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

                         THE BUDGET FOR FISCAL YEAR 1999

    [[Page 57]]

                            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] $2,941,000: 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 further, 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] $636,000.

          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] $3,814,000: Provided,
    That no other funds appropriated to the Department by this Act shall be
    available to the Department for support of activities of congressional
    relations: Provided further, That not less than [$2,241,000] $2,332,000
    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] $560,000.

     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, the Agricultural Marketing Service, and the Grain
    Inspection, Packers and Stockyards Administration, [$618,000] $642,000.

                  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] $598,000.

    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, the Foreign
    Agricultural Service, the Risk Management Agency, and the Commodity
    Credit Corporation, [$572,000] $597,000.

       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] $719,000.

               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, the Rural
    Business-Cooperative Service, and the Rural Utilities Service of the
    Department of Agriculture, [$588,000] $611,000.

     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] Nutrition
    Service, [$554,000] $573,000. (7 U.S.C. 2201-2202; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0115-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of the Secretary...........           3           3           3
    00.02 Under/Assistant Secretaries.......           6           6           6
    00.03 Service Center Implementation.....           1           2           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          10          11          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           4           3           1
    22.00 New budget authority (gross)......           9           9           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13          12          10
    23.95 New obligations...................         -10         -11         -10
    24.40 Unobligated balance available, end
            of year: Uninvested.............           3           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          11          11          12
    41.00 Transferred to other accounts.....          -2          -2          -2
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........           9           9          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           9           9          10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           4           6           3
    73.10 New obligations...................          10          11          10
    73.20 Total outlays (gross).............          -7         -14         -12
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           6           3           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           7           8           9
    86.93 Outlays from current balances.....                       6           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7          14          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9           9
    90.00 Outlays...........................           7          14          12
    ---------------------------------------------------------------------------

        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 58]]

    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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           6           6
    12.1  Civilian personnel benefits.......           1           2           2
    25.2  Other services....................           2           2           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           9          10           9
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          10          11          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0115-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          61          82          82
    ---------------------------------------------------------------------------

                             Fund for Rural America

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural development activities......          44                      50
    00.02 Research, extension and education
            grants..........................           2          34          50
                                               ---------   ---------  ----------
    10.00   Total obligations...............          46          34         100
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                      34
    22.00 New budget authority (gross)......          80                     100
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          80          34         100
    23.95 New obligations...................         -46         -34        -100
    24.40 Unobligated balance available, end
            of year: Uninvested.............          34
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................          80                     100
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                       5          22
    73.10 New obligations...................          46          34         100
    73.20 Total outlays (gross).............         -41         -17         -66
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           5          22          56
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          41                      55
    86.98 Outlays from permanent balances...                      17          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          41          17          66
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          80                     100
    90.00 Outlays...........................          41          17          66
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Section 502 housing loans.........         109
    1150  Direct Farm Ownership Loans.......          10
    1150  Direct water and waste disposal
            loans...........................           4
    1150  Rural housing for domestic farm
            labor loans.....................           1
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         124
        Direct loan subsidy (in percent):
    1320  Section 502 housing loans.........       14.18
    1320  Direct Farm Ownership Loans.......       21.03
    1320  Direct water and waste disposal
            loans...........................        9.02
    1320  Rural housing for domestic farm
            labor loans.....................       47.77
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       18.40
        Direct loan subsidy budget authority:
    1330  Section 502 housing loans.........          15
    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..          19
        Direct loan subsidy outlays:
    1340  Section 502 housing loans.........          15
    1340  Direct Farm Ownership Loans.......           2
    1340  Direct water and waste disposal
            loans...........................           1
    1340  Rural housing for domestic farm
            labor loans.....................           1
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........          19
    ---------------------------------------------------------------------------

        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 provided that $100
    million be made available on January 1, 1997 for use by the Fund. The
    1997 Emergency Supplemental Appropriations Act for Recovery for Natural
    Disasters (P.L. 105-18) limited the available funding for the Fund to
    $80 million. As authorized by the 1996 Act, the Secretary of Agriculture
    allocated 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 allocated $44 million of the available
    funding to support ongoing rural development activities. A portion of
    this funding was used to reduce the existing backlogs in high priority
    rural development programs including the Water and Waste Disposal Loans
    and Grants, Section 502 Single Family Housing Loans, and the Distance
    Learning/Medical Link programs. Another portion was used to bolster
    current operations of the Alternative Agricultural Research and
    Commercialization Corporation, and fund additional Rural Business
    Enterprise Grants. Farm Labor Loans/Grants, and technical assistance to
    the Enterprise Communities and Empowerment Zones. Funding was also used
    to fund additional loans in the Beginning Farmer Loan program and
    additional grants under Section 2501 for Outreach for Socially
    Disadvantaged Producers.

        Another $36 million was provided for research, extension, and
    education grants. Of this $36 million, $26 million was allocated to
    projects designed to: (1) increase international competitiveness,
    profitability and efficiency; (2) enhance the economic standing of rural
    communities; and (3) improve environmental stewardship. An additional $8
    million was allocated to research activities that focus specifically on
    the development of methods to counter increasing concentration within
    the livestock and poultry industries, improvement in the food safety
    arena with specific emphasis on assisting small business establishments
    to achieve the new HACCP/Pathogen reductions, identification of the
    disease prevention potential of various foods, and the promotion of
    gleaning and food recovery efforts. The remaining $2 million funds a new
    research initiative to address barriers to the full implementation of
    cutting edge telecommunications technology in rural America.

        The 1996 Farm Bill authorized $100 million for the Fund in each of
    1997, 1999, and 2000. The Department's 1998 budget included a proposal
    to shift the $100 million available in 2000 to 1998 in order to
    facilitate more consistent and

    [[Page 59]]

    efficient program delivery. Since this proposal was not accepted, no
    funding is authorized for the Fund in 1998.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           1
    41.0  Grants, subsidies, and
            contributions...................          45          34         100
                                               ---------   ---------  ----------
    99.9    Total obligations...............          46          34         100
    ---------------------------------------------------------------------------

                                   Trust Funds

                               Gifts and Bequests

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           1           1           1
        Receipts:
    02.01 Gifts and bequests................           1           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           2           2           2
        Appropriation:
    05.01 Gifts and bequests................          -1          -1          -1
    07.99 Total balance, end of year........           1           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           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.............           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, [$5,048,000] $5,823,000.

                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
    $20,000 is for employment under 5 U.S.C. 3109, $350,000.

                            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] $13,297,000.

                      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] $6,045,000.
    (7 U.S.C. 2201, 2202; 42 U.S.C. 2000d; Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Chief Economist...................           4           5           6
    00.03 National Appeals Divison..........          12          12          13
    00.04 Budget and Program Analysis.......           6           6           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............          22          23          26
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          22          23          26
    23.95 New obligations...................         -22         -23         -26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          22          23          26
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           3           3           3
    73.10 New obligations...................          22          23          26
    73.20 Total outlays (gross).............         -21         -23         -26
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          19          20          23
    86.93 Outlays from current balances.....           2           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          21          23          26
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          22          23          26
    90.00 Outlays...........................          21          23          26
    ---------------------------------------------------------------------------

        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

                                         1997 actual  1998 est.   1999 est.
    World Agricultural Supply and Demand
    Estimates Reports issued............          12          12          12

    [[Page 60]]

    Weekly Weather and Crop Bulletin
    issued..............................          52          52          52
    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) review the future of production agriculture and the
    appropriate role of the Federal government in it. Funds to support the
    operating expenses for this Commission are included in this account.

        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

                                         1997 actual  1998 est.   1999 est.
    Regional or National Training.......           3           1           3
    NAD Directives Issues...............           1           5          10
    Percent of Hearing Officer
    determinations upheld on review.....          76          80          80
    Percent of Director Review
    determinations for which a
    reconsideration is requested........          10           9           8

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          16          16          17
    12.1  Civilian personnel benefits.......           3           3           3
    21.0  Travel and transportation of
            persons.........................                       1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1                       2
    25.2  Other services....................           2           2           2
    31.0  Equipment.........................                       1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          22          23          26
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         246         253         259
    ---------------------------------------------------------------------------

                             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] $4,562,000:
    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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           4           4           5
    09.01 Reimbursable program..............           1           2           2
                                               ---------   ---------  ----------
    10.00   Total obligations...............           5           6           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           5           6           7
    23.95 New obligations...................          -5          -6          -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

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

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           5           6           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                       1           1
    73.10 New obligations...................           5           6           7
    73.20 Total outlays (gross).............          -5          -6          -7
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           4           4
    86.93 Outlays from current balances.....                       1
    86.97 Outlays from new permanent
            authority.......................           1           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           6           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        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.

                              PERFORMANCE MEASURES

                                         1997 actual  1998 est.   1999 est.
    A single, integrated, financial
    information system as defined by OMB
    Circular A-127 and the Federal
    Financial Management Improvement Act
    (FFMIA).............................    On going         25%         75%
    All new financial systems and the
    financial portions of mixed systems
    are in compliance with
    Departmentwide standards............         85%         90%         95%
    Percent of fees and other charges
    reviewed for compliance with
    applicable principles...............         n/a         n/a         50%
    Reduction in the number of FMFIA
    material weaknesses and corrective
    action recommendations..............        Base         10%         10%
                                                year   reduction   reduction
    Open audit issues are promptly
    resolved............................        Base         10%         10%
                                                year   reduction   reduction
    Customer surveys show increased
    satisfaction with planning, budget
    and fund control process............         n/a   Establish          5%
                                                        baseline improvement
    Increase in collection of delinquent
    debts...............................   Establish          5%         10%
                                            baseline
    Decrease in number of new loan
    delinquencies.......................   Establish          4%          8%
                                            baseline
    Continue high percentage of on-time
    payments under the Prompt Payment
    Act and low dollar amount of
    interest paid.......................         99%         99%         99%

    [[Page 61]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      1997 actual   1998 est.   1999 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           6           7
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          53          61          63
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          13          21          21
    ---------------------------------------------------------------------------

                     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, [$4,773,000]
    $7,222,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                       6           7
    09.01 Reimbursable program..............                       8           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............                      14          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      14          14
    23.95 New obligations...................                     -14         -14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................                       5           7
    42.00   Transferred from other accounts.                       1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........                       6           7
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                       8           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                      14          14
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                      14          14
    73.20 Total outlays (gross).............                     -14         -14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                       6           7
    86.97 Outlays from new permanent
            authority.......................                       8           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      14          14
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -8          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       6           7
    90.00 Outlays...........................                       6           7
    ---------------------------------------------------------------------------

        The Clinger-Cohen Act of 1996 required the establishment of a Chief
    Information Officer (CIO) for major Federal agencies. To meet the intent
    of the law and to provide a Departmental focus for information resources
    management issues, Secretary's Memorandum 1030-30, dated August 8, 1996,
    established the Office of the Chief Information Officer (OCIO). OCIO
    provides Departmentwide policy guidance, leadership, coordination and
    direction to the Department's information management and information
    technology investment activities in support of USDA program delivery.
    The Office provides long-range planning guidance, implements measures to
    ensure that technology investments are economical and effective,
    coordinates interagency Information Resources Management (IRM) projects,
    and implements standards to promote information exchange and technical
    interoperability.

        This office also provides telecommunications and ADP services to
    USDA agencies throughout the National Information Technology Center with
    locations in Ft. Collins, Colorado, and Kansas City, Missouri. Direct
    ADP operational services are also provided to the Office of the
    Secretary, Office of the General Counsel, Office of Communications, the
    Office of Chief Financial Officer, and Executive Operations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                       4           4
    12.1    Civilian personnel benefits.....                       1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..                       5           5
    99.0  Reimbursable obligations..........                       7           7
    99.5  Below reporting threshold.........                       2           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............                      14          14
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                      52          60
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                      11           9
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    09.01   Supply and other central
              services......................          22          20          20
    09.02   Video and other visual
              information services..........           4           4           4
    09.03   National Finance Center.........         138         145         149
    09.04   ADP systems.....................          45          51          56
                                               ---------   ---------  ----------
    09.09   Subtotal, operating expenses....         209         220         229
          Purchase of equipment:

    09.11   Supply and other central
              services......................           1           1           1
    09.12   National Finance Center.........           7          11          10
    09.13   ADP systems.....................           7           7           9
                                               ---------   ---------  ----------
    09.19   Subtotal, purchase of equipment.          15          19          20
                                               ---------   ---------  ----------
    10.00   Total obligations...............         224         239         249
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          12          19          19
    22.00 New budget authority (gross)......         244         239         249
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         -13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         243         258         268
    23.95 New obligations...................        -224        -239        -249
    24.40 Unobligated balance available, end
            of year: Uninvested.............          19          19          19
    ----------------------------------------------------------------------------

    [[Page 62]]

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         244         239         249
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          -9          15          15
    73.10 New obligations...................         224         239         249
    73.20 Total outlays (gross).............        -213        -239        -249
    73.45 Adjustments in unexpired accounts.          13
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          15          15          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         213         239         249
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -244        -239        -249
    ----------------------------------------------------------------------------

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

        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 National Finance Center's
    expenses are also funded through this fund. The capital consists of $400
    thousand appropriated (7 U.S.C. 2235), and subsequent appropriations of
    $31,838 thousand as of September 30, 1997. 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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           4             37            37             37
            Investments in US securities:
    1106      Receivables, net..............          50             14            14             14
          Other Federal assets:

    1802    Inventories and related
              properties....................                          1             1              1
    1803    Property, plant and equipment,
              net...........................          55             44            44             44
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         109             96            96             96
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           3                            3              3
          Non-Federal liabilities:

    2201    Accounts payable................          23             23            20             20
    2207    Other...........................          16             14            14             14
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          42             37            37             37
        NET POSITION:
    3300  Cumulative results of operations..          67             59            59             59
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          67             59            59             59
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         109             96            96             96
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          79          84          89
    11.3    Other than full-time permanent..           2           2           2
    11.5    Other personnel compensation....           3           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          84          88          93
    12.1  Civilian personnel benefits.......          15          16          17
    21.0  Travel and transportation of
            persons.........................           2           2           2
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           4           5           5
    23.2  Rental payments to others.........           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........          17          20          21
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................          74          77          79
    26.0  Supplies and materials............           7           6           6
    31.0  Equipment.........................          17          21          22
                                               ---------   ---------  ----------
    99.9    Total obligations...............         224         239         249
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......       2,020       2,099       1,965
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

                                  Federal Funds

    General and special funds:

                           Departmental Administration

                         (including transfers of funds)

        For Departmental Administration, [$27,231,000] $32,168,000, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Direct program....................          30          25          32
    09.01 Reimbursable program..............          15          18          16
                                               ---------   ---------  ----------
    10.00   Total obligations...............          45          43          48
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          46          43          48
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          45          43          48
    23.95 New obligations...................         -45         -43         -48
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          30          27          32
    41.00   Transferred to other accounts...                      -3
    42.00   Transferred from other accounts.                       1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........          30          25          32
          Permanent:

            Spending authority from
                offsetting collections:
    68.00     Offsetting collections (cash).           8          18          16
    68.10     Change in orders on hand from
                Federal sources.............           8         -20
    68.15     Adjustment to orders on hand
                from Federal sources........          -1          20
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total)...................          15          18          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          45          43          48
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...                      -9          11

    [[Page 63]]

    72.95   Orders on hand from Federal
              sources.......................          12          20
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          12          11          11
    73.10 New obligations...................          45          43          48
    73.20 Total outlays (gross).............         -45         -43         -48
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...          -9          11          11
    74.95   Orders on hand from Federal
              sources.......................          20
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          11          11          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          30          23          29
    86.93 Outlays from current balances.....           7                       3
    86.97 Outlays from new permanent
            authority.......................           4          18          16
    86.98 Outlays from permanent balances...           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          45          43          48
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -8         -18         -16
    88.95 Change in orders on hand from
            Federal sources.................          -8          20
    88.96 Adjustment to orders on hand from
            Federal sources.................           1         -20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          25          32
    90.00 Outlays...........................          37          24          31
    ---------------------------------------------------------------------------

        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, civil rights and equal opportunity,
    participation of small and disadvantaged businesses, and socially
    disadvantaged farmers and ranchers in the Department's program
    activities, 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.

        The budget request includes additional funding to improve the
    Department's civil rights activities in the areas of human resources,
    assistance to small and disadvantaged businesses, outreach, and conflict
    resolution.

                 DEPARTMENTAL ADMINISTRATION WORKLOAD INDICATORS

                                         1997 actual  1998 est.   1999 est.
    Percent of Program Complaints
    Backlog Eliminated..................          11         100         100
    Days Required to Investigate and
    Settle Civil Rights Program
    Complaints..........................         435         521         180
    Acquisitions Reviewed Not Set-aside
    for Small Business..................          45          50          50
    Subcontracting Plans Reviewed.......          40          45          45
    Small Businesses Counseled..........       6,200       6,200       6,200
    Small Business Procurement
    Conferences Conducted or Sponsored
    by USDA/OSDBU.......................           6           4           4
    Participation of OSDBU staff in
    Outreach Conferences................          15          10          15
    Procurement Assistance Reviews
    Conducted...........................           0           4           4
    Develop Set-aside Policy............           1           0           0
    Training Conferences Conducted......           4           4           4

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          20          17          21
    12.1    Civilian personnel benefits.....           4           3           4
    21.0    Travel and transportation of
              persons.......................                       1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.3    Purchases of goods and services
              from Government accounts......           3           2           4
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          29          24          31
    99.0  Reimbursable obligations..........          15          18          16
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          45          43          48
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         344         303         349
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          97          79          78
    ---------------------------------------------------------------------------

                           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, 42 U.S.C.
    9607(g), and section 6001 of the Resource Conservation and Recovery Act,
    42 U.S.C. 6961, $15,700,000, 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,
    1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          14          20          16
    09.00 Reimbursable program..............           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          15          20          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           2           4
    22.00 New budget authority (gross)......          17          16          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          19          20          16
    23.95 New obligations...................         -15         -20         -16
    24.40 Unobligated balance available, end
            of year: Uninvested.............           4
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          15          16          20
    73.10 New obligations...................          15          20          16
    73.20 Total outlays (gross).............         -14         -16         -16
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          16          20          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          12          11          11
    86.93 Outlays from current balances.....           2           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          14          16          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          17          16          16
    90.00 Outlays...........................          12          16          16
    ---------------------------------------------------------------------------

        Under the Comprehensive Environmental Response, Compensation, and
    Liability Act and the Resource Conservation

    [[Page 64]]

    and Recovery Act, 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

                                         1997 actual  1998 est.   1999 est.
    Number of USDA properties screened
    to identify potential contaminated
    sites 1, 2...............         269          98          50
    Number of sites assessed/
    characterized on need for cleanup...          69          43          54
    Number of removal and remediation
    plans completed 2, 3.....    included    included          13
                                               above       above
    Nunber of removal and remedial
    actions completed 2, 3...          31          25          17
    Number of natural resource damage
    assessments completed 2..           0           0           0
    Number of cleanup/restoration
    agreements with potentially
    responsible parties (PRP's)
    3, 4.....................           6           8          20
    Estimated value of cleanup/
    restoration work performed by PRP's
    ($ millions) \4\....................          18          20          30
    Number of UST cleanups completed....          10           5           3

        \1\ The number of properties screened is declining due to the scheduled
    completion of Forest Service screening efforts and the EPA Lender Liability
    rule that changed the requirement for screening of properties that are
    foreclosed upon but not managed.
        \2\ Indicates the performance measure reports only funded by this
    account accomplishments for 1998 and 1999. Additional accomplishments are
    funded with Forest Service funds and are reported in the Forest Service
    budget.
        \3\ Prior to 1997, potentially responsible party and USDA cleanups were
    combined and are now shown separately.
        \4\ Indicates total accomplishments using HWMA funds and Agency funding
    sources for oversight.

        The performance indicators in the 1999 request reflect more complex
    and work intensive projects.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Direct obligations: Other services          11          16          16
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................           1
    99.5  Below reporting threshold.........           3           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............          15          20          16
    ---------------------------------------------------------------------------

            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, [$123,385,000]
    $132,184,000: 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, [$5,000,000]
    $23,505,000, 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
    [$131,085,000] $155,689,000. (7 U.S.C. 2201, 2202, 2208; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Rental payments to GSA: Non-
              recurring repairs.............         100          98         108
    00.02   Building operations and
              maintenance...................          16          34          24
    00.03   Beltsville renovation and repair           3
    00.04   Strategic space plan............          15          24          24
    00.05   Relocation expenses.............                       3
                                               ---------   ---------  ----------
    00.91     Total direct program..........         134         159         156
    09.02 Reimbursable program..............           4           5           5
                                               ---------   ---------  ----------
    10.00   Total obligations...............         138         164         161
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          19          29
    22.00 New budget authority (gross)......         148         136         161
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         167         164         161
    23.95 New obligations...................        -138        -164        -161
    24.40 Unobligated balance available, end
            of year: Uninvested.............          29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         144         131         156
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           4           5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         148         136         161
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          47          25          34
    73.10 New obligations...................         138         164         161
    73.20 Total outlays (gross).............        -161        -155        -165
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          25          34          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         132         103         127
    86.93 Outlays from current balances.....          25          47          32
    86.97 Outlays from new permanent
            authority.......................           4           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         161         155         165
    ----------------------------------------------------------------------------

        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..................         144         131         156
    90.00 Outlays...........................         157         150         160
    ---------------------------------------------------------------------------

        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
    1999 request provides additional funding for the South Building
    renovation at the 1997 level (in 1998, funding was reduced to avoid the
    build-up of balances).

                               WORKLOAD INDICATORS

                                         1997 actual  1998 est.   1999 est.
    Maintenance and Repairs:
      Minor Repairs (number)............         262         300         300
      Maintenance (thousands of hours)..       18.75        19.0        19.0
      Service Calls (thousands).........       13.62        11.5        11.0

    [[Page 65]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           4           5           5
    12.1    Civilian personnel benefits.....           1           1           1
    23.1    Rental payments to GSA..........         100          99         108
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           3
    25.2    Other services..................          22          51          39
    31.0    Equipment.......................           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         134         159         156
    99.0  Reimbursable obligations..........           4           5           5
                                               ---------   ---------  ----------
    99.9    Total obligations...............         138         164         161
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          78          83          86
    ---------------------------------------------------------------------------

                   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),
    [$3,000,000] $10,000,000, to remain available until expended.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           1           3          10
    09.00 Reimbursable program..............           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           2           3          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2           3          10
    23.95 New obligations...................          -2          -3         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           1           3          10
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           2           3          10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           3           2
    73.10 New obligations...................           2           3          10
    73.20 Total outlays (gross).............          -3          -5         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           3          10
    86.93 Outlays from current balances.....           1           2
    86.97 Outlays from new permanent
            authority.......................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           5          10
    ----------------------------------------------------------------------------

        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..................           1           3          10
    90.00 Outlays...........................           3           5          10
    ---------------------------------------------------------------------------

        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. Section 2501 requires the Secretary of
    Agriculture to provide outreach and technical assistance to encourage
    and assist socially disadvantaged farmers and ranchers to own and
    operate farms and ranches and to participate in agricultural programs.

        The Secretary may make grants and enter into contracts and other
    agreements to eligible community-based organizations, 1890/1862/1994
    Land-Grant Institutions, Tuskegee University, Native American Community
    Colleges and Hispanic Servicing Institutions who demonstrated experience
    in providing education or other agriculture-related services to socially
    disadvantaged farmers and ranchers.

        In 1999, the increased funding will support twenty-seven entities.
    The USDA through partnership agreements will provide outreach, training,
    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 to service an
    adequate standard of living. Services are provided by non-federal
    employees who are employed by the entities.

                                GRANT OBLIGATIONS

                                         1997 actual  1998 est.   1999 est.
    Number of grants....................          14          21          27
    Amount of grants (in millions of
    dollars)............................           1           3          10

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....           1           3          10
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           2           3          10
    ---------------------------------------------------------------------------

                            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]
    $8,319,000, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           8           8           8

    [[Page 66]]

          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10           9           9
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          -1
    72.95   Orders on hand from Federal
              sources.......................           3           3           3
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............           2           3           3
    73.10 New obligations...................           9           9           9
    73.20 Total outlays (gross).............          -9          -9          -9
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...                                   1
    74.95   Orders on hand from Federal
              sources.......................           3           3           2
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................           3           3           3
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross budget authority and outlays:

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

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

                              PERFORMANCE MEASURES

                                         1997 actual  1998 est.   1999 est.
    Surveyed farm and rural-oriented
    groups..............................         n/a          25          50
    Surveyed consumer and food/nutrition
    groups..............................         n/a          20          40
    Surveyed environmental and
    educational groups..................         n/a          20          40
    Surveyed USDA employees.............         n/a         All        All

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      1997 actual   1998 est.   1999 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..........           1           1           1
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           9           9           9
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          93          93          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, [$63,128,000] $87,689,000, 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, 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, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          63          63          88
    01.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total obligations...............          65          65          90
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          65          65          90
    23.95 New obligations...................         -65         -65         -90
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          63          63          88
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          65          65          90
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           8           8           8
    73.10 New obligations...................          65          65          90
    73.20 Total outlays (gross).............         -65         -65         -88
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           8           8           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          57          57          80
    86.93 Outlays from current balances.....           6           6           6
    86.97 Outlays from new permanent
            authority.......................           2           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          65          65          88
    ----------------------------------------------------------------------------

        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..................          63          63          88
    90.00 Outlays...........................          62          63          86
    ---------------------------------------------------------------------------

        The Office keeps the Secretary and Congress informed about fraud,
    other serious problems, mismanagement, and

    [[Page 67]]

    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. In 1999, an additional $21.7 million is included for
    the Administration's Law Enforcement Initiative, which will target fraud
    and abuse in the Food Stamp Program, Child Nutrition Programs, Rural
    Rental Housing Program, and emergency programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          37          39          55
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          41          43          59
    12.1    Civilian personnel benefits.....          11          11          15
    21.0    Travel and transportation of
              persons.......................           6           6           8
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           3           2           5
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          62          63          88
    99.0  Reimbursable obligations..........           2           2           2
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          65          65          90
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         742         750         925
    ---------------------------------------------------------------------------

                          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,
    [$28,524,000] $30,446,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          28          29          30
    09.00 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          29          30          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          29          30          31
    23.95 New obligations...................         -29         -30         -31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          28          29          30
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          29          30          31
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           1           1           2
    73.10 New obligations...................          29          30          31
    73.20 Total outlays (gross).............         -29         -29         -31
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           1           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          27          27          28
    86.93 Outlays from current balances.....                                   2
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          29          29          31
    ----------------------------------------------------------------------------

        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..................          28          29          30
    90.00 Outlays...........................          27          28          30
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          21          22          23
    12.1    Civilian personnel benefits.....           4           5           5
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           1           1           1
    26.0    Supplies and materials..........           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          28          29          30
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          29          30          31
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         338         366         370
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          13           8           8
    ---------------------------------------------------------------------------

                            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 Agricul-

    [[Page 68]]

    tural Marketing Act of 1946 (7 U.S.C. 1621-1627) and other laws,
    [$71,604,000] $55,839,000: 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          53          72          56
    09.00 Reimbursable program..............           6           6           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............          59          78          62
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          59          78          62
    23.95 New obligations...................         -59         -78         -62
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          53          72          56
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           6           6           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          59          78          62
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           9          14          14
    73.10 New obligations...................          59          78          62
    73.20 Total outlays (gross).............         -54         -78         -63
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          14          14          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          43          62          49
    86.93 Outlays from current balances.....           5          10          10
    86.97 Outlays from new permanent
            authority.......................           6           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          54          78          63
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -6          -6          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          53          72          56
    90.00 Outlays...........................          48          72          57
    ---------------------------------------------------------------------------

        Funding for the Economic Research Service is proposed as part of the
    Research Fund for America. This proposal highlights the Administration's
    priority to providing needed and sustained investments in important
    Federal research programs on a deficit neutral basis. A discussion of
    the Research Fund for America, and two other funds for the environment
    and transportation, can be found in Section II of the Budget volume.

        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 1999 request includes funding for three new studies: one on the
    information needs of small farmers, one on electric utility
    deregulation, and one on estimating the benefits of increased food
    safety. The 1998 appropriation included funds for certain research
    activities of the USDA Food and Nutrition Service, which are proposed to
    be funded through that account in 1999.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          31          33          34
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          32          34          35
    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..................           2           2           1
    25.3    Purchases of goods and services
              from Government accounts......           5           6           6
    25.5    Research and development
              contracts.....................           4          20           4
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          53          72          56
    99.0  Reimbursable obligations..........           6           6           6
                                               ---------   ---------  ----------
    99.9    Total obligations...............          59          78          62
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         533         519         516
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          37          35          35
    ---------------------------------------------------------------------------

                    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, as authorized by the
    Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627), the Census of
    Agriculture Act of 1997 (P.L. 105-113), and other laws, [$118,048,000]
    $107,190,000, of which up to [$36,327,000] $23,741,000 shall be
    available until expended for the Census of Agriculture: 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[: Provided further, That, notwithstanding any other
    provision of law, the Secretary of Agriculture shall conduct the 1997
    Census of Agriculture, to the extent practicable, pursuant to the
    provisions of title 13, United States Code]. (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,
    1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Agricultural estimates..........          79          78          80
    00.02   Statistical research and service           3           3           3
    00.03   Census of Agriculture...........          17          36          24
    09.01 Reimbursable program..............          10          10          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............         110         128         117
    ----------------------------------------------------------------------------

    [[Page 69]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         110         128         117
    23.95 New obligations...................        -110        -128        -117
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         100         118         107
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          10          10          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         110         128         117
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          14          24          26
    73.10 New obligations...................         110         128         117
    73.20 Total outlays (gross).............        -100        -125        -118
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          24          26          25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          79         104          95
    86.93 Outlays from current balances.....          11          11          13
    86.97 Outlays from new permanent
            authority.......................          10          10          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         100         125         118
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         100         118         107
    90.00 Outlays...........................          90         116         109
    ---------------------------------------------------------------------------

        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 1999 program includes an
    increase of $1,400,000 for the development of a pesticide use survey of
    the horticulture and greenhouse industry.

        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. The Census will be taken during 1998. An increase of
    $600,000 is requested for two follow-on surveys--$100,000 for the
    development of an Agricultural Economic Land Ownership survey, and
    $500,000 to conduct a new aquaculture survey. The 1999 request reflects
    a decrease of $13,328 thousand due to the cyclical nature of the
    program.

        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         1997 actual  1998 est.   1999 est.
    Percentage of agricultural cash
    receipts covered by NASS's current
    production statistics program.......        92.0        93.0        98.0
    Percentage of reports issued that
    meet scheduled release date.........        98.0        98.0        99.0

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          44          49          47
    11.3      Other than full-time permanent           1           3           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          45          52          48
    12.1    Civilian personnel benefits.....          10          12          11
    21.0    Travel and transportation of
              persons.......................           2           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           6           6
    24.0    Printing and reproduction.......                       1           1
    25.2    Other services..................          20          24          20
    25.3    Purchases of goods and services
              from Government accounts......          11          15          13
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           1           2           2
    31.0    Equipment.......................           5           4           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          98         118         107
    99.0  Reimbursable obligations..........           8           8           8
    99.5  Below reporting threshold.........           4           2           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............         110         128         117
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         997       1,190       1,007
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         100         100         100
    ---------------------------------------------------------------------------

                          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
    provided 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, [$744,605,000] and for
    land exchanges where the lands exchanged shall be of equal value or
    shall be equalized by a payment of money to the grantor which shall not
    exceed 25% of the total value of the land or interests transferred out
    of Federal ownership, $776,828,000: 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 limita-

    [[Page 70]]

    tions on alterations contained in this Act shall not apply to
    modernization or replacement of existing facilities at Beltsville,
    Maryland: Provided further, That appropriations hereunder shall be
    available for granting easements at the Beltsville Agricultural Research
    Center, including an easement to the University of Maryland to construct
    the Transgenic Animal Facility which upon completion shall be accepted
    by the Secretary as a gift: 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 the item under
    the heading ``Agricultural Research Service'' in title I of the
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1996 (Public Law 104-37; 109 Stat.
    304), is amended by striking the penultimate proviso, relating to
    conveyance of the Pecan Genetics and Improvement Research Laboratory].
    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.
        In the fiscal year 1999 the agency is authorized to charge fees,
    commensurate with the fair market value, for any permit, easement,
    lease, or other special use authorization for the occupancy or use of
    land and facilities (including land and facilities at the Beltsville
    Agricultural Research Center) issued by the agency as authorized by law,
    and such fees shall be credited to this account, and shall remain
    available until expended, for authorized purposes. (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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Research on soil and water
              conservation..................          88          86          86
    00.02   Research on plant science.......         243         256         265
    00.03   Research on animal science......         115         119         127
    00.04   Research on commodity conversion
              and delivery..................         141         147         151
    00.05   Human nutrition research........          61          71          82
    00.06   Integration of agricultural
              systems.......................          27          28          27
    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          20
                                               ---------   ---------  ----------
    00.91     Total direct program..........         714         745         777
    09.00 Reimbursable program..............          36          42          42
                                               ---------   ---------  ----------
    10.00   Total obligations...............         750         787         819
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         753         787         819
    22.30 Unobligated balance expiring......          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         750         787         819
    23.95 New obligations...................        -750        -787        -819
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         717         745         777
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          36          42          42
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         753         787         819
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         192         179         181
    73.10 New obligations...................         750         787         819
    73.20 Total outlays (gross).............        -762        -785        -814
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         179         181         186
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         574         596         622
    86.93 Outlays from current balances.....         152         147         149
    86.97 Outlays from new permanent
            authority.......................          36          42          42
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         762         785         814
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -31         -36         -36
    88.40     Non-Federal sources...........          -5          -6          -6
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -36         -42         -42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         717         745         777
    90.00 Outlays...........................         726         743         772
    ---------------------------------------------------------------------------

        Funding for the Agricultural Research Service is proposed as part of
    the Research Fund for America. This proposal highlights the
    Administration's priority to providing needed and sustained investments
    in important Federal research programs on a deficit neutral basis. A
    discussion of the Research Fund for America, and two other funds for the
    environment and transportation, can be found in Section II of the Budget
    volume.

