    12.1  Civilian personnel benefits.......          37          32          30
    41.0  Grants, subsidies, and
            contributions...................         309         240         193
                                               ---------   ---------  ----------
    99.9    Total obligations...............         555         451         392
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       4,177       3,912       3,352
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-4-2-999      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Recreation demonstration pilot
            project.........................                                  16
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.4).........................                                  16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  16
    23.95 New obligations...................                                 -16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................                                  16
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  16
    73.20 Total outlays (gross).............                                 -16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                  16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  16

    [[Page 252]]

    90.00 Outlays...........................                                  16
    ---------------------------------------------------------------------------

        This is one of several proposals in the budget to charge fees to
    users directly availing themselves of, or subject to, a government
    service, program, or activity, in order to cover the government's costs.
    Legislation will be proposed to authorize the fees and, upon enactment
    of the authorization, a budget amendment to the current appropriations
    language will be proposed to make the fees available for expenditure.
    Because the current requirements of the Budget Enforcement Act of 1990
    make it difficult to fund discretionary programs with receipts that are
    not authorized in appropriations acts, the Administration is proposing a
    change in the requirements to facilitate the enactment of proposals such
    as this one.

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses................         136          73          73
    00.02 Capital investment................          58          66          58
                                               ---------   ---------  ----------
    10.00   Total obligations...............         194         139         131
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....         119         138         141
    22.00 New budget authority (gross)......         213         142         134
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         332         280         275
    23.95 New obligations...................        -194        -139        -131
    24.90 Unobligated balance available, end
            of year: Fund balance...........         138         141         144
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         213         142         134
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          75          41          38
    73.10 New obligations...................         194         139         131
    73.20 Total outlays (gross).............        -228        -142        -134
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.          41          38          35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....         119
    86.97 Outlays from new permanent
            authority.......................         109         142         134
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         228         142         134
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -213        -142        -134
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          14
    ---------------------------------------------------------------------------

        The Working Capital Fund is a self-sustaining revolving fund that
    provides services to National Forests, to research experiment stations,
    to other Federal agencies when necessary, to State and private agencies
    as provided by law, and to persons who cooperate with the Forest Service
    in fire control and other authorized programs.

        The forestry-related supply and support services include:

        Equipment Services.--The fund owns, operates, maintains, replaces,
    and repairs common use motor driven and similar equipment. This
    equipment is rented to administrative units, that is, National Forests,
    research experiment stations, and other units, and, in some cases, to
    other agencies, at rates which recover the cost of operation, repair and
    maintenance, management, and depreciation. The rates also include an
    increment which provides additional cash which, when added to
    depreciation earnings and the residual value of equipment, provides
    sufficient funds to replace the equipment.

        Aircraft Services.--The fund operates, maintains, and repairs Forest
    Service owned aircraft used in fire surveillance and suppression and in
    other Forest Service programs. The aircraft are rented to National
    Forests, research experiment stations, and in some cases to other
    agencies, at rates which recover the cost of depreciation, operation,
    maintenance, repair, and improvements in the airworthiness of the
    aircraft. Aircraft replacement costs are financed from either
    appropriated funds or the Forest Service Working Capital Fund, or a
    combination of both.

        Supply Services.--The fund operates the following common services:

        Photo reproduction laboratories that store, reproduce, and supply
    aerial photographs, aerial maps, and other photographs of National
    Forest lands. The photographic reproductions are sold to National
    Forests, experiment stations, and others at cost.

        Sign shops that manufacture and supply special signs for the
    National Forests for use in regulating traffic and as information to the
    public and other users of the National Forests. The signs are sold to
    National Forests and experiment stations at cost.

        Subsistence services that prepare and serve meals to Forest Service
    crews working in areas where adequate public restaurant facilities are
    not available.

        Seed supply services that provide tree seed for direct seeding or
    sowing in nurseries for the production of trees. Includes purchase or
    collection of cones, extraction of seeds, cleaning and testing, and
    storage and delivery. Operates in conjunction with tree nurseries; that
    is, forest tree nurseries and cold storage facilities for storage of
    tree seedlings. Tree seedlings are sold to National Forests, State
    foresters, and other cooperators at cost.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4605-0-4-302    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         156            152           140            134
    0102  Expense...........................        -110           -136          -139           -131
                                            ------------ --------------  ------------  -------------
    0109  Net income........................          46             16             1              3
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4605-0-4-302    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         193            198           203            208
            Investments in US securities:
    1106      Receivables, net..............          17
          Other Federal assets:

    1802    Inventories and related
              properties....................          27             28            28             29
    1803    Property, plant and equipment,
              net...........................         261            329           359            389
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         498            555           590            626
        LIABILITIES:
    2102  Federal liabilities: Interest
            payable.........................           1
    2201  Non-Federal liabilities: Accounts
            payable.........................          11             13            13             13
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          12             13            13             13
        NET POSITION:
    3300  Cumulative results of operations..         484            542           577            613
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         484            542           577            613
                                            ------------ --------------  ------------  -------------

    [[Page 253]]

    4999  Total liabilities and net position         496            555           590            626
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    13.0  Benefits for former personnel.....           1           1           1
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           1           1           1
    23.2  Rental payments to others.........           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           1           1
    25.2  Other services....................          30          16          16
    26.0  Supplies and materials............          28          20          20
    31.0  Equipment.........................         130          98          90
    99.0  Subtotal, reimbursable obligations         194         139         131
                                               ---------   ---------  ----------
    99.9    Total obligations...............         194         139         131
    ---------------------------------------------------------------------------
        Note.--Personnel totals are included with personnel totals of all
    other Forest Service programs.

