[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-

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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.

[[Page 258]]

                 ``(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

[[Page 259]]

         ``(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.)