        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 1999, the Service proposes increased emphases for critical
    research needs in agriculture, such as: the President's 1999 Food Safety
    Initiative, the Climate Change Technology Initiative, Pfiesteria
    research in support of the Clean Water and Watershed Restoration
    Initiative, and other environmental quality/natural resources including
    livestock management, methyl bromide, and pest management, human
    nutrition, genetic resources, emerging diseases and exotic pests, and
    restoration of the South Florida Everglades ecosystem. The Service
    expects to submit 60 new patent applications, participate in 85 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 1999.

        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 im-

    [[Page 71]]

    prove 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 composition 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         298         311         321
    11.3      Other than full-time permanent          21          22          23
    11.5      Other personnel compensation..          11          11          11
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         330         344         355
    12.1    Civilian personnel benefits.....          72          78          83
    21.0    Travel and transportation of
              persons.......................          12          13          13
    22.0    Transportation of things........           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          32          33          35
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           1                       1
    25.2    Other services..................           4           7           6
    25.3    Purchases of goods and services
              from Government accounts......           4           4           4
    25.4    Operation and maintenance of
              facilities....................          23          23          24
    25.5    Research and development
              contracts.....................         108         112         118
    25.7    Operation and maintenance of
              equipment.....................           8           8           9
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........          58          59          62
    31.0    Equipment.......................          40          41          43
    32.0    Land and structures.............           4           4           4
    41.0    Grants, subsidies, and
              contributions.................          14          15          16
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         714         745         777
    99.0  Reimbursable obligations..........          36          42          42
                                               ---------   ---------  ----------
    99.9    Total obligations...............         750         787         819
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       7,318       7,356       7,362
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         118         118         118
    ---------------------------------------------------------------------------

                            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, [$80,630,000]
    $35,900,000, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          79          63          60
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          79          69          85
    22.00 New budget authority (gross)......          69          79          36
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         148         148         121
    23.95 New obligations...................         -79         -63         -60
    24.40 Unobligated balance available, end
            of year: Uninvested.............          69          85          61
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          69          81          36
    40.79 Line item veto cancellation.......                      -2
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          69          79          36
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          69          79          36
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          28          76          74
    73.10 New obligations...................          79          63          60
    73.20 Total outlays (gross).............         -31         -65         -70
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          76          74          64
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           9           4
    86.93 Outlays from current balances.....          30          56          66
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          31          65          70
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          69          79          36
    90.00 Outlays...........................          31          65          70
    ---------------------------------------------------------------------------

        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 1999 request provides for the modernization and renovation of the
    Beltsville Agricultural Research Center, Beltsville, MD; Regional
    Utilization Centers at Peoria, IL; Philadelphia, PA; New Orleans, LA;
    major research centers at Plum Island Animal Disease Center, Greenport,
    NY; the National Animal Disease Center at Ames, IA; and U.S. Grain
    Marketing Laboratory at Manhattan, KS; and the National Agricultural
    Library. The request also provides for construction of a new facility in
    Ft. Lauder-

    [[Page 72]]

    dale, FL, as part of the Administration's Everglades initiatives.

        Funding for the Ft. Lauderdale facility is proposed as part of the
    Environmental Resources Fund for America. This proposal highlights the
    Administration's priority to provide deficit neutral funding for
    investments in many of our Nation's key environmental programs. A
    discussion of the Environmental Resources Fund for America, and two
    other funds for research and transportation, can be found in Section II
    of the Budget volume.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          56          38          40
    32.0  Land and structures...............          18          18          20
    41.0  Grants, subsidies, and
            contributions...................           5           7
                                               ---------   ---------  ----------
    99.9    Total obligations...............          79          63          60
    ---------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Science and Education
            Administration contributed funds          14          15          15
        Appropriation:
    05.01 Miscellaneous contributed funds...         -14         -15         -15
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          13          15          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           8           9           8
    22.00 New budget authority (gross)......          14          15          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          22          24          23
    23.95 New obligations...................         -13         -15         -15
    24.40 Unobligated balance available, end
            of year: Uninvested.............           9           8           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................          14          15          15
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................          14          15          15
    90.00 Outlays...........................          13          14          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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           3           3           3
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           6           8           8
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          13          15          15
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          82          82          82
    ---------------------------------------------------------------------------

          COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

                                  Federal Funds

    General and special funds:

    Integrated Research, Extension, and Education Competitive Grants Program

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.23 Small Farms Initiative............                                   4
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                   4
    ----------------------------------------------------------------------------

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

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

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

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                   2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   4
    90.00 Outlays...........................                                   2
    ---------------------------------------------------------------------------

        A new authority for an Integrated Research, Extension, and Education
    Competitive Grants Program is proposed to be included in the
    reauthorization of the research title of the 1996 Farm Bill. Multi-
    functional research, extension and education programs would address
    national and regional issues. A 100 percent non-Federal match would be
    required for commodity- or location-specific activities. In 1999, a
    Small Farms Initiative, to be implemented through the Department's Land-
    Grant partners, is proposed in support of the Secretary's Civil Rights
    initiative to strengthen USDA's research and educational assistance to
    the socially disadvantaged.

    [[Page 73]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1502-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                                   1
    ---------------------------------------------------------------------------

                        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] $153,672,000 to carry into effect the
    provisions of the Hatch Act (7 U.S.C. 361a-i); [$20,497,000] $19,882,000
    for grants for cooperative forestry research (16 U.S.C. 582a-a7);
    $27,735,000 for payments to the 1890 land-grant colleges, including
    Tuskegee University (7 U.S.C. 3222); [$51,495,000] $12,551,000 for
    special grants for agricultural research (7 U.S.C. 450i(c));
    [$15,048,000] $24,698,000 for special grants for agricultural research
    on improved pest control (7 U.S.C. 450i(c)); [$97,200,000] $130,000,000
    for competitive research grants (7 U.S.C. 450i(b)); $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);
    $550,000 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 (7 U.S.C. 3318), to remain available until
    expended;] $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); $4,350,000 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); $2,500,000 for an education grants program for Hispanic-serving
    Institutions (7 U.S.C. 3241); [$4,000,000] $3,880,000 for aquaculture
    grants (7 U.S.C. 3322); [$8,000,000] $10,000,000 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
    [$11,226,000] $3,896,000 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, [$431,410,000] $412,589,000.
        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 103-382 (7 U.S.C. 301 note), $4,600,000.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                   1
        Receipts:
    02.01 Federal payment, Native American
            Institutions Endowment Fund.....           5           5           5
    02.02 Earnings on investments...........                       1           1
                                               ---------   ---------  ----------
    02.99   Total receipts..................           5           6           6
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           5           6           7
        Appropriation:
    05.01 Cooperative state research
            activities......................          -5          -5          -5
    07.99 Total balance, end of year........                       1           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Payments under the Hatch Act....         169         169         153
    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.........          75          79          51
    00.05   National research initiative
              competitive grants............         125         111         130
    00.06   Animal health and disease
              research......................           5           5           5
    00.07   Federal administration..........          10          11           4
    00.08   Higher education................          18          25          21
    00.09   Native American Institutions
              Endowment Fund................           5           5           5
                                               ---------   ---------  ----------
    00.91     Total direct program..........         453         453         417
    09.00 Reimbursable program..............          13          16          16
                                               ---------   ---------  ----------
    10.00   Total obligations...............         468         469         433
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          46          17
    22.00 New budget authority (gross)......         439         452         433
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         485         469         433
    23.95 New obligations...................        -468        -469        -433
    24.40 Unobligated balance available, end
            of year: Uninvested.............          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         421         431         412
    40.25   Appropriation (special fund,
              indefinite)...................           5           5           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         426         436         417
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          13          16          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         439         452         433
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         322         375         413
    73.10 New obligations...................         468         469         433
    73.20 Total outlays (gross).............        -415        -431        -437
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         375         413         409
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         198         227         217
    86.93 Outlays from current balances.....         204         188         204
    86.97 Outlays from new permanent
            authority.......................          13          16          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         415         431         437
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -13         -16         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         426         436         417
    90.00 Outlays...........................         402         415         421
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         426         436         417
      Outlays...........................         402         415         421
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  10
      Outlays...........................                                   1
                                        ------------------------------------
    Total:
      Budget Authority..................         426         436         427
      Outlays...........................         402         415         422
                                        ====================================

        Funding for the Research and Education Activities of the Cooperative
    State Research, Education, and Extension Service is proposed as part of
    the Research Fund for America. This proposal highlights the
    Administration's priority to providing needed and sustained investments
    in important Federal research programs on a deficit neutral basis. A
    discussion of the Research Fund for America, and two other funds for the
    environment and transportation, can be found in Section II of the Budget
    volume.

        Cooperative State Research, Education, and Extension Service
    participates in a nationwide system of agricultural re-

    [[Page 74]]

    search 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, IR-4 minor crop pest management and pest
    management alternatives. Funding is also proposed for 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 IR-4 minor crop
    pest management 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 1999 IR-4 will complete 525 pesticide clearances.
    These will include 240 clearances for ``safer'' and reduced risk
    alternatives on food crops together with biologically-based and IPM-
    compatible pest control products; 285 new registrations on horticultural
    crops, such as nursery and floral crops. In addition, resources for
    these pest management programs will be coordinated to address Food
    Quality and Protection Act issues. A $3 million 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, sustainable agriculture,
    rural development centers, and aquaculture centers. A grant program for
    food safety is also proposed for research to underpin food safety
    education, as part of the President's 1999 Food Safety Initiative.

        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 1999, the requested increase will be targeted to expand
    research to help reduce the incidence of food borne illness caused by
    microbiological pathogens and support the food genome strategy.

        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
    formula 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 the 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          10          10          11
    12.1    Civilian personnel benefits.....           2           3           3
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1
    25.3    Purchases of goods and services
              from Government accounts......           2           3           3
    26.0    Supplies and materials..........                       1           1
    41.0    Grants, subsidies, and
              contributions.................         439         435         398
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         455         453         417
    99.0  Reimbursable obligations..........          13          16          16
                                               ---------   ---------  ----------

    [[Page 75]]

    99.9    Total obligations...............         468         469         433
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         179         195         197
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           9           9           9
    ---------------------------------------------------------------------------

                        Research and Education Activities

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Food Genome Initiative............                                  10
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                  10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  10
    23.95 New obligations...................                                 -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                  10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  10
    73.20 Total outlays (gross).............                                  -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                  10
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                  10
    90.00 Outlays...........................                                   1
    ---------------------------------------------------------------------------

        A new authority for a competitive grants program to support the Food
    Genome Initiative is proposed to improve understanding of plant and
    animal and associated microbial genes. Accelerated research projects
    will help aid the identification, mapping, and understanding of the
    function and control of genes responsible for economically important
    traits in the major agriculturally important species of plants, animals,
    and microbes. Through this research investment, new genetic technologies
    will be developed to improve yield, composition, and quality of
    agricultural output.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1500-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                                   1
    ---------------------------------------------------------------------------

                            buildings and facilities

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          63           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           7           5
    22.00 New budget authority (gross)......          62
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          69           5
    23.95 New obligations...................         -63          -5
    24.40 Unobligated balance available, end
            of year: Uninvested.............           5
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         185         199         149
    73.10 New obligations...................          63           5
    73.20 Total outlays (gross).............         -49         -55         -40
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         199         149         109
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          49          55          40
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          49          55          40
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          62
    90.00 Outlays...........................          49          55          40
    ---------------------------------------------------------------------------

        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 1999.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1
    25.2  Other services....................           1           1
    41.0  Grants, subsidies, and
            contributions...................          61           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............          63           5
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          10           3
    ---------------------------------------------------------------------------

                              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, 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]
    $257,753,000; payments for extension work at the 1994 Institutions under
    the Smith-Lever Act (7 U.S.C. 343(b)(3)), [$2,000,000] $3,500,000;
    payments for the nutrition and family education program for low-income
    areas under section 3(d) of the Act, [$58,695,000] $56,347,000; payments
    for a pesticides applicator training program under section 3(d) of the
    Act, $1,500,000; 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 section
    1447 of Public Law 95-113 (7 U.S.C. 3222b), [$7,549,000] $12,000,000, 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, $9,061,000;
    [payments for the agricultural telecommunications program, as authorized
    by Public Law 101-624 (7 U.S.C. 5926), $900,000;] payments for youth-at-
    risk programs under section 3(d) of the Act, [$9,554,000] $10,000,000;
    payments for a food safety program under section 3(d) of the Act,
    [$2,365,000] $7,365,000; payments for carrying out the provisions of the
    Renewable Resources

    [[Page 76]]

    Extension Act of 1978, $3,192,000; payments for Indian reservation
    agents under section 3(d) of the Act, [$1,672,000] $5,000,000; 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 and 328) and Tuskegee University, $25,090,000; and for Federal
    administration and coordination including administration of the Smith-
    Lever Act, and the Act of September 29, 1977 (7 U.S.C. 341-349), 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,
    [$11,108,000] $5,313,000; in all, [$423,376,000] $418,651,000: 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, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Smith-Lever Act, 3(b) and 3(c)..         268         268         258
    00.02   Youth at Risk...................          10          10          10
    00.03   Water quality...................          11           9           9
    00.04   Expanded food and nutrition
              education program (EFNEP).....          59          59          57
    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           5
    00.10   Agricultual telecommunications..           1           1
    00.11   Food safety.....................           2           2           7
    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           3
    00.16   Federal administration..........          12          11           5
    00.18   Rural health and safety
              education.....................           3           3
    00.19   1890 facilities (section 1447)..           7          13          12
    00.21   Sustainable agriculture.........           3           3           3
    00.22   1994 Institutions activities....           2           2           4
                                               ---------   ---------  ----------
    00.91     Total direct program..........         426         429         419
    09.00 Reimbursable program..............          14          25          25
                                               ---------   ---------  ----------
    10.00   Total obligations...............         440         454         444
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           4           6
    22.00 New budget authority (gross)......         440         448         444
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         444         454         444
    23.95 New obligations...................        -440        -454        -444
    24.40 Unobligated balance available, end
            of year: Uninvested.............           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         426         423         419
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          14          25          25
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         440         448         444
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         201         207         216
    73.10 New obligations...................         440         454         444
    73.20 Total outlays (gross).............        -434        -447        -444
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         207         216         216
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         271         291         288
    86.93 Outlays from current balances.....         149         131         132
    86.97 Outlays from new permanent
            authority.......................                      25          25
    86.98 Outlays from permanent balances...          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         434         447         444
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -14         -25         -25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         426         423         419
    90.00 Outlays...........................         420         422         419
    ---------------------------------------------------------------------------

        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) such as
    youth at risk, expanded food and nutrition education program (EFNEP),
    and food safety, provide support for the Cooperative Extension System to
    address identified priority issues. As part of the 1999 Food Safety
    Initiative, a $5 million increase is requested for the development of
    materials targeted to older Americans (a high risk group) and those with
    limited resources to provide them with information on proper food
    handling.

        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 vol-

    [[Page 77]]

    unteers who, in turn, educate the professional farmers and end-users
    regarding these critical initiatives and concerns.

        Initiatives proposed in 1999 include funding for: sustainable
    agriculture education programs; increased efforts on pest management;
    pesticide applicator training; support to the 1890 Institutions and
    Tuskegee University; and renewable resource extension. Funding is also
    provided to support extension services at the 1994 institutions and
    extension Indian reservation agents. These programs are critical in
    bringing needed educational programs to Native American communities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           9          10          10
    12.1    Civilian personnel benefits.....           3           3           3
    21.0    Travel and transportation of
              persons.......................           1           1           1
    25.2    Other services..................           2           2           2
    25.3    Purchases of goods and services
              from Government accounts......           1           2           2
    41.0    Grants, subsidies, and
              contributions.................         410         411         401
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         426         429         419
    99.0  Reimbursable obligations..........          14          25          25
                                               ---------   ---------  ----------
    99.9    Total obligations...............         440         454         444
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         196         198         197
    ---------------------------------------------------------------------------

                   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 (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, [$426,282,000] $417,752,000, of which
    [$4,500,000] $4,105,000 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, and section
    102 of the Act of September 21, 1944, 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 [1998] 1999 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
    [1998, $88,000,000] 1999, $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, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          89          91         103
        Receipts:
    02.01 Agricultural quarantine inspection
            fees............................         115         141         144
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         204         232         247
        Appropriation:
    05.01 Salaries and expenses.............        -113        -129        -144
                                               ---------   ---------  ----------
    05.99 Subtotal appropriation............        -113        -129        -144
    07.99 Total balance, end of year........          91         103         103
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Pest and disease exclusion......         234         244         252
    00.02   Plant and animal health
              monitoring....................          70          74          79
    00.03   Pest and disease management
              programs......................          98          96          73
    00.04   Animal care.....................          10          10          10
    00.05   Scientific and technical
              services......................          53          53          53
    00.06   Contingencies...................           6           5           4
    00.07   Emergency program funding.......          31          24
                                               ---------   ---------  ----------
    01.00   Total direct program............         502         506         471
    09.01 Reimbursable program..............          53          54          55
                                               ---------   ---------  ----------
    10.00   Total obligations...............         555         560         526
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          53          31          17
    22.00 New budget authority (gross)......         504         522         517
    22.22 Unobligated balance transferred
            from other accounts.............          29          24
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         586         577         534
    23.95 New obligations...................        -555        -560        -526
    24.40 Unobligated balance available, end
            of year: Uninvested.............          31          17           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         337         338         318
    40.20   Appropriation (special fund,
              definite).....................          98          88         100
    42.00   Transferred from other accounts.                       1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         435         427         418
          Permanent:

    60.25   Appropriation (special fund,
              indefinite)...................          15          41          44
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          54          54          55
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         504         522         517
    ----------------------------------------------------------------------------

    [[Page 78]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          61          73         173
    73.10 New obligations...................         555         560         526
    73.20 Total outlays (gross).............        -543        -460        -517
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          73         173         180
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         429         360         352
    86.93 Outlays from current balances.....          47           6          67
    86.97 Outlays from new permanent
            authority.......................          62          89          92
    86.98 Outlays from permanent balances...           5           5           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         543         460         517
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7          -7          -7
    88.40     Non-Federal sources...........         -47         -47         -48
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -54         -54         -55
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         450         468         462
    90.00 Outlays...........................         489         406         462
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         450         468         462
      Outlays...........................         489         406         462
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         450         468         462
      Outlays...........................         489         406         462
                                        ====================================

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         202         219         220
    11.3      Other than full-time permanent          14          14          15
    11.5      Other personnel compensation..          22          11          10
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         238         244         245
    12.1    Civilian personnel benefits.....          55          56          55
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          19          19          18
    22.0    Transportation of things........           4           4           4
    23.2    Rental payments to others.......           6           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........          13          15          13
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          94          92          62
    26.0    Supplies and materials..........          22          22          21
    31.0    Equipment.......................          21          21          21
            Grants, subsidies, and
                contributions:
    41.0      United States-Colombia
                Commission to Prevent Foot-
                and-Mouth Disease...........           1           1           1
    41.0      Joint Screwworm eradication
                programs....................          17          17          17
    41.0      Joint Commission on the
                Mediterranean fruit fly.....           3           3           3
    41.0      Grants, subsidies, and
                contributions-Other.........           3           3           2
            Insurance claims and
                indemnities:
    42.0      Brucellosis...................           2           2           2
    42.0      Karnal Bunt...................           2
    42.0      Tuberculosis..................                       1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         502         506         471
    99.0  Reimbursable obligations..........          53          54          55
                                               ---------   ---------  ----------
    99.9    Total obligations...............         555         560         526
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       3,668       3,560       3,224
    1011    Exempt Full-time equivalent
              employment....................       1,987       2,098       2,128
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         552         549         561
    ---------------------------------------------------------------------------

    [[Page 79]]

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

        Upon enactment of authorization of fees to cover all administrative
    costs of services provided in support of biotechnology testing (pests)
    authorized under the Federal Plant Pest Act (7 U.S.C. 150aa-150jj);
    biotechnology testing (plants) authorized under the Plant Quarantine Act
    (7 U.S.C. 151-165 and 167); animal welfare licensing authorized under
    the Animal Welfare Act of 1966 (7 U.S.C. 2131-2159); veterinary
    biologics activities authorized under the Virus-Serum-Toxin Act as
    amended (21 U.S.C. 151-159); pink bollworm eradication authorized under
    section 2509 of Public Law 101-624 (21 U.S.C. 136a); and activities
    authorized under the Swine Health Protection Act of 1980 (7 U.S.C. 3801-
    3813); such fees shall be collected and credited to this account as an
    offsetting collection, to remain available until expended for the
    purpose of conducting such activities.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Swine Health Protection...........                                   1
    09.02 Pink Bollworm.....................                                   1
    09.03 Animal Welfare....................                                   3
    09.04 Biotechnology.....................                                   1
    09.05 Veterninary Biologics.............                                   4
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                  10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  10
    23.95 New obligations...................                                 -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...................                                  10
    73.20 Total outlays (gross).............                                 -10
    ----------------------------------------------------------------------------

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

        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...........................
    ---------------------------------------------------------------------------

        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. Appropriations
    language is included which will, upon the enactment of the authorizing
    legislation, permit the Secretary to collect the fees and spend the
    collections.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                                  10
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                  10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                                 145
    ---------------------------------------------------------------------------

                            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, [$4,200,000]
    $5,200,000, to remain available until expended. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           8          20           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          30          27          11
    22.00 New budget authority (gross)......           3           4           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          33          31          16
    23.95 New obligations...................          -8         -20          -9
    24.40 Unobligated balance available, end
            of year: Uninvested.............          27          11           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           3           4           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          14          13          16
    73.10 New obligations...................           8          20           9
    73.20 Total outlays (gross).............          -9         -17          -8
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          13          16          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           3           1           1
    86.93 Outlays from current balances.....           6          16           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9          17           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           4           5
    90.00 Outlays...........................           9          17           8
    ---------------------------------------------------------------------------

        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 1999 budget proposes $5.2 million for this program, which
    consists of $2.0 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           5          16           5
    32.0  Land and structures...............           3           4           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............           8          20           9
    ---------------------------------------------------------------------------

    [[Page 80]]

                                   Trust Funds

                            Miscellaneous Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           1           1           5
        Receipts:
    02.02 Miscellaneous contributed funds...          11          10          10
    02.03 Fees for feed and attendants for
            animals in quarantine...........                       1           1
                                               ---------   ---------  ----------
    02.99   Total receipts..................          11          11          11
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          12          12          16
        Appropriation:
    05.01 Miscellaneous trust funds.........         -11          -7          -7
    07.99 Total balance, end of year........           1           5           9
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Expenses, feed, and attendants for
            animals in quarantine...........           1           1           1
    00.03 Miscellaneous contributed funds...           7           6           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............           8           7           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           3           6           6
    22.00 New budget authority (gross)......          11           7           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14          13          13
    23.95 New obligations...................          -8          -7          -7
    24.40 Unobligated balance available, end
            of year: Uninvested.............           6           6           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................          11           7           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           8           7           7
    73.20 Total outlays (gross).............          -9          -7          -7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           8           6           6
    86.98 Outlays from permanent balances...           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9           7           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11           7           7
    90.00 Outlays...........................           9           7           7
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Miscellaneous contributed funds.......           7           7           7
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Miscellaneous contributed funds.......           9           8           8
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           1           1           1
    11.5    Other personnel compensation....           3           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           4           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...............           8           7           7
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          80          80          75
    ---------------------------------------------------------------------------

                       FOOD SAFETY AND INSPECTION SERVICE

        The following table depicts the total funding for the Food Safety
    and Inspection Service, which includes appropriated funds and proceeds
    from proposed user fees:

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
    Appropriations:
      Enacted/requested:
        Budget Authority................         574         590         150
        Outlays.........................         570         589         169
    User Fee:
        Budget Authority................                                 473
        Outlays.........................                                 449
                                        ------------------------------------
      Total:
        Budget Authority................         574         590         623
        Outlays.........................         570         589         618
                                        ====================================

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses to carry on services authorized by the
    Federal Meat Inspection Act, the Poultry Products Inspection Act, and
    the Egg Products Inspection Act, [$589,263,000, of which $5,000,000
    shall be available for obligation only after promulgation of a final
    rule to implement the provisions of subsection (e) of section 5 of the
    Egg Products Inspection Act (21 U.S.C. 1034(e))] $149,566,000, 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 the
    second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
    2225), and not to exceed $75,000 shall be

    [[Page 81]]

    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:
    Provided further, That notwithstanding the Federal Meat Inspection Act
    and the Poultry Products Inspection Act, the Food Safety and Inspection
    Service may pay States up to 75 percent of the funding for Cooperative
    Inspection Programs for the Field Automation and Information Management
    Project, laboratory pathogen detection systems, and training in the
    principles and procedures of Hazard Analysis and Critical Control Point
    systems. (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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         575         589         150
    09.01 Reimbursable program..............          81          82          82
                                               ---------   ---------  ----------
    10.00   Total obligations...............         656         671         232
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           2           1
    22.00 New budget authority (gross)......         655         671         232
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         657         672         232
    23.95 New obligations...................        -656        -671        -232
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         574         589         150
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          81          82          82
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         655         671         232
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          36          39          39
    73.10 New obligations...................         656         671         232
    73.20 Total outlays (gross).............        -651        -671        -233
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          39          39          38
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         546         565         144
    86.93 Outlays from current balances.....          24          24           7
    86.97 Outlays from new permanent
            authority.......................          81          82          82
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         651         671         233
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1          -1          -1
    88.40     Non-Federal sources...........         -80         -81         -81
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -81         -82         -82
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         574         589         150
    90.00 Outlays...........................         570         589         151
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         574         589         150
      Outlays...........................         570         589         151
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         574         589         150
      Outlays...........................         570         589         151
                                        ====================================

        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. Providing adequate resources for
    Federal food safety agencies continues to be a priority of the
    Administration, and the 1999 budget proposes a $33 million increase for
    inspection of meat, poultry, and egg products to cover pay cost
    increases for inspectors, grants for special assistance to state
    inspection programs, and additional food safety education activities.

        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 1999, the Administration is proposing a new user fee to offset
    the cost of Federal meat, poultry, and egg products inspection. The
    proposal would require industry to reimburse the government for all
    Federal services. 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.

        On January 25, 1997, the President announced the 1998 President's
    National Food Safety Initiative. The initiative included six components
    for improving the Federal food inspection system. Key components
    included expansion of the Federal food safety surveillance system,
    better coordination between Federal, State and local health authorities,
    implementation of improved inspection strategies, improved risk
    assessment capabilities, additional research, and more food safety
    education for consumers and retail food service workers. The 1999 Food
    Safety Initiative builds upon the framework developed during the 1998
    process. In 1999, the focus of this initiative is on enhancing the
    safety of imported and domestic fruits and vegetables, increasing food
    safety education efforts targeted to high risk populations, and
    development of information and tools necessary to cover a broader range
    of food safety hazards.

                     FEDERALLY FUNDED INSPECTION ACTIVITIES

                                         1997 actual  1998 est.   1999 est.
    Federally inspected establishments:
      Slaughter plants..................         274         268         262
      Processing plants.................       4,352       4,441       4,312
      Combination slaughter and
        processing plants...............         976       1,001         973
      Talmadge-Aiken plants.............         221         218         216
      Import establishments.............         156         148         139
      Egg plants........................          79          81          80
    Federally inspected and passed
        production (millions of pounds):
      Meat slaughter....................      40,522      41,002      41,488
      Poultry slaughter.................      44,233      46,505      48,894
      Egg products......................       3,179       3,360       3,550
      Product inspected and passed under
        HACCP system: a......         N/A      51,316      88,308
    Import/export activity (millions of
        pounds):
      Meat and poultry imported.........       2,400       2,400       2,400
      Meat and poultry exported.........       8,200       8,200       9,000
    States and territories with
        cooperative programs:
        b
      Intrastate inspection.............          26          25          25
      Talmadge-Aiken inspection.........           9           9           9
      Number of slaughter and/or
        processing plants (excludes
        exempt plants)..................       2,840       2,820       2,800
      Pounds inspected slaughter
        (millions)......................       1,265       1,392       1,532
    Compliance activities:
      Marketplace reviews...............          --      20,000c
                                                                     101,000
      Corrective action reviews.........      26,142      50,000      50,000
      Corrective actions completed......         327         600         700

    [[Page 82]]

    Product Testing (samples analyzed):
      Food chemistry....................      18,478      15,000      15,000
      Food microbiology.................      83,669     250,000     250,000
      Chemical residues.................      47,582      40,000      40,000
      Antibiotic residues...............     115,659     115,000     115,000
      Pathology samples.................       5,710       6,000       6,000
    Egg Products:
      Food chemistry....................           0         200         200
      Food microbiology.................       1,966       2,000       2,000
      Chemical residues.................         816         900         900
    Consumer Education and public
        outreach:
      Meat and Poultry Hotline Calls
        received........................     138,120     163,000     168,000
    Epidemiological Investigations:
      Cooperative efforts with State and
        public health offices...........          40          40          40
      Illnesses reported and treated
        d....................       7,332       7,332       7,332
    Field Automation and Information
        Management Project (cumulative):
      Number of computers provided to
        field inspection staff..........       1,944       2,744       4,369
        a Production data on meat and poultry slaughter operations
    reflect estimated output of establishments required to produce under HACCP
    systems.
        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 Data must be collected over a number of years to chart
    national trends and estimate the incidence of foodborne illness and
    treatment.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         330         340          61
    11.3      Other than full-time permanent          15          15           3
    11.5      Other personnel compensation..          16          17           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         361         372          67
    12.1    Civilian personnel benefits.....          93          97          18
    13.0    Benefits for former personnel...           3           3           1
    21.0    Travel and transportation of
              persons.......................          23          23           5
    22.0    Transportation of things........           3           3           1
    23.2    Rental payments to others.......           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           6           6           2
    24.0    Printing and reproduction.......           1           1
    25.1    Advisory and assistance services           5           4           1
    25.2    Other services..................           9           9           3
    25.3    Purchases of goods and services
              from Government accounts......           5           5           1
    25.4    Operation and maintenance of
              facilities....................           2           2
    26.0    Supplies and materials..........           9           9           2
    31.0    Equipment.......................          12          13           6
    41.0    Grants, subsidies, and
              contributions.................          42          41          43
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         575         589         150
    99.0  Reimbursable obligations..........          81          82          82
                                               ---------   ---------  ----------
    99.9    Total obligations...............         656         671         232
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       9,432       9,440       1,650
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         221         216         204
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

        Upon enactment of authorization of a fee for the inspection of
    livestock, meat, poultry, and products thereof, and egg products, such
    fees may be collected and credited to this account as an offsetting
    collection, to remain available until expended for the purpose of
    conducting such inspections.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............                                 473
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                 473
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 473
    23.95 New obligations...................                                -473
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                 473
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 473
    73.20 Total outlays (gross).............                                -473
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                 473
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                -473
    ----------------------------------------------------------------------------

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

        Legislation will be proposed to charge fees for the cost of all
    Federal 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.
    Requiring the payment of user fees for inspection services would not
    only result in savings to the taxpayer, but would also ensure that
    sufficient resources are available to provide the mandatory inspection
    services needed to meet increasing industry demand. These fees would
    result in a cost of less than one cent per pound of product to
    consumers, but would allow the government to maintain its level of
    inspection effort to ensure a safe supply of meat, poultry and egg
    products. The implementation of the user fee authority would be designed
    to be fair and equitable; promote accountability and efficiency; and
    minimize any impact on the competitive balance among affected
    industries.

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                                 472
    99.5  Below reporting threshold.........                                   1
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                 473
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......                               7,806
    ---------------------------------------------------------------------------

    [[Page 83]]

                                   Trust Funds

         Expenses and Refunds, Inspection and Grading of Farm Products

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      1997 actual   1998 est.   1999 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      1997 actual   1998 est.   1999 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      1997 actual   1998 est.   1999 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
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           4           4           4
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           4           5           5
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          42          46          42
    ---------------------------------------------------------------------------

             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, 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, including 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 $25,000 for employment under 5
    U.S.C. 3109, [$23,928,000] $11,797,000: 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................           3           4
    00.02 Compliance........................           5           4           5
    00.03 Methods Development...............           3           3
    00.04 Packers and Stockyards Program....          12          13           3
    00.05 Start Up Costs....................                                   4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          23          24          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          23          24          12
    23.95 New obligations...................         -23         -24         -12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          23          24          12
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           4           4           4
    73.10 New obligations...................          23          24          12
    73.20 Total outlays (gross).............         -23         -24         -14
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           4           4           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          19          21          11
    86.93 Outlays from current balances.....           4           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          23          24          14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          23          24          12
    90.00 Outlays...........................          21          24          14
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................          23          24          12
      Outlays...........................          23          24          14
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................          23          24          12
      Outlays...........................          23          24          14
                                        ====================================

        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 84]]

    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 1999, authorizing legislation will be submitted to permit,
    subject to appropriations, the collection and use of fees to cover the
    cost of standardization activities and methods development activities.
    In addition, a one-time increase is proposed to relocate staff to more
    effectively analyze and investigate violations of the Packers and
    Stockyards Act.