                                   Trust Funds

                           Forest Service Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Forest Service Cooperative fund...         201         196         204
    02.02 Transfers from general fund of
            amounts equal to certain customs
            duties..........................          30          30          30
                                               ---------   ---------  ----------
    02.99   Total receipts..................         231         226         234
        Appropriation:
    05.01 Forest Service trust funds........        -231        -226        -234
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................         461         295         267
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         412         182         113
    22.00 New budget authority (gross)......         231         226         234
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         643         416         349
    23.95 New obligations...................        -461        -295        -267
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         182         113          80
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................         231         226         234
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          59          52         102
    73.10 New obligations...................         461         295         267
    73.20 Total outlays (gross).............        -468        -245        -247
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          52         102         122
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         231         226         234
    86.98 Outlays from permanent balances...         237          19          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         468         245         247
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         231         226         234
    90.00 Outlays...........................         467         245         247
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Reforestation trust fund..............          30          30          30
      Cooperative Work trust fund...........         201         151         152
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Reforestation trust fund..............          30          30          30
      Cooperative Work trust fund...........         437         219         198
    ---------------------------------------------------------------------------

        Reforestation trust fund.--Amounts from this account are used for
    reforestation as authorized by 16 U.S.C. 1606a (d) and (e).

        Cooperative work trust fund.--Advances, including deposits from
    purchasers of timber, are received and used for specified work in forest
    investigations, protection, and improvement of the National Forest
    System, including protection, reforestation, and administration of
    private lands adjacent to National Forests (7 U.S.C. 2269; 16 U.S.C.
    498, 535, 565a, 572, 572a, 576b, 1643; and 31 U.S.C. 1321).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          71          76          67
    11.3    Other than full-time permanent..          11          12          10
    11.5    Other personnel compensation....           4           4           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          86          92          81
    12.1  Civilian personnel benefits.......          19          21          18
    13.0  Benefits for former personnel.....           3           3           2
    21.0  Travel and transportation of
            persons.........................           2           4           3
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           2           2           2
    23.2  Rental payments to others.........           3           4           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           4           6           6
    25.2  Other services....................         312         119         112
    26.0  Supplies and materials............          21          30          27
    31.0  Equipment.........................           3           4           4
    32.0  Land and structures...............           4           7           6
    41.0  Grants, subsidies, and
            contributions...................                       1           1
    44.0  Refunds...........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         461         295         267
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...       2,638       2,842       3,046
    1005  Full-time equivalent of overtime
            and holiday hours...............         104         143         120
    ---------------------------------------------------------------------------

             Allocations and Allotments Received From Other Accounts

        Note.--Obligations incurred under allocations or allotments from
    other accounts are included in the schedule of the parent
    appropriations, as follows:
            Agriculture:
                Agricultural Research Service.
                Natural Resources Conservation Service:
                        Watershed and flood prevention operations.
                        Resource conservation and development.
                        Watershed planning.
                        River basin surveys and investigations.
                Conservation Reserve Program.
                Department Administration:
                        Hazardous waste management.
                Rural Housing and Community Development Service; Rural
                    community fire protection grants.
            Transportation: Federal Highway Administration, Highway Trust
                Fund.
            Labor: Employment and Training Administration, Training and
                employment services.

                    ADMINISTRATIVE PROVISIONS, FOREST SERVICE

        Appropriations to the Forest Service for the current fiscal year
    shall be available for: (a) purchase of not to exceed 159 passenger
    motor vehicles of which [14] 22 will be used primarily for law
    enforcement purposes and of which [149] 156 shall be for replacement;
    acquisition of [10] 25 passenger motor vehicles from excess sources, and
    hire of such vehicles; operation and maintenance of aircraft, the
    purchase of not to exceed two for replacement only, and acquisition of
    [20] sufficient aircraft from excess sources to maintain the operable
    fleet at 198 aircraft for use in State and Forest Service wildland fire
    programs and other Forest Service programs; notwithstanding other
    provisions of law, existing aircraft being replaced may be sold, with
    proceeds derived or trade-in value used to offset the

    [[Page 254]]