        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

                                         1997 actual  1998 est.   1999 est.
    U.S. standards in effect at end of
    year................................          19          19          19
    Standards reviews in progress.......           7           3           3
    Standards reviews completed.........           3           3           3
    Inspection techniques developed.....          10           2           2
    On-site investigations..............          10          12          13
    Designations renewed................          20          21          22
    Registration certificates issued....          85          83          80
    Investigations......................       1,820       1,800       1,700
    Market agencies/dealers registered..       6,900       6,850       6,800
    Stockyards posted...................       1,335       1,320       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.................................         210         212         214

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          15          15           4
    12.1  Civilian personnel benefits.......           3           3           1
    21.0  Travel and transportation of
            persons.........................           1           1           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           2           3           2
    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          23          24          12
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         309         345          85
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

        Upon enactment of authorization of a fee to cover all administrative
    costs authorized under the Packers and Stockyards Act (7 U.S.C. 181-
    229), such fees shall be collected and credited to this account as
    offsetting collections, to remain available until expended for the
    purpose of conducting such activities.
        Further, upon enactment of authorization of a fee for services
    provided in support of standardization and methods of development
    activities authorized in section 16(I)(2) and 16(j) of the United States
    Grain Standards Act (7 U.S.C. 87e(I)(2) and 87e(j), such fees shall be
    collected and credited to this account as an offsetting collection, to
    remain available until expended, as authorized by section 7(j)(1) of
    such Act, for authorized purposes.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Standardization...................                                   3
    09.03 Methods Development...............                                   3
    09.04 Packers and Stockyards Programs...                                  11
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                  17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  17
    23.95 New obligations...................                                 -17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                  17
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  17
    73.20 Total outlays (gross).............                                 -17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                  17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                 -17
    ----------------------------------------------------------------------------

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

    [[Page 85]]

        Legislation will be proposed to establish a fee for the
    standardization activities and the methods development activities of the
    Grain Inspection, Packers and 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. Appropriations
    language is included which will, upon the enactment of the authorizing
    legislation, permit the Secretary to collect the fees and spend the
    collections.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                                  17
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                  17
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......                                 260
    ---------------------------------------------------------------------------

    Public enterprise funds:

                        Inspection and Weighing Services

             limitation on inspection and weighing service expenses

        Not to exceed [$43,092,000] $42,557,000 (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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............          32          43          43
                                               ---------   ---------  ----------
    10.00   Total obligations...............          33          43          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           4           3           3
    22.00 New budget authority (gross)......          32          43          43
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          36          46          46
    23.95 New obligations...................         -33         -43         -43
    24.40 Unobligated balance available, end
            of year: Uninvested.............           3           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          32          43          43
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           2           2           2
    73.10 New obligations...................          33          43          43
    73.20 Total outlays (gross).............         -33         -43         -43
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          32          43          43
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -32         -43         -43
    ----------------------------------------------------------------------------

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

        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).

                                         1997 actual  1998 est.   1999 est.
    Export grain inspected and/or
        weighed (million metric tons):
      By Federal personnel..............        74.0        80.4        88.4
      By delegated States...............        27.5        29.9        32.8
    Quantity of grain inspected (all
    official inspections) million metric
    tons................................       124.0       121.1       117.3
    Number of inspections and
        reinspections:
      By Federal personnel..............     125,292     122,000     118,500
      By delegated state/official agency
        licenses........................   1,935,050   1,878,000   1,821,500
    Number of appeals...................       3,140       3,200       3,200
    Number of appeals carried to the
    Board of Appeals and Review.........         683         700         700
    Quantity of rice inspected (million
    metric tons)........................         3.5         3.7         3.9
    Quantity of rice exports (million
    metric tons)........................         2.5         2.7         2.8

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4050-0-3-352    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          31             32            43             43
    0102  Expense...........................         -34            -33           -43            -43
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          -3             -1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4050-0-3-352    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           1                            1              1
    1206  Non-Federal assets: Receivables,
            net.............................           4              4             4              4
    1803  Other Federal assets: Property,
            plant and equipment, net........           1                            1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           6              4             6              6
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................                         -2
          Non-Federal liabilities:

    2201    Accounts payable................           1              1             1              1
    2207    Other...........................           2              4             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           3              3             4              4
        NET POSITION:
    3100  Appropriated capital..............           8              4             4              4
    3200  Invested capital..................                          9             6              6
    3300  Cumulative results of operations..          -5             -9            -5             -5
    3500  Future funding requirements.......                         -3            -3             -3
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           3              1             2              2
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           6              4             6              6
    -----------------------------------------------------------------------------------------------

    [[Page 86]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      1997 actual   1998 est.   1999 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....................           3           7           7
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, reimbursable
                obligations.................          32          43          43
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          33          43          43
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         479         479         479
    ---------------------------------------------------------------------------

                         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 the second sentence of 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, [$46,592,000] $58,469,000, 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 [$59,521,000] $60,730,000 (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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market news service.............          22          22          23
    00.02   Inspection and standardization..           6           6           6
    00.03   Market protection and promotion.           5          14          24
    00.04   Wholesale market development....           2           2           2
    00.05   Transportation services.........           3           3           3
                                               ---------   ---------  ----------
    00.91     Total direct program..........          38          47          58
    09.01 Reimbursable program..............          56          63          64
                                               ---------   ---------  ----------
    10.00   Total obligations...............          94         110         122
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          39          35          35
    22.00 New budget authority (gross)......          91         110         122
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         129         145         157
    23.95 New obligations...................         -94        -110        -122
    24.40 Unobligated balance available, end
            of year: Uninvested.............          35          35          35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          39          47          58
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          52          63          64
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          91         110         122
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          22          24          28
    73.10 New obligations...................          94         110         122
    73.20 Total outlays (gross).............         -94        -105        -120
    73.40 Adjustments in expired accounts...           2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          24          28          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          39          42          51
    86.93 Outlays from current balances.....           3                       5
    86.97 Outlays from new permanent
            authority.......................          52          63          64
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          94         105         120
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2          -2          -2
    88.40     Non-Federal sources...........         -50         -61         -62
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -52         -63         -64
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          39          47          58
    90.00 Outlays...........................          42          42          56
    ---------------------------------------------------------------------------

        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,
    vertical integration, and contract farming.

        In 1999, $6.3 million has been included as part of the
    Administration's Food Safety Initiative. These funds will be used to
    expand the Pesticide Data Program to monitor microbiological pathogens,
    and to establish a baseline for the level of these on fruits and
    vegetables.

        The individual Marketing Services 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 over 700 commodities on domestic and
    foreign markets.

        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

    [[Page 87]]

    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

                                         1997 actual  1998 est.   1999 est.
    Percentage of reports released on
    time................................          90          94          94

                       COTTON AND TOBACCO USER FEE PROGRAM

                                         1997 actual  1998 est.   1999 est.

    Cotton classed (samples in millions)        17.7        17.8        17.8
    Tobacco auction markets (million
    pounds).............................        1632       1,472       1,472
    Imported tobacco inspected at
    markets and ports of entry (million
    pounds).............................         468         425         425

             FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

                                         1997 actual  1998 est.   1999 est.

    States and Commonwealths with
    cooperative agreements..............          46          46          46
    Percentage of noncomplying shell egg
    lots that are reprocessed or
    diverted............................         100         100         100

                           STANDARDIZATION ACTIVITIES

                                         1997 actual  1998 est.   1999 est.
    International and U.S. standards in
    effect, end of fiscal year..........         584         587         581
    Number of commodities covered.......         230         230         229
    Standards revised...................           8          20          12

        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 popcorn; (2) the Federal Seed Act;
    and (3) the administration of the Capper-Volstead Act and the
    Agricultural Fair Practices Act.

        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.

        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.

        The national organic program is being established to certify that
    organically produced food products meet national standards.

                   MARKET PROTECTION AND PROMOTION ACTIVITIES

                                         1997 actual  1998 est.   1999 est.
    Pesticide Data Program:
      Number of analyses performed......       0 \1\      51,000      55,000
      Percentage of sampling and
        analysis goal...................       0 \2\         100         100
    Pesticide Recordkeeping:
      Number of State/Federal
        Inspections.....................       4,748       4,658       4,800
      Percentage of sampling goal
        attained........................         102          98          98
    Seed Act:
      Interstate investigations:
        Completed.......................         597         650         650
        Pending.........................         550         550         550
      Seed samples tested...............       2,494       3,000       3,000
      Percentage of cases submitted that
        are completed...................         106          92          92
    Plant Variety Protection Act:
      Percentage of application
        processing goal completed.......          63          81          89
      Number of applications received...         417         350         350
      Certificates of protection issued.         182         250         275
    Research and promotion collections
        (dollars in millions):
      Beef..............................        45.6        44.0        44.0
      Cotton............................        61.3        63.0        61.8
      Dairy--National...................        76.5        77.3        78.0
      Honey.............................         3.3         3.4         3.4
      Pork..............................        59.0        56.7        56.7
      Egg...............................        16.0        16.0        16.0
      Potato............................         7.9         8.2         8.2
      Watermelon........................         1.2         1.4         1.4
      Mushroom..........................         2.3         2.4         2.4
      Popcorn...........................           0         0.3         0.3
      Soybean...........................        41.5        40.0        40.0
      Fresh cut flowers and greens......        10.1           0           0
      Fluid Milk........................       115.8       105.6       105.8
      Percentage of board budgets and
        marketing plans approved within
        time frame goal.................          83          91          91
      Sales of certified organic
        products (dollars in billions)..         4.0         4.8         5.8
        \1\ 40,000 (work funded by EPA).
        \2\ 83% (work funded by EPA).

        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

                                         1997 actual  1998 est.   1999 est.

    Weighted average of customer survey
    results for various market projects
    and information products............         100         100         105
    Market studies initiated............          10           9           9
    Studies and projects completed......           8          10          10

                       TRANSPORTATION SERVICES ACTIVITIES

                                         1997 actual  1998 est.   1999 est.
    Weighted average of customer survey
    results for various market projects
    and information products............         100         100         105
    Number of reports produced..........           6           8           8
    Number of workshops sponsored.......           4           2           2

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          19          20          23
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          20          21          24
    12.1    Civilian personnel benefits.....           4           5           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           3           3
    25.2    Other services..................           4          10          18
    25.3    Purchases of goods and services
              from Government accounts......           2           2           2
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           2           2           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          38          47          58
    99.0  Reimbursable obligations..........          56          63          64
                                               ---------   ---------  ----------
    99.9    Total obligations...............          94         110         122
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         479         488         514
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         736         771         729
    ---------------------------------------------------------------------------

    [[Page 88]]

                       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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2501-0-1-352      1997 actual   1998 est.   1999 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: Uninvested...           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: Uninvested...           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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Deposits of Perishable
            Agricultural Commodities Act
            fees............................           9           9           7
        Appropriation:
    05.01 Perishable Agricultural
            Commodities Act fund............          -9          -9          -7
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           8           7           8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           5           6           8
    22.00 New budget authority (gross)......           9           9           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14          15          15
    23.95 New obligations...................          -8          -7          -8
    24.40 Unobligated balance available, end
            of year: Uninvested.............           6           8           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................           9           9           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           4
    73.10 New obligations...................           8           7           8
    73.20 Total outlays (gross).............         -10          -7          -8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           9           7           7
    86.98 Outlays from permanent balances...           1                       1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10           7           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9           7
    90.00 Outlays...........................          10           7           8
    ---------------------------------------------------------------------------

        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

                                         1997 actual  1998 est.   1999 est.
    Percentage of informal reparation
    complaints completed within time
    frame goal..........................          85          85          85

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           4           4           4
    12.1  Civilian personnel benefits.......           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.3  Purchases of goods and services
            from Government accounts........           2           1           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............           8           7           8
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      1997 actual   1998 est.   1999 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

    [[Page 89]]

    the Fish and Wildlife Act of August 8, 1956; (2) transfers otherwise
    provided in this Act; and (3) not more than [$10,690,000] $10,998,000
    for formulation and administration of marketing agreements and orders
    pursuant to the Agricultural Marketing Agreement Act of 1937, and the
    Agricultural Act of 1961. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         576         395         174
        Receipts:
    02.01 30% of customs duties, funds for
            strengthening markets, income
            and supply (section 32).........       5,742       5,509       5,674
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       6,318       5,904       5,848
        Appropriation:
    05.01 Funds for strengthening markets,
            income, and supply (section 32).      -5,923      -5,730      -5,848
    07.99 Total balance, end of year........         395         174
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Commodity program payments:
    00.01     Child nutrition program
                purchases...................         400         400         400
    00.02     Emergency surplus removal.....         101          63
    00.03     Disaster relief...............           2
    00.04     Diversion payments............           9
                                               ---------   ---------  ----------
    00.91     Subtotal, Commodity program
                payments....................         512         463         400
    01.01 Administrative expenses...........          16          17          17
                                               ---------   ---------  ----------
    01.92   Total direct program............         528         480         417
    09.11 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         529         481         418
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         300         234         267
    22.00 New budget authority (gross)......         424         514         451
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          39
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         763         748         718
    23.95 New obligations...................        -529        -481        -418
    24.40 Unobligated balance available, end
            of year: Uninvested.............         234         267         300
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................       5,923       5,730       5,848
    61.00 Transferred to other accounts.....      -5,500      -5,217      -5,398
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........         423         513         450
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         424         514         451
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          63           3           3
    73.10 New obligations...................         529         481         418
    73.20 Total outlays (gross).............        -550        -480        -417
    73.45 Adjustments in unexpired accounts.         -39
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         187         243         180
    86.98 Outlays from permanent balances...         363         237         237
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         550         480         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..................         423         513         450
    90.00 Outlays...........................         550         479         416
    ---------------------------------------------------------------------------

        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

                                         1997 actual  1998 est.   1999 est.
    Administrative costs in constant
    dollars as a percentage of commodity
    purchases...........................         1.1         1.1         1.1

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           8           9           9
    12.1    Civilian personnel benefits.....           2           2           2
    22.0    Transportation of things:
              Commodities...................           4           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           2           2
    25.3    Purchases of goods and services
              from Government accounts......           3           3           3
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials: Grants
              of commodities to States......         506         457         394
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         528         480         417
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         529         481         418
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         173         173         173
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          13          13          13
    ---------------------------------------------------------------------------

                                   Trust Funds

                            Miscellaneous Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Deposits of fees from inspection
            and grading of farm products....         103         106         106
        Appropriation:
    05.01 Miscellaneous trust funds.........        -103        -106        -106
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dairy products....................           5           5           5
    00.02 Fruits and vegetables.............          49          49          49

    [[Page 90]]

    00.03 Meat grading......................          20          21          21
    00.04 Poultry products..................          22          24          24
    00.05 Miscellaneous agricultural
            commodities.....................           8           7           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............         104         106         106
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          32          31          31
    22.00 New budget authority (gross)......         103         106         106
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         135         137         137
    23.95 New obligations...................        -104        -106        -106
    24.40 Unobligated balance available, end
            of year: Uninvested.............          31          31          31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................         103         106         106
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.42 Unpaid obligations, start of year:
            Obligated balance: U.S.
            Securities: Unrealized discounts         -13         -19         -19
    73.10 New obligations...................         104         106         106
    73.20 Total outlays (gross).............        -109        -106        -106
    74.42 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          94          94
    86.98 Outlays from permanent balances...          19          12          12
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         109         106         106
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         103         106         106
    90.00 Outlays...........................         109         106         106
    ---------------------------------------------------------------------------

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

                                         1997 actual  1998 est.   1999 est.
    Weighted average cost per cwt. (1990
    index)..............................       $0.07       $0.07       $0.07

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-9972-0-7-352    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          13              7             7              7
            Investments in US securities:
    1106      Receivables, net..............           3              1             1              1
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............          29             34            34             34
    1206    Receivables, net................           8             11            11             11
    1803  Other Federal assets: Property,
            plant and equipment, net........           1              2             2              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          54             55            55             55
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           2                            2              2
    2207  Non-Federal liabilities: Unearned
            revenue (advances): Deposit
            funds...........................          11             12            12             12
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          13             12            14             14
        NET POSITION:
    3600  Other.............................          41             43            43             43
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          41             43            43             43
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          54             55            57             57
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          53          54          54
    11.3    Other than full-time permanent..           4           5           5
    11.5    Other personnel compensation....           8           8           8
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          65          67          67
    12.1  Civilian personnel benefits.......          16          17          17
    13.0  Benefits for former personnel.....           1           1           1
    21.0  Travel and transportation of
            persons.........................           6           6           6
    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...........           4           2           2
    25.2  Other services....................           5           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
                                               ---------   ---------  ----------
    99.9    Total obligations...............         104         106         106
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9972-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,564       1,522       1,538
    ---------------------------------------------------------------------------

                       Milk Market Orders Assessment Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Administration....................          31          33          35
    09.02 Marketing service.................           5           6           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............          36          39          41
    ----------------------------------------------------------------------------

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

    21.40   Uninvested......................          21          20          20
    21.41   U.S. Securities: Par value......           7           7           7
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............          28          27          27
    22.00 New budget authority (gross)......          36          39          41
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          64          66          68
    23.95 New obligations...................         -36         -39         -41
          Unobligated balance available, end of year:

    24.40   Uninvested......................          20          20          20
    24.41   U.S. Securities: Par value......           7           7           7
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................          27          27          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          36          39          41
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          36          39          41
    73.20 Total outlays (gross).............         -36         -39         -41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          35          38          40
    86.98 Outlays from permanent balances...           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          36          39          41
    ----------------------------------------------------------------------------

    [[Page 91]]

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -36         -39         -41
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -1
    ---------------------------------------------------------------------------
        Note.--The administration fund totals are comprised of 32 separate
    independent order accounts in 1997. The Marketing Service fund totals
    are comprised of 36 separate independent order accounts in 1997.

        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 reserves 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

                                         1997 actual  1998 est.   1999 est.
    Percentage of formal and informal
    rulemaking completed within internal
    timeframes..........................          94          85          85

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-8412-0-8-351    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
              ADMINISTRATION:
    0111  Revenue...........................          29             31            33             35
    0112  Expense...........................         -32            -31           -33            -35
                                            ------------ --------------  ------------  -------------
    0119  Net loss, Administration..........          -3
              MARKETING SERVICE:
    0121  Revenue...........................           7              7             5              6
    0122  Expense...........................          -5             -5            -5             -6
                                            ------------ --------------  ------------  -------------
    0129  Net income, Marketing service.....           2              2
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................          36             38            39             41
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................         -37            -36           -39            -41
                                            ------------ --------------  ------------  -------------
    0199  Net income........................          -1              2
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-8412-0-8-351    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Treasury
              securities, par...............           6              7             7              7
    1206  Non-Federal assets: Receivables,
            net.............................           3              3             3              3
          Other Federal assets:

    1801    Cash and other monetary assets..          17             18            18             18
    1803    Property, plant and equipment,
              net...........................           4              4             4              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          30             32            32             32
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable.........................           1              1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             1              1
        NET POSITION:
    3200  Invested capital..................          29             31            31             31
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          29             31            31             31
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          30             32            32             32
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      1997 actual   1998 est.   1999 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
                                               ---------   ---------  ----------
    99.9    Total obligations...............          36          39          41
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         461         460         460
    ---------------------------------------------------------------------------

                             RISK MANAGEMENT AGENCY

                                  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] $66,000,000: 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, notwithstanding the
    provisions of section 516(a)(1)(B) of the Federal Crop Insurance Act (7
    U.S.C. 1516(a)(1)(B)), for discretionary expenses, $188,571,000 for the
    payment of administrative and operating expenses of approved insurance
    providers.] (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Salaries and expenses.............          62          64          66
    00.02 Administrative expense
            reimbursements..................                     188
                                               ---------   ---------  ----------
    10.00   Total obligations...............          62         252          66
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          64         252          66
    23.95 New obligations...................         -62        -252         -66
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          64         252          66
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           6          15          40
    73.10 New obligations...................          62         252          66
    73.20 Total outlays (gross).............         -53        -227         -84
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          15          40          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          53         227          59
    86.93 Outlays from current balances.....                                  25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          53         227          84
    ----------------------------------------------------------------------------

    [[Page 92]]

        Net budget authority and outlays:
    89.00 Budget authority..................          64         252          66
    90.00 Outlays...........................          53         227          84
    ---------------------------------------------------------------------------

        This appropriation finances the administrative and operating
    expenses of the Risk Management Agency (RMA), which provides crop
    insurance to farmers.

        The Federal government reimburses private insurance companies for
    certain administrative expenses incurred while delivering the crop
    insurance program. The 1998 budget provided discretionary funding for
    the reimbursement of agents' sales commissions in accordance with the
    Federal Crop Insurance Reform Act of 1994. In order to ensure that
    sufficient funding is available to provide agent sales commissions, the
    budget proposes to shift funding for this activity from discretionary
    spending to mandatory spending through the Federal Crop Insurance
    Corporation Fund.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          25          28          30
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          26          29          31
    12.1  Civilian personnel benefits.......           5           6           7
    21.0  Travel and transportation of
            persons.........................           2           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....................          24         210          21
    26.0  Supplies and materials............                       1           1
    31.0  Equipment.........................           2           3           3
                                               ---------   ---------  ----------
    99.9    Total obligations...............          62         252          66
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         526         550         550
    ---------------------------------------------------------------------------

                                  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 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,
    1998.)

    Public enterprise funds:

                     Federal Crop Insurance Corporation Fund

        For payments as authorized by section 516 of the Federal Crop
    Insurance Act 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Delivery and other expenses.......         453         286         286
    01.01 Indemnities.......................       1,072       2,112       2,090
    01.02 Dairy Options Pilot Program.......                      10          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,525       2,408       2,386
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         971       1,855       1,003
    22.00 New budget authority (gross)......       2,287       1,546       2,376
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         122
    22.22 Unobligated balance transferred
            from other accounts.............                      10          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,380       3,411       3,389
    23.95 New obligations...................      -1,525      -2,408      -2,386
    24.40 Unobligated balance available, end
            of year: Uninvested.............       1,855       1,003       1,003
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       1,785         700       1,504
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         502         846         872
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,287       1,546       2,376
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         936         864       1,256
    73.10 New obligations...................       1,525       2,408       2,386
    73.20 Total outlays (gross).............      -1,474      -2,016      -2,424
    73.45 Adjustments in unexpired accounts.        -122
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         864       1,256       1,218
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         839         421         389
    86.93 Outlays from current balances.....         101         143         308
    86.97 Outlays from new permanent
            authority.......................         402         592         610
    86.98 Outlays from permanent balances...         132         860       1,117
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,474       2,016       2,424
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -502        -846        -872
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,785         700       1,504
    90.00 Outlays...........................         972       1,170       1,552
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................       1,785         700       1,504
      Outlays...........................         972       1,170       1,552
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 205
      Outlays...........................                                 185
                                        ------------------------------------
    Total:
      Budget Authority..................       1,785         700       1,709
      Outlays...........................         972       1,170       1,737
                                        ====================================

        The Federal Crop Insurance Corporation (FCIC), a wholly-owned
    government corporation, provides multi-peril and catastrophic crop
    insurance protection against losses from unavoidable natural events. The
    Federal Crop Insurance Reform Act of 1994 and the Federal Agriculture
    Improvement and Reform Act of 1996 (1996 Act) brought many changes to
    the program. With the reduced price support activities promulgated by
    the 1996 Act, the crop insurance program has become a more broad based
    safety net and includes programs involving revenue insurance, risk
    management savings ac-

    [[Page 93]]

    counts, and the use of the futures market to manage risk and eliminate
    the need for ad hoc disaster assistance.

        Under the 1996 Act, farmers are no longer required to obtain
    Catastrophic Crop insurance (CAT), as previously mandated by the Federal
    Crop Insurance Reform Act of 1994. Producers can instead agree in
    writing to waive eligibility for emergency crop loss assistance in
    connection with the crop. For producers who continue to obtain CAT,
    which compensates the farmer for losses up to 50 percent of the
    individual's average yield at 60 percent (55 percent for the 1999 crop
    year) of the expected market price, premium is entirely subsidized. The
    cost to the producer for this type of coverage is an annual processing
    fee of $50 per crop per county up to $200 per county, not to exceed $600
    for all counties. Local Farm Service Agency (FSA) offices and commercial
    insurance companies delivered this product to the producer for the 1995
    and 1996 crop years. For the 1997 crop year, FSA delivery was
    discontinued in 14 states, and for the 1998 crop year, FSA delivery will
    be discontinued for all remaining states because the private sector
    delivery was determined to be sufficient.

        Additional coverage is available to producers who wish to insure
    crops above the 50 percent coverage level/60 percent price level.
    Policyholders can elect to be paid up to 100 percent of the market price
    established by FCIC for each unit of production their actual yield is
    less than the individual yield guarantee. Premium rates for additional
    coverage depend on the level of protection selected and vary from crop
    to crop and county to county. Producers are assessed a fee of $10 per
    crop (may be $50 in some cases), in addition to a share of premium. The
    additional levels of insurance coverage are more attractive to farmers
    due to availability of optional units, other policy provisions not
    available with CAT coverage, and the ability to obtain a level of
    protection that permits them to use crops as loan collateral and to
    achieve greater financial security.

        As mandated by the 1996 Act, three revenue insurance programs are
    available under which producers of wheat, certain feedgrains, soybeans,
    and cotton are protected against loss of revenue stemming from low
    prices, poor yields, or a combination of both. Two plans were privately
    developed and submitted to FCIC: Crop Revenue Coverage (CRC) and Revenue
    Assurance (RA). The third plan is the Income Protection (IP) plan
    developed by FCIC. These three plans have many similar features and some
    very distinctive features. All provide a guaranteed revenue by combining
    yield and price variability. Indemnities are due when any combination of
    yield and price result in revenue that is less than the revenue
    guarantee. Revenue protection for all products is provided by extending
    traditional multi peril crop insurance protection, based on actual
    production history, to include price variability. The price component
    common to CRC, RA, and IP uses the commodity futures market for price
    discovery. These programs all seek to help ensure a certain level of
    annual income and are offered through private insurance companies.

        Progress in other program areas includes the Risk Management
    Education program which provides education in management of the
    financial risks inherent in the production and marketing of agricultural
    commodities, the Options Pilot Program to ascertain whether trading in
    the futures and options markets can be used by producers to reduce the
    risks of market price fluctuation, and Quality Adjustment Provisions.
    RMA also continues to improve and update the terms and conditions of all
    crop insurance policies, which better clarifies and defines the
    insurance protection provided by the insurance policies and the duties
    and responsibilities of the policyholder and insurance provider.

        In crop year 1997, 180.4 million acres was insured, with an
    estimated $1,760.9 million in total premium income, including $893.1
    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 1999. Amounts in the 1997 column are as of September 30,
    1997, and pertain to the 1997 crop year.

                                            1997        1998        1999
                                          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).......      24,308      25,194      24,500
    Insured acreage (millions)..........         181         186         185
                                        ====================================
    Producer premium (millions)\1\......         902         996       1,011
    Premium subsidy (millions)\1\.......         878         946         934
                                        ------------------------------------
          Total premium (millions)\1\...       1,780       1,942       1,945
                                        ====================================
    Indemnities (million)\1\............       1,357       2,136       2,090
    Loss ratio..........................         .76        1.10       1.075

        \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]

                                            1997         1998        1999
                                         fiscal year fiscal year fiscal year
                                           actual      estimate    estimate
    Premiums:
      Producer premium..................         877         982       1,009
      Amount of subsidies...............         923         936         936
        Additional coverage.............         765         914         936
        Catastrophic coverage...........         158          22           0
                                        ------------------------------------
          Total premiums................       1,800       1,918       1,945
                                        ====================================
    Indemnities.........................       1,072       2,112       2,090
        Additional coverage.............       1,126       2,089       2,090
        Catastrophic coverage...........         -54          23           0

        For crop years 1948 through 1996, indemnities ($15,807.4 million)
    exceeded premium income ($12,758.0 million) by $3,049.4 million; the
    loss ratio for the period was 1.24.

        The following table summarizes the insurance operations for fiscal
    years 1997, 1998 and 1999:

                 NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                            [In millions of dollars]

                                         1997 fiscal 1998 fiscal 1999 fiscal
                                            year        year        year
                                           actual     estimate    estimate
    Premiums over indemnities...........        -195      -1,130      -1,082
    Interest expense, net...............           0           0           0
    Delivery expenses \1\...............        -485        -275        -480
    Other income or expense, net (-)....          -1           0           0
    Reinsurance underwriting gain (+) or
    loss (-)............................        -340        -136        -136
    Research and Development start up
    expense.............................          -2         -11         -11
                                        ------------------------------------
    Net income or loss (-)..............      -1,023      -1,552      -1,504
                                        ====================================
        \1\ Figures reflect delivery expenses borne by the Fund. In 1998, an
    additional $188 million in delivery expenses was appropriated, for total
    expenses of $463 million. For 1999, all expenses are proposed to be paid by
    the Fund.

    [[Page 94]]

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4085-0-3-351    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         641            502           846            872
    0102  Expense...........................      -2,326         -1,525        -2,408         -2,376
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............      -1,685         -1,023        -1,562         -1,504
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................      -1,685         -1,023        -1,562         -1,504
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4085-0-3-351    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       2,114          2,815         1,875          1,875
    1206  Non-Federal assets: Receivables,
            net.............................         735            740           700            700
    1803  Other Federal assets: Property,
            plant and equipment, net........           1              2             2              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,850          3,557         2,577          2,577
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           1
    2105    Other...........................         186            222           150            150
          Non-Federal liabilities:

    2201    Accounts payable................         220            188           200            200
    2207    Other...........................       1,632          1,485         1,262          1,262
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,039          1,895         1,612          1,612
        NET POSITION:
    3100  Appropriated capital..............           2          1,120            10             10
    3200  Invested capital..................           1              1             2              2
    3300  Cumulative results of operations..      -3,682         -3,949        -3,537         -3,537
    3500  Future funding requirements.......          -6             -6            -7             -7
    3600  Other.............................       4,496          4,496         4,496          4,496
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         811          1,662           964            964
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,850          3,557         2,576          2,576
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         453         296         296
          Insurance claims and indemnities:

    42.0    Insurance claims and indemnities
              (catastrophic)................         -54          23
    42.0    Insurance claims and indemnities
              (reinsured)...................       1,126       2,089       2,090
                                               ---------   ---------  ----------
    99.9    Total obligations...............       1,525       2,408       2,386
    ---------------------------------------------------------------------------

                     Federal Crop Insurance Corporation Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-4-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Delivery expenses.................                                 205
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                 205
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 205
    23.95 New obligations...................                                -205
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 205
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 205
    73.20 Total outlays (gross).............                                -185
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                  20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                 185
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 205
    90.00 Outlays...........................                                 185
    ---------------------------------------------------------------------------

        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 shift of funding for
    administrative expense reimbursement from discretionary spending to the
    mandatory Federal Crop Insurance Fund. As a partial PAYGO offset for the
    increase in mandatory spending due to this shift, the Administration is
    developing a combination of program changes that would take effect
    beginning in 2000. Changes being considered include: placing a $100,000
    limit on the indemnity producers can receive from the premium-free
    catastrophic insurance policy; reducing the reimbursement rate paid to
    the private insurance companies from the current 27 percent of premium
    to 25 percent of premium; slightly reducing the subsidy the Federal
    government pays for insurance on changes from the expected market price;
    and lowering the loss ratio that premiums are based on to 1.060 from the
    current 1.075 loss ratio. Other USDA program changes will be used to
    meet the rest of the PAYGO offset requirement.

                               FARM SERVICE AGENCY

                              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,
    [$700,659,000] $723,478,000, of which not less than $30,000,000 is for
    purchases of equipment or studies related to the Service Center
    Initiative Common Computing Environment: 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Farm Programs...................         578         510         533
    00.02   Conservation and Environment....         153         174         175
    00.03   Commodity Operations............          16          17          15
                                               ---------   ---------  ----------
    00.91     Subtotal, direct program......         747         701         723
            Reimbursable program:
    09.01     Farm Loans....................         208         210         228
    09.02     Other reimbursable program....          84          80          76
                                               ---------   ---------  ----------
    09.09   Subtotal, reimbursable program..         292         290         304
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,039         991       1,027
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,039         991       1,027
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          20
    22.21 Unobligated balance transferred to
            other accounts..................         -20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,039         991       1,027
    23.95 New obligations...................      -1,039        -991      -1,027
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         747         701         723

    [[Page 95]]

          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         292         290         304
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,039         991       1,027
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         161         127         227
    73.10 New obligations...................       1,039         991       1,027
    73.20 Total outlays (gross).............      -1,048        -891      -1,023
    73.40 Adjustments in expired accounts...          -5
    73.45 Adjustments in unexpired accounts.         -20
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         127         227         231
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         640         601         619
    86.93 Outlays from current balances.....         116                     100
    86.97 Outlays from new permanent
            authority.......................         292         290         304
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,048         891       1,023
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -273        -272        -287
    88.40     Non-Federal sources...........         -19         -18         -17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -292        -290        -304
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         747         701         723
    90.00 Outlays...........................         756         601         719
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         747         701         723
      Outlays...........................         756         601         719
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         747         701         723
      Outlays...........................         756         601         719
                                        ====================================

        The Farm Service Agency (FSA) was established October 3, 1994,
    pursuant to the Federal Crop Insurance Reform and Department of
    Agriculture Reorganization Act of 1994, P.L. 103-354. The Department of
    Agriculture Reorganization Act of 1994 was amended on April 4, 1996, by
    the Federal Agriculture Improvement and Reform Act of 1996 (1996 Act),
    P.L. 104-127. The FSA administers a variety of activities, such as farm
    income support programs through various loans and payments; the
    Conservation Reserve Program (CRP); the Emergency Conservation Program;
    the Hazardous Waste Management Program; the Commodity Operation Programs
    including 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.