    purchase price for the replacement aircraft; (b) services pursuant to 7
    U.S.C. 2225, and not to exceed $100,000 for employment under 5 U.S.C.
    3109; (c) purchase, erection, and alteration of buildings and other
    public improvements (7 U.S.C. 2250); (d) acquisition of land, waters,
    and interests therein, pursuant to 7 U.S.C. 428a; (e) for expenses
    pursuant to the Volunteers in the National Forest Act of 1972 (16 U.S.C.
    558a, 558d, 558a note); [and] (f) the cost of uniforms as authorized by
    5 U.S.C. 5901-5902; and (g) for debt collection contracts in accordance
    with 31 U.S.C. 3718(c).
        [None of the funds made available under this Act shall be obligated
    or expended to change the boundaries of any region, to abolish any
    region, to move or close any regional office for research, State and
    private forestry, or National Forest System administration of the Forest
    Service, Department of Agriculture, or to implement any reorganization,
    ``reinvention'' or other type of organizational restructuring of the
    Forest Service, other than the relocation of the Regional Office for
    Region 5 of the Forest Service from San Francisco to excess military
    property at Mare Island, Vallejo, California, without the consent of the
    House and Senate Committees on Appropriations.]
        [Any funds available to the Forest Service may be used for
    retrofitting Mare Island facilities to accommodate the relocation:
    Provided, That funds for the move must come from funds otherwise
    available to Region 5: Provided further, That any funds to be provided
    for such purposes shall only be available upon approval of the House and
    Senate Committees on Appropriations.]
        Any appropriations or funds available to the Forest Service may be
    advanced to the Wildland Fire Management appropriation and may be used
    for forest firefighting and the emergency rehabilitation of burned-over
    lands under its jurisdiction.
        Funds appropriated to the Forest Service shall be available for
    assistance to or through the Agency for International Development and
    the Foreign Agricultural Service in connection with forest and rangeland
    research, technical information, and assistance in foreign countries,
    and shall be available to support forestry and related natural resource
    activities outside the United States and its territories and
    possessions, including technical assistance, education and training, and
    cooperation with United States and international organizations.
        [None of the funds made available to the Forest Service under this
    Act shall be subject to transfer under the provisions of section 702(b)
    of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 2257) or
    7 U.S.C. 147b unless the proposed transfer is approved in advance by the
    House and Senate Committees on Appropriations in compliance with the
    reprogramming procedures contained in House Report 103-551.]
        [None of the funds available to the Forest Service may be
    reprogrammed without the advance approval of the House and Senate
    Committees on Appropriations in accordance with the procedures contained
    in House Report 103-551.]
        [No funds appropriated to the Forest Service shall be transferred to
    the Working Capital Fund of the Department of Agriculture without the
    approval of the Chief of the Forest Service.]
        Notwithstanding any other provision of the law, any appropriations
    or funds available to the Forest Service may be used to disseminate
    program information to private and public individuals and organizations
    through the use of nonmonetary items of nominal value and to provide
    nonmonetary awards of nominal value and to incur necessary expenses for
    the nonmonetary recognition of private individuals and organizations
    that make contributions to Forest Service programs.
        Notwithstanding any other provision of law, money collected, in
    advance or otherwise, by the Forest Service under authority of section
    101 of Public Law 93-153 (30 U.S.C. 185(1)) as reimbursement of
    administrative and other costs incurred in processing pipeline right-of-
    way or permit applications and for costs incurred in monitoring the
    construction, operation, maintenance, and termination of any pipeline
    and related facilities, may be used to reimburse the applicable
    appropriation to which such costs were originally charged.
        Funds available to the Forest Service shall be available to conduct
    a program of not less than $1,000,000 for high priority projects within
    the scope of the approved budget which shall be carried out by the Youth
    Conservation Corps as authorized by the Act of August 13, 1970, as
    amended by Public Law 93-408.
        [None of the funds available in this Act shall be used for timber
    sale preparation using clearcutting in hardwood stands in excess of 25
    percent of the fiscal year 1989 harvested volume in the Wayne National
    Forest, Ohio: Provided, That this limitation shall not apply to hardwood
    stands damaged by natural disaster: Provided further, That landscape
    architects shall be used to maintain a visually pleasing forest.]
        Any money collected from the States for fire suppression assistance
    rendered by the Forest Service on non-Federal lands not in the vicinity
    of National Forest System lands shall be used to reimburse the
    applicable appropriation and shall remain available until expended as
    the Secretary may direct in conducting activities authorized by 16
    U.S.C. 2101 (note), 2101-2110, 1606, and 2111.
        Of the funds available to the Forest Service, $1,500 is available to
    the Chief of the Forest Service for official reception and
    representation expenses.
        Notwithstanding any other provision of law, the Forest Service is
    authorized to employ or otherwise contract with persons at regular rates
    of pay, as determined by the Service, to perform work occasioned by
    emergencies such as fires, storms, floods, earthquakes or any other
    unavoidable cause without regard to Sundays, Federal holidays, and the
    regular workweek.
        [To the greatest extent possible, and in accordance with the Final
    Amendment to the Shawnee National Forest Plan, none of the funds
    available in this Act shall be used for preparation of timber sales
    using clearcutting or other forms of even aged management in hardwood
    stands in the Shawnee National Forest, Illinois.]
        Pursuant to sections 405(b) and 410(b) of Public Law 101-593, funds
    up to $1,000,000 for matching funds shall be available for the National
    Forest Foundation on a one-for-one basis to match private contributions
    for projects on or benefitting National Forest System lands or related
    to Forest Service programs. Section 405(b) and section 410(b) are
    further amended as follows: delete ``for a period of five years
    beginning October 1, 1992''.
        Pursuant to section 2(b)(2) of Public Law 98-244, up to $1,000,000
    of the funds available to the Forest Service shall be available for
    matching funds, as authorized in 16 U.S.C. 3701-3709, on a one-for-one
    basis to match private contributions for projects on or benefitting
    National Forest System lands or related to Forest Service programs.
        Funds appropriated to the Forest Service shall be available for
    interactions with and providing technical assistance to rural
    communities for sustainable rural development purposes.
        Notwithstanding any other provision of law, 80 percent of the funds
    appropriated to the Forest Service in the National Forest System and
    Reconstruction and Construction accounts and planned to be allocated to
    activities under the ``Jobs in the Woods'' program for projects on
    National Forest land in the State of Washington may be granted directly
    to the Washington State Department of Fish and Wildlife for
    accomplishment of planned projects. Twenty percent of said funds shall
    be retained by the Forest Service for planning and administering
    projects. Project selection and prioritization shall be accomplished by
    the Forest Service with such consultation with the State of Washington
    as the Forest Service deems appropriate.
        Funds appropriated to the Forest Service shall be available for
    payments to counties within the Columbia River Gorge National Scenic
    Area, pursuant to sections 14(c)(1) and (2), and section 16(a)(2) of
    Public Law 99-663.
        Funds appropriated to the Forest Service shall be available, as
    determined by the Secretary, for payments to Del Norte County,
    California, pursuant to sections 13(e) and 14 of the Smith River
    National Recreation Area Act (Public Law 101-612).
        [The Secretary of Agriculture shall by March 31, 1997 report to the
    Committees on Appropriations of the House of Representatives and the
    Senate on the status and disposition of all salvage timber sales started
    under the authority of Section 2001 of Public Law 104-19 and
    subsequently withdrawn or delayed and completed under different
    authorities as a consequence of the July 2, 1996 directive on the
    implementation of Section 2001 issued by the Secretary.]
        [The Pacific Northwest Research Station Silviculture Laboratory in
    Bend, Oregon is hereby named the ``Robert W. Chandler Building''.]
        For purposes of the Southeast Alaska Economic Disaster Fund as set
    forth in section 101(c) of Public Law 104-134, the direct grants
    provided in subsection (c) shall be considered direct payments for
    purposes of all applicable law except that these direct grants may not
    be used for lobbying activities.
        [No employee of the Department of Agriculture may be detailed or
    assigned from an agency or office funded by this Act to any other agency
    or office of the Department for more than 30 days unless the
    individual's employing agency or office is fully reimbursed by the
    receiving agency or office for the salary and expenses of the

    [[Page 255]]

    employee for the period of assignment.] (Department of the Interior and
    Related Agencies Appropriations Act, 1997.)