        Farm Programs.--These programs provide an economic safety net
    through farm income support to eligible producers, cooperatives, and
    associations to help improve the economic stability and viability of the
    agricultural sector and to ensure the production of an adequate and
    reasonably priced supply of food and fiber. Objectives of the Agency
    include maintaining a high Agricultural Market Transition Act (AMTA)
    participation rate for eligible acreage, providing marketing assistance
    loans and loan deficiency payments enabling recipients to continue
    farming operations without marketing their product immediately after
    harvest, stabilizing the price and production of tobacco and peanuts,
    and providing a financial assistance safety net to eligible producers
    when natural disasters result in a catastrophic loss of production or
    prevents planting of noninsured crops, and timely designating eligible
    Noninsured Crop Disaster Assistance Program (NAP) areas and approving
    crop prices, average yields, and payment factors.

        Other draft performance measures being considered by FSA include
    increasing planting flexibility for AMTA, and other programs. FSA
    proposed legislation in 1997 to expand planting flexibility. Regarding
    AMTA participation, FSA can control and influence AMTA participation to
    a limited degree. One way is in reducing the numbers of required forms
    and trips to the office. Measuring the changes in these elements would
    serve both the direct effect--reducing paperwork and office visits--and
    the indirect effect of making participation in AMTA less burdensome.

        Other performance measures being considered include excluding
    ineligible production from the receipt of loans when loan deficiency
    payments have been obtained, and encouraging the use of practices like
    electronic warehouse receipts that tend to reduce costs to the system.
    The performance measure for the peanut program must express the balance
    between maintaining the statutory goal of a no-net-cost program and
    avoiding adverse consumer impacts. In 1999, FSA will use newly published
    marketing and price data series to better set a quota reflecting
    domestic edible use. Other measures reflect policy goals of increasing
    the opportunities for new producers (especially beginning farmers) and
    non-quota holders to gain quotas as a performance measure. Likewise,
    other goals include increasing peanut exports and increased market
    orientation--including increased flexibility of quota use--as well as
    increased planting flexibility as a long-standing Administration goal
    for all farm programs.

        Farm program activities include the following functions dealing with
    the administration of programs carried out through the farmer committee
    system of the FSA: (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 history; (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 the
    allotted acreage can be marketed without penalty; (i) processing
    commodity loan documents and issuing checks; (j) processing production
    flexibility contract payments and issuing checks; and (k) certifying
    payment eligibility and monitoring payment limitations.

        Conservation and Environment.--These programs assist agricultural
    producers and landowners in achieving a high level of stewardship of
    soil, water, air, and wildlife resources on America's farmland and
    ranches while protecting the human and natural environment. Objectives
    of the Agency include improving environmental quality, protecting
    natural re-

    [[Page 96]]

    sources, and enhancing habitat for fish and wildlife, including
    threatened and endangered species, providing Emergency Conservation
    Program funding for farmers and ranchers to rehabilitate damaged
    farmland and for carrying out emergency conservation measures during
    periods of severe drought, and protecting the public health of
    communities through implementation of the Hazardous Waste Management
    Program. This activity includes: (a) processing producer requests for
    conservation cost-sharing and issuing conservation reserve rental
    payments; and (b) issuing checks for other conservation programs.

        Commodity Operations.--This activity includes: (a) overall
    management of CCC-owned commodities; (b) purchasing commodities; (c)
    donating commodities; (d) selling commodities; (e) accounting for loans
    and commodities; and (f) commercial warehouse activities, which include
    improving the effectiveness and efficiency of FSA's commodity
    acquisition, procurement, storage, and distribution activities to
    support domestic and international food assistance programs and
    administering the U.S. Warehouse Act (USWA). The Agency 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.

        Farm Loans (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, CCC,
    industry, 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.

        Administrative Convergence.--The Department is coordinating the
    functions and personnel of the different field agencies to provide a
    more seamless and efficient delivery system. By 2002, the proposal would
    result in a 22 percent reduction in administrative staffing from 1997.
    Savings by 2002 would equal $127 million/year. Progress in 1999 would be
    indicated by the creation of a Support Services Bureau reflecting a new
    entity made by consolidating the agencies' administrative units, both at
    the National level and in each State.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         106         113         106
    11.3      Other than full-time permanent           8           8           8
    11.5      Other personnel compensation..           3           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         117         123         116
    12.1    Civilian personnel benefits.....          25          26          25
    13.0    Benefits for former personnel...           8           5           2
    21.0    Travel and transportation of
              persons.......................           6           5           5
    22.0    Transportation of things........           1           2           2
    23.2    Rental payments to others.......          10          10          10
    23.3    Communications, utilities, and
              miscellaneous charges.........           8           9           9
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................          23          21          21
    26.0    Supplies and materials..........           6           6           6
    31.0    Equipment.......................                       2           2
    41.0    Grants, subsidies, and
              contributions.................         540         488         521
    42.0    Insurance claims and indemnities           1           2           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         747         701         723
    99.0  Reimbursable obligations..........         292         290         304
                                               ---------   ---------  ----------
    99.9    Total obligations...............       1,039         991       1,027
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,364       2,401       1,945
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       3,504       3,508       3,701
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

        Upon enactment of authorization of a fee for providing information
    obtained from information collections from persons participating in the
    programs administered by the Farm Service Agency, such fee shall be
    collected and credited to this account as an offsetting collection, to
    remain available until expended for authorized purposes.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-2-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Non-program acreage report........                                  10
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                                  10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  10
    23.95 New obligations...................                                 -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...................                                  10
    73.20 Total outlays (gross).............                                 -10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                  10
    ----------------------------------------------------------------------------

        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...........................
    ---------------------------------------------------------------------------

        In 1999, FSA proposes to begin to charge fees to cover the costs of
    collecting and processing information of interest to private individuals
    and companies, such as crop insurance companies, appraisers,
    agricultural consultants, other agencies, etc. Information products
    developed from these collections shall be priced at the full cost of
    processing and dissemination. An estimated $10 million would be
    collected through fees from these businesses and other agencies, which
    would be available for salaries and expense obligations.

                             State Mediation Grants

        For grants pursuant to section 502(b) of the Agricultural Credit Act
    of 1987 (7 U.S.C. 5101-5106), [$2,000,000] $4,000,000. (Agri-

    [[Page 97]]

    culture, Rural Development, Food and Drug Administration, and Related
    Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0170-0-1-351      1997 actual   1998 est.   1999 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: Uninvested...           2           1           1
    73.10 New obligations...................           2           2           4
    73.20 Total outlays (gross).............          -2          -2          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           1           1           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           2           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
    90.00 Outlays...........................           3           2           3
    ---------------------------------------------------------------------------

        This grant program is authorized by Title V of the Agricultural
    Credit Act of 1987, P.L. 100-233, as amended. Originally designed to
    address agricultural credit disputes, the program was expanded by the
    Federal Crop Insurance Reform and Department of Agriculture
    Reorganization Act of 1994 (P.L. 103-354) to include other agricultural
    issues such as wetland determinations, conservation compliance, rural
    water loan programs, grazing on National Forest System lands, and
    pesticide use. 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

                                         1997 actual  1998 est.   1999 est.
    Number of grants....................          23          21          22
    Amount of grants (in millions of
    dollars)............................          $2          $2          $4

                             Tree Assistance Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2701-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9
    22.30 Unobligated balance expiring......          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6
    23.95 New obligations...................          -6
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                       6           3
    73.10 New obligations...................           6
    73.20 Total outlays (gross).............                      -3          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           6           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....                       3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9
    90.00 Outlays...........................                       3           3
    ---------------------------------------------------------------------------

        Funding for the Tree Assistance Program (TAP) was provided by the
    1997 Emergency Supplemental Appropriations Act, P.L. 105-18, enacted
    June 12, 1997. The $9 million appropriation was made available for
    obligation through September 30, 1997, with any unobligated funding
    expiring.

        TAP provides cost-share payments of up to 100 percent to orchard and
    vineyard growers who replant or rehabilitate orchard trees and vineyards
    lost to damaging weather, including freezes, excessive rainfalls,
    floods, droughts, tornadoes, and earthquakes in fiscal year 1997.
    Eligible owners may not receive more than $25,000 per person.

        During 1997, 24 States, Guam and the Northern Mariana Islands
    participated in the program, obligating a total of $6 million.

                          Conservation Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3319-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Technical assistance..............          48          38          24
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................          48          38          24
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         111          86          48
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.22 Unobligated balance transferred
            from other accounts.............          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         134          86          48
    23.95 New obligations...................         -48         -38         -24
    24.40 Unobligated balance available, end
            of year: Uninvested.............          86          48          24
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                      25
    73.10 New obligations...................          48          38          24
    73.20 Total outlays (gross).............         -20         -63         -24
    73.45 Adjustments in unexpired accounts.          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          20          63          24
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          63          24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          20          63          24
    ---------------------------------------------------------------------------

        The Conservation Reserve Program (CRP) was originally mandated by
    the Food Security Act of 1985. 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

    [[Page 98]]

    since annual rental payments had been made very early in the fiscal year
    using CRP appropriated funds.

        In fiscal year 1997, annual rental and cost-share payments for acres
    enrolled in the program were paid through the Commodity Credit
    Corporation. Remaining unobligated funds from the fiscal year 1996
    appropriated account are currently used for CRP technical assistance. In
    providing technical assistance, the Natural Resources Conservation
    Service (NRCS) determines eligibility, develops conservation plans, and
    helps install approved practices. The Forest Service (FS) and
    cooperating State forestry agencies develop plans for tree planting and
    assist in carrying them out. The Cooperative State Research, Education,
    and Extension Service provides information and educational assistance to
    inform landowners and operators about the program. Local soil and water
    conservation districts approve conservation plans. To ensure maximum
    program benefits, USDA consults with land grant universities, State soil
    and water agencies, State fish and wildlife agencies, the U.S. Fish and
    Wildlife Services, and others. In fiscal year 1997, $47.6 million was
    obligated for the technical assistance services of NRCS and FS and a
    payment of $19.4 million in CRP appropriated funds was made to NRCS.

        CRP program payments for fiscal years 1997, 1998, and 1999 are
    included under the Commodity Credit Corporation account.

                        Agricultural Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3315-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           2          23          23
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          23          23          23
    24.40 Unobligated balance available, end
            of year: Uninvested.............          23          23          23
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         161          76          32
    73.20 Total outlays (gross).............         -64         -44         -12
    73.45 Adjustments in unexpired accounts.         -21
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          76          32          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          64          44          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          64          44          12
    ---------------------------------------------------------------------------

        This program was terminated at the beginning of 1997 in accordance
    with the Federal Agriculture Improvement and Reform Act of 1996. The
    objectives of the Agricultural Conservation Program (ACP) were
    incorporated into the Environmental Quality Incentives Program which is
    funded by the Commodity Credit Corporation and administered under the
    lead of the Natural Resources Conservation Service.

        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. At the end of 1997,
    there were $76 million in unliquidated obligations for ACP agreements.

                         Emergency Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3316-0-1-453      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          38          79
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          22          79
    22.00 New budget authority (gross)......          95
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         117          79
    23.95 New obligations...................         -38         -79
    24.40 Unobligated balance available, end
            of year: Uninvested.............          79
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          95
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          18          24
    73.10 New obligations...................          38          79
    73.20 Total outlays (gross).............         -32        -103
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          16
    86.93 Outlays from current balances.....          16         102
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          32         103
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          95
    90.00 Outlays...........................          32         103
    ---------------------------------------------------------------------------

        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.

        For 1997, pursuant to P.L. 104-208, enacted September 30, 1996, and
    P.L. 105-18, enacted June 12, 1997, $25 million and $70 million
    respectively, in supplemental funding was provided to the Emergency
    Conservation Program, to remain available until expended. Under the 1997
    program, cost-sharing and technical assistance were provided in 42
    States as well as the Virgin Islands to treat farmlands damaged by
    floods, hurricanes, tornadoes, wildfires, and other natural disasters.
    The 1997 program rehabilitated approximately 1,551,215 acres of farmland
    damaged by these natural disasters.

        No funding was provided in the 1998 Agriculture Appropriations Act
    for this program. The 1999 budget proposes no funding.

                          COMMODITY CREDIT CORPORATION

                                  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 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,
    1998.)

    [[Page 99]]

    Public enterprise funds:

                        Commodity Credit Corporation Fund

                      reimbursement for net realized losses

        For fiscal year [1998] 1999, such sums as may be necessary to
    reimburse the Commodity Credit Corporation for net realized losses
    sustained, but not previously reimbursed [(estimated to be $783,507,000
    in the President's fiscal year 1998 Budget Request P(H. Doc. 105-3)),
    but not to exceed $783,507,000], pursuant to section 2 of the Act of
    August 17, 1961 (15 U.S.C. 713a-11).

            operations and maintenance for hazardous waste management

        For fiscal year [1998] 1999, 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, 42 U.S.C. 9607(g), and
    section 6001 of the Resource Conservation and Recovery Act, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Support and related programs:

            Operating expenses:
    00.01     Commodity purchases and
                related inventory
                transactions................         630         661         606
    00.02     Storage, transportation, and
                other obligations not
                included above..............         352         443         830
              Direct producer payments:
    00.03       Feed grains.................       3,834       3,071       2,967
    00.04       Wheat.......................       1,389       1,503       1,451
    00.05       Rice........................         451         485         469
    00.06       Cotton......................         607         844         874
    00.07       Noninsured assistance
                  program...................          32          86          90
    00.08       Oilseeds loan deficency.....                                   2
    00.09       Crop disaster...............           2
    00.10       Livestock assistance........          38
    00.11       Livestock indemnity.........          49           8
    00.12       Disaster reserve assistance.          41           7           4
    00.13       Conservation reserve program       1,671       1,798       1,694
    00.14       Environmental quality
                  incentives program--EQIP..         171         156         174
    00.15       Wetlands reserve program....          99         219         113
    00.16       Farmland protection program.           2          17
    00.17       Conservation farm option....                      11          20
    00.18     Reimbursement agreement and
                transfers to State and
                Federal agencies............          39          45          45
              Interest expenses:
    00.19       Treasury....................         234         123         226
    00.20       Other.......................          18          18          18
    00.21     EQIP technical assistance.....          20          38          20
    00.22     EQIP educational assistance...           5           6           6
                                               ---------   ---------  ----------
    00.91       Total operating expenses....       9,684       9,539       9,609
            Capital investment:
              Direct loans:
    01.02       Purchase of ADP equipment...           6          49          29
                                               ---------   ---------  ----------
    01.91       Total capital investment....           6          49          29
                                               ---------   ---------  ----------
    01.92     Total support and related
                programs....................       9,690       9,588       9,638
    02.02 Other PL 480 operating expenses...         250         366         350
                                               ---------   ---------  ----------
    02.91   Total special activities........         250         366         350
          Reimbursable program:

    09.01   Commodity loans.................       5,333       6,408       7,451
    09.01   Commodities procured--PL 480
              Titles II and III commodity
              costs.........................         521         526         526
                                               ---------   ---------  ----------
    09.09   Total reimbursable program......       5,854       6,934       7,977
                                               ---------   ---------  ----------
    10.00   Total obligations...............      15,794      16,888      17,965
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      15,798      16,948      17,995
    22.21 Unobligated balance transferred to
            other accounts..................         -29         -64         -30
    22.22 Unobligated balance transferred
            from other accounts.............          25           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      15,794      16,888      17,965
    23.95 New obligations...................     -15,794     -16,888     -17,965
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       1,500         784       8,439
    40.47   Portion applied to debt
              reduction.....................      -1,500        -784      -8,439
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........
          Permanent:

    67.10   Authority to borrow.............       8,681       8,742       8,692
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       7,117       8,206       9,303
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      15,798      16,948      17,995
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...      30,941      23,842      23,710
    73.10 New obligations...................      15,794      16,888      17,965
    73.20 Total outlays (gross).............     -14,396     -17,020     -18,238
    73.40 Adjustments in expired accounts...      -8,497
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...      23,842      23,710      23,437
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       8,419       8,426       8,409
    86.98 Outlays from permanent balances...       5,977       8,594       9,829
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      14,396      17,020      18,238
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
                Federal sources:

    88.00         Sales to special
                    activities..............        -521        -526        -526
    88.00         Interest revenue..........          -9
    88.00         Advance from foreign
                    assistance programs
                    (P.L. 480)..............        -872        -885        -876
              Non-Federal Sources (62
                  stat.1070): Support and
                  related programs:
                Non-Federal sources:

    88.40         Sales and other proceeds..        -180          -4          -2
    88.40         Assessments...............         -64         -67         -71
    88.40         Interest revenue..........        -191        -194        -220
    88.40         Other revenue.............          -8
    88.40         Loans repaid..............      -5,236      -6,495      -7,570
    88.40         Export credit sales
                    program repayments......          -3          -6          -9
    88.40         Interest revenue..........         -33         -29         -29
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -7,117      -8,206      -9,303
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       8,681       8,742       8,692
    90.00 Outlays...........................       7,279       8,814       8,935
    ---------------------------------------------------------------------------

                                      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.

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................       8,681       8,742       8,692
      Outlays...........................       7,279       8,814       8,935
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                -240

    [[Page 100]]

      Outlays...........................                                -327
                                        ------------------------------------
    Total:
      Budget Authority..................       8,681       8,742       8,452
      Outlays...........................       7,279       8,814       8,608
                                        ====================================

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
              SHORT TERM CREDIT LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         388         388         382
    1251  Repayments: Repayments and
            prepayments.....................          -3          -6          -8
    1261  Adjustments: Capitalized interest.           3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         388         382         374
    ----------------------------------------------------------------------------

              COMMODITY LOANS
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       5,333       6,408       7,451
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       5,333       6,408       7,451
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,254       1,351       1,264
    1231  Disbursements: Direct loan
            disbursements...................       5,333       6,408       7,451
    1251  Repayments: Repayments and
            prepayments.....................      -5,235      -6,495      -7,570
    1264  Write-offs for default: Other
            adjustments, net................          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,351       1,264       1,145
    ----------------------------------------------------------------------------

              SALE OF INVENTORY ON CREDIT
                  TERMS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          30          30          30
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    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.

        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 1998 and 1999 budget estimates: (a) national
    income will rise both in 1998 and 1999 from the present level; (b) 1998
    crop production will increase from 1997 crop levels for some
    commodities; (c) generally, exports of agricultural commodities in 1999
    are expected to be higher than 1998 levels; (d) yields for the 1998
    crops are based on recent averages adjusted for trend; (e) acreage
    allotments and marketing quotas will be in effect for the 1998 crops of
    certain kinds of tobacco; and (f) poundage quotas will be in effect for
    the 1998 crop of peanuts.

        It is difficult to accurately forecast requirements for the year
    ending September 30, 1999, 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.
    The CRP is assumed to be gradually increased to 36.4 million acres by
    2001. The enrollment assumptions reflect Signup 15 enrollment which adds
    approximately 17.6 million acres, including announced initial
    enrollment, changes in enrolled acreage resulting from errors and
    omissions in eligibility and Environmental Benefits Index (EBI) scoring
    determinations through producer appeals, and additional acres accepted
    due to waivers approved for counties exceeding the 25 percent county
    cropland limit. Conservation Reserve Program acreage also contributes to
    the USDA Conservation Buffer Initiative and the Conservation Reserve
    Enhancement Program and to other purposes which are estimated to enroll
    5.5-9 million acres through 2002. Signup 16, which was held from October
    14 through November 14, 1997 will be reflected in the 1998 and 1999
    enrollment figures.

        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 for Signup 16. USDA's goal is that lands
    selected for the CRP will only be those lands where the benefits to the
    Nation of retirement are greater than the benefits of continued
    production.

        Appropriations are made to reimburse the Corporation for net
    realized losses sustained in carrying out its operations:

                                  1999 ESTIMATE

                            [In millions of dollars]

                   Program                  Gross
                                         obligations
                                                     Net outlays Net realized
                                                                loss for year
    Farm income and price support:
      Commodity loans...................       7,451        -119
      Feed grain payments...............       2,967       2,967       2,967
      Wheat payments....................       1,451       1,451       1,451
      Rice payments.....................         469         469         469
      Cotton payments...................         874         874         874
      Export Enhancement Program........         550         550         550
      Other support and related.........         914         335         404
    Other items not distributed by
        program:
        Interest........................         244         -28          -6
        All other.......................         126         395         108
                                        ------------------------------------
          Total, farm income and price-
            support programs............      15,046       6,894       6,817
    Conservation programs:
      Conservation reserve program......       1,694       1,694       1,784
      Environmental quality incentives
        program.........................         174         154         154
      Wetlands reserve program..........         113         167         167
      Farmland protection program.......                      15          10
      Conservation farm option program..          20          11          11
      Wildlife habitat incentives
        program.........................                                  20
                                        ------------------------------------
        Total, conservation programs....       2,001       2,041       2,146
            Total, Commodity Credit
              Corporation...............      17,047       8,935       8,963

                           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.

    [[Page 101]]

        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 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 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 establishment and funding for Conservation Priority Areas (CPA)
    under both EQIP and CRP will be harmonized in a manner to ensure program
    availability is coordinated to best address environmental concerns,
    keeping in mind the varied and diverse purposes for which the CRP and
    EQIP

    [[Page 102]]

    are authorized. The 17th Signup of the CRP will have some different
    procedures in place for CPAs.

        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 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. However, no obligations were incurred 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                 1997 actual  1998 est.   1999 est.
    Loans outstanding, gross, start of
        year:
      Commodity Credit Corporation......       1,254       1,351       1,263
      Additional loans made.............       5,333       6,408       7,451
    Deduct:
      Loans repaid......................      -5,235      -6,496      -7,569
      Write-offs........................          -1
                                        ------------------------------------
          Total loans outstanding,
            gross, end of year..........       1,351       1,263       1,145
                                        ====================================

        Inventory operations.--The following table reflects the inventory
    operations applicable to the preceding programs:

                            AGRICULTURAL COMMODITIES

                            [In millions of dollars]

                    Item                 1997 actual  1998 est.   1999 est.
    On hand, start of year, gross.......         485         377         399
                                        ====================================
    Acquisitions:
      Forfeiture of loan collateral.....           1
      Purchases.........................         627         659         602
    Carrying charges:
      Charges to inventory..............           3           3           4
      Storage and handling (non-add)....        (30)        (29)        (29)
      Transportation (non-add)..........                     (2)         (1)
                                        ------------------------------------
          Total acquisitions............         631         662         606
                                        ====================================
    Dispositions:
      Domestic donations to:
        Institutions....................           2          39          50
                                        ------------------------------------
          Total domestic donations......           2          39          50
                                        ====================================
      Export donations..................          59          71          76
      Sales and transfers:
        Special programs: Title II,
          Public Law 480................         468         504         504
        Title III, Public Law 480.......          53          23          23
        Other sales.....................         166           3           1
        Net loss or gain (-) on sales
          and transfers.................          -9
                                        ------------------------------------
          Total sales and transfers.....         678         530         528
                                        ====================================
          Total dispositions............         739         640         654
                                        ====================================
    On hand, end of year, gross.........         377         399         351
                                        ------------------------------------
    On hand, end of year, net...........         377         399         351
                                        ====================================

        Other data.--The following table reflects other data which are
    applicable to price support and related programs:

    [[Page 103]]

                      DATA ON SUPPORT AND RELATED PROGRAMS

                            [In millions of dollars]

                    Item                 1997 actual  1998 est.   1999 est.
    Loans made..........................       5,333       6,408       7,451
    Loans repaid........................       5,235       6,496       7,569
    Loans outstanding, end of year......       1,351       1,263       1,145
    Acquisitions........................         631         662         606
    Cost of commodities sold............         678         530         528
    Cost of commodities donated.........          61         110         126
    Inventory, end of year..............         377         399         351
    Investment in loans and inventory,
    end of year.........................       1,728       1,662       1,496
    Direct producer payments............       7,147       8,036       7,844
    Net expenditures....................       7,256       8,574       8,747
    Realized losses.....................       8,506       8,538       8,963

        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
    the 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 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 $46.188 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:

                                             1999 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............           112             139
    (2) Commodities supplied in connection
     with dispositions abroad (Title II)....           837             836
    (3) Commodities supplied in connection
     with dispositions abroad (Title III)...            30              30
                                             -------------  --------------

       Total................................           979           1,005
                                             -------------  --------------

        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                 1997 actual  1998 est.   1999 est.
    Statutory borrowing authority.......      30,000      30,000      30,000
    Deduct: Borrowings from Treasury....       6,897      15,733      17,285
    Net statutory borrowing authority
    available...........................      23,103      14,267      13,715

        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

    [[Page 104]]

    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]
                                                      1997 actual
    Realized losses, 1933 to 1997, inclusive                       253,360
     Reimbursements by the Treasury:
      Reimbursements of realized losses:
       Appropriations (58 times)............       240,979
       Note cancellations (6 times).........         2,698
       Less dividends paid to Treasury (4
        times)..............................          -138
                                             -------------  --------------

        Total reimbursements for net
         realized losses....................       243,539
                                             -------------  --------------

    Other reimbursements:
     Appropriations (2 times)...............           542
     Note cancellation (1 time).............            56
                                             -------------  --------------

      Total other reimbursements............           598
                                             -------------  --------------

      Total.................................                       244,137
                                             -------------  --------------

    Realized deficit as of September 30,
     1997, support and related programs.....                         9,223
                                             -------------  --------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,083          1,322         1,213          1,166
    0102  Expense...........................      -8,783         -9,828        -9,751        -10,129
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............      -7,700         -8,506        -8,538         -8,963
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....      -1,469           -693          -693           -693
            Investments in US securities:
    1106      Receivables, net..............       2,405          9,404        15,857         15,769
    1107      Advances and prepayments......          54             14            14             14
          Non-Federal assets:

    1206    Receivables, net................       1,169            333           333            333
    1207    Advances and prepayments........          14              5             5              5
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,643          1,769         1,676          1,549
    1602    Interest receivable.............         193            185           185            185
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -82            -78           -78            -78
    1604    Direct loans and interest
              receivable, net...............       1,754          1,876         1,783          1,656
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,754          1,876         1,783          1,656
    1701    Defaulted guaranteed loans,
              gross.........................       5,552          5,502         5,223          4,963
    1702    Interest receivable.............          22             27            27             20
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,322         -1,322        -1,322         -1,322
    1704    Defaulted guaranteed loans and
              interest receivable, net......       4,252          4,207         3,928          3,661
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............       4,252          4,207         3,928          3,661
          Other Federal assets:

    1801    Cash and other monetary assets..          54            555           555            555
    1802    Inventories and related
              properties....................         485            377           399            351
    1803    Property, plant and equipment,
              net...........................          81             90            94            112
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,799         16,168        22,275         21,763
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           8              3             8              8
    2102    Interest payable................                        139           111            134
    2103    Debt............................         496          6,897        14,297         14,640
    2104    Resources payable to Treasury...       4,297          4,251         2,821          2,821
    2105    Other...........................         398            398           398            398
          Non-Federal liabilities:

    2201    Accounts payable................          48             56            56             56
    2204    Liabilities for loan guarantees.          19             19            19             19
    2207    Other...........................       2,508          3,285         3,285          2,407
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       7,774         15,048        20,995         20,483
        NET POSITION:
    3100  Appropriated capital..............         925          1,020         1,180          1,180
    3200  Invested capital..................         100            100           100            100
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,025          1,120         1,280          1,280
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,799         16,168        22,275         21,763
    -----------------------------------------------------------------------------------------------
        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........         284         398         381
            Other services:
    25.2      Other services................         141         141         113
    25.2      Other services: Storage and
                handling....................          30          29          29
    26.0    Supplies and materials: Costs of
              commodities sold or donated-PL
              480...........................         630         661         606
    31.0    ADP equipment...................           6          49          29
    41.0    Grants, subsidies, and
              contributions.................       8,597       8,536       8,586
    43.0    Interest and dividends..........         252         140         244
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       9,940       9,954       9,988
          Reimbursable obligations:

    26.0    Supplies and materials: Cost of
              commodities sold or donated--
              PL 480........................         521         526         526
    33.0    Investments and loans...........       5,333       6,408       7,451
                                               ---------   ---------  ----------
    99.0      Subtotal, reimbursable
                obligations.................       5,854       6,934       7,977
                                               ---------   ---------  ----------
    99.9    Total obligations...............      15,794      16,888      17,965
    ---------------------------------------------------------------------------

                        Commodity Credit Corporation Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-4-3-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Environmental quality incentives
            program--EQIP...................                                 100
    00.02 Cotton user marketing step-2
            payments........................                                -110
    00.03 Export enhancement program........                                -230
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                -240
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -240
    23.95 New obligations...................                                 240
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.10 Authority to borrow...............                                -240
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                -240

    [[Page 105]]

    73.20 Total outlays (gross).............                                 327
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                  87
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                -327
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -240
    90.00 Outlays...........................                                -327
    ---------------------------------------------------------------------------

        This schedule reflects proposed savings in commodity programs. These
    savings offset the Administration's proposal to provide mandatory
    funding for a portion of the crop insurance program delivery expenses,
    an expansion of the Environmental Quality Incentives Program (EQIP), and
    other initiatives of the Administration.

        The Administration will proposed legislation to increase CCC funding
    for EQIP by $100 million in 1999 and by a total of $350 million for the
    period 1999 to 2003.

        The proposal for upland cotton user marketing certificates, also
    known as step-2 payments, would reduce outlays by an estimated $110
    million in 1999 and $48 million in 2000 by capping payments to $140
    million in 1999 and to no more than $333 million during the period 1999
    through 2002. Existing law caps step-2 payments to $701 million during
    fiscal years 1996 through 2002.

        In addition, a reduced flexible, multi-year program level
    authorization is proposed for the Export Enhancement Program (EEP) for
    1999 and subsequent years. Under this proposal, a total funding level of
    just under $1.2 billion will be available for EEP during the 1999 to
    2003 period. The proposal will provide administrative discretion to the
    Department to determine the annual level of funding for EEP (subject to
    the $320 million limitation in 1999), and any funding that is not used
    in one year will remain available for use in a subsequent year. However,
    annual program levels will continue to be subject to the export subsidy
    reduction commitments established in conjunction with the Uruguay Round
    Agreement on Agriculture. This proposal will generate estimated savings
    of $230 million in 1999 and a total of $1.4 billion during 1999 to 2003.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-4-3-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                  13
    41.0  Grants, subsidies, and
            contributions...................                                -253
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                -240
    ---------------------------------------------------------------------------

            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] $4,085,000; 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] $3,413,000 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] $672,000 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,
    1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed Loan Subsidy...........         289         408         253
    00.07 Reestimates of guaranteed loan
            subsidy.........................         263
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........          80
    00.09 Administrative expenses...........           4           4           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............         636         412         257
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         620         268          61
    22.00 New budget authority (gross)......         281         204         248
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         905         472         309
    23.95 New obligations...................        -636        -412        -257
    24.40 Unobligated balance available, end
            of year: Uninvested.............         268          61          52
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

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

    60.05   Appropriation (indefinite)......                     200         244
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         277
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         281         204         248
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         117         156         178
    73.10 New obligations...................         636         412         257
    73.20 Total outlays (gross).............        -593        -389        -317
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         156         178         118
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           4           4
    86.97 Outlays from new permanent
            authority.......................                      81         202
    86.98 Outlays from permanent balances...         589         304         111
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         593         389         317
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Downward Reestimate.....        -277
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4         204         248
    90.00 Outlays...........................         316         389         317
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............       3,500       5,000       4,615
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       3,500       5,000       4,615
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................        8.52        8.16        5.48
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        8.52        8.16        5.48
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........         298         408         253
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..         298         408         253
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................         365         385         313
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........         365         385         313
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority--administrative
            expenses........................           4           4           4
    3590  Outlays--adminsitrative expenses..           4           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

    [[Page 106]]

    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 60 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.

        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 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. The 1999 budget displays the GSM
    loan guarantee volume and the subsidy level that can be justified by
    forecast economic conditions, the expected supply/demand conditions of
    countries requesting GSM loan guarantees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           4           4           4
    41.0  Grants, subsidies, and
            contributions...................         632         408         253
                                               ---------   ---------  ----------
    99.9    Total obligations...............         636         412         257
    ---------------------------------------------------------------------------

         Commodity Credit Corporation Export Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................          11         339         342
    00.02 Interest on debt to Treasury......          62          62          62
    00.07 Technical reestimate of subsidy...         238
    00.08 Technical reestimate--interest....          39
                                               ---------   ---------  ----------
    10.00   Total obligations...............         350         401         404
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         689       1,010       1,036
    22.00 New financing authority (gross)...         733         427         404
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         -62
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,360       1,437       1,440
    23.95 New obligations...................        -350        -401        -404
    24.40 Unobligated balance available, end
            of year: Uninvested.............       1,010       1,036       1,036
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...         733         525         458
    68.47   Portion applied to debt
              reduction.....................                     -98         -54
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         733         427         404
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         733         427         404
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................         350         401         404
    73.20 Total financing disbursements
            (gross).........................        -412        -401        -404
    73.45 Adjustments in unexpired accounts.          62
    87.00 Total financing disbursements
            (gross).........................         412         401         404
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -589        -385        -313
    88.25     Interest on uninvested funds..         -26         -11         -13
              Non-Federal sources:
    88.40       Loan origination fee........         -14         -31         -29
    88.40       Principal collections.......          -1          -3          -8
    88.40       Interest collections........        -103         -95         -95
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -733        -525        -458
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     -98         -54
    90.00 Financing disbursements...........        -321        -124         -54
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      1997 actual   1998 est.   1999 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.................       3,500       5,000       4,615
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       3,500       5,000       4,615
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       5,323       4,548       5,987
    2231  Disbursements of new guaranteed
            loans...........................       2,411       5,000       4,615
    2251  Repayments and prepayments........      -3,175      -3,222      -3,924
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -11        -339        -342
    2264    Other adjustments, net..........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       4,548       5,987       6,336
    ----------------------------------------------------------------------------

    [[Page 107]]

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       4,502       5,867       6,209
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       1,294       1,299       1,635
    2331    Disbursements for guaranteed
              loan claims...................          11         339         342
    2351    Repayments of loans receivable..          -1          -3          -8
    2364    Other adjustments, net..........          -5
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,299       1,635       1,969
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         689          1,010         1,035          1,035
            Investments in US securities:
    1106      Receivables, net..............          77             74
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............       1,294          1,299         1,635          1,969
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............       1,294          1,299         1,635          1,969
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,060          2,383         2,670          3,004
        LIABILITIES:
    2103  Federal liabilities: Debt.........         851            851           851            851
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.       1,209          1,532         1,819          2,153
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,060          2,383         2,670          3,004
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,060          2,383         2,670          3,004
    -----------------------------------------------------------------------------------------------

        Commodity Credit Corporation Guaranteed Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Capital investment: Direct loans:
            Guarantee claims................          21           6
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              33.0).........................          21           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          64          85
    22.00 New budget authority (gross)......         360         643         505
    22.40 Capital transfer to general fund..        -318        -722        -505
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         106           6
    23.95 New obligations...................         -21          -6
    24.40 Unobligated balance available, end
            of year: Uninvested.............          85
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         360         643         505
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          21           6
    73.20 Total outlays (gross).............         -21          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          21           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          21           6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -8
              Non-Federal sources:
    88.40       Repayments of principal.....         -89        -285        -260
    88.40       Interest received on loans..        -271        -350        -245
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -360        -643        -505
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -339        -637        -505
    ---------------------------------------------------------------------------
        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          91          16
    2251  Repayments and prepayments........         -55         -10
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................         -20          -6
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          16
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          16
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       5,067       4,999       4,693
    2331    Disbursements for guaranteed
              loan claims...................          21           6
    2351    Repayments of loans receivable..         -89        -293        -260
    2364    Other adjustments, net..........                     -19
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       4,999       4,693       4,433
    ---------------------------------------------------------------------------

        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.

                               FARM SERVICE AGENCY

    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, [$460,000,000] $510,031,000 of which [$400,000,000]
    $425,031,000 shall be for guaranteed loans; operating loans,
    [$2,395,000,000] $2,400,000,000 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] $1,003,000; 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] $30,000,000; 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, [$21,380,000] $19,483,000
    of which [$15,440,000] $6,758,000 shall be for guaranteed loans;
    operating loans, [$71,394,000] $71,350,000 of which [$19,890,000]
    $19,720,000 shall be for unsubsidized guaranteed loans and [$19,280,000]
    $17,480,000 shall be for subsidized guaranteed

    [[Page 108]]

    loans; Indian tribe land acquisition loans as authorized by 25 U.S.C.
    488, [$132,000] $153,000; for emergency insured loans, [$6,008,000]
    $5,900,000 to meet the needs resulting from natural disasters; for boll
    weevil eradication program loans as authorized by 7 U.S.C. 1989,
    [$250,000] $432,000; and for credit sales of acquired property,
    [$3,255,000] $3,260,000.
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, [$219,861,000] $237,673,000 of
    which [$209,861,000] $227,673,000 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 (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, [$550,000] $450,000, 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, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         141         366         366
        Receipts:
    02.02 Agriculture credit insurance fund
            direct loans, downward
            reestimates of subsidies........         225
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         366         366         366
    07.99 Total balance, end of year........         366         366         366
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         130          57          57
    00.02 Guaranteed loan subsidy...........          48          58          44
    00.05 Reestimates of direct loan subsidy          73
    00.06 Interest on reestimates of direct
            loan subsidy....................          20
    00.07 Reestimates of guaranteed loan
            subsidy.........................          39
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........          11
          Administrative expenses:

    00.09   Administrative expenses--
              salaries and expenses.........         209         210         228
    00.10   Administrative expenses--non-
              recoverable costs.............          11          10          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............         541         335         339
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          29          13          13
    22.00 New budget authority (gross)......         541         335         339
    22.30 Unobligated balance expiring......         -16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         554         348         352
    23.95 New obligations...................        -541        -335        -339
    24.40 Unobligated balance available, end
            of year: Uninvested.............          13          13          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         396         335         339
          Permanent:

    60.05   Appropriation (indefinite)......         143
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         541         335         339
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          20          23          22
    73.10 New obligations...................         541         335         339
    73.20 Total outlays (gross).............        -531        -336        -342
    73.40 Adjustments in expired accounts...          -7
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          23          22          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         370         318         325
    86.93 Outlays from current balances.....          16          18          17
    86.97 Outlays from new permanent
            authority.......................         145
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         531         336         342
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         539         335         339
    90.00 Outlays...........................         531         336         342
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Farm ownership....................          84          46          85
    1150  Farm operating....................         516         490         500
    1150  Emergency disaster................         145          63          25
    1150  Indian tribe land acquisition.....                       1           1
    1150  Credit sales of acquired property.          14          25          25
    1150  Boll weevil eradication...........          40          21          30
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         799         646         666
        Direct loan subsidy (in percent):
    1320  Farm ownership....................       21.03       13.04       14.97
    1320  Farm operating....................       12.59        6.57        6.83
    1320  Emergency disaster................       30.41       24.03       23.60
    1320  Indian tribe land acquisition.....       24.12       13.18       15.25
    1320  Credit sales of acquired property.       18.06       13.02       13.04
    1320  Boll weevil eradication...........        1.24        1.18        1.44
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       16.24        8.82        8.50
        Direct loan subsidy budget authority:
    1330  Farm ownership....................          18           6          13
    1330  Farm operating....................          65          32          34
    1330  Emergency disaster................          44          15           6
    1330  Credit sales of acquired property.           3           3           3
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         130          56          56
        Direct loan subsidy outlays:
    1340  Farm ownership....................          19           7          12
    1340  Farm operating....................          68          34          34
    1340  Emergency disaster................          48          15           6
    1340  Credit sales of acquired property.           3           3           3
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         138          59          55
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Farm ownership, unsubsidized......         530         400         425
    2150  Farm operating, unsubsidized......         829       1,700       1,700
    2150  Farm operating, subsidized........         216         231         200
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       1,575       2,331       2,325

    [[Page 109]]

        Guaranteed loan subsidy (in percent):
    2320  Farm ownership, unsubsidized......        3.69        3.86        1.59
    2320  Farm operating, unsubsidized......        1.10        1.17        1.16
    2320  Farm operating, subsidized........        9.08        9.64        8.74
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        3.07        2.47        1.89
        Guaranteed loan subsidy budget authority:
    2330  Farmer ownership, unsubsidized....          20          15           7
    2330  Farm operating, unsubsidized......           9          20          20
    2330  Farm operating, subsidized........          20          19          17
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          49          54          44
        Guaranteed loan subsidy outlays:
    2340  Farmer ownership, unsubsidized....          13          16          10
    2340  Farm operating, unsubsidized......           8          18          20
    2340  Farm operating, subsidized........          17          22          18
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........          38          56          48
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         219         220         238
    3590  Outlays...........................         219         220         238
    ---------------------------------------------------------------------------

        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, and emergency loans
    to individuals. Indian tribes and tribal corporations are eligible for
    Indian land acquisition loans.

        Additional funding for disaster loans was provided through a fiscal
    year 1997 supplemental appropriation for emergency disaster, direct
    operating, and guaranteed subsidized operating loans (P.L. 105-18) 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 1998, an estimated $585 thousand will be paid to producers and
    manufacturers who file claims under the program.

        The 1999 budget requests $450 thousand for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........         221         220         220
    41.0  Grants, subsidies, and
            contributions...................         320         115         119
                                               ---------   ---------  ----------
    99.9    Total obligations...............         541         335         339
    ---------------------------------------------------------------------------

        Agricultural Credit Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         799         646         666
    00.02 Advances on behalf of borrowers...           7           4           4
    00.04 Interest on Treasury borrowing....         171         188         205
    00.08 Subsidy reestimate paid to receipt
            account.........................         124
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,101         838         875
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         288         139         120
    22.00 New financing authority (gross)...         952         819         855
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,240         958         975
    23.95 New obligations...................      -1,101        -838        -875
    24.40 Unobligated balance available, end
            of year: Uninvested.............         139         120         100
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         770         632         634
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         818         590         621
    68.10   Change in orders on hand from
              Federal sources...............          18          -3
    68.47   Portion applied to debt
              reduction.....................        -654        -400        -400
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         182         187         221
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         952         819         855
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          68          86         252
    72.95   Receivables from program account                      18          15
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          68         104         267
    73.10 New obligations...................       1,101         838         875
    73.20 Total financing disbursements
            (gross).........................      -1,065        -675        -675
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...          86         252         452
    74.95   Receivables from program account          18          15          15
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         104         267         467
    87.00 Total financing disbursements
            (gross).........................       1,065         675         675
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............        -217         -57         -57
    88.25     Interest on uninvested funds..         -68         -67         -66
              Non-Federal sources:
    88.40       Repayments of principal.....        -451        -396        -423
    88.40       Non-Federal sources.........         -82         -70         -75
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -818        -590        -621
    88.95 Change in receivables from program
            accounts........................         -18           3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         116         232         234
    90.00 Financing disbursements...........         247          85          54
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         799         646         666
    1112  Unobligated direct loan limitation
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         799         646         666
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,026       2,258       2,419
    1231  Disbursements: Direct loan
            disbursements...................         785         649         665
    1251  Repayments: Repayments and
            prepayments.....................        -533        -466        -498
    1263  Write-offs for default: Direct
            loans...........................         -20         -22         -22
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,258       2,419       2,564
    ---------------------------------------------------------------------------

        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.

    [[Page 110]]

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net         356            225           180            180
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       2,026          2,258         2,419          2,564
    1402    Interest receivable.............          20             13            13             13
    1403    Accounts receivable from
              foreclosed property...........          16             32            30             30
    1405    Allowance for subsidy cost (-)..        -551           -628
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,511          1,675         2,462          2,607
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,867          1,900         2,642          2,787
        LIABILITIES:
    2103  Federal liabilities: Debt.........       1,850          1,885         2,627          2,772
    2207  Non-Federal liabilities: Other....          17             15            15             15
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,867          1,900         2,642          2,787
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,867          1,900         2,642          2,787
    -----------------------------------------------------------------------------------------------

      Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................          55          60          61
    00.02 Interest assistance on guaranteed
            loans...........................          37          60          60
    00.04 Interest Payments to Treasury.....           4           5           2
    00.05 Capital investments...............           8           8           8
    00.07 Negative subsidy transferred to
            receipt account.................         101
                                               ---------   ---------  ----------
    10.00   Total obligations...............         205         133         131
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          98          48          12
    22.00 New financing authority (gross)...         180         123         111
    22.60 Redemption of debt................         -25         -26         -25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         253         145          98
    23.95 New obligations...................        -205        -133        -131
    24.40 Unobligated balance available, end
            of year: Uninvested.............          48          12         -33
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          52          35          33
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         128          88          78
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         180         123         111
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         144         163         203
    73.10 New obligations...................         205         133         131
    73.20 Total financing disbursements
            (gross).........................        -186         -93         -92
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         163         203         242
    87.00 Total financing disbursements
            (gross).........................         186          93          92
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -98         -55         -44
    88.25     Interest on uninvested funds..         -17         -14         -15
    88.40     Fees and premiums.............         -13         -19         -19
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -128         -88         -78
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          52          35          33
    90.00 Financing disbursements...........          58           5          14
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       1,575       2,331       2,325
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       1,575       2,331       2,325
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       5,705       6,039       7,085
    2231  Disbursements of new guaranteed
            loans...........................       1,549       2,254       2,279
    2251  Repayments and prepayments........      -1,151      -1,208      -1,417
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -64
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       6,039       7,085       7,947
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       5,416       6,354       7,127
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         242            211           210            200
            Investments in US securities:
    1106      Receivables, net..............
    1206  Non-Federal assets: Receivables,
            net.............................
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         242            211           210            200
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................         144            163           146            150
    2203    Debt............................          15             42            26              1
    2204    Liabilities for loan guarantees.          83              6            38             49
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         242            211           210            200
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         242            211           210            200
    -----------------------------------------------------------------------------------------------

             Agricultural Credit Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.04   Purchase of guaranteed loans
              from investors................           1           1           1
    00.08   Loan recoverable costs..........          16          15          15
                                               ---------   ---------  ----------

    [[Page 111]]

    00.91     Total capital investment......          17          16          16
          Operating expenses:

    01.07   Loss settlement expenses on
              guaranteed loans..............          12          11          10
    01.08   Admininstrative expenses--
              Department of Justice fees....           1           1           1
    01.09   Costs incident to acquisition of
              property......................                       1
    01.10   Undistributed charges...........           1           1           1
    01.13   Interest assistance--guaranteed
              loans.........................           1           1           1
    01.17   Unclassified costs..............           2           2           2
                                               ---------   ---------  ----------
    01.91     Total operating expenses......          17          17          15
                                               ---------   ---------  ----------
    10.00   Total obligations...............          34          33          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         347                      87
    22.00 New budget authority (gross)......          29         120          32
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.40 Capital transfer to general fund..        -345
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34         120         119
    23.95 New obligations...................         -34         -33         -31
    24.40 Unobligated balance available, end
            of year: Uninvested.............                      87          87
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          29
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,289       1,251       1,201
    68.27   Capital transfer to general fund      -1,289      -1,131      -1,169
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................                     120          32
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          29         120          32
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          99          87
    73.10 New obligations...................          34          33          31
    73.20 Total outlays (gross).............         -43        -120         -32
    73.45 Adjustments in unexpired accounts.          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          87
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                     120          32
    86.98 Outlays from permanent balances...          43
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          43         120          32
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Rent on acquired property...          -5          -5          -5
    88.40       Guaranteed lns purchased
                  from holders--principal...          -1          -1          -1
    88.40       Interest on loans...........        -456        -450        -400
    88.40       Guaranteed loss recoveries..          -1
    88.40       Loan repayments recd on
                  behalf of investors.......          -1          -1          -1
    88.40       Interest on judgments.......          -1          -1          -1
    88.40       Repayments on loans--
                  principal.................        -723        -700        -700
    88.40       Judgments--principal........         -11          -9          -9
    88.40       Shared appreciation
                  recapture.................          -6          -5          -5
    88.40       Sale of acquired property/
                  chattels..................         -93         -75         -75
    88.40       Miscellaneous income........                      -1          -1
    88.40       Undistributed receipts......           9          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,289      -1,251      -1,201
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,260      -1,131      -1,169
    90.00 Outlays...........................      -1,246      -1,131      -1,169
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       8,783       7,709       6,725
    1232  Disbursements: Purchase of loans
            assets from the public..........           1           1           1
    1251  Repayments: Repayments and
            prepayments.....................        -720        -707        -706
    1261  Adjustments: Capitalized interest.          56          55          54
          Write-offs for default:

    1263    Direct loans....................        -370        -300        -300
    1264    Other adjustments, net\1\.......         -41         -33         -30
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       7,709       6,725       5,744
    ---------------------------------------------------------------------------
        \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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       1,173         992         830
    2231  Disbursements of new guaranteed
            loans...........................           1           1           1
    2251  Repayments and prepayments........        -168        -150        -150
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -14         -13         -12
    2264    Other adjustments, net..........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         992         830         669
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         893         747         602
    ---------------------------------------------------------------------------

        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 made 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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         437            561           451            423
    0102  Expense...........................      -1,704            532         1,020          1,020
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............      -1,267          1,093         1,471          1,443
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4140-0-3-351    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         446             59            50             50
    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.............       8,783          7,709         6,725          5,744
    1602    Interest receivable.............         414            425           450            538
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -2,474         -1,537        -1,500         -1,000
    1604    Direct loans and interest
              receivable, net...............       6,723          6,597         5,675          5,282
    1606    Foreclosed property.............         267            187           179            174
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       6,990          6,784         5,854          5,456
    1901  Other Federal assets: Other assets
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       7,436          6,843         5,904          5,506
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................
    2103    Debt............................
    2104    Resources payable to Treasury...       7,084          5,654         5,500          5,000
          Non-Federal liabilities:

    2201    Accounts payable................          89             78            75             70
    2202    Interest payable................
    2203    Debt............................           2              2             2              2
    2204    Liabilities for loan guarantees.         207            172           200            200
    2207    Other...........................          54             46            45             45
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       7,436          5,952         5,822          5,317

    [[Page 112]]

        NET POSITION:
    3300  Cumulative results of operations..                        891            82            189
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                        891            82            189
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       7,436          6,843         5,904          5,506
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           4           5           4
    33.0  Investments and loans.............          29          27          26
    43.0  Interest and dividends............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          34          33          31
    ---------------------------------------------------------------------------

                     NATURAL RESOURCES CONSERVATION SERVICE

                             Conservation Operations

        For necessary expenses for carrying out the programs administered by
    the Natural Resources Conservation Service, including the provisions of
    the Act of April 27, 1935 (16 U.S.C. 590a-f) 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,
    [$633,231,000] $742,231,000, to remain available until expended (7
    U.S.C. 2209b), of which not less than [$5,835,000] $5,990,000 is for
    snow survey and water forecasting and not less than [$8,825,000]
    [$7,000,000] $7,825,000 is for operation and establishment of the plant
    materials centers: Provided further, 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 (43 U.S.C. 1592(c)): 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-f)] 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)[: Provided further, That the
    Secretary is authorized to transfer ownership of land, buildings and
    related improvements of the plant materials facilities located at Bow,
    Washington, to the Skagit Conservation District].

                        [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 (16 U.S.C.
    1001-1009), $11,190,000: 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Technical Assistance............         525         548         579
    00.02   Soil Surveys....................          75          78          78
    00.03   Snow Survey and Water
              Forecasting...................           5           6           6
    00.04   Plant Materials Centers.........           8          10           8
    00.05   Water Resource Assistance.......          12          11          71
                                               ---------   ---------  ----------
    00.91     Total direct program..........         625         653         742
    09.00 Reimbursable program..............         107         123         120
                                               ---------   ---------  ----------
    10.00   Total obligations...............         732         776         862
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           3           9
    22.00 New budget authority (gross)......         740         766         862
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         743         775         862
    23.95 New obligations...................        -732        -776        -862
    24.40 Unobligated balance available, end
            of year: Uninvested.............           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         633         644         742
    41.00   Transferred to other accounts...                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         633         644         742
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         107         123         120
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         740         766         862
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         110          98          97
    73.10 New obligations...................         732         776         862
    73.20 Total outlays (gross).............        -744        -777        -849
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          98          97         110
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         551         568         653
    86.93 Outlays from current balances.....          85          87          76
    86.97 Outlays from new permanent
            authority.......................         107         123         120
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         744         777         849
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -90        -110        -103
    88.40     Non-Federal sources...........         -17         -13         -17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -107        -123        -120
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         633         643         742
    90.00 Outlays...........................         637         654         729
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Conservation operations...............         620         633         742
      Watershed surveys and planning........          12          11
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Conservation operations...............         624

    [[Page 113]]

      Watershed surveys and planning........          13
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         633         644         742
      Outlays...........................         636         655         729
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         633         644         742
      Outlays...........................         636         655         729
                                        ====================================

        Funding within this account for partnership grants is proposed as
    part of the Environmental Resources Fund for America. This proposal
    highlights the Administration's priority to provide deficit neutral
    funding for investments in many of our Nation's key environmental
    programs. A discussion of the Environmental Resources Fund for America
    and two other funds for research and transportation can be found in
    Chapter 2 of the Budget.

        Competitive Partnership Grants ($20 million) will be used to enhance
    institutional capacity for locally-based institutions, including
    watershed councils, cooperatives, etc. In particular, funds would be
    directed for hiring non-federal watershed coordinators. These
    coordinators would: develop watershed partnerships, including all
    stakeholders in the area; resolve differences from among the different
    points of view and produce and help implement strategic plans that
    restore impaired watersheds. Non-Federal local coordinators act as
    facilitators, mediators, and grant application writers. Funds available
    are sufficient for over 350 watersheds selected through an inter-agency
    review process; however local entities may receive a preference in
    competing for funding where their States have prepared memoranda of
    understanding (MOU) for coordinating with Federal government to ensure
    reduced overlap, and greater efficiency and customer service, with the
    goal of one-stop shopping for landowners. Up to 10 percent of available
    funds may be used for developing MOUs among States and Federal agencies.
    In addition, $3 million is available for environmental monitoring and
    research work.

        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.

        Administrative Convergence.--The Department is coordinating the
    functions and personnel of the different field agencies to provide a
    more seamless and efficient delivery system. By 2002, the proposal would
    result in a 22 percent reduction in administrative staffing from 1997.
    Savings by 2002 would equal $127 million a year. Progress in 1999 would
    be indicated by the creation of a Support Services Bureau reflecting a
    new entity made by consolidating the agencies administrative units, both
    at the National level and in each State.

        An additional $20 million is provided to encourage additional
    contributions from the States. This bonus fund will act as an incentive
    payment to reward those States that either increase the non-Federal
    contributions and/or that achieve a minimum level of contributions
    toward conservation efforts. The point is to elicit both greater
    contributions and to harmonize the contributions from all. By leveraging
    these incentive payments, conservation funds in total can be increased.
    $10 million of the total funds would be rewarded to States to use for
    Geographic Information Systems and digital orthophotos purchases.

                              MAIN WORKLOAD FACTORS

                                          1997 est.   1998 est.   1999 est.
    Decisionmakers receiving technical
    services............................     740,377     750,000     750,000
    Onsite technical and informational
    assistance..........................     340,000     375,000     400,000
    Acres treated with conservation
    technical assistance................ 110,052,019 121,000,000 131,000,000

        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 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. In
    addition, NRCS has responsibilities for easement administration and
    monitoring for all the Wetland Reserve Program acres enrolled in the
    program to date where the landowner has opted for a conservation
    easement.

        Technical assistance will be targeted beginning in 1998 through the
    use of area-wide watershed plans to achieve the goals of the Government
    Performance and Results Act. $7 million is provided for additional
    watershed planning, and river basin surveys and investigations to
    provide technical support and leadership for the efforts of locally-led
    watershed coalitions nation-wide. With useful watershed or basin level
    plans, NRCS will be better equipped to direct its financial and
    technical resources to the highest priority needs, and community members
    can understand the alternatives available to repair a damaged watershed.
    With a watershed plan, community members will be in a position to seek
    funding to implement the plan from a range of sources, including other
    Federal agencies, State entities and the private sector. In addition,
    NRCS staff will continue to target their expertise, emphasizing setting
    standards and providing certification, rather than directly implementing
    most activities themselves (in National Performance Review parlance,
    ``steering'', rather than ``rowing'').

        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.
    Legislation requires that ``a substantial portion of the survey costs
    for NRCS are to be reimbursed by survey recipients.''

                              MAIN WORKLOAD FACTORS

                                         1997 actual  1998 est.   1999 est.
    Acres mapped annually (millions)....          23          23          23
    Soil surveys ready for publication
    (number)............................          64          75          75

        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.
    Requested funding for the Plant Materials Centers is reduced in 1999
    reflecting both the fact that previous increases to upgrade the
    infrastructure are no longer needed, and reflecting the opportunities by
    the Centers to increase their revenues from the collection of royalties
    from the commercial production of cultivars developed by PMC.

    [[Page 114]]

        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.
    Additional funding of $7 million has been proposed for 1999 to enhance
    the technical support for River Basin Surveys and Watershed Planning.

        Technical assistance of $52.4 million is proposed 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. $1 million is provided for
    educational assistance for notifying watershed sponsors about the need
    to examine and possibly repair older systems. However, as these systems
    are owned by local sponsors, inspections of the dams can be carried out
    by private engineers or NRCS staff on a reimbursable basis.

                              MAIN WORKLOAD FACTORS

                                         1997 actual  1998 est.   1999 est.
    Activity:
      Applications for planning
        assistance on Small Watershed
        Program--eligible projects; on
        hand, cumulative, start of year.         200         190         180
    Status of planning:
      Approved for planning during year.          15          15          15
        Locally implemented.............         (3)         (3)         (3)
        Federally implemented...........        (12)        (12)        (12)
      Planning completed during year....          11           8           6
        Locally implemented.............         (1)         (2)         (2)
        Federally implemented...........        (10)         (6)         (4)
      Planning in process...............          88          80          75
        Locally implemented.............        (29)        (25)        (20)
        Federally implemented...........        (59)        (55)        (55)
      Status of projects in operations:
        Active projects.................         522         513         513
        Approved for operations during
          year..........................          10           8           6
    USDA Cooperative Studies:
      (1) Surveys in progress, start of
        year............................         125         120         115
      (2) Surveys initiated during year.           4           2           2
      (3) Surveys worked during year....         129         122         117
      (4) Surveys completed during year.          13          10          10
      (5) Surveys in progress, end of
        year............................         116         112         107
    Flood Plain Management Assist.
        Program:
      (1) States involved...............          26          26          26
      (2) Completed studies.............           6          10          10
      (3) Ongoing studies...............          54          44          34
      (4) Cumulative total completed....         599         609         619

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         349         356         391
    11.3      Other than full-time permanent          12          13          13
    11.5      Other personnel compensation..           5           6           7
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         366         375         411
    12.1    Civilian personnel benefits.....          86          93         105
    13.0    Benefits for former personnel...           4           5           4
    21.0    Travel and transportation of
              persons.......................          16          16          18
    22.0    Transportation of things........           3           3           3
    23.2    Rental payments to others.......          11          11          13
    23.3    Communications, utilities, and
              miscellaneous charges.........          20          21          22
    24.0    Printing and reproduction.......           5           5           5
    25.2    Other services..................          80          90         124
    26.0    Supplies and materials..........          15          15          16
    31.0    Equipment.......................          19          19          21
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         625         653         742
    99.0  Reimbursable obligations..........         107         123         120
                                               ---------   ---------  ----------
    99.9    Total obligations...............         732         776         862
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       8,535       8,611       9,051
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       1,599       1,577       1,681
    ---------------------------------------------------------------------------

                             Conservation Operations

                  (Legislative proposal, not subject to PAYGO)

        Upon enactment of authorization of a fee to cover the costs of
    providing technical assistance and products for natural resource
    conservation, such fees shall be collected and credited to this account
    as offsetting collections, to remain available until expended for the
    purpose of providing similar technical assistance and products.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-2-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable Program: Technical
            assistance cost-share...........                                  10
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                  10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  10
    23.95 New obligations...................                                 -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...................                                  10
    73.20 Total outlays (gross).............                                 -10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                  10
    ----------------------------------------------------------------------------

        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...........................
    ---------------------------------------------------------------------------

    [[Page 115]]

        For 1999, NRCS is proposing to collect $10 million in user fees for
    certain types or areas of technical services and products. Examples of
    potential user fee activities include technical assistance services for
    conservation practice applications which exceed an extended period of
    NRCS employee time, sale of foundation seeds and plants, sale of soil
    survey and snow survey data products, and for those technical services
    available through the private sector for which there is little ``public
    good'' from government provision (e.g., engineering designs, soil map
    interpretations for commercial and urban uses, and some irrigation
    management). The proposed user fee activities, including appropriate fee
    structure and application, will be developed through the use of agency
    work groups. Through proposed legislation, it is anticipated that the
    fees collected will be deposited into the conservation operations
    account and remain available until expended.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-2-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                                  10
                                               ---------   ---------  ----------
    99.9    Total obligations...............                                  10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1000-2-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......                                 133
    ---------------------------------------------------------------------------

                    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
    and changes in use of land, in accordance with the Watershed Protection
    and Flood Prevention Act approved August 4, 1954 (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] $49,000,000, 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)): Provided,
    That not to exceed $50,000,000 of this appropriation shall be available
    for technical assistance: 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 $200,000 shall be available for employment under 5 U.S.C. 3109]
    Provided, That funds 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 these funds are available to subsidize
    gross obligations for the principal amount of direct loans not to exceed
    $300,000,000: 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), 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Watershed Operations (P.L. 534).          16           9
    00.03   Emergency Watershed Protection
              Operations....................         122         181
    00.04   Small Watershed Operations (P.L.
              566)..........................          87         100          49
                                               ---------   ---------  ----------
    00.91     Total direct program..........         225         290          49
    09.01 Reimbursable program..............          20          30          24
                                               ---------   ---------  ----------
    10.00   Total obligations...............         245         320          73
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          85         189
    22.00 New budget authority (gross)......         350         131          73
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         435         320          73
    23.95 New obligations...................        -245        -320         -73
    24.40 Unobligated balance available, end
            of year: Uninvested.............         189
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         101         101          49
    40.15   Appropriation (emergency).......         229
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         330         101          49
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          20          30          24
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         350         131          73
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         181         171         125
    73.10 New obligations...................         245         320          73
    73.20 Total outlays (gross).............        -255        -366         -92
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         171         125         106
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         112          59          15
    86.93 Outlays from current balances.....         123         277          53
    86.97 Outlays from new permanent
            authority.......................          20          30          24
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         255         366          92
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -4          -6          -6
    88.40     Non-Federal sources...........         -16         -24         -18
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -20         -30         -24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         330         101          49
    90.00 Outlays...........................         235         336          68
    ---------------------------------------------------------------------------

        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
    ($50 million) will be included as part of Conservation Operations
    beginning in 1999.

        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.

    [[Page 116]]

        Within the 11 authorized projects, 395 subwatershed areas have been
    identified for planning purposes. Installation progress in these
    subwatersheds is as follows:

                              MAIN WORKLOAD FACTORS

                                         1997 actual  1998 est.   1999 est.
    Active subwatersheds................          96          96          96
      Projects continuing post-
        installation assistance.........         224         224         224
                                        ------------------------------------
          Total operational
            subwatersheds...............         320         320         320
      Unserviced applications...........          23          23          23
      Planning in progress..............          24          24          24
    Terminated in planning..............           7           7           7
                                        ------------------------------------
          Total subwatersheds...........         395         395         395
                                        ====================================

        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.

        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
    1999. Significant reforms were begun 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

                                         1997 actual  1998 est.   1999 est.
    Status of operational projects:
      Projects receiving land treatment.         182         190         198
      Structural projects...............         281         275         272
      Land treatment and structural.....          59          48          43
                                        ------------------------------------
          Subtotal active projects......         522         513         513
      Projects continuing post-
        installation assistance.........         898         903         908
      Inactive projects.................          14          14          14
      Completed projects................          27          28          29
      Deauthorized projects.............         153         153         153
                                        ------------------------------------
          Total operational projects....       1,614       1,622       1,628
                                        ------------------------------------
      New projects approved during year.          10           8           6
                                        ====================================

        Loan Services. In 1999, 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, direct
    federal 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 Utilities 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 an estimated $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 1999.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          49          51
    11.3      Other than full-time permanent           1           1
    11.5      Other personnel compensation..           3           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          53          56
    12.1    Civilian personnel benefits.....          11          12
    13.0    Benefits for former personnel...           1           1
    21.0    Travel and transportation of
              persons.......................           3           4
    23.2    Rental payments to others.......           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2
            Other services:
    25.2      Other services................          11          11
    25.2      Other services................          74         107          23
    26.0    Supplies and materials..........           2           2
    31.0    Equipment.......................           4           4
    32.0    Land and structures.............          17          27
    41.0    Grants, subsidies, and
              contributions.................          43          61          26
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         223         289          49
    99.0  Reimbursable obligations..........          20          29          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
                                               ---------   ---------  ----------
    99.9    Total obligations...............         245         320          73
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,198         916
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          16          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 (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), $34,377,000, 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, 1998.)

    [[Page 117]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Direct program: Technical
            assistance......................          29          34          34
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          30          35          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           1
    22.00 New budget authority (gross)......          29          35          35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          30          35          35
    23.95 New obligations...................         -30         -35         -35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          29          34          34
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          30          35          35
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           6           6           6
    73.10 New obligations...................          30          35          35
    73.20 Total outlays (gross).............         -30         -35         -35
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           6           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          26          31          31
    86.93 Outlays from current balances.....           3           3           3
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          30          35          35
    ----------------------------------------------------------------------------

        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..................          28          34          34
    90.00 Outlays...........................          29          34          34
    ---------------------------------------------------------------------------

        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 1999. 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.

        A portion of 1999 funding in 1999 may be used as bonus payments for
    those districts that best advance NRC conservation strategic goals.

        The following tabulation shows the status of RC and D areas
    authorized to receive technical and financial assistance.

                              MAIN WORKLOAD FACTORS

                                         1997 actual  1998 est.   1999 est.
    Areas authorized at beginning of
    year................................         289         290         315
    Areas authorized at end of year.....         290         315         315
    Project plans written...............       2,752       2,750       2,750
    Projects being implemented..........       2,525       2,700       2,700
    Projects completed..................       2,514       2,300       2,300

                    Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          16          19          19
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          17          20          20
    12.1    Civilian personnel benefits.....           4           4           4
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           2           2
    25.2    Other services..................           4           5           5
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          29          34          34
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          30          35          35
    ---------------------------------------------------------------------------
     --------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         392         420         420
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           3           5           5
    ---------------------------------------------------------------------------

                        Great Plains Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                       1
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          22          17          13
    73.20 Total outlays (gross).............          -5          -4          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          17          13          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           5           4           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           4           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           5           4           3
    ---------------------------------------------------------------------------

        The 1996 Farm Bill combined the authority for this and several other
    conservation programs into the Environmental Quality Incentives Program.
    Prior-year account balances are maintained in this account until
    expended.

        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.