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      12-181100  National grasslands........           4          15          12
      12-222100  National forest fund.......          68          82          95
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................          72          97         107
    ---------------------------------------------------------------------------

                       Other Consolidated Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
      12-977210  Miscellaneous contributed
        funds...............................          22
    ---------------------------------------------------------------------------

                          TITLE VII--GENERAL PROVISIONS

        Sec. 701. Within the unit limit of cost fixed by law, appropriations
    and authorizations made for the Department of Agriculture for the fiscal
    year [1997] 1998 under this Act shall be available for the purchase, in
    addition to those specifically provided for, of not to exceed [667] 394
    passenger motor vehicles, of which [643] 391 shall be for replacement
    only, and for the hire of such vehicles.
        Sec. 702. Funds in this Act available to the Department of
    Agriculture shall be available for uniforms or allowances [therefore]
    therefor as authorized by law (5 U.S.C. 5901-5902).
        Sec. 703. Not less than $1,500,000 of the appropriations of the
    Department of Agriculture in this Act for research and service work
    authorized by the Acts of August 14, 1946, and July 28, 1954 (7 U.S.C.
    427, 1621-1629), and by chapter 63 of title 31, United States Code,
    shall be available for contracting in accordance with said Acts and
    chapter.
        Sec. 704. The cumulative total of transfers to the Working Capital
    Fund for the purpose of accumulating growth capital for data services
    and National Finance Center operations shall not exceed $2,000,000:
    Provided, That no funds in this Act appropriated to an agency of the
    Department shall be transferred to the Working Capital Fund without the
    approval of the agency administrator.
        Sec. 705. New obligational authority provided for the following
    appropriation items in this Act shall remain available until expended (7
    U.S.C. 2209b): Animal and Plant Health Inspection Service, the
    contingency fund to meet emergency conditions, fruit fly program, and
    integrated systems acquisition project; Farm Service Agency, salaries
    and expenses funds made available to county committees; and Foreign
    Agricultural Service, middle-income country training program.
        New obligational authority for the boll weevil program; up to 10
    percent of the screwworm program of the Animal and Plant Health
    Inspection Service; Food Safety and Inspection Service, field automation
    and information management project; funds appropriated for rental
    payments; funds for the Native American institutions endowment fund in
    the Cooperative State Research, Education, and Extension Service, and
    funds for the competitive research grants (7 U.S.C. 450i(b)), shall
    remain available until expended.
        Sec. 706. No part of any appropriation contained in this Act shall
    remain available for obligation beyond the current fiscal year unless
    expressly so provided herein.
        Sec. 707. Not to exceed $50,000 of the appropriations available to
    the Department of Agriculture in this Act shall be available to provide
    appropriate orientation and language training pursuant to Public Law 94-
    449.
        Sec. 708. No funds appropriated by this Act may be used to pay
    negotiated indirect cost rates on cooperative agreements or similar
    arrangements between the United States Department of Agriculture and
    nonprofit institutions in excess of 10 percent of the total direct cost
    of the agreement when the purpose of such cooperative arrangements is to
    carry out programs of mutual interest between the two parties. This does
    not preclude appropriate payment of indirect costs on grants and
    contracts with such institutions when such indirect costs are computed
    on a similar basis for all agencies for which appropriations are
    provided in this Act.
        Sec. 709. Notwithstanding any other provision of this Act,
    commodities acquired by the Department in connection with Commodity
    Credit Corporation and section 32 price support operations may be used,
    as authorized by law (15 U.S.C. 714c and 7 U.S.C. 612c), to provide
    commodities to individuals in cases of hardship as determined by the
    Secretary of Agriculture.
        [Sec. 710. None of the funds in this Act shall be available to
    reimburse the General Services Administration for payment of space
    rental and related costs in excess of the amounts specified in this Act;
    nor shall this or any other provision of law require a reduction in the
    level of rental space or services below that of fiscal year 1996 or
    prohibit an expansion of rental space or services with the use of funds
    otherwise appropriated in this Act. Further, no agency of the Department
    of Agriculture, from funds otherwise available, shall reimburse the
    General Services Administration for payment of space rental and related
    costs provided to such agency at a percentage rate which is greater than
    is available in the case of funds appropriated in this Act.]
        Sec. [711] 710. None of the funds in this Act shall be available to
    restrict the authority of the Commodity Credit Corporation to lease
    space for its own use or to lease space on behalf of other agencies of
    the Department of Agriculture when such space will be jointly occupied.
        Sec. [712] 711. With the exception of grants awarded under the Small
    Business Innovation Development Act of 1982, Public Law 97-219, as
    amended (15 U.S.C. 638), none of the funds in this Act shall be
    available to pay indirect costs on research grants awarded competitively
    by the Cooperative State Research, Education, and Extension Service that
    exceed [14] 25 percent of total Federal funds provided under each award.
        Sec. [713] 712. Notwithstanding any other provisions of this Act,
    all loan levels provided of this Act shall be considered estimates, not
    limitations.
        Sec. [714] 713. Appropriations to the Department of Agriculture for
    the cost of direct and guaranteed loans made available in fiscal year
    [1997] 1998 shall remain available until expended to cover obligations
    made in fiscal year [1997] 1998 for the following accounts: the rural
    development loan fund program account; the Rural Telephone Bank program
    account; the rural electrification and telecommunications loans program
    account; and the rural economic development loans program account.
        Sec. [715] 714. Such sums as may be necessary for fiscal year [1997]
    1998 pay raises for programs funded by this Act shall be absorbed within
    the levels appropriated in this Act.
        [Sec. 716. (a) Compliance With Buy American Act.--None of the funds
    made available in this Act may be expended by an entity unless the
    entity agrees that in expending the funds the entity will comply with
    sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c;
    popularly known as the ``Buy American Act'').
        (b) Sense of Congress; Requirement Regarding Notice.--
             (1) Purchase of american-made equipment and products.--In the
        case of any equipment or product that may be authorized to be
        purchased with financial assistance provided using funds made
        available in this Act, it is the sense of the Congress that entities
        receiving the assistance should, in expending the assistance,
        purchase only American-made equipment and products.
             (2) Notice to recipients of assistance.--In providing financial
        assistance using funds made available in this Act, the head of each
        Federal agency shall provide to each recipient of the assistance a
        notice describing the statement made in paragraph (1) by the
        Congress.
         (c) Prohibition of Contracts With Persons Falsely Labeling Products
    as Made in America.--If it has been finally determined by a court or
    Federal agency that any person intentionally affixed a label bearing a
    ``Made in America'' inscription, or any inscription with the same
    meaning, to any product sold in or shipped to the United States that is
    not made in the United States, the person shall be ineligible to receive
    any contract or subcontract made with funds made available in this Act,
    pursuant to the debarment, suspension, and ineligibility procedures
    described in sections 9.400 through 9.409 of title 48, Code of Federal
    Regulations.]
        Sec. [717] 715. Notwithstanding the Federal Grant and Cooperative
    Agreement Act, marketing services of the Agricultural Marketing Service
    and the Animal and Plant Health Inspection Service may