    [[Page 118]]

                              MAIN WORKLOAD FACTORS

                                         1997 actual  1998 est.   1999 est.
    Program participants:
      Number of contracts serviced
        during year.....................       5,846       4,076       2,876
      Number of acres under contracts...  16,000,000  12,760,000   9,860,000

        As of September 30, 1997, there were 4,076 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           6
    ---------------------------------------------------------------------------

                          [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,
    1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3336-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           7           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           6           6
    23.95 New obligations...................          -7          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           6           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          11          12          12
    73.10 New obligations...................           7           6
    73.20 Total outlays (gross).............          -6          -6          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          12          12           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           2           3
    86.93 Outlays from current balances.....           4           3           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           6           6           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6
    90.00 Outlays...........................           6           6           5
    ---------------------------------------------------------------------------

        No funds are proposed for the Forestry Incentives Program (FIP). The
    FIP 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. FIP promotes timber production on
    private lands and is incompatible with the agency strategic plan, which
    is focused on water quality and habitat goals. If FIP were aimed at
    environmental improvements, the tree species selected would be chosen to
    maximize rare native habitats, not timber production. Other programs can
    offer assistance more appropriate (e.g., habitat creation) for the
    Natural Resources Conservation Service (NRCS). Timber production is
    otherwise the responsibility of the Forest Service. In addition, in
    selecting sites for cost-share assistance, the program predominantly
    selected plots that would have made the forest stand improvement or
    plantings without Federal assistance.

        FIP shares up to 65 percent of the cost of tree planting and timber
    stand improvement. The percentage cost-shared depends on the rate set in
    a particular State and county by 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 1997 program provided funding for 149,503 acres of tree
    planting, and 33,725 acres in timber stand improvements, and 2,647 acres
    targeted towards special forestry and site preparation.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3336-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           1
    41.0  Grants, subsidies, and
            contributions...................           6           6
                                               ---------   ---------  ----------
    99.9    Total obligations...............           7           6
    ---------------------------------------------------------------------------

                               Water Bank Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3320-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          40          30          22
    73.20 Total outlays (gross).............         -10          -8          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          30          22          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          10           8           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10           8           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          10           8           6
    ---------------------------------------------------------------------------

        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 1998. For 1999, 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

    [[Page 119]]

    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.

                  Colorado River Basin Salinity Control Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3318-0-1-304      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           8           5           1
    73.20 Total outlays (gross).............          -3          -4          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           5           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           3           4           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           4           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           3           4           1
    ---------------------------------------------------------------------------

        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 1997 provided cost-share assistance to
    landowners and others in the Colorado River Basin States to include:
    Colorado, 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.

        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.

                            Wetlands Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Technical Assistance..............          12          21           4
    00.04 Easement Overhead Costs...........          -5
                                               ---------   ---------  ----------
    10.00   Total obligations...............           7          21           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          32          25           4
    23.95 New obligations...................          -7         -21          -4
    24.40 Unobligated balance available, end
            of year: Uninvested.............          25           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          80          39          22
    73.10 New obligations...................           7          21           4
    73.20 Total outlays (gross).............         -47         -38         -26
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          39          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          47          38          26
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          47          38          26
    ---------------------------------------------------------------------------

        The Wetlands Reserve Program (WRP) 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 the old authority for the WRP, while
    maintaining program account balances until expended. Funding for the
    program is 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
    1996 Fair Act limited cumulative WRP enrollment to 975,000 acres through
    2002.

        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 112,300 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.

        94,000 acres were enrolled in 1996. Beginning in 1997, program
    funding was provided under the Commodity Credit Corporation (CCC).
    Approximately 126,000 acres were enrolled in fiscal year 1997. Funds
    under this account will remain until expended.

        The proposed 1999 Funding for WRP activities through CCC is for 165
    thousand acres (or $124 million in CCC Funds). In fulfillment of the
    easement administration and monitoring responsibilities associated with
    WRP, it is estimated that NRCS staff year costs will run an average $5

    [[Page 120]]

    per easement acre for all acres under easements at the beginning of the
    fiscal year. Roughly, 661,000 acres are expected to be enrolled in the
    WRP by the beginning of the fiscal year 1999.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           7           8           2
    12.1  Civilian personnel benefits.......           1           2           1
    23.2  Rental payments to others.........           1           1           1
    25.4  Operation and maintenance of
            facilities......................           2           7
    32.0  Land and structures...............          -5           3
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           6          21           4
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           7          21           4
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         142         268          54
    ---------------------------------------------------------------------------

                       Wildlife Habitat Incentive Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................                      30          20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.22 Unobligated balance transferred
            from other accounts.............                      30          20
    23.95 New obligations...................                     -30         -20
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                                  22
    73.10 New obligations...................                      30          20
    73.20 Total outlays (gross).............                      -8         -11
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                      22          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....                       8          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       8          11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                       8          11
    ---------------------------------------------------------------------------

        The Wildlife Habitat Incentives Program (WHIP) is a voluntary
    program to support and encourage landowners with technical assistance
    and cost share payments to develop and improve fish and wildlife habitat
    on private lands. WHIP is currently budgeted for $50 million through the
    year 2002 with funds form the Commodity Credit Corporation.

        NRCS and the participant enter into a cost-share agreement for
    wildlife habitat development. This agreement generally lasts from 5 to
    10 years from the date the agreement is signed. WHIP funds are
    distributed to states based on state wildlife habitat priorities which
    may include: wildlife habitat areas; targeted species and their
    habitats; and specific practices. Partnerships with other entities is
    preferred: WHIP may be implemented in cooperation with other Federal,
    State, or local agencies, conservation districts, or private
    conservation groups. State priories are developed through a locally led
    process to identify wildlife resource needs and finalized in
    consultation with the State Technical Committee.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................                       3           2
    12.1  Civilian personnel benefits.......                       1           1
    25.2  Other services....................                       2           1
    41.0  Grants, subsidies, and
            contributions...................                      24          16
                                               ---------   ---------  ----------
    99.9    Total obligations...............                      30          20
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                     103          67
    ---------------------------------------------------------------------------

                            Rural Clean Water Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3337-0-1-304      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           3           3           3
    24.40 Unobligated balance available, end
            of year: Uninvested.............           3           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           3           2           1
    73.20 Total outlays (gross).............          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           2           1           1
    ----------------------------------------------------------------------------

        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
    ---------------------------------------------------------------------------

        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 the calendar year 1999.
    Similar activities will be carried out through the mandatory
    Environmental Quality Incentives Program.

    Credit accounts:

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           2           2           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           7           5           3
    23.95 New obligations...................          -2          -2          -1
    24.40 Unobligated balance available, end
            of year: Uninvested.............           5           3           2
    ----------------------------------------------------------------------------

    [[Page 121]]

        Change in unpaid obligations:
    73.10 New obligations...................           2           2           1
    73.20 Total financing disbursements
            (gross).........................          -2          -2          -1
    87.00 Total financing disbursements
            (gross).........................           2           2           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........           2           2           1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      1997 actual   1998 est.   1999 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
    ---------------------------------------------------------------------------

        This program, also known as ``Farms for the Future,'' provides
    guarantees and interest assistance on loans made to State trust funds,
    who in turn finance acquisitions to preserve farmland in selected
    states. No guarantees have been made since 1993.

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           8              5             5              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           8              5             5              3
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                       1           1
        Receipts:
    02.01 Miscellaneous contributed trust
            funds...........................           2
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           2           1           1
        Appropriation:
    05.01 Miscellaneous contributed trust
            funds...........................          -1
    07.99 Total balance, end of year........           1           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           3          19
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          21          19
    22.00 New budget authority (gross)......           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          22          19
    23.95 New obligations...................          -3         -19
    24.40 Unobligated balance available, end
            of year: Uninvested.............          19
    ----------------------------------------------------------------------------

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                       1          15
    73.10 New obligations...................           3          19
    73.20 Total outlays (gross).............          -2          -5          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           1          15          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           2           5           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1
    90.00 Outlays...........................           2           5           4
    ---------------------------------------------------------------------------

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                       9
    32.0  Land and structures...............           1           1
    41.0  Grants, subsidies, and
            contributions...................           2           9
                                               ---------   ---------  ----------
    99.9    Total obligations...............           3          19
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           3           1           1
    ---------------------------------------------------------------------------

                                RURAL DEVELOPMENT

                                  Federal Funds

    General and special funds:

                       Rural Community Advancement Program

                         (including transfers of funds)

        For the cost of direct loans, loan guarantees, and grants, as
    authorized by 7 U.S.C. 1926, 1926a, 1926c, and 1932, except for sections
    381E[-], 381G, 381H, 381N, and 381O of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 2009f), [$652,197,000] $715,172,000, to remain
    available until expended, of which [$27,062,000] $35,717,000 shall be
    for rural community programs described in section 381E(d)(1) of the
    Consolidated Farm and Rural Development Act; of which [$577,242,000]
    $628,955,000 shall be for the rural utilities programs described in
    section 381E(d)(2) of such Act; and of which [$47,893,000] $50,500,000
    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 the rural business and cooperative
    development programs, not to exceed $500,000 shall be made available for
    a grant to a qualified national organization to provide technical
    assistance for rural transportation in order to promote economic
    development:] of the total amount appropriated, 3 percent shall be
    reserved for federally recognized Indian tribes through June 30, 1999,
    and if not used by Indian tribes shall be available for use by other
    qualified applicants: Provided further, That of the amount appropriated
    for rural utilities programs, not to exceed [$20,000,000] $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 water
    and waste disposal systems for rural and native villages in Alaska

    [[Page 122]]

    pursuant to section 306D of such Act;] not to exceed [$15,000,000]
    $17,250,000 shall be for technical assistance grants for rural waste
    systems pursuant to section 306(a)(14) of such Act; and not to exceed
    [$5,200,000] $6,000,000 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 [$20,048,000] $36,092,800 shall be
    available through June 30, [1998] 1999, for empowerment zones and
    enterprise communities, as authorized by Public Law 103-66, of which
    [$1,200,000] $1,961,800 shall be for rural community programs described
    in section 381E(d)(1) of such Act; of which [$18,700,000] $25,478,000
    shall be for the rural utilities programs described in section
    381E(d)(2) of such Act; of which [$148,000] $8,653,000 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]. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                      22          26
        Receipts:
    02.01 Business and industry loans.......           6           4           7
    02.02 Water and wastewater loans........          12
    02.03 Rural community facility loans....           4
                                               ---------   ---------  ----------
    02.99   Total receipts..................          22           4           7
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          22          26          33
    07.99 Total balance, end of year........          22          26          33
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          87          84         154
    00.02 Guaranteed loan subsidy...........           9          11          10
    00.05 Reestimate of direct loan subsidy.          22
    00.06 Interest on reestimate of direct
            loan subsidy....................           2
    00.10 Grants............................         576         563         551
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         696         658         715
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           6           5
    22.00 New budget authority (gross)......         674         653         715
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         701         658         715
    23.95 New obligations...................        -696        -658        -715
    24.40 Unobligated balance available, end
            of year: Uninvested.............           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         619         652         715
    42.00   Transferred from other accounts.          19
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         638         652         715
          Permanent:

    60.05   Appropriation (indefinite)
              Reestimates...................          24
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          12           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         674         653         715
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...       1,615       1,636       1,640
    73.10 New obligations...................         696         658         715
    73.20 Total outlays (gross).............        -645        -654        -649
    73.32 Obligated balance transferred from
            other accounts..................           1
    73.40 Adjustments in expired accounts...          -9
    73.45 Adjustments in unexpired accounts.         -21
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       1,636       1,640       1,706
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          24          34          36
    86.93 Outlays from current balances.....         585         619         614
    86.97 Outlays from new permanent
            authority.......................          36           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         645         654         649
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       NADBank.....................                      -1
    88.00       Fund for Rural America......         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -12          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         662         652         715
    90.00 Outlays...........................         633         653         649
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Rural Community Advancement
        Program.........................                     652         715
      Rural Water and Waste Disposal
        Loans...........................          92
      Rural Water and Waste Disposal
        Grants..........................         497
      Solid Waste Management Grants.....           2
      Community Facility Loans..........          15
      Community Facility Grants.........           6
      Rural Business and Industry Loans.           8
      Rural Business Enterprise Grants..          41
    ------------------------------------------------------------------------
    Distribution of outlays by account:
      Rural Community Advancement
        Program.........................                     653         649
      Rural Water and Waste Disposal
        Loans...........................         129
      Rural Water and Waste Disposal
        Grants..........................         428
      Solid Waste Management Grants.....           3
      Emergency Community Water
        Assistance Grants...............           6
      Community Facility Loans..........          26
      Rural Business and Industry Loans.           7
      Rural Business Enterprise Grants..          35
    ------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct water and waste disposal
            loan levels.....................         803         691         764
    1150  Direct community facility loan
            levels..........................         137         206         200
    1150  Direct business and industry loan
            levels..........................          12          50          50
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         952         947       1,014
        Direct loan subsidy (in percent):
    1320  Direct water and waste disposal
            loans subsidy rate..............        9.02        9.76       16.52
    1320  Direct community facility loans
            subsidy rate....................        8.73        8.38       13.74
    1320  Direct business and industry loans
            subsidy rate....................        0.51       -7.16      -14.64
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        8.88        6.44       14.43
        Direct loan subsidy budget authority:
    1330  Direct water and waste disposal
            loans subsidy budget authority..          90          67         126
    1330  Direct community facility loans
            subsidy budget authority........          15          17          27
    1330  Direct business and industry
            subsidy budget authority........
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         105          84         153
        Direct loan subsidy outlays:
    1340  Direct water and waste disposal
            loans subsidy outlays...........         127         126          94
    1340  Direct community facility loans
            subsidy outlays.................          25          20          21
    1340  Direct business and industry
            subsidy outlays.................
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         152         146         115
    ----------------------------------------------------------------------------

    [[Page 123]]

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Water and waste disposal loan
            guarantee levels................          75          75          75
    2150  Community facility loan guarantee
            levels..........................          85         153         210
    2150  Business and Industry loan
            guarantee levels................         815       1,000       1,000
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....         975       1,228       1,285
        Guaranteed loan subsidy (in percent):
    2320  Guaranteed water and waste
            disposal loan subsidy rate......       -1.09       -1.90       -1.08
    2320  Guranteed community facility loan
            subsidy rate....................        0.41        0.40       -0.54
    2320  Guaranteed business and industry
            loan subsidy rate...............        0.93        0.97        1.02
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        0.52        0.59        0.55
        Guaranteed loan subsidy budget authority:
    2330  Guaranteed water and waste
            disposal loans subsidy budget
            authority.......................
    2330  Guaranteed community facility
            loans subsidy budget authority..                       1
    2330  Guaranteed business and industry
            loans subsidy budget authority..           8          10          10
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           8          11          10
        Guaranteed loan subsidy outlays:
    2340  Guaranteed water and waste
            disposal loan subsidy outlays...
    2340  Guaranteed community facility loan
            subsidy outlays.................           1           1
    2340  Guranteed business and industry
            loan subsidy outlays............           8           3           6
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           9           4           6
    ---------------------------------------------------------------------------

        This account consolidates 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 is in accordance
    with the provisions set forth in the Federal Agriculture Improvement and
    Reform Act of 1996, as amended, Public Law 104-127 (the 1996 Act).
    Consolidating funding for these 12 loan and grant programs under RCAP
    provides greater flexibility to tailor financial assistance to applicant
    needs.

        RCAP is composed of the following three funding streams: Rural
    Community Facilities, Rural Utilities, and Rural Business and
    Cooperative Development. For 1999, the Budget proposes the full
    flexibility authorized in the 1996 Act for up to 25 percent of the
    resources in each stream to shift to other streams, in order to respond
    to the unique rural development needs of states and localities. Funding
    for the rural water and wastewater programs in this account is proposed
    as part of the Environmental Resources Fund for America. This proposal
    highlights the Administration's priority to provide deficit neutral
    funding for investments in many of our Nation's key environmental
    programs. A discussion of the Environmental Resources Fund for America
    and two other funds for research and transportation can be found in
    Section II of the Budget volume.

        Water and waste disposal loans are authorized under 7 U.S.C. 1926.
    The program provides direct loans to municipalities, counties, special
    purpose districts, certain Indian Tribes, and non-profit corporations to
    develop water and waste disposal systems in rural areas and towns with
    populations of less than 10,000. The program also guarantees water and
    waste disposal loans made by banks and other eligible lenders.

        Water and waste disposal grants are 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, municipalities, counties, public and quasi-
    public agencies, and certain Indian tribes. The grants can be used to
    finance development, storage, treatment, purification, or distribution
    of water or the collection, treatment, or disposal of waste in rural
    areas and cities or towns with populations of less than 10,000. The
    amount of any development grant may not exceed 75 percent of the
    eligible development cost of the project.

        Emergency community water assistance grants are authorized under
    Section 306A of the Consolidated Farm and Rural Development Act, as
    amended. Grants are made to public bodies and nonprofit organizations
    for construction or extension of water lines, repair or maintenance of
    existing systems, replacement of equipment, and payment of costs to
    correct emergency situations.

        Solid waste management grants are authorized under Section 310B(b)
    of the Consolidated Farm and Rural Development Act, as amended. Grants
    are made to non-profit organizations to provide regional technical
    assistance to local and regional governments and related agencies for
    the purpose of reducing or eliminating pollution of water resources, and
    for improving the planning and management of solid waste disposal
    facilities.

        Community facility loans and grants are authorized under sections
    306(a)(1) and 306(a)(19) of the Consolidated Farm and Rural Development
    Act, as amended. Loans are provided to local governments and nonprofit
    organizations for the construction and improvement of community
    facilities providing essential services in rural areas of not more than
    50,000 population, such as hospitals and fire stations.

        Business and industry guaranteed and direct loans are authorized
    under section 310B(a)(1) of the Consolidated Farm and Rural Development,
    as amended. These 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.

        Rural business enterprise grants are authorized under sections
    310(B)(c) and 310(B))(j) of the Consolidated Farm and Rural Development
    Act, as amended. These grants enable public and 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 new jobs.

        Rural Business Opportunity Grants are authorized under section
    310(B)(a)(11) of the Consolidated Farm and Rural Development Act, as
    amended. These grants enable public bodies and private nonprofit
    organizations to provide for technical assistance, training, and
    planning activities that improve economic conditions in rural area.

               Rural Empowerment Zone/Enterprise Community Grants

                    (Proposed legislation, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0402-4-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                  20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  20
    23.95 New obligations...................                                 -20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                  20
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  20
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                  20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  20
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

    [[Page 124]]

        The goal of the Empowerment Zone/Enterprise Community initiative is
    to revitalize rural communities in a manner that attracts private sector
    investment and thereby provides self-sustaining community and economic
    development. Legislation will be proposed to provide funding to allow
    five new rural empowerment zones, as authorized by the Taxpayer Relief
    Act of 1997, to create economic opportunity in the most distressed rural
    communities. A similar proposal is requested for urban zones through the
    Department of Housing and Urban Development. Similar to the initial
    round of EZ/EC, the designated communities would be required to develop
    strategic development plans as (part of the application process) to
    guide future development activities, and to develop benchmarks to assess
    progress periodically.

        The flexible grant funding would be available for a wide variety of
    community and economic development purposes that link human capital
    needs with economic development initiatives. The purposes may include
    revolving loan funds for business capitalization or community
    development, job training and job counseling, infrastructure investment,
    home ownership and home ownership counseling, health care and related
    facilities, child care and administrative costs linked to redevelopment
    efforts.

        Similar to the first round, the second round will be a 10-year
    effort based on a comprehensive development plan involving the
    residents, the private sector, the non-profit community and local, State
    and Federal governments. Experience from the initial round of urban and
    rural designations demonstrates significant successes that are
    stimulating billions in private sector investment, reviving communities
    that had given up hope for economic opportunity and creating thousands
    of jobs, moving people from dependency to active participation in the
    economy. Round two will build on the successes of the initial round.

                             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, and the Consolidated Farm and Rural Development Act, and for
    cooperative agreements, [$33,000,000] $33,445,000: 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 $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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1981-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          33          33          33
    09.02 Reimbursable program..............          33          33          35
                                               ---------   ---------  ----------
    10.00   Total obligations...............          66          66          68
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          67          66          68
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          67          66          68
    23.95 New obligations...................         -66         -66         -68
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          33          33          33
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          34          33          35
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          67          66          68
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          14          10          12
    73.10 New obligations...................          66          66          68
    73.20 Total outlays (gross).............         -70         -66         -68
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          10          12          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          24          29          29
    86.93 Outlays from current balances.....          12           4           4
    86.97 Outlays from new permanent
            authority.......................          34          29          31
    86.98 Outlays from permanent balances...                       4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          70          66          68
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -34         -33         -35
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          33          33          33
    90.00 Outlays...........................          36          33          33
    ---------------------------------------------------------------------------

        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.

        Administrative Convergence. The Department is coordinating the
    functions and personnel of the different field agencies to provide a
    more seamless and efficient delivery system. By 2002, the proposal would
    result in a 22 percent reduction in administrative staffing from 1997.
    Savings by 2002 would equal $127 million/year. Progress in 1999 would be
    indicated by the creation of a Support Services Bureau reflecting a new
    entity made by consolidating the agencies administrative functions both
    at the National Level and in each State.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1981-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          21          21          21
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          22          22          22
    12.1    Civilian personnel benefits.....           5           4           4
    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           4           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          33          33          33

    [[Page 125]]

    99.0  Reimbursable obligations..........          33          33          35
                                               ---------   ---------  ----------
    99.9    Total obligations...............          66          66          68
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1981-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         381         393         290
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         364         371         425
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                     (rural electrification administration)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3100-0-1-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.20 Total outlays (gross).............          -1
    73.40 Adjustments in expired accounts...           1
    ----------------------------------------------------------------------------

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

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

        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 Water and Waste Disposal Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................         823         694         764
    00.02 Direct Loans (Fund For Rural
            America)........................           8
    00.03 Interest on Treasury Borrowing....         139         419         529
    00.04 Downward reestimate paid to
            receipt account.................          12
                                               ---------   ---------  ----------
    10.00   Total obligations...............         982       1,113       1,293
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                     110
    22.00 New financing authority (gross)...       1,060       1,003       1,293
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          42
    22.70 Balance of authority to borrow
            withdrawn.......................         -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,092       1,113       1,293
    23.95 New obligations...................        -982      -1,113      -1,293
    24.40 Unobligated balance available, end
            of year: Uninvested.............         110
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         830         550         594
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         271         444         549
    68.10   Change in orders on hand from
              Federal sources...............         -41           9         150
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         230         453         699
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,060       1,003       1,293
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...       1,367       1,528       1,487
    72.95   Receivables from program account         292         251         260
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       1,659       1,779       1,747
    73.10 New obligations...................         982       1,113       1,293
    73.20 Total financing disbursements
            (gross).........................        -820      -1,145      -1,209
    73.45 Adjustments in unexpired accounts.         -42
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...       1,528       1,487       1,421
    74.95   Receivables from program account         251         260         410
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       1,779       1,747       1,831
    87.00 Total financing disbursements
            (gross).........................         820       1,145       1,209
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -129        -126         -94
    88.25     Interest on uninvested funds..         -32        -179        -265
              Non-Federal sources:
    88.40       Repayment of principal......         -25         -25         -34
    88.40       Interest received on loans..         -86        -114        -156
    88.40       Miscelleneous offsetting
                  collections...............           1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -271        -444        -549
    88.95 Change in receivables from program
            accounts........................          41          -9        -150
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         830         550         594
    90.00 Financing disbursements...........         550         701         660
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         794         691         764
    1112  Unobligated direct loan limitation          -3
    1113  Unobligated limitation carried
            forward.........................          31           3
    1131  Direct loan obligations exempt
            from limitation.................           8
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         830         694         764
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,615       2,260       2,961
    1231  Disbursements: Direct loan
            disbursements...................         670         726         680
    1251  Repayments: Repayments and
            prepayments.....................         -25         -25         -34
    1264  Write-offs for default: Other
            adjustments, net................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,260       2,961       3,607
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         152            167           448            500
            Investments in US securities:
    1106      Receivables, net..............         292            251           260            410
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,615          2,260         2,961          3,607
    1402    Interest receivable.............          23             31           114            156
    1405    Allowance for subsidy cost (-)..        -324           -429          -557           -651
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,314          1,862         2,518          3,112
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,758          2,280         3,226          4,022
        LIABILITIES:
    2103  Federal liabilities: Debt.........       1,460          2,024         2,961          3,607
    2203  Non-Federal liabilities: Debt.....           6              5             5              5
                                            ------------ --------------  ------------  -------------

    [[Page 126]]

    2999    Total liabilities...............       1,466          2,029         2,966          3,612
        NET POSITION:
    3100  Appropriated capital..............         292            251           260            410
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         292            251           260            410
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,758          2,280         3,226          4,022
    -----------------------------------------------------------------------------------------------

        Rural Water and Waste Disposal Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Investment in secondary market....                       1           1
    00.02 Negative subsidy paid to reciept
            account.........................                       1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............                       2           2
    ----------------------------------------------------------------------------

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

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                       2           1
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                   1
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                       2           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                       2           2
    73.20 Total financing disbursements
            (gross).........................                      -2          -2
    87.00 Total financing disbursements
            (gross).........................                       2           2
    ----------------------------------------------------------------------------

        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...............                       2           1
    90.00 Financing disbursements...........                       2           1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      1997 actual   1998 est.   1999 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......................         -72
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................           3          75          75
    2199  Guaranteed amount of guaranteed
            loan commitments................           2          60          60
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           8           7          30
    2231  Disbursements of new guaranteed
            loans...........................                      24          26
    2251  Repayments and prepayments........          -1          -1          -1
    2264  Adjustments: Other adjustments,
            net.............................
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           7          30          55
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           6          24          44
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......
    2364    Other adjustments, net..........
                                               ---------   ---------  ----------
    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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                                       1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                                       1
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                                                       1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                                       1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                                       1
    -----------------------------------------------------------------------------------------------

       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 (7 U.S.C. 935), shall be made as follows: 5
    percent rural electrification loans, [$125,000,000] $55,000,000; 5
    percent rural telecommunications loans, [$75,000,000] $50,000,000; cost
    of money rural telecommunications loans, $300,000,000; municipal rate
    rural electric loans, [$500,000,000] $250,000,000; 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 (7
    U.S.C. 935 and 936), as follows: cost of [direct loans, $12,265,000;
    cost of municipal rate loans, $21,100,000; cost of money rural
    telecommunications loans, $60,000; cost of loans guaranteed pursuant to
    section 306, $2,760,000] rural electric loans, $29,072,320, and the cost
    of telecommunication loans, $5,705,000: 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] $32,000,000, which
    shall be transferred to and merged with the appropriation for ``Rural
    Utilities Service--Salaries and Expenses''. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          40         102         104
        Receipts:
    02.01 Rural electrification and
            telephone loans.................          62           2           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         102         104         107
    07.99 Total balance, end of year........         102         104         107
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          36          36          35

    [[Page 127]]

    00.05 Reestimate of the direct loan
            subsidy.........................         123
    00.06 Interest on reestimates of direct
            loan subsidy....................          21
    00.09 Administrative expenses subject to
            limitation......................          30          30          32
                                               ---------   ---------  ----------
    10.00   Total obligations...............         210          66          67
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         210          66          67
    23.95 New obligations...................        -210         -66         -67
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          66          66          67
          Permanent:

    60.05   Appropriation (indefinite)......         144
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         210          66          67
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         216         164         103
    73.10 New obligations...................         210          66          67
    73.20 Total outlays (gross).............        -256        -127         -99
    73.40 Adjustments in expired accounts...          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         164         103          71
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          35          34          35
    86.93 Outlays from current balances.....          77          92          64
    86.97 Outlays from new permanent
            authority.......................         144
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         256         127          99
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         210          66          67
    90.00 Outlays...........................         257         127          99
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         210          66          67
      Outlays...........................         256         126          99
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                   1
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         210          66          68
      Outlays...........................         256         126          99
                                        ====================================

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

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loans, electric............          69         125          55
    1150  Direct loans, municipal rate
            electric........................         455         500         250
    1150  Direct loans, FFB electric........         300         300         300
    1150  Direct loans, telecommunications..          75          75          50
    1150  Direct loans, Treasury rate
            telecommunications..............         300         300         300
    1150  Direct loans, FFB
            telecommunications..............         120         120         120
                                               ---------   ---------  ----------
    1159    Total direct loan levels........       1,319       1,420       1,075
        Direct loan subsidy (in percent):
    1320  Direct loans, electric............        5.27        7.46       13.04
    1320  Direct loans, municipal rate
            electric........................        6.20        4.22        8.76
    1320  Direct loans, FFB electric........        0.93        0.92       -0.38
    1320  Direct loans, telecommunications..        1.59        3.92        9.79
    1320  Direct loans, Treasury rate
            telecommunicataions.............        0.02        0.02        0.27
    1320  Direct loans, FFB
            telecommunications..............       -0.07       -0.07       -0.81
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        3.25        2.55        3.04
        Direct loan subsidy budget authority:
    1330  Direct loans, electric............          70           9           7
    1330  Direct loans, municipal rate
            electric........................          28          21          22
    1330  Direct loans, FFB electric........           3           3
    1330  Direct loans, telecommunications..           1           3           5
    1330  Direct loans, Treasury, telecom
            subsidy.........................                                   1
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         102          36          35
        Direct loan subsidy outlays:
    1340  Direct loans, electric............          29          19          12
    1340  Direct loans, municipal rate
            electric........................          38          44          38
    1340  Direct loans, FFB electric........                       5           2
    1340  Direct loans, telecommunications..          15          28          15
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........          82          96          67
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................          30          30          32
    3590  Outlays...........................          30          30          32
    ---------------------------------------------------------------------------

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........          30          30          32
    41.0  Grants, subsidies, and
            contributions...................         180          36          35
                                               ---------   ---------  ----------
    99.9    Total obligations...............         210          66          67
    ---------------------------------------------------------------------------

       Rural Electrification and Telecommunications Loans Program Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-2-1-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............                                   1
                                               ---------   ---------  ----------
    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:
    40.00 Appropriation.....................                                   1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                   1
    ----------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 12-1230-2-1-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan, Treasury electric....                                 400
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                                 400
        Direct loan subsidy (in percent):
    1320  Direct loan, Treasury electric....                                0.21
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                               -0.77

    [[Page 128]]

        Direct loan subsidy budget authority:
    1330  Direct loan, Treasury electric....                                   1
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..                                   1
        Direct loan subsidy outlays:
    1340  Direct loans, Treasury electric...
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................
    3590  Outlays...........................
    ---------------------------------------------------------------------------

        This proposed legislation would add a new Treasury rate Electric
    Loan Program, similar to the telecommunications program, in the amount
    of $400 million. Borrowers would apply for direct (Treasury rate) loans
    at an interest rate that is tied to the Government's cost of money. The
    new type of loan represents a new tool for the Rural Utilities Service
    (RUS) in meeting the demand for electric program loans. The growth that
    RUS electric borrowers are experiencing has resulted in record levels of
    loan applications, exceeding one billion dollars, being submitted to RUS
    in recent years. RUS will continue to experience an added demand for
    financing as electric distribution borrowers replace plants, much of
    which is 40 years old. RUS estimates that the Electric Program will end
    1998 with a backlog of electric loan applications in the amount of $900
    million.