    [[Page 256]]

    use cooperative agreements to reflect a relationship between
    Agricultural Marketing Service or the Animal and Plant Health Inspection
    Service and a State or Cooperator to carry out agricultural marketing
    programs or to carry out programs to protect the Nation's animal and
    plant resources.
        Sec. [718. None of the funds in this Act may be used to retire more
    than 5% of the Class A stock of the Rural Telephone Bank or to maintain
    any account or subaccount within the accounting records of the Rural
    Telephone Bank the creation of which has not specifically been
    authorized by statute: Provided, That notwithstanding] 716.
    Notwithstanding any other provision of law, none of the funds
    appropriated or otherwise made available in this Act may be used to
    transfer to the Treasury or to the Federal Financing Bank any
    unobligated balance of the Rural Telephone Bank telephone liquidating
    account which is in excess of current requirements and such balance
    shall receive interest as set forth for financial accounts in section
    505(c) of the Federal Credit Reform Act of 1990.
        [Sec. 719. None of the funds appropriated or otherwise made
    available by this Act may be used to provide food stamp benefits to
    households whose benefits are calculated using a standard deduction
    greater than the standard deduction in effect for fiscal year 1995.]
        [Sec. 720. None of the funds made available in this Act may be used
    to provide assistance to, or to pay the salaries of personnel who carry
    out a market promotion/market access program pursuant to section 203 of
    the Agricultural Trade Act of 1978 (7 U.S.C. 5623) that provides
    assistance to the United States Mink Export Development Council or any
    mink industry trade association.]
        [Sec. 721. None of the funds appropriated or otherwise made
    available by this Act, or made available through the Commodity Credit
    Corporation, shall be used to enroll in excess of 130,000 acres in the
    fiscal year 1997 wetlands reserve program, as authorized by section 3837
    of title 16, United States Code: Provided, That additional acreage may
    be enrolled in the program to the extent that non-Federal funds
    available to the Secretary are used to fully compensate for the cost of
    additional enrollments: Provided further, That the condition on
    enrollments provided in section 1237(b)(2)(B) of the Food Security Act
    of 1985, as amended (16 U.S.C. 3837(b)(2)(B)) shall be deemed met upon
    the enrollment of 43,333 acres through the use of temporary easements:
    Provided further, That the Secretary shall not enroll acres in the
    wetlands reserve program through the use of new permanent easements in
    fiscal year 1998 until the Secretary has enrolled at least 31,667 acres
    in the program through the use of temporary easements.]
        [Sec. 722. Of the funds made available by this Act, not more than
    $1,000,000 shall be used to cover necessary expenses of activities
    related to all advisory committees, panels, commissions, and task forces
    of the Department of Agriculture except for panels used to comply with
    negotiated rule makings and panels used to evaluate competitively
    awarded grants.]
        [Sec. 723. None of the funds appropriated or otherwise made
    available by this Act shall be used to pay the salaries and expenses of
    personnel who carry out an export enhancement program if the aggregate
    amount of funds and/or commodities under such program exceeds
    $100,000,000.]
        [Sec. 724. None of the funds appropriated or otherwise made
    available by this Act shall be used to pay the salaries and expenses of
    personnel who carry out a farmland protection program in excess of
    $2,000,000 authorized by section 388 of Public Law 104-127.]
        [Sec. 725. None of the funds appropriated or otherwise made
    available by this Act shall be used to pay the salaries and expenses of
    personnel who carry out a conservation farm option program in excess of
    $2,000,000 authorized by section 335 of Public Law 104-127.]
        [Sec. 726. None of the funds made available in this Act may be used
    to pay the salaries of employees of the Department of Agriculture who
    make payments pursuant to a production flexibility contract entered into
    under section 111 of the Federal Agriculture Improvement and Reform Act
    of 1996 (Public Law 104-127; 7 U.S.C. 7211) when it is made known to the
    Federal official having authority to obligate or expend such funds that
    the land covered by that production flexibility contract is not being
    used for the production of an agricultural commodity or is not devoted
    to a conserving use, unless it is also made known to that Federal
    official that the lack of agricultural production or the lack of a
    conserving use is a consequence of drought, flood, or other natural
    disaster].
        [Sec. 727. None of the funds appropriated or otherwise made
    available by this Act shall be used to extend any existing or expiring
    contract in the Conservation Reserve Program authorized by 16 U.S.C.
    3831-3845.]
        [Sec. 728. None of the funds appropriated in this Act may be used to
    carry out the provisions of section 918 of Public Law 104-127, the
    Federal Agriculture Improvement and Reform Act.]
        [Sec. 729. Hereafter, funds appropriated to the Department of
    Agriculture may be used for incidental expenses such as transportation,
    uniforms, lodging, and subsistence for volunteers serving under the
    authority of 7 U.S.C. 2272, when such volunteers are engaged in the work
    of the United States Department of Agriculture; and for promotional
    items of nominal value relating to the United States Department of
    Agriculture Volunteer Programs.]
        [Sec. 730. No employee of the Department of Agriculture may be
    detailed or assigned from an agency or office funded by this Act to any
    other agency or office of the Department for more than 30 days unless
    the individual's employing agency or office is fully reimbursed by the
    receiving agency or office for the salary and expenses of the employee
    for the period of assignment.]
        [Sec. 731. Section 747 of the Federal Agriculture Improvement and
    Reform Act of 1996 is amended by inserting, ``effective October 1,
    1996,'' following ``The Secretary shall make grants'' in section
    310B(e)(2) of the Consolidated Farm and Rural Development Act: Provided,
    That this section shall take effect upon enactment of this Act into
    law.]
        [Sec. 732. Labeling of Raw Poultry Products.--
        (a) In General.--Notwithstanding any other provision of law, none of
    the funds appropriated or otherwise made available by this Act may be
    used to implement or enforce the final rule related to the labeling of
    raw poultry products promulgated by the Food Safety and Inspection
    Service on August 25, 1995 (60 Fed. Reg. 44395), and the final rule
    shall not be effective during fiscal year 1997.
        (b) Final Rule.--Not later than 90 days after the date of enactment
    of this Act, the Secretary of Agriculture shall issue a revised final
    rule related to the labeling of raw poultry products that--
             (1) maintains the standard that the term ``fresh'' may be used
        only for raw poultry products the internal core temperature of which
        has not fallen below 26 deg. Fahrenheit;
             (2) deletes the requirement that poultry products the internal
        core temperature of which has ever been less than 26 deg.
        Fahrenheit, but more than 0 deg. Fahrenheit, be labeled as ``hard
        chilled'' or ``previously hard chilled'', except that--
                 (A) the products shall be prohibited under the rule from
            being labeled as ``fresh'' but shall not be required to bear any
            specific alternative labeling; and
                 (B) nothing in this section shall be interpreted as
            modifying the requirements for labeling of all poultry products
            the internal core temperature of which has ever fallen to 0 deg.
            Fahrenheit as ``frozen'';
             (3) provides for a tolerance from the 26 deg. Fahrenheit
        standard established by the rule of--
                 (A) 1 deg. Fahrenheit for poultry products within an
            official processing establishment;
                 (B) 2 deg. Fahrenheit for poultry products in commerce;
             (4) exempts from temperature testing wings, tenders, hearts,
        livers, gizzards, necks, and products that undergo special
        processing, such as sliced poultry products; and
             (5) in all other terms and conditions (including the period of
        time permitted for implementation) is substantively identical to the
        rule referred to in subsection (a).
        (c) Revised Labeling Standards.--Not later than 60 days after the
    issuance of a revised final rule under subsection (b), the Secretary of
    Agriculture, acting through the Administrator of the Food Safety and
    Inspection Service, shall issue a compliance directive for the
    enforcement of the revised labeling standards established by the rule,
    including standards for--
             (1) temperature testing that are based on measurements at the
        center of the deepest muscle; and
             (2) sampling methods that ensure that the average of individual
        temperatures within poultry product lots of each specific product
        type (such as whole birds, whole muscle leg products, and whole
        muscle breast products) meet the standards.
        (d) Severability.--If any provision of this section or the
    application thereof to any person or circumstance is held invalid, the
    validity of the remainder of this section and of the application of the
    provision to any other persons or circumstances shall not be affected.]
        [Sec. 733. Hereafter, notwithstanding any other provision of law,
    any domestic fish or fish product produced in compliance with food
    safety standards or procedures accepted by the Food and Drug Ad-