       Rural Electrification and Telecommunications Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................       1,105       1,420       1,075
    00.03 Interest on Treasury borrowing....         278         362         465
    00.04 Negative subsidy paid to receipt
            account.........................           1           2           3
    00.05 Downward reestimate paid to
            reciept account.................          49
    00.06 Interest on downward reestimate
            paid to reciept account.........          11
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,444       1,784       1,543
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          56          26
    22.00 New financing authority (gross)...       1,439       1,758       1,543
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          71
    22.60 Redemption of debt................         -30
    22.70 Balance of authority to borrow
            withdrawn.......................         -66
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,470       1,784       1,543
    23.95 New obligations...................      -1,444      -1,784      -1,543
    24.40 Unobligated balance available, end
            of year: Uninvested.............          26
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..       1,074       1,259         905
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         599         560         670
    68.10   Change in orders on hand from
              Federal sources...............         -47         -61         -32
    68.47   Portion applied to debt
              reduction.....................        -187
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         365         499         638
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,439       1,758       1,543
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...       3,001       3,166       2,744
    72.95   Receivables from program account         211         164         103
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       3,212       3,330       2,847
    73.10 New obligations...................       1,444       1,784       1,543
    73.20 Total financing disbursements
            (gross).........................      -1,255      -2,267      -1,934
    73.45 Adjustments in unexpired accounts.         -71
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...       3,166       2,744       2,385
    74.95   Receivables from program account         164         103          71
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       3,330       2,847       2,456
    87.00 Total financing disbursements
            (gross).........................       1,255       2,267       1,934
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payment from program account..        -227         -97         -67
    88.25     Interest on uninvested funds..         -41         -94        -126
              Non-Federal sources:
    88.40       Repayment of principal......        -112         -74         -90
    88.40       Interest received on loans..        -219        -295        -387
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -599        -560        -670
    88.95 Change in receivables from program
            accounts........................          47          61          32
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         887       1,259         905
    90.00 Financing disbursements...........         658       1,707       1,264
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........       1,319       1,420       1,075
    1112  Unobligated direct loan limitation        -214
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,105       1,420       1,075
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,502       4,306       6,135
    1231  Disbursements: Direct loan
            disbursements...................         916       1,903       1,467
    1251  Repayments: Repayments and
            prepayments.....................        -112         -74         -90
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,306       6,135       7,512
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          31            157           167            264
            Investments in US securities:
    1106      Receivables, net..............           1              2
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       3,060          3,656         4,801          5,752
    1405    Allowance for subsidy cost (-)..        -114           -468          -448           -500
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       2,946          3,188         4,353          5,252
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,978          3,347         4,520          5,516
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           2
    2103    Debt............................       2,798          3,208         4,410          5,429
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,800          3,208         4,410          5,429
        NET POSITION:
    3100  Appropriated capital..............         178            139           110             87
                                            ------------ --------------  ------------  -------------

    [[Page 129]]

    3999    Total net position..............         178            139           110             87
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,978          3,347         4,520          5,516
    --------------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          42             49            71             99
            Investments in US securities:
    1106      Receivables, net..............
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         442            649         1,334          1,759
    1405    Allowance for subsidy cost (-)..         -39            -61           -83            -98
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         403            588         1,251          1,661
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         445            637         1,322          1,760
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................
    2103    Debt............................         368            582         1,284          1,731
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         368            582         1,284          1,731
        NET POSITION:
    3100  Appropriated capital..............          77             55            38             29
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          77             55            38             29
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         445            637         1,322          1,760
    -----------------------------------------------------------------------------------------------

       Rural Electrification and Telecommunications Direct Loan Financing
                                     Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-2-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                                 400
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                 400
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                 400
    23.95 New obligations...................                                -400
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                                 399
    68.10 Spending authority from offsetting
            collections: Change in orders on
            hand from Federal sources.......                                   1
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                                 400
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 400
    73.20 Total financing disbursements
            (gross).........................                                 -32
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...                                 367
    74.95   Receivables from program account                                   1
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................                                 368
    87.00 Total financing disbursements
            (gross).........................                                  32
    88.95 Change in receivables from program
            accounts........................                                  -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                 399
    90.00 Financing disbursements...........                                  32
    ---------------------------------------------------------------------------

        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.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-2-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                                 400
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                                 400
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................                                  32
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                  32
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4208-2-3-271    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                                      32
    1402    Interest receivable.............                                                       2
    1405    Allowance for subsidy cost (-)..                                                      -1
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                                      33
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                                      33
        LIABILITIES:
    2103  Federal liabilities: Debt.........                                                      32
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                                      32
        NET POSITION:
    3100  Appropriated capital..............                                                       1
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                                       1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                                      33
    -----------------------------------------------------------------------------------------------

        Rural Electrification and Telecommunications Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest expense on certificates
            of beneficial ownership.........         296         361         361
    00.02 Interest expense, FFB direct......       1,232         990         990
    00.03 Other interest expense............         226         102         102
    00.04 Public debt.......................       2,729          78          99
    00.05 Other.............................           8           7           7
                                               ---------   ---------  ----------
    10.00   Total obligations...............       4,491       1,538       1,559
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......       1,848         359         939
    22.00 New budget authority (gross)......       2,991       2,117       2,767
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         999           1
    22.70 Balance of authority to borrow
            withdrawn.......................        -988
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,850       2,477       3,706
    23.95 New obligations...................      -4,491      -1,538      -1,559
    24.40 Unobligated balance available, end
            of year: Uninvested.............         359         939       2,147
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.36   Unobligated balance rescinded...                      -6          -4
          Permanent:

    62.00   Transferred from other accounts.          18          18          18
    67.15   Authority to borrow (indefinite)       2,157
            Spending authority from
                offsetting collections:
    68.00     Offsetting collections (cash).       3,310       2,893       3,387
    68.47     Portion applied to debt
                reduction...................      -2,494        -788        -634
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total)...................         816       2,105       2,753
                                               ---------   ---------  ----------

    [[Page 130]]

    70.00   Total new budget authority
              (gross).......................       2,991       2,117       2,767
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...       2,046       3,132       2,181
    73.10 New obligations...................       4,491       1,538       1,559
    73.20 Total outlays (gross).............      -2,406      -2,487      -1,226
    73.45 Adjustments in unexpired accounts.        -999          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       3,132       2,181       2,514
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         816       2,104       1,226
    86.98 Outlays from permanent balances...       1,590         383
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,406       2,487       1,226
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Loans repaid................      -1,655      -1,446      -1,693
    88.40       Interest from loans.........      -1,466      -1,281      -1,500
    88.40       Other.......................        -189        -166        -194
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,310      -2,893      -3,387
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -319        -776        -620
    90.00 Outlays...........................        -903        -406      -2,161
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      30,459      28,246      26,838
    1231  Disbursements: Direct loan
            disbursements...................          64          39          25
    1251  Repayments: Repayments and
            prepayments.....................      -1,655      -1,425      -1,682
    1264  Write-offs for default: Other
            adjustments, net................        -622         -22         -11
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      28,246      26,838      25,170
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         667         642         622
    2251  Repayments and prepayments........         -25         -20         -20
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         642         622         602
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         642         622         602
    ---------------------------------------------------------------------------

                              STATUS OF AGENCY DEBT

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
    Agency Debt Held by FFB:
      Outstanding FFB Direct, start of
        year............................      15,448      13,448      13,065
      Outstanding Certificate of
        Beneficial Ownership (CBO's),
        start of year...................       4,599       4,599       4,599
      New agency borrowing, FFB Direct..          24          11           5
      Repayments and prepayments, FFB
        Direct..........................      -2,024        -394        -394
                                        ------------------------------------
      Outstanding FFB Direct, end of
        year............................      13,448      13,065      12,676
      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]

                                         1997 actual  1998 est.   1999 est.
    Cumulative RUS financed direct loans      21,859      21,859      21,859
    Cumulative FFB financed direct loans      27,712      27,712      27,712
    Cumulative RUS funds advanced.......      21,821      21,823      21,825
    Unadvanced RUS funds, end of year...          38          36          34
    Cumulative RUS principal repaid.....      11,977      12,594      13,211
    Cumulative RUS interest paid........      10,300      10,712      11,124
    Cumulative loan guarantee
    commitments\1\......................       3,967       3,967       3,967
    Number of borrowers.................         815         790         765
        \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]

                                         1997 actual  1998 est.   1999 est.
    Cumulative RUS financed direct loans       6,066       6,065       6,064
    Cumulative FFB financed direct loans         579         579         579
    Cumulative RUS funds advanced.......       5,832       5,841       5,850
    Unadvanced RUS funds, end of period.         234         224         214
    Cumulative RUS principal repaid.....       2,880       3,050       3,220
    Cumulative RUS interest paid........       2,416       2,541       2,666
    Cumulative loan guarantee
    commitments \1\.....................           3           3           3
    Number of borrowers.................         833         840         845

        \1\ Other lenders--privately financed direct loans, FFB.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
              ELECTRIC PROGRAM:
    0111  Revenue...........................       1,902          1,902         1,823          1,750
    0112  Expense...........................      -2,750         -3,488        -3,308         -3,143
                                            ------------ --------------  ------------  -------------
    0119  Net loss (-), Electric program....        -848         -1,586        -1,485         -1,393
              TELEPHONE PROGRAM:
    0121  Revenue...........................         159             90            86             86
    0122  Expense...........................         -91           -364           -64            -64
                                            ------------ --------------  ------------  -------------
    0129  Net income or loss (-), Telephone
            program.........................          68           -274            22             22
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................       2,061          1,992         1,909          1,836
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................      -2,841         -3,852        -3,372         -3,207
                                            ------------ --------------  ------------  -------------
    0199  Net loss (-)......................        -780         -1,860        -1,463         -1,371
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,915            208           200
            Investments in US securities:
    1106      Receivables, net..............          67
    1206  Non-Federal assets: Receivables,
            net.............................         194
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross (Electric)..      27,073         25,156        23,902         22,381
    1602    Interest receivable.............                         12            12             12
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -4,724         -5,031        -5,874         -6,379

    [[Page 131]]

    1604    Direct loans and interest
              receivable, net...............      22,349         20,137        18,040         16,014
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      22,349         20,137        18,040         16,014
    1901  Other Federal assets: Other assets                      2,769         4,355          5,840
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      24,525         23,114        22,595         21,854
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         304
    2103    Debt............................      24,948         22,338        22,020         21,480
    2105    Other...........................                          3             3              3
          Non-Federal liabilities:

    2202    Interest payable................          33             26            20             20
    2203    Debt............................       2,863          2,156         1,938          1,744
    2204    Liabilities for loan guarantees.                        177            99
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      28,148         24,700        24,080         23,247
        NET POSITION:
    3100  Appropriated capital..............       1,896
    3300  Cumulative results of operations..      -5,518         -1,586        -1,485         -1,393
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -3,622         -1,586        -1,485         -1,393
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      24,526         23,114        22,595         21,854
    --------------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         300            458           500            400
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............         592            556           538            520
    1206    Receivables, net................          12              1
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross (Telephone).       3,386          3,090         2,936          2,789
    1602    Interest receivable.............                          7             7              7
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -15            214           158            338
    1604    Direct loans and interest
              receivable, net...............       3,371          3,311         3,101          3,134
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       3,371          3,311         3,101          3,134
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,275          4,326         4,139          4,054
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           3
    2103    Debt............................       2,428          2,271         2,080          1,991
    2104    Resources payable to Treasury...                      2,322         2,030          2,034
    2105    Other...........................                          7             7              7
          Non-Federal liabilities:

    2201    Accounts payable................           2
    2207    Other...........................          22
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,455          4,600         4,117          4,032
        NET POSITION:
    3100  Appropriated capital..............         730
    3300  Cumulative results of operations..       1,089           -274            22             22
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       1,819           -274            22             22
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,274          4,326         4,139          4,054
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           7           7           7
    33.0  Investments and loans.............       2,729          78          99
    43.0  Interest and dividends............       1,755       1,453       1,453
                                               ---------   ---------  ----------
    99.9    Total obligations...............       4,491       1,538       1,559
    ---------------------------------------------------------------------------

                      Rural Telephone Bank Program Account

                         (including transfers of funds)

        The Rural Telephone Bank is hereby authorized to make such
    expenditures, within the limits of funds available to such corporation
    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 may be necessary in carrying out
    its authorized programs for the current fiscal year. During fiscal year
    [1998] 1999 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 (7 U.S.C. 935),
    [$3,710,000] $4,637,500, to be derived by transfer from unobligated
    balances in the Rural Telephone Bank Liquidating Account.
        In addition, for administrative expenses necessary to carry out the
    loan programs, $3,000,000, to be derived by transfer from unobligated
    balances in the Rural Telephone Bank Liquidating Account, which shall be
    transferred to and merged with the appropriation for ``Rural Utilities
    Service--Salaries and Expenses''. (Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           1           4           5
    00.05 Reestimates of Direct Loan Subsidy           8
    00.06 Interest on Reestimates of Dierct
            Loan Subsidy....................           2
    00.09 Administrative expenses subject to
            limitation......................           4           3           3
                                               ---------   ---------  ----------
    10.00   Total obligations...............          15           7           8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           2           2           2
    22.00 New budget authority (gross)......          16           7           8
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          17           9          10
    23.95 New obligations...................         -15          -7          -8
    24.40 Unobligated balance available, end
            of year: Uninvested.............           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           6           7
    42.00   Transferred from other accounts.                                   8
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........           6           7           8
          Permanent:

    60.05   Appropriation (indefinite)......          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          16           7           8
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           7           8           9
    73.10 New obligations...................          15           7           8
    73.20 Total outlays (gross).............         -14          -6          -5
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           8           9          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           3           3
    86.93 Outlays from current balances.....                       3           3
    86.97 Outlays from new permanent
            authority.......................          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          14           6           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16           7           8
    90.00 Outlays...........................          14           6           5
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         176         175         175
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         176         175         175
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................        3.00        2.12        2.65
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        3.00        2.12        2.65

    [[Page 132]]

        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........          11           4           5
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..          11           4           5
    1339  Total subsidy budget authority....           1           4           5
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................           7           3           2
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........           7           3           2
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           4           3           3
    3590  Outlays...........................           4           3           3
    ---------------------------------------------------------------------------

        In 1999, the Rural Telephone Bank (RTB) is proposed to become a
    Performance Based Organization to establish its financial and
    operational independence prior to its being privatized within ten years.
    Funding for the RTB's loan subsidies and administrative expenses will be
    transferred from the unobligated balances in the RTB liquidating
    account.

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           4           3           3
    41.0  Grants, subsidies, and
            contributions...................           9           4           5
    43.0  Interest and dividends............           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............          15           7           8
    ---------------------------------------------------------------------------

               Rural Telephone Bank Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         100         175         175
    00.03 Interest on Treasury borrowing....          16         248         304
                                               ---------   ---------  ----------
    10.00   Total obligations...............         116         423         479
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         146         424         480
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          30
    22.60 Redemption of debt................         -30
    22.70 Balance of authority to borrow
            withdrawn.......................         -30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         116         424         480
    23.95 New obligations...................        -116        -423        -479
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          96         341         397
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          54          82          81
    68.10   Change in orders on hand from
              Federal sources...............           1           1           2
    68.47   Portion applied to debt
              reduction.....................          -5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          50          83          83
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         146         424         480
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...         639         674         599
    72.95   Receivables from program account           7           8           9
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         646         682         608
    73.10 New obligations...................         116         423         479
    73.20 Total financing disbursements
            (gross).........................         -51        -497        -501
    73.45 Adjustments in unexpired accounts.         -30
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...         674         599         575
    74.95   Receivables from program account           8           9          11
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         682         608         586
    87.00 Total financing disbursements
            (gross).........................          51         497         501
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payment from
                Program Account.............         -10          -3          -2
    88.25     Interest on uninvested funds..          -9         -24         -11
              Non-Federal sources:
    88.40       Principal received on loans.         -22          -8         -12
    88.40       Interest received on loans..         -11         -35         -47
    88.40       Sale of RTB Stock...........          -2         -12          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -54         -82         -81
    88.95 Change in receivables from program
            accounts........................          -1          -1          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          91         341         397
    90.00 Financing disbursements...........          -3         415         420
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         176         175         175
    1112  Unobligated direct loan limitation         -76
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         100         175         175
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         191         203         443
    1231  Disbursements: Direct loan
            disbursements...................          34         248         197
    1251  Repayments: Repayments and
            prepayments.....................         -22          -8         -12
    1264  Write-offs for default: Other
            adjustments, net................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         203         443         628
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                        193           202            240
            Investments in US securities:
    1106      Program Account...............          10              8             9             11
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         158            203           443            628
    1402    Interest receivable.............                         11            35             59
    1405    Allowance for subsidy cost (-)..          -8            -13           -14            -16
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         150            201           464            671
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         160            402           675            922
        LIABILITIES:
    2103  Federal liabilities: Debt.........         152            368           662            906
    2201  Non-Federal liabilities: Accounts
            payable.........................           8             32             9             11
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         160            400           671            917

    [[Page 133]]

        NET POSITION:
    3100  Appropriated capital..............                          2             4              5
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                          2             4              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         160            402           675            922
    -----------------------------------------------------------------------------------------------

                    Rural Telephone Bank Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dividends.........................          22          15          18
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              43.0).........................          22          15          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......        -239         282         408
    22.00 New budget authority (gross)......         530         141         162
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         304         423         570
    23.95 New obligations...................         -22         -15         -18
    24.40 Unobligated balance available, end
            of year: Uninvested.............         282         408         552
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    41.00   Transferred to other accounts...                                  -8
          Permanent:

    61.00   Transferred to other accounts...         -18         -18         -18
            Spending authority from
                offsetting collections:
    68.00     Offsetting collections (cash).         602         193         213
    68.47     Portion applied to debt
                reduction...................         -54         -34         -25
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total)...................         548         159         188
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         530         141         162
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         242         201         174
    73.10 New obligations...................          22          15          18
    73.20 Total outlays (gross).............         -50         -42         -42
    73.45 Adjustments in unexpired accounts.         -13
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         201         174         150
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          50          15          18
    86.98 Outlays from permanent balances...                      27          24
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          50          42          42
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -413
              Non-Federal sources:
    88.40       Loans repaid................         -96        -100        -120
    88.40       Interest from loans.........         -92         -92         -92
    88.40       Sales of stock..............          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -602        -193        -213
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -72         -52         -51
    90.00 Outlays...........................        -552        -151        -171
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,328       1,264       1,194
    1231  Disbursements: Direct loan
            disbursements...................          32          30          27
    1251  Repayments: Repayments and
            prepayments.....................         -96        -100        -120
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,264       1,194       1,101
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the Rural Telephone Bank (RTB), 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 is recorded in corresponding program and financing
    accounts. Funding for both subsidy budget authority and the related
    salaries and expenses will be transferred from the unobligated balances
    in the RTB liquidating account in 1999.

        The 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.

        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. Redemption of class A stock will continue, as
    allowed by law, toward the full privatization of the Rural Telephone
    Bank required by law. In 1999, the RTB is proposed to become a
    Performance Based Organization to establish its commercial viability
    prior to its being privatized within ten years.

        Administrative support is provided for the general operations of the
    Bank by RUS employees and the Office of the General Counsel.

                               PROGRAM STATISTICS

                              [dollars in millions]

                                         1997 actual  1998 est.   1999 est.
    Cumulative net loans................       3,481       3,616       3,751
    Cumulative loan funds, advanced.....       2,611       2,746       2,871
    Unadvanced loan funds, end of year..         870         870         880
    Cumulative principal repaid.........       1,178       1,298       1,418
    Cumulative interest paid............       2,030       2,135       2,240
    Number of borrowers.................         710         725         735
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         100            120           120            119
    0102  Expense...........................         -31            -28           -25            -22
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          69             92            95             97
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          15            483           582            710
    1206  Non-Federal assets: Receivables,
            net.............................           4              4             4              4
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,328          1,264         1,194          1,101
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -8             -8            -7             -7
    1604    Direct loans and interest
              receivable, net...............       1,320          1,256         1,187          1,094
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,320          1,256         1,187          1,094
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,339          1,743         1,773          1,808
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................          16
    2103    Debt............................         388            334           300            275
          Non-Federal liabilities:

    2201    Accounts payable................           2
    2207    Other...........................         359            853           935          1,013
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         765          1,187         1,235          1,288
        NET POSITION:
    3100  Appropriated capital..............         574            556           538            520
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         574            556           538            520
                                            ------------ --------------  ------------  -------------

    [[Page 134]]

    4999  Total liabilities and net position       1,339          1,743         1,773          1,808
    -----------------------------------------------------------------------------------------------

            Distance Learning and [Medical Link] Telemedicine Program

        For the cost of direct loans and grants, as authorized by 7 U.S.C.
    950aaa et seq., [$12,530,000] $15,180,000, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Distance Learning and Medical Link
            Grants..........................           7          22          15
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           7          22          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                       9
    22.00 New budget authority (gross)......          16          13          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          22          15
    23.95 New obligations...................          -7         -22         -15
    24.40 Unobligated balance available, end
            of year: Uninvested.............           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           9          13          15
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          16          13          15
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          17          15          14
    73.10 New obligations...................           7          22          15
    73.20 Total outlays (gross).............          -9         -22         -25
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          15          14           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           2          10          11
    86.93 Outlays from current balances.....           2          12          14
    86.97 Outlays from new permanent
            authority.......................           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9          22          25
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................           9          13          15
    90.00 Outlays...........................           3          22          25
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         150         150         150
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         150         150         150
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................        1.02        0.02        0.12
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        1.02        0.02        0.12
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........
    ---------------------------------------------------------------------------

        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.

        Distance Learning and Medical Link Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................                     300         150
    00.02 Interest on Treasury Borrowing....                       5          21
                                               ---------   ---------  ----------
    10.00   Total obligations...............                     305         171
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                     305         171
    23.95 New obligations...................                    -305        -171
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                     293         136
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                      19          57
    68.47   Portion applied to debt
              reduction.....................                      -7         -22
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................                      12          35
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                     305         171
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                                 215
    73.10 New obligations...................                     305         171
    73.20 Total financing disbursements
            (gross).........................                     -90        -195
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                     215         191
    87.00 Total financing disbursements
            (gross).........................                      90         195
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..                      -6         -18
              Non-Federal sources:
    88.40       Repayment of principal......                      -7         -22
    88.40       Interest received on loans..                      -6         -17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                     -19         -57
    88.95 Change in receivables from program
            accounts........................
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     286         114
    90.00 Financing disbursements...........                      71         138
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         150         150         150
    1112  Unobligated direct loan limitation        -150         150
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                     300         150
    ----------------------------------------------------------------------------

    [[Page 135]]

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                                  83
    1231  Disbursements: Direct loan
            disbursements...................                      90         195
    1251  Repayments: Repayments and
            prepayments.....................                      -7         -22
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                      83         256
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....
            Investments in US securities:
    1106      Receivables, net..............
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                       83            256
    1402    Interest receivable.............                                        6             17
    1405    Allowance for subsidy cost (-)..                                       -6            -17
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                       83            256
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                       83            256
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................                                       83            256
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                       83            256
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                       83            256
    -----------------------------------------------------------------------------------------------

              Rural Development Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Purchase of loans from investors                       2
    00.03   Redemption of public CBO debt...           1           1           1
                                               ---------   ---------  ----------
    00.91     Total operating expenses......           1           3           1
          Capital investment:

    01.01   Interest on FFB borrowings......         515         515         502
    01.05   Interest on Treasury borrowings.         106         134         128
    01.06   Loss settlement expense on
              guaranteed loans..............           4          11           1
    01.09   Undistributed charges...........           6
                                               ---------   ---------  ----------
    01.91     Total capital investment......         631         660         631
                                               ---------   ---------  ----------
    10.00   Total obligations...............         632         663         632
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          23          37          36
    22.00 New budget authority (gross)......         635         663         899
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          14
    22.60 Redemption of debt................          -1          -1        -266
    22.70 Balance of authority to borrow
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         669         699         669
    23.95 New obligations...................        -632        -663        -632
    24.40 Unobligated balance available, end
            of year: Uninvested.............          37          36          37
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........         162                     480
    60.47 Portion applied to debt reduction.         -30                    -340
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........         132                     140
    67.15 Authority to borrow (indefinite)..                     236         307
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         503         477         452
    68.47   Portion applied to debt
              reduction.....................                     -50
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         503         427         452
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         635         663         899
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         292         258         248
    73.10 New obligations...................         632         663         632
    73.20 Total outlays (gross).............        -647        -673        -648
    73.40 Adjustments in expired accounts...          -5
    73.45 Adjustments in unexpired accounts.         -14
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         258         248         233
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         337         378         432
    86.98 Outlays from permanent balances...         310         295         216
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         647         673         648
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments on loans held by
                  fund......................        -229        -207        -197
    88.40       Repayments of guaranteed
                  loans purchased from
                  investors.................         -28          -9          -7
    88.40       Interest revenue............        -244        -256        -243
    88.40       Loan repayments on behalf of
                  investors.................
    88.40       Interest income on
                  investment................          -4          -5          -5
    88.40       Guaranteed loss recoveries..
    88.40       Other revenue...............           2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -503        -477        -452
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         132         186         447
    90.00 Outlays...........................         144         196         196
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,349       4,135       3,936
          Disbursements:

    1231    Direct loan disbursements.......          13           7
    1232    Purchase of loans assets from
              the public....................           4           3
    1251  Repayments: Repayments and
            prepayments.....................        -229        -207        -197
    1263  Write-offs for default: Direct
            loans...........................          -2          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,135       3,936       3,737
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2199  Guaranteed amount of guaranteed
            loan commitments................
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         500         375         293
    2231  Disbursements of new guaranteed
            loans...........................           3
    2251  Repayments and prepayments........         -74         -52         -41
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -42         -30         -13
    2264    Other adjustments, net..........         -12
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         375         293         239
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         337         264         215
    ---------------------------------------------------------------------------

        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,

    [[Page 136]]

    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
    loan programs are administered by the Rural Business-Cooperative
    Service.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4155-0-3-452    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         234            234           231            220
    0102  Expense...........................        -675           -618          -586           -577
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............        -441           -384          -355           -357
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4155-0-3-452    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         316            304            62             15
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............          34             34            34             34
    1206    Receivables, net................          63             61            47             33
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       4,349          4,135         3,937          3,738
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,666         -1,584        -1,492         -1,345
    1604    Direct loans and interest
              receivable, net...............       2,683          2,551         2,445          2,393
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       2,683          2,551         2,445          2,393
    1901  Other Federal assets: Other assets         155             96            72             55
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,251          3,046         2,660          2,530
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................          -1
    2103    Debt............................       4,831          4,801         4,455          4,380
    2104    Resources payable to Treasury...          60             32            41             41
    2105    Other...........................          23             19            18             19
          Non-Federal liabilities:

    2201    Public..........................         137            149           119            163
    2202    Interest payable................         121            107           134             90
    2203    Debt............................           3              3             3              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       5,174          5,111         4,770          4,695
        NET POSITION:
    3300  Cumulative results of operations..      -1,924         -2,065        -2,109         -2,164
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -1,924         -2,065        -2,109         -2,164
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,250          3,046         2,661          2,531
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           4          11
    33.0  Investments and loans.............           1           3           1
    43.0  Interest and dividends............         621         649         631
    92.0  Undistributed.....................           6
                                               ---------   ---------  ----------
    99.9    Total obligations...............         632         663         632
    ---------------------------------------------------------------------------

            Rural Communication Development Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............           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.......           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.............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........           2           2           2
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           3           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           1           2           2
    73.10 New obligations...................           3           3           3
    73.20 Total outlays (gross).............          -3          -3          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           2           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.....          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           2           2
    90.00 Outlays...........................           2           2           2
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           9           9           8
    1251  Repayments: Repayments and
            prepayments.....................                      -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           9           8           8
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           5           5           4
    2251  Repayments and prepayments........                      -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           5           4           4
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           5           4           4
    ---------------------------------------------------------------------------

        The Rural Communication Development Fund was established pursuant to
    the Secretary's Memorandum No. 1988,

    [[Page 137]]

    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    1996 actual    1997 actual     1998 est.      1999 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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           2              2             2              2
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          10              9             9              9
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -3             -3            -3             -3
    1604    Direct loans and interest
              receivable, net...............           7              6             6              6
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           7              6             6              6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           9              8             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..............          11             13            14             14
    3300  Cumulative results of operations..         -29            -32           -33            -33
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         -18            -19           -19            -19
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           9              8             8              8
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                        Rural Telephone Bank Equity Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8139-0-7-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         413
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         413
    23.95 New obligations...................        -413
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................         413
    73.20 Total outlays (gross).............        -413
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...         413
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    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 was 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 were 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, title V of the Housing Act of 1949, and cooperative
    agreements, [$58,804,000] $60,978,000: 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 $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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1952-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          45          59          61
    09.01 Reimbursable program..............         423         412         415
                                               ---------   ---------  ----------
    10.00   Total obligations...............         468         471         476
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         484         471         476
    22.30 Unobligated balance expiring......         -16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         468         471         476
    23.95 New obligations...................        -468        -471        -476
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          61          59          61
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         423         412         415
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         484         471         476
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          64          69         122
    73.10 New obligations...................         468         471         476
    73.20 Total outlays (gross).............        -466        -418        -465
    73.40 Adjustments in expired accounts...           3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          69         122         133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          39          51          52
    86.93 Outlays from current balances.....           6                       6
    86.97 Outlays from new permanent
            authority.......................         370         354         357
    86.98 Outlays from permanent balances...          51          13          50
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         466         418         465
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -423        -412        -415
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          61          59          61
    90.00 Outlays...........................          43           6          50
    ---------------------------------------------------------------------------

        The Secretary's reorganization plan established the Rural Housing
    Service (RHS) in 1995. 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

    [[Page 138]]

    Servicing System (DLOS) was implemented to centralize and streamline the
    servicing activities of the agency. This innovation significantly
    reduces the cost of operating the individual housing loan programs.

        Administrative Convergence. The Department is coordinating the
    functions and personnel of the different field agencies to provide a
    more seamless and efficient delivery system. By 2002, the proposal would
    result in a 22 percent reduction in administrative staffing from 1997.
    Savings by 2002 would equal $127 million/year. Progress in 1999 would be
    indicated by the creation of a Support Services Bureau reflecting a new
    entity made by consolidating the agencies' administrative functions both
    at the National level and in each State.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1952-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          24          31          32
    11.3      Other than full-time permanent                       1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          24          32          33
    12.1    Civilian personnel benefits.....           6           7           7
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.2    Rental payments to others.......           2           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           4           4
    25.2    Other services..................           2           4           5
    25.3    Purchases of goods and services
              from Government accounts......           3           4           4
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          45          59          61
    99.0  Reimbursable obligations..........         423         412         415
                                               ---------   ---------  ----------
    99.9    Total obligations...............         468         471         476
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1952-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         591         773         782
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       5,635       5,415       5,326
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                          (Farmers Home Administration)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2001-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          36          22
    73.20 Total outlays (gross).............         -18
    73.40 Adjustments in expired accounts...           4         -22
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          18
    ----------------------------------------------------------------------------

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

        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 Grants

                         (including transfers of funds)

        For grants and contracts for housing for domestic farm labor, very
    low-income housing repair, 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, [$45,720,000] $46,900,000, to
    remain available until expended: [Provided, That any obligated and
    unobligated balances available from prior years in ``Rural Housing for
    Domestic Farm Labor'', ``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, [$1,200,000] $2,000,000 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] 1999, they shall remain available for other authorized purposes
    under this head. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1953-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Domestic Farm Labor Grants........           8          10          13
    00.03 Very Low-Income Housing Repair
            Grants..........................          18          25          25
    00.05 Supervisory and Technical
            Assistance Grants...............           1           1
    00.07 Rural Housing Preservation Grants.           8          11           9
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          35          47          47
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           5           2           1
    22.00 New budget authority (gross)......          31          46          47
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          36          48          48
    23.95 New obligations...................         -35         -47         -47
    24.40 Unobligated balance available, end
            of year: Uninvested.............           2           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         130          46          47
    41.00   Transferred to other accounts...        -100
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........          30          46          47
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          31          46          47
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          73          56          40
    73.10 New obligations...................          35          47          47
    73.20 Total outlays (gross).............         -48         -63         -51
    73.40 Adjustments in expired accounts...          -2
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          56          40          36
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          15          26          26
    86.93 Outlays from current balances.....          32          37          25
    86.97 Outlays from new permanent
            authority.......................           1
                                               ---------   ---------  ----------

    [[Page 139]]

    87.00   Total outlays (gross)...........          48          63          51
    ----------------------------------------------------------------------------

        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..................          30          46          47
    90.00 Outlays...........................          46          63          51
    ---------------------------------------------------------------------------

    Distribution of budget authority by
        account:
      Rural Housing Assistance Grants...                      46          47
      Rural Housing for Domestic Farm
        Labor Grants....................           7
      Very Low Income Housing Repair
        Grants..........................          16
      Rural Housing Preservation Grants.           8
    ------------------------------------------------------------------------
    Distribution of outlays by account:
      Rural Housing Assistance Grants...                      63          51
      Rural Housing for Domestic Farm
        Labor...........................          12
      Supervisory and Technical
        Assistance Grants...............           3
      Very Low Income Housing Repair
        Grants..........................          17
      Rural Housing Preservation Grants.          15
    ------------------------------------------------------------------------

        This account consolidates five 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 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,
    [$541,397,000] $583,397,000; 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 [1998] 1999 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0137-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         520         545         583
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Fund balance.....                       4
    22.00 New budget authority (gross)......         524         541         583
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         524         545         583
    23.95 New obligations...................        -520        -545        -583
    24.40 Unobligated balance available, end
            of year: Uninvested.............           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         494         541         583
    40.05 Appropriation (indefinite)........         111          76          57
    40.47 Portion applied to debt reduction.        -111         -76         -57
    42.00 Transferred from other accounts...          30
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........         524         541         583
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         524         541         583
    ----------------------------------------------------------------------------

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

            Obligated balance:
              Uninvested:
    72.40       Fund balance................       1,529       1,650       1,733
    72.40       Authority to borrow.........       1,005         893         817
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       2,534       2,543       2,550
    73.10 New obligations...................         520         545         583
    73.20 Total outlays (gross).............        -512        -538        -563
    73.40 Adjustments in expired accounts...           1
          Unpaid obligations, end of year:

            Obligated balance:
              Uninvested:
    74.40       Fund balance................       1,650       1,733       1,810
    74.40       Authority to borrow.........         893         817         761
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       2,543       2,550       2,571
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          19          20          22
    86.93 Outlays from current balances.....         382         442         484
    86.98 Outlays from permanent balances...         111          76          57
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         512         538         563
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         524         541         583
    90.00 Outlays...........................         512         538         563
    ---------------------------------------------------------------------------

        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

    [[Page 140]]

    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.

        In light of the significant increase in the cost of this program, in
    recent years and projected in the future, RHS will expand its tools used
    to verify tenant income eligibility, and a legislative proposal will be
    submitted to charge tenants a minimum monthly rent of $25.

                         Rural Housing Voucher Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2002-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           4           3           2
    73.20 Total outlays (gross).............          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           2           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.

                       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) of which, $1,000,000 shall be for
    empowerment zones and enterprise communities, as authorized by Public
    Law 103-66: Provided, That if such funds are not obligated for
    empowerment zones and enterprise communities by June 30, 1999, they
    shall remain available for other authorized purposes under this head.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2006-0-1-604      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          26          26          26
    ----------------------------------------------------------------------------

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

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

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          16          26          30
    73.10 New obligations...................          26          26          26
    73.20 Total outlays (gross).............         -16         -22         -23
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          26          30          33
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           5           5           5
    86.93 Outlays from current balances.....          11          17          18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          16          22          23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          26          26          26
    90.00 Outlays...........................          16          22          23
    ---------------------------------------------------------------------------

        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.

                    [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.] (Agriculture, Rural Development, Food and
    Drug Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2067-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           1           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1           2
    23.95 New obligations...................          -1          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                       2
    42.00 Transferred from other accounts...           1
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........           1           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           1           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           2           1           2
    73.10 New obligations...................           1           2
    73.20 Total outlays (gross).............          -2          -2          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           1           2
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................           1           2
    90.00 Outlays...........................           2           2           1
    ---------------------------------------------------------------------------

        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

    [[Page 141]]

    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 was appropriated to this account. In 1999, funding will be
    requested by the Forest Service.