    [[Page 257]]

    ministration as satisfying the requirements of the ``Procedures for the
    Safe and Sanitary Processing and Importing of Fish and Fish Products''
    (published by the Food and Drug Administration as a final regulation in
    the Federal Register of December 18, 1995), shall be deemed to have met
    any inspection requirements of the Department of Agriculture or other
    Federal agency for any Federal commodity purchase program, including the
    program authorized under section 32 of the Act of August 24, 1935 (7
    U.S.C. 612c) except that the Department of Agriculture or other Federal
    agency may utilize lot inspection to establish a reasonable degree of
    certainty that fish or fish products purchased under a Federal commodity
    purchase program, including the program authorized under section 32 of
    the Act of August 24, 1935 (7 U.S.C. 612c), meet Federal product
    specifications.]
        [Sec. 734. Rural Housing Program Extensions.--
        (a) Extension of Multifamily Rural Housing Loan Program.--
             (1) Authority to make loans.--Section 515(b)(4) of the Housing
        Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking
        ``September 30, 1996'' and inserting ``September 30, 1997''.
             (2) Set-aside for nonprofit entities.--The first sentence of
        section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1))
        is amended by striking ``fiscal year 1996'' and inserting ``fiscal
        year 1997''.
        (b) Extension of Housing in Underserved Areas Program.--The first
    sentence of section 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C.
    1479(f)(4)(A)) is amended by striking ``fiscal year 1996'' and inserting
    ``fiscal year 1997''.
         (c) Reforms for Multifamily Rural Housing Loan Program.--
             (1) Limitation on project transfers.--Section 515 of the
        Housing Act of 1949 (42 U.S.C. 1485) is amended by inserting after
        subsection (g) the following new subsection:
             ``(h) Project Transfers.--After the date of the enactment of
        the Act entitled `An Act making appropriations for Agriculture,
        Rural Development, Food and Drug Administration, and Related
        Agencies programs for the fiscal year ending September 30, 1997, and
        for other purposes', the ownership or control of a project for which
        a loan is made or insured under this section may be transferred only
        if the Secretary determines that such transfer would further the
        provision of housing and related facilities for low-income families
        or persons and would be in the best interests of residents and the
        Federal Government.''.
             (2) Equity loans.--Section 515(t) of the Housing Act of 1949
        (42 U.S.C. 1485(t)) is amended--
                 (A) by striking paragraphs (4) and (5); and
                 (B) by redesignating paragraphs (6) through (8) as
            paragraphs (4) through (6), respectively.
             (3) Equity takeout loans to extend low-income use.--
                 (A) Authority and limitation.--Section 502(c)(4)(B)(iv) of
            the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(iv)) is amended
            by inserting before the period at the end the following: ``or
            under paragraphs (1) and (2) of section 514(j), except that an
            equity loan referred to in this clause may not be made available
            after the date of the enactment of the Act entitled `An Act
            making appropriations for Agriculture, Rural Development, Food
            and Drug Administration, and Related Agencies programs for the
            fiscal year ending September 30, 1997, and for other purposes',
            unless the Secretary determines that the other incentives
            available under this subparagraph are not adequate to provide a
            fair return on the investment of the borrower, to prevent
            prepayment of the loan insured under section 514 or 515, or to
            prevent the displacement of tenants of the housing for which the
            loan was made''.
                (B) Approval of assistance.--Section 502(c)(4)(C) of the
            Housing Act of 1949 (42 U.S.C. 1472(c)(4)(C)) is amended by
            striking ``(C)'' and all that follows through ``provided--'' and
            inserting the following:
                ``(C) Approval of assistance.--The Secretary may approve
            assistance under subparagraph (B) for assisted housing only if
            the restrictive period has expired for any loan for the housing
            made or insured under section 514 or 515 pursuant to a contract
            entered into after December 21, 1979, but before the date of the
            enactment of the Department of Housing and Urban Development
            Reform Act of 1989, and the Secretary determines that the
            combination of assistance provided--''.
                (C) Technical correction.--Section 515(c)(1) of the Housing
            Act of 1949 (42 U.S.C. 1485(c)(1)) is amended by striking
            ``December 21, 1979'' and inserting ``December 15, 1989''.
        (d) Reform of Section 515.--Section 515 of the Housing Act of 1949
    (42 U.S.C. 1485) is amended--
            (1) by striking subsection (r) and inserting the following:
            ``(r)(1) the Secretary--
                ``(A) may require that the initial operating reserve under
            this section may be in the form of an irrevocable letter of
            credit; and
                ``(B) except as provided in paragraph (2), may require not
            more than a 3 percent contribution to equity, except that the
            Secretary shall require a 5 percent contribution in the case of
            a project that is allocated a low-income housing tax credit
            pursuant to section 42 of the Internal Revenue Code of 1986.
            ``(2) The Secretary may adjust the amount of equity contribution
        to ensure that assistance provided is not more than is necessary to
        provide affordable housing after taking account of assistance from
        all Federal, State, and local sources.
            ``(3) Not later than 60 days after the date of enactment of the
        Act entitled `An Act making appropriations for Agriculture, Rural
        Development, Food and Drug Administration, and Related Agencies
        programs for the fiscal year ending September 30, 1997, and for
        other purposes', the Secretary shall issue regulations to implement
        subsection (r)(2) in accordance with the negotiated rulemaking
        procedures set forth in subchapter III of chapter 5 of title 5,
        United States Code: Provided, That if the negotiated rulemaking is
        not completed within the designated time, the Secretary shall
        proceed to promulgate regulations under the rulemaking authority
        contained in 5 U.S.C. 557.''; and
             (2) by striking subsection (z).
        (e) Equity Skimming Penalties.--
             (1) Insurance of loans for the provision of housing and related
        facilities for domestic farm labor.--Section 514 of the Housing Act
        of 1949 (42 U.S.C. 1484) is amended by adding at the end the
        following new subsection:
             ``(j) Equity Skimming Penalty.--Whoever, as an owner, agent, or
        manager, or who is otherwise in custody, control, or possession of
        property that is security for a loan made or insured under this
        section willfully uses, or authorizes the use, of any part of the
        rents, assets, proceeds, income, or other funds derived from such
        property, for any purpose other than to meet actual or necessary
        expenses of the property, or for any other purpose not authorized by
        this title or the regulations adopted pursuant to this title, shall
        be fined not more than $250,000 or imprisoned not more than 5 years,
        or both.''.
             (2) Direct and insured loans to provide housing and related
        facilities for elderly persons and families in rural areas.--Section
        515 of the Housing Act of 1949 (42 U.S.C. 1485), as amended by
        subsection (d)(2) of this section, is amended by adding at the end
        the following new subsection:
             ``(z) Equity Skimming Penalty.--Whoever, as an owner, agent, or
        manager, or who is otherwise in custody, control, or possession of
        property that is security for a loan made or insured under this
        section willfully uses, or authorizes the use, of any part of the
        rents, assets, proceeds, income, or other fund derived from such
        property, for any purpose other than to meet actual or necessary
        expenses of the property, or for any other purpose not authorized by
        this title or the regulations adopted pursuant to this title, shall
        be fined not more than $250,000 or imprisoned not more than 5 years,
        or both.''.
        (f) Prioritization of Assistance.--Section 532 of the Housing Act of
    1949 (42 U.S.C. 1490l) is amended--
             (1) in subsection (a), by striking ``The Secretary'' and
        inserting ``Except as otherwise provided in subsection (c), the
        Secretary''; and
             (2) by adding at the end the following new subsection:
             ``(c) Prioritization of Section 515 Housing Assistance.--
                 ``(1) In general.--The Secretary shall make assistance
            under section 515 available pursuant to an objective procedure
            established by the Secretary, under which the Secretary shall
            identify counties and communities having the greatest need for
            such assistance and designate such counties and communities to
            receive such assistance.
                 ``(2) Objective measures.--The Secretary shall use the
            following objective measures to determine the need for rental
            housing assistance under paragraph (1):
                     ``(A) The incidence of poverty.
                     ``(B) The lack of affordable housing and the existence
                of substandard housing.
                     ``(C) The lack of mortgage credit.

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                     ``(D) The rural characteristics of the location.
                     ``(E) Other factors as determined by the Secretary,
                demonstrating the need for affordable housing.
                 ``(3) Information.--In administering this subsection, the
            Secretary shall use information from the most recent decennial
            census of the United States, relevant comprehensive affordable
            housing strategies under section 105 of the Cranston-Gonzalez
            National Affordable Housing Act, and other reliable sources
            obtained by the Secretary which demonstrate the need for
            affordable housing in rural areas.
                 ``(4) Designation.--A designation under this subsection
            shall not be effective for a period of more than 3 years, but
            may be renewed by the Secretary in accordance with the procedure
            set forth in this subsection. The Secretary shall take such
            other reasonable actions as the Secretary considers to be
            appropriate to notify the public of such designations.''.]
        [Sec. 735. Department of Agriculture Voluntary Separation Incentive
    Payments.--
             (a) Definitions.--For the purposes of this section--
                 (1) the term ``agency'' means the Department of
            Agriculture;
                 (2) the term ``employee'' means an employee (as defined by
            section 2105 of title 5, United States Code) who is employed by
            the agency (or an individual employed by a county committee
            established under section 8(b)(5) of the Soil Conservation and
            Domestic Allotment Act (16 U.S.C. 590h(b)(5))), is serving under
            an appointment without time limitation, and has been currently
            employed for a continuous period of at least 3 years, but does
            not include--
                     (A) a reemployed annuitant under subchapter III of
                chapter 83 or chapter 84 of title 5, United States Code, or
                another retirement system for employees of the agency;
                     (B) an employee having a disability on the basis of
                which such employee is or would be eligible for disability
                retirement under the applicable retirement system referred
                to in subparagraph (A);
                     (C) an employee who is in receipt of a specific notice
                of involuntary separation for misconduct or unacceptable
                performance;
                     (D) an employee who, upon completing an additional
                period of service as referred to in section 3(b)(2)(B)(ii)
                of the Federal Workforce Restructuring Act of 1994 (5 U.S.C.
                5597 note), would qualify for a voluntary separation
                incentive payment under section 3 of such Act;
                     (E) an employee who has previously received any
                voluntary separation incentive payment by the Federal
                Government under this section or any other authority and has
                not repaid such payment;
                     (F) an employee covered by statutory reemployment
                rights who is on transfer to another organization; or
                     (G) any employee who, during the twenty-four month
                period preceding the date of separation, has received a
                recruitment or relocation bonus under section 5753 of title
                5, United States Code, or who, within the twelve month
                period preceding the date of separation, received a
                retention allowance under section 5754 of title 5, United
                States Code.
         (b) Agency Strategic Plan.--
             (1) In general.--The head of the agency, prior to obligating
        any resources for voluntary separation incentive payments, shall
        submit to the House and Senate Committees on Appropriations and the
        Committee on Governmental Affairs of the Senate and the Committee on
        Government Reform and Oversight of the House of Representatives a
        strategic plan outlining the intended use of such incentive payments
        and a proposed organizational chart for the agency once such
        incentive payments have been completed.
             (2) Contents.--The agency's plan shall include--
                 (A) the positions and functions to be reduced or
            eliminated, identified by organizational unit, geographic
            location, occupational category and grade level;
                 (B) the number and amounts of voluntary separation
            incentive payments to be offered; and
                 (C) a description of how the agency will operate without
            the eliminated positions and functions.
         (c) Authority to Provide Voluntary Separation Incentive Payments.--
             (1) In general.--A voluntary separation incentive payment under
        this section may be paid by an agency to any employee only to the
        extent necessary to eliminate the positions and functions identified
        by the strategic plan.
             (2) Amount and treatment of payments.--A voluntary separation
        incentive payment--
                 (A) shall be paid in a lump sum after the employee's
            separation;
                 (B) shall be paid from appropriations or funds available
            for the payment of the basic pay of the employees;
                 (C) shall be equal to the lesser of--
                     (i) an amount equal to the amount the employee would be
                entitled to receive under section 5595(c) of title 5, United
                States Code; or
                     (ii) an amount determined by the agency head not to
                exceed $25,000 in fiscal year 1997, $20,000 in fiscal year
                1998, $15,000 in fiscal year 1999, or $10,000 in fiscal year
                2000;
                 (D) shall not be a basis for payment, and shall not be
            included in the computation, of any other type of Government
            benefit; and
                 (E) shall not be taken into account in determining the
            amount of any severance pay to which the employee may be
            entitled under section 5595 of title 5, United States Code,
            based on any other separation.
             (3) Limitation.--No amount shall be payable under this section
        based on any separation occurring before the date of the enactment
        of this Act, or after September 30, 2000.
         (d) Additional Agency Contributions to the Retirement Fund.--
             (1) In general.--In addition to any other payments which it is
        required to make under subchapter III of chapter 83 or chapter 84 of
        title 5, United States Code, the agency shall remit to the Office of
        Personnel Management for deposit in the Treasury of the United
        States to the credit of the Civil Service Retirement and Disability
        Fund an amount equal to 15 percent of the final basic pay of each
        employee of the agency who is covered under subchapter III of
        chapter 83 or chapter 84 of title 5, United States Code, to whom a
        voluntary separation incentive has been paid under this section.
             (2) Definition.--For the purpose of paragraph (1), the term
        ``final basic pay'', with respect to an employee, means the total
        amount of basic pay which would be payable for a year of service by
        such employee, computed using the employee's final rate of basic
        pay, and, if last serving on other than a full-time basis, with
        appropriate adjustment therefor.
         (e) Effect of Subsequent Employment with the Government.--An
    individual who has received a voluntary separation incentive payment
    under this section and accepts any employment for compensation with the
    Government of the United States, or who works for any agency of the
    United States Government through a personal services contract, within 5
    years after the date of the separation on which the payment is based
    shall be required to pay, prior to the individual's first day of
    employment, the entire amount of the incentive payment to the agency
    that paid the incentive payment.
        (f) Reduction of Agency Employment Levels.--
             (1) In general.--The total number of funded employee positions
        in the agency shall be reduced by one position for each vacancy
        created by the separation of any employee who has received, or is
        due to receive, a voluntary separation incentive payment under this
        section. For the purposes of this subsection, positions shall be
        counted on a full-time-equivalent basis.
             (2) Enforcement.--The President, through the Office of
        Management and Budget, shall monitor the agency and take any action
        necessary to ensure that the requirements of this subsection are
        met.
         (g) Effective Date.--This section shall take effect October 1,
    1996.]
        [Sec. 736. Interim Moratorium on Bypass Flows.--
             (a) Moratorium.--Section 389(a) of Public Law 104-127 is
        amended by striking ``an 18-month'' after the word ``be'' and
        inserting ``a 20-month''.
         (b) Report.--Section 389(d)(4) of Public Law 104-127 is amended by
    striking ``1 year'' after the word ``than'' and inserting ``14 months''.
         (c) Extension for Delay.--Section 389 of Public Law 104-127 is
    amended by adding at the end the following new subsection--
         ``(e) Extension for Delay.--There shall be a day-for-day extension
    to the 20-month moratorium required by subsection (a) and a day-for-day
    extension to the report required by subsection (d)(4)--
             ``(1) for every day of delay in implementing or establishing
        the Water Rights Task Force caused by a failure to nominate Task
        Force members by the Administration or by the Congress; or

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             ``(2) for every day of delay caused by a failure by the
        Secretary of Agriculture to identify adequate resources as
        determined by the Secretary of Agriculture to carry out the purposes
        of the Task Force.''.] (Agriculture, Rural Development, Food and
        Drug Administration, and Related Agencies Appropriations Act, 1997.)