             Rural Community Facility Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................         137         206         200
    00.02 Interest on Treasury Borrowing....          35          84         110
    00.04 Subsidy reestimate paid to receipt
            account.........................           2
                                               ---------   ---------  ----------
    10.00   Total obligations...............         174         290         310
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         174         290         310
    23.95 New obligations...................        -174        -290        -310
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         129         198         170
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          69          95         134
    68.10   Change in orders on hand from
              Federal sources...............         -12          -3           6
    68.47   Portion applied to debt
              reduction.....................         -12
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          45          92         140
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         174         290         310
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...         297         278         324
    72.95   Receivables from program account          52          40          37
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         349         318         361
    73.10 New obligations...................         174         290         310
    73.20 Total financing disbursements
            (gross).........................        -197        -247        -302
    73.40 Adjustments in expired accounts...          -8
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...         278         324         326
    74.95   Receivables from program account          40          37          43
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         318         361         369
    87.00 Total financing disbursements
            (gross).........................         197         247         302
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -26         -20         -21
    88.25     Interest on uninvested funds..         -10         -38         -66
              Non-Federal sources:
    88.40       Repayment of principal......         -14         -11         -14
    88.40       Interest received on loans..         -19         -26         -33
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -69         -95        -134
    88.95 Change in receivables from program
            accounts........................          12           3          -6
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         117         198         170
    90.00 Financing disbursements...........         128         152         168
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         137         206         200
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         137         206         200
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         348         493         645
    1231  Disbursements: Direct loan
            disbursements...................         159         163         192
    1251  Repayments: Repayments and
            prepayments.....................         -14         -11         -14
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         493         645         823
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          55             65           114            193
            Investments in US securities:
    1106      Receivables, net..............          52             40            37             43
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         348            492           645            823
    1402    Interest receivable.............           4              7            26             33
    1405    Allowance for subsidy cost (-)..         -30            -71          -139           -224
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         322            428           532            632
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         429            533           683            868
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................         375            492           645            823
    2203  Non-Federal liabilities: Liability
            for deposit funds...............           2              1             1              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         377            493           646            825
        NET POSITION:
    3100  Appropriated capital..............          52             40            37             43
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          52             40            37             43
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         429            533           683            868
    -----------------------------------------------------------------------------------------------

           Rural Community Facility Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Subsidy reestimate paid to reciept
            account.........................           2
    00.03 Negative subsidy paid to receipt
            account.........................                       1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           2           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           7           6           7
    22.00 New financing authority (gross)...           1           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8           8           9
    23.95 New obligations...................          -2          -1          -1
    24.40 Unobligated balance available, end
            of year: Uninvested.............           6           7           8
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           1           2           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           2           1           1
    73.20 Total financing disbursements
            (gross).........................          -2          -1          -1

    [[Page 142]]

    87.00 Total financing disbursements
            (gross).........................           2           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -1
    88.25     Interest on uninvested funds..          -1          -1          -1
    88.40     Non-Federal sources...........                                  -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -1          -2          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........           1          -1          -1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          85         153         210
    2112  Uncommitted loan guarantee
            limitation......................          -2
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          83         153         210
    2199  Guaranteed amount of guaranteed
            loan commitments................          66         123         168
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          94         121         182
    2231  Disbursements of new guaranteed
            loans...........................          32          67         107
    2251  Repayments and prepayments........          -5          -6         -10
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         121         182         279
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         114         169         264
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           7              6             7              8
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           7              6             7              8
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           7              6             7              8
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           7              6             7              8
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           7              6             7              8
    -----------------------------------------------------------------------------------------------

                  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: $4,000,000,000 for loans to section 502 borrowers, as
    determined by the Secretary, of which $3,000,000,000 shall be for
    unsubsidized guaranteed loans; [$30,000,000] $25,001,000 for section 504
    housing repair loans; [$19,700,000] $150,000,000 for section 538
    guaranteed multi-family housing loans; [$15,000,000] $32,108,000 for
    section 514 farm labor housing; [$128,640,000] $100,000,000 for section
    515 rental housing; [$600,000] $5,000,000 for section 524 site loans;
    [$25,000,000] $30,007,000 for credit sales of acquired property, of
    which up to $5,001,000 may be for multi-family credit sales; and
    [$587,000] $5,000,000 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, [$135,000,000] $120,900,000,
    of which [$6,900,000] $2,700,000 shall be for unsubsidized guaranteed
    loans; section 504 housing repair loans, [$10,300,000] $8,807,850;
    section 538 multi-family housing guaranteed loans, [$1,200,000]
    $3,480,000; section 514 farm labor housing, [$7,388,000] $16,705,790;
    section 515 rental housing, [$68,745,000] $48,250,000; section 524 site
    loans, $16,500; credit sales of acquired property, [$3,492,000]
    $4,671,530, of which up to $2,416,000 may be for multi-family credit
    sales; and section 523 self-help housing land development loans,
    [$17,000] $282,000: Provided, That of the total amount appropriated in
    this paragraph, $11,027,300 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, 1999, 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, [$354,785,000] $367,857,000, 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, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          41         142         142
        Receipts:
    02.01 Rural housing insurance fund,
            downward reestimates of
            subsidies.......................         101
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         142         142         142
    07.99 Total balance, end of year........         142         142         142
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         200         223         197
    00.02 Guaranteed loan subsidy...........           5           8           6
    00.05 Reestimates of direct loan subsidy          16
    00.06 Interest on reestimates of direct
            loan subsidy....................           2
    00.09 Administrative expenses--salaries,
            expenses........................         366         355         368
                                               ---------   ---------  ----------
    10.00   Total obligations...............         591         586         571
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           6           5
    22.00 New budget authority (gross)......         592         581         571
    22.30 Unobligated balance expiring......          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         596         586         571
    23.95 New obligations...................        -591        -586        -571
    24.40 Unobligated balance available, end
            of year: Uninvested.............           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         506         581         571
    42.00   Transferred from other accounts.          50
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         556         581         571
          Permanent:

    60.05   Appropriation (indefinite)......          19
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          16
                                               ---------   ---------  ----------

    [[Page 143]]

    70.00   Total new budget authority
              (gross).......................         592         581         571
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         233         203         169
    73.10 New obligations...................         591         586         571
    73.20 Total outlays (gross).............        -615        -620        -584
    73.40 Adjustments in expired accounts...          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         203         169         156
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         444         470         477
    86.93 Outlays from current balances.....         136         150         108
    86.97 Outlays from new permanent
            authority.......................          35
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         615         620         584
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         576         581         571
    90.00 Outlays...........................         599         620         584
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         575         581         571
      Outlays...........................         599         620         585
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         575         581         571
      Outlays...........................         599         620         585
                                        ====================================

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

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Single family housing.............         585       1,000       1,000
    1150  Multi-family housing..............         153         129         100
    1150  Housing repair....................          30          30          25
    1150  Farm labor housing................          14          15          32
    1150  Site development..................           1           1           5
    1150  Single Family Credit sales........          25          25          25
    1150  Multi Family Credit Sales.........                                   5
    1150  Self-help housing.................           1                       5
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         810       1,200       1,197
        Direct loan subsidy (in percent):
    1320  Single family housing.............       14.18       12.81       11.82
    1320  Multi-family housing..............       51.24       53.44       48.25
    1320  Housing repair....................       36.63       34.36       35.23
    1320  Farm labor housing................       47.77       49.25       52.03
    1320  Site development..................       -1.02       -1.19        0.33
    1320  Single Family Credit sales........        8.86       13.97        9.02
    1320  Multi Family Credit Sales.........       50.55       13.97       48.31
    1320  Self-help housing.................        2.87        3.41        5.64
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       21.57       18.15       16.45
        Direct loan subsidy budget authority:
    1330  Single family housing.............          90         128         118
    1330  Multi-family housing..............          87          69          48
    1330  Housing repair....................          11          10           9
    1330  Farm labor housing................           7           7          17
    1330  Site development..................
    1330  Single Family Credit Sales........           4           3           2
    1330  Multi Family Credit Sales.........                                   2
    1330  Self-help housing.................
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         199         218         197
        Direct loan subsidy outlays:
    1340  Single family housing.............         109         123         119
    1340  Multi-family housing..............         107         109          67
    1340  Housing repair....................          11          11           9
    1340  Farm labor housing................           4           8          11
    1340  Site development..................
    1340  Single Family Credit Sales........           3           3           3
    1340  Multi Family Credit Sales.........                                   2
    1340  Self-help housing.................
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         234         254         211
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Single family housing--
            unsubsidized....................       2,700       3,000       3,000
    2150  Multifamily Housing...............          28          20         150
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       2,728       3,020       3,150
        Guaranteed loan subsidy (in percent):
    2320  Single family housing--
            unsubsidized....................        0.23        0.23        0.09
    2320  Multi Family Housing..............        3.09        6.09        2.32
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        0.27        0.27        0.20
        Guaranteed loan subsidy budget authority:
    2330  Single family housing--
            unsubsidized....................           7           7           3
    2330  Multi Family Housing..............           1           1           3
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           8           8           6
        Guaranteed loan subsidy outlays:
    2340  Single family housing--
            unsubsidized....................           5           5           4
    2340  Multi Family Housing..............           2                       2
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           7           5           5
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         366         355         368
    3590  Outlays...........................         372         361         368
    ---------------------------------------------------------------------------

        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, for single
    family and multi-family housing credit sales of acquired property, and
    section 538 multi-family housing guarantees. The section 523 self-help
    housing land development loan program is included under this heading
    beginning in 1997. 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........         366         355         368
    41.0  Grants, subsidies, and
            contributions...................         225         231         203
                                               ---------   ---------  ----------
    99.9    Total obligations...............         591         586         571
    ---------------------------------------------------------------------------

    [[Page 144]]

                  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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Single family housing--
            unsubsidized....................
    2150  Multifamily Housing...............
    2150  Single family housing--
            unsubsidized refinancing........                                 100
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                                 100
        Guaranteed loan subsidy (in percent):
    2320  Single family housing--
            unsubsidized....................                                0.00
    2320  Multi Family Housing..............                                0.00
    2320  Single family housing--
            unsubsidized refinancing........                               -0.13
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                               -0.02
        Guaranteed loan subsidy budget authority:
    2330  Single family housing--
            unsubsidized....................
    2330  Multi Family Housing..............
    2330  Single family housing--
            unsubsidized refinancing........
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..
        Guaranteed loan subsidy outlays:
    2340  Single family housing--
            unsubsidized....................
    2340  Multi Family Housing..............
    2340  Single family housing--
            unsubsidized refinancing........
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................
    3590  Outlays...........................
    ---------------------------------------------------------------------------

        A new section 502 guaranteed rural housing loan program is 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         928       1,230       1,197
    00.02 Advances on behalf of borrowers...          19          63          28
    00.03 Collateral acquired by default....           1           8           4
    00.04 Interest on Treasury borrowing....         458         518         573
    00.05 Subsidy reestimate paid to receipt
            account.........................          91
    00.06 Other expenses....................          11
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,508       1,819       1,802
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...       1,492       1,819       1,802
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
    22.70 Balance of authority to borrow
            withdrawn.......................          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,508       1,819       1,802
    23.95 New obligations...................      -1,508      -1,819      -1,802
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..         812       1,078       1,012
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         827         952       1,026
    68.10   Change in orders on hand from
              Federal sources...............         -23         -31         -14
    68.47   Portion applied to debt
              reduction.....................        -124        -180        -222
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         680         741         790
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,492       1,819       1,802
    ----------------------------------------------------------------------------

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

            Obligated balance:
              Uninvested:
    72.40       Uninvested fund balance.....         334         156         185
    72.40       Authority to Borrow.........          33         195         232
    72.95   Receivables from program account         220         197         166
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         587         548         583
    73.10 New obligations...................       1,508       1,819       1,802
    73.20 Total financing disbursements
            (gross).........................      -1,525      -1,785      -1,801
    73.45 Adjustments in unexpired accounts.         -22
          Unpaid obligations, end of year:

            Obligated balance:
              Uninvested:
    74.40       Uninvested fund balance.....         156         185         213
    74.40       Authority to borrow.........         195         232         218
    74.95   Receivables from program account         197         166         152
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         548         583         583
    87.00 Total financing disbursements
            (gross).........................       1,525       1,785       1,801
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -237        -254        -211
    88.25     Interest on uninvested funds..         -55         -63         -66
              Non-Federal sources:
    88.40       Repayments of principal.....        -176        -230        -290
    88.40       Interest received on loans..        -316        -385        -437
    88.40       Repayments on advances......          -3          -4          -5
    88.40       Proceeds on sale of acquired
                  property..................          -8         -16         -17
    88.40       Fees and miscellaneous
                  collections...............         -32
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -827        -952      -1,026
    88.95 Change in receivables from program
            accounts........................          23          31          14
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         688         898         790
    90.00 Financing disbursements...........         698         833         775
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         820       1,230       1,197
    1112  Unobligated direct loan limitation         -33
    1113  Unobligated limitation carried
            forward.........................          31
    1131  Direct loan obligations exempt
            from limitation.................         111
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         928       1,230       1,197
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       7,800       8,567       9,591
    1231  Disbursements: Direct loan
            disbursements...................         950       1,196       1,196
    1251  Repayments: Repayments and
            prepayments.....................        -182        -234        -295
    1261  Adjustments: Capitalized interest.          10          12          13
          Write-offs for default:

    1263    Direct loans....................         -12         -13         -14
    1264    Other adjustments, net..........           1          63          28
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       8,567       9,591      10,519
    ---------------------------------------------------------------------------

        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 single family and multi-family housing credit
    sales of acquired property.

    [[Page 145]]

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         334            156           185            214
            Investments in US securities:
    1106      Receivables, net..............         221            197           166            152
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       7,800          8,567         9,591         10,519
    1402    Interest receivable.............          39             81            89            100
    1404    Foreclosed property.............          10              7            16             24
    1405    Allowance for subsidy cost (-)..      -2,202         -2,293        -2,495         -2,661
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       5,647          6,362         7,201          7,982
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       6,202          6,715         7,552          8,348
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................
    2103    Debt............................       5,950          6,469         7,331          8,135
    2104    Resources payable to Treasury...         221            197           166            152
    2105    Other...........................
    2207  Non-Federal liabilities: Other....          31             49            55             61
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       6,202          6,715         7,552          8,348
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       6,202          6,715         7,552          8,348
    -----------------------------------------------------------------------------------------------

         Rural Housing Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................           9          23          30
    08.01 Subsidy reestimate paid to receipt
            account.........................          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............          19          23          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          65          71          87
    22.00 New financing authority (gross)...          25          39          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          90         110         129
    23.95 New obligations...................         -19         -23         -30
    24.40 Unobligated balance available, end
            of year: Uninvested.............          71          87          98
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...          26          36          41
    68.10   Change in orders on hand from
              Federal sources...............          -1           3           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          25          39          42
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          25          39          42
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          -1                      -3
    72.95   Receivables from program account           1                       3
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............
    73.10 New obligations...................          19          23          30
    73.20 Total financing disbursements
            (gross).........................         -19         -23         -30
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...                      -3          -4
    74.95   Receivables from program account                       3           4
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................
    87.00 Total financing disbursements
            (gross).........................          19          23          30
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7          -5          -5
    88.25     Interest on uninvested funds..          -4          -5          -6
    88.40     Non-Federal sources: guarantee
                fees........................         -15         -26         -30
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -26         -36         -41
    88.95 Change in receivables from program
            accounts........................           1          -3          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -7         -13         -11
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,728       3,020       3,150
    2112  Uncommitted loan guarantee
            limitation......................        -700
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,028       3,020       3,150
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,503       5,039       7,677
    2231  Disbursements of new guaranteed
            loans...........................       1,690       2,888       2,952
    2251  Repayments and prepayments........        -144        -224        -281
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -10         -26         -33
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       5,039       7,677      10,315
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       4,535       6,909       9,283
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          64             71            84             94
            Investments in US securities:
    1106      Receivables, net..............           1                            3              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          65             71            87             98
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.          65             71            87             98
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          65             71            87             98
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          65             71            87             98
    -----------------------------------------------------------------------------------------------

    [[Page 146]]

         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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                   1
    24.40 Unobligated balance available, end
            of year: Uninvested.............                                   1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                   1
    87.00 Total financing disbursements
            (gross).........................
    ----------------------------------------------------------------------------

        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      1997 actual   1998 est.   1999 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...........................                                  74
    2251  Repayments and prepayments........                                  -1
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                                  73
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                                  66
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                                       1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                                       1
        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.02   Advances on behalf of borrowers.          82         173          61
    00.04   Purchases of certificates of
              beneficial ownership..........                                   1
    00.05   Collateral acquired by default..           2           3           1
    00.06   Judgements......................           1           1           1
    00.07   Unclassified recoverable costs..          20
    00.08   Restoration of direct loan
              obligations...................           2
                                               ---------   ---------  ----------
    00.91     Total capital investment......         107         177          64
          Operating expenses:

    01.02   Interest on certificates of
              beneficial ownership..........           1           1           1
    01.03   Interest on FFB borrowings......       1,891       1,274         858
    01.06   Interest credits on loans sold
              to investors..................           2           2           2
    01.07   Other costs incident to loans...           3           3           3
    01.08   Undistributed charges...........           1
                                               ---------   ---------  ----------
    01.91     Total operating expenses......       1,898       1,280         864
                                               ---------   ---------  ----------
    10.00   Total obligations...............       2,005       1,457         928
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       2,250       1,584       1,037
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.70 Balance of authority to borrow
            withdrawn.......................        -246        -127        -109
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,005       1,457         928
    23.95 New obligations...................      -2,005      -1,457        -928
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........       5,200       3,300       1,200
    60.47 Portion applied to debt reduction.      -2,950      -1,716        -163
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........       2,250       1,584       1,037
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,320       2,319       2,212
    68.47   Portion applied to debt
              reduction.....................      -2,320      -2,319      -2,212
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,250       1,584       1,037
    ----------------------------------------------------------------------------

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

            Obligated balance:
              Uninvested:
    72.40       Authority to borrow.........         594         348         221
    72.40       Fund balance................         418         390         389
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       1,012         738         610
    73.10 New obligations...................       2,005       1,457         928
    73.20 Total outlays (gross).............      -2,278      -1,585      -1,114
    73.45 Adjustments in unexpired accounts.          -1
          Unpaid obligations, end of year:

            Obligated balance:
              Uninvested:
    74.40       Authority to borrow.........         348         221         112
    74.40       Fund balance................         390         389         311
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         738         610         423
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       1,677       1,257         836
    86.98 Outlays from permanent balances...         601         328         278
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,278       1,585       1,114
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of loans and
                  advances..................      -1,147      -1,161      -1,155
    88.40       Proceeds from sale of
                  acquired property.........         -51         -46         -42

    [[Page 147]]

    88.40       Payments on judgments.......          -6          -5          -4
    88.40       Interest payments from
                  borrowers.................        -990        -997        -907
    88.40       Recapture of subsidies......         -99        -108        -102
    88.40       Fees and other revenue......          -2          -1          -1
    88.40       Occupancy surcharges
                  collected.................          -1          -1          -1
    88.40       Undistributed receipts......         -24
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,320      -2,319      -2,212
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -70        -735      -1,175
    90.00 Outlays...........................         -42        -734      -1,098
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      22,185      20,947      19,738
          Disbursements:

    1231    Direct loan disbursements.......           2
    1232    Purchase of loans assets from
              the public....................
    1251  Repayments: Repayments and
            prepayments.....................      -1,147      -1,161      -1,155
    1261  Adjustments: Capitalized interest.         -29          29          25
          Write-offs for default:

    1263    Direct loans....................         -85         -83         -78
    1264    Other adjustments, net..........          21           6           2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      20,947      19,738      18,532
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          32          30          28
    2251  Repayments and prepayments........          -2          -2          -1
    2264  Adjustments: Other adjustments,
            net.............................
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          30          28          27
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          27          25          24
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       2,484          1,892         1,758          1,615
    0102  Expense...........................      -2,670         -1,678        -1,187           -847
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............        -186            214           571            768
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4141-0-3-371    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         418            390           389            311
            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.............      22,185         20,947        19,738         18,532
    1602    Interest receivable.............         203            256           207            185
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -8,621         -7,498        -7,053         -6,680
    1604    Direct loans and interest
              receivable, net...............      13,767         13,705        12,892         12,037
    1606    Foreclosed property.............          65             47            42             38
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      13,832         13,752        12,934         12,075
    1701    Guaranteed loans purchased from
              holders.......................
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................
    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...........................
    1901    Other assets....................       5,693            491           461            432
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      19,943         14,633        13,784         12,818
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           1              1             1              1
    2102    Interest payable................         979            693           525            360
    2103    Debt............................      18,805         13,535         9,500          7,125
    2104    Resources payable to Treasury...                        224         3,594          5,183
          Non-Federal liabilities:

    2201    Accounts payable................          11             23            18             14
    2202    Interest payable................           1              1             1              1
    2203    Debt............................          11             11            10              8
    2207    Other...........................         135            145           135            126
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      19,943         14,633        13,784         12,818
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      19,943         14,633        13,784         12,818
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           4           3           3
    33.0  Investments and loans.............         107         177          64
    41.0  Grants, subsidies, and
            contributions...................           2           2           2
    43.0  Interest and dividends............       1,892       1,275         859
                                               ---------   ---------  ----------
    99.9    Total obligations...............       2,005       1,457         928
    ---------------------------------------------------------------------------

                       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; 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 for cooperative agreements; [$25,680,000]
    $26,396,000: 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 $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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1903-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          24          26          26
    09.01 Reimbursable program..............          10          10          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............          34          36          36
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          36          36          36
    22.30 Unobligated balance expiring......          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34          36          36

    [[Page 148]]

    23.95 New obligations...................         -34         -36         -36
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

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

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          10          10          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          36          36          36
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           8          13          13
    73.10 New obligations...................          34          36          36
    73.20 Total outlays (gross).............         -28         -36         -36
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          13          13          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          15          19          19
    86.93 Outlays from current balances.....           4          10           8
    86.97 Outlays from new permanent
            authority.......................           9           7           7
    86.98 Outlays from permanent balances...                                   2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          28          36          36
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          26          26          26
    90.00 Outlays...........................          19          26          26
    ---------------------------------------------------------------------------

        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.

        Administrative Convergence. The Department is coordinating the
    functions and personnel of the different field agencies to provide a
    more seamless and efficient delivery system. By 2002, the proposal would
    result in a 22 percent reduction in administrative staffing from 1997.
    Savings by 2002 would equal $127 million/year. Progress in 1999 would be
    indicated by the creation of a Support Services Bureau reflecting a new
    entity made by consolidating the agencies' administrative functions both
    at the National level and in each State.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1903-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          13          13          13
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          14          14          14
    12.1    Civilian personnel benefits.....           3           3           3
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.2    Rental payments to others.......                       1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           4           5           5
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          23          25          25
    99.0  Reimbursable obligations..........          10          10          10
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          34          36          36
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1903-0-1-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         258         236         218
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          62          92          86
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                       (rural development administration)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3400-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............           1
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    23.95 New obligations...................          -1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           7           3           1
    73.10 New obligations...................           1
    73.20 Total outlays (gross).............          -5          -2          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           5           2           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           5           2           1
    ---------------------------------------------------------------------------

        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 (7 U.S.C.
    1932), [$3,000,000] $3,700,000, of which up to [$1,300,000] $2,000,000
    may be available for cooperative agreements for the appropriate
    technology transfer for rural areas program.
        For cooperative agreements as authorized under 7 U.S.C. 2201, to any
    qualified State department of agriculture, university, and other State
    entity to conduct research that will strengthen and enhance the
    operations of agricultural marketing cooperatives in rural areas,
    $2,000,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1900-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural cooperative development
            grants..........................           2           2           2
    00.02 Appropriate technology transfer
            for rural areas.................           1           1           2
    00.03 Federal/State research on
            cooperatives....................                                   2
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................           3           3           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           3           3           6
    23.95 New obligations...................          -3          -3          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           3           3           6
    ----------------------------------------------------------------------------

    [[Page 149]]

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           2           3           2
    73.10 New obligations...................           3           3           6
    73.20 Total outlays (gross).............          -2          -4          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           4
    86.93 Outlays from current balances.....           1           3           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           4           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           3           6
    90.00 Outlays...........................           2           4           6
    ---------------------------------------------------------------------------

        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.

        In addition, $2 million is provided for Federal and State research
    on cooperatives. This program leverages scarce Federal resources by
    joining with State departments of agriculture, universities and other
    State entities to conduct marketing research that will strengthen and
    enhance the operations of agricultural marketing cooperatives in rural
    areas.

                        Rural Economic Development Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          10           7           7
    09.00 Reimbursable program..............           1           4           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          11          11          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          29          21          14
    22.00 New budget authority (gross)......           1           4           4
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          32          25          18
    23.95 New obligations...................         -11         -11         -11
    24.40 Unobligated balance available, end
            of year: Uninvested.............          21          14           7
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...           8           1           4
    68.10   Change in orders on hand from
              Federal sources...............          -7           3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................           1           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           1           4           4
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          16          19          14
    72.95   Orders on hand from Federal
              sources.......................           8           1           4
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          24          20          18
    73.10 New obligations...................          11          11          11
    73.20 Total outlays (gross).............         -13         -14         -10
    73.45 Adjustments in unexpired accounts.          -2
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...          19          14          15
    74.95   Orders on hand from Federal
              sources.......................           1           4           4
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          20          18          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           1           1           1
    86.98 Outlays from permanent balances...          12          14          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13          14          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -8          -1          -4
    88.95 Change in orders on hand from
            Federal sources.................           7          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           5          13           6
    ---------------------------------------------------------------------------

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....          10           7           7
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................           1           4           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............          11          11          11
    ---------------------------------------------------------------------------

           Rural Business and Industry Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          12          50          50
    00.02 Negative subsidy paid to receipt
            account.........................                       1           2
    00.03 Interest on Treasury borrowing....           1           2           6
    00.04 Other losses......................                                   1
                                               ---------   ---------  ----------
    10.00   Total obligations...............          13          53          59
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          13          53          57
    23.95 New obligations...................         -13         -53         -59
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          13          51          54
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       2           3
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          13          53          57
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...                      10          44
    73.10 New obligations...................          13          53          59
    73.20 Total financing disbursements
            (gross).........................          -3         -17         -35
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          10          44          68

    [[Page 150]]

    87.00 Total financing disbursements
            (gross).........................           3          17          35
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.25   Offsetting collections (cash)
              from: Interest on uninvested
              funds.........................                      -2          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          13          51          54
    90.00 Financing disbursements...........           3          15          32
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          12          50          50
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          12          50          50
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                       3          20
    1231  Disbursements: Direct loan
            disbursements...................           3          17          35
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           3          20          55
    ---------------------------------------------------------------------------

        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.

        Direct 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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                          3            37             59
    1206  Non-Federal assets: Receivables,
            net.............................                                                       5
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                          3            20             55
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                          3            20             55
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                          6            57            119
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............                          6            57            119
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          6            57            119
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                          6            57            119
    -----------------------------------------------------------------------------------------------

         Rural Business and Industry Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................           4           2           2
    00.03 Investment in secondary market....           2          15          16
    00.04 NADBank guarantee fee subsidy.....                       1
    00.06 Subsidy reestimate paid to receipt
            account.........................           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............          12          18          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          28          39          44
    22.00 New financing authority (gross)...          24          24          26
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          52          63          70
    23.95 New obligations...................         -12         -18         -18
    24.40 Unobligated balance available, end
            of year: Uninvested.............          39          44          52
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..           3
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          21          24          26
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          24          24          26
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          12          18          18
    73.20 Total financing disbursements
            (gross).........................         -12         -18         -18
    73.31 Obligated balance transferred to
            other accounts..................          -1
    87.00 Total financing disbursements
            (gross).........................          12          18          18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -8         -10         -10
    88.25     Interest on uninvested funds..          -2          -2          -3
              Non-Federal sources:
    88.40       Non-Federal sources.........         -11         -11         -13
    88.40       Non-Federal sources-NADBank
                  fee collection............                      -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -21         -24         -26
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           3
    90.00 Financing disbursements...........          -8          -6          -8
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         815       1,000       1,000
    2131  Guaranteed loan commitments exempt
            from limitation.................           1          75
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         816       1,075       1,000
    2199  Guaranteed amount of guaranteed
            loan commitments................         644         847         847
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         728       1,306       1,856
    2231  Disbursements of new guaranteed
            loans...........................         666         711         813
    2251  Repayments and prepayments........         -80        -144        -204
          Adjustments:

    2262    Terminations for default that
              result in acquisition of
              property......................          -2          -2
    2263    Terminations for default that
              result in claim payments......          -4         -15         -16
    2264    Other adjustments, net..........          -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       1,306       1,856       2,449
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       1,032       1,466       1,932
    ---------------------------------------------------------------------------

    [[Page 151]]

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          28             40            46             55
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          28             40            46             55
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.          28             40            46             55
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          28             40            46             55
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          28             40            46             55
    -----------------------------------------------------------------------------------------------

                   Rural Development Loan Fund Program Account

                         (including transfers of funds)

        For the cost of direct loans, [$16,888,000] $17,622,500, 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
    $35,000,000: Provided further, That through June 30, [1998] 1999, of the
    total amount appropriated, [$3,345,000] $3,776,250 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] $3,547,000 shall be transferred to and
    merged with the appropriation for ``Rural Business-Cooperative Service--
    Salaries and Expenses''. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          17          17          18
    00.09 Administrative expense............                       3           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............          17          20          21
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          17          20          22
    23.95 New obligations...................         -17         -20         -21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          17          20          22
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          74          67          51
    73.10 New obligations...................          17          20          21
    73.20 Total outlays (gross).............         -25         -36         -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          67          51          43
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           4           5
    86.93 Outlays from current balances.....          24          32          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          25          36          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          17          20          22
    90.00 Outlays...........................          25          36          29
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................          37          35          35
                                               ---------   ---------  ----------
    1159    Total direct loan levels........          37          35          35
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       46.48       48.25       50.35
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       46.48       48.25       50.35
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........          17          17          18
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..          17          17          18
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................          25          33          25
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........          25          33          25
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................                       3           4
    3590  Outlays...........................                       3           4
    ---------------------------------------------------------------------------

        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. Through the use of local
    intermediaries, this program serves small-scale enterprises and gives
    preference to those communities with the greatest need.

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........                       3           4
    41.0  Grants, subsidies, and
            contributions...................          17          17          18
                                               ---------   ---------  ----------
    99.9    Total obligations...............          17          20          21
    ---------------------------------------------------------------------------

            Rural Development Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          37          35          35
    00.03 Interest on Treasury borrowing....           8          18          23
    00.04 Payment of negative subsidy to
            receipt account.................           3
                                               ---------   ---------  ----------
    10.00   Total obligations...............          47          53          58
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                       5           5
    22.00 New financing authority (gross)...          53          54          58
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          59          63
    23.95 New obligations...................         -47         -53         -58
    24.40 Unobligated balance available, end
            of year: Uninvested.............           5           5           5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          27          26          27

    [[Page 152]]

          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          33          43          38
    68.10   Change in orders on hand from
              Federal sources...............          -8         -15          -8
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................          25          28          30
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          53          54          58
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          59          58          48
    72.95   Receivables from program account          74          66          51
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         133         124          98
    73.10 New obligations...................          47          53          58
    73.20 Total financing disbursements
            (gross).........................         -56         -79         -73
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...          58          48          40
    74.95   Receivables from program account          66          51          43
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         124          98          83
    87.00 Total financing disbursements
            (gross).........................          56          79          73
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -25         -33         -25
    88.25     Interest on uninvested funds..          -3          -6          -7
    88.40     Non-Federal sources...........          -5          -4          -6
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -33         -43         -38
    88.95 Change in receivables from program
            accounts........................           8          15           8
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          28          26          28
    90.00 Financing disbursements...........          23          37          35
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          37          35          35
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          37          35          35
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         131         173         231
    1231  Disbursements: Direct loan
            disbursements...................          45          61          50
    1251  Repayments: Repayments and
            prepayments.....................          -4          -2          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         173         231         278
    ---------------------------------------------------------------------------

        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. 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.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4219-0-3-452    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          17             26            28             23
            Investments in US securities:
    1106      Receivables, net..............          74             67            51             43
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         131            169           231            278
    1402    Interest receivable.............           1              2             2              2
    1405    Allowance for subsidy cost (-)..         -71            -87          -113           -124
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          61             84           120            155
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         152            176           199            221
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...          78            110           148            178
    2105    Other...........................          74             67            51             43
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         152            176           199            221
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         152            176           199            221
    -----------------------------------------------------------------------------------------------

                 Rural Development Loan Fund Liquidating Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           7           5           4
                                               ---------   ---------  ----------
    03.00 Offsetting collections............           1           1           1
    04.00 Total: Balances and collections...           8           6           5
        Appropriation:
    05.01 Unobligated balance returned to
            receipts........................          -3          -2          -2
    07.99 Total balance, end of year........           5           4           3
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...           3           4           4
    68.26   Spending authority from
              offsetting collections
              (balances)....................           3           2           2
    68.27   Capital transfer to general fund          -5          -5          -5
    68.45   Portion not available for
              obligation (limitation on
              obligations)..................          -1          -1          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           6           3           2
    73.20 Total outlays (gross).............          -3          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           3           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -3          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -3          -4          -4
    90.00 Outlays...........................                      -3          -3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          84          82          80

    [[Page 153]]

    1231  Disbursements: Direct loan
            disbursements...................           1           1
    1251  Repayments: Repayments and
            prepayments.....................          -3          -3          -3
    1263  Write-offs for default: Direct
            loans...........................          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          82          80          77
    ---------------------------------------------------------------------------

        \1\ Amounts shown include advances on behalf of borrowers.

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           1              1             1              1
    0102  Expense...........................           6
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............           7              1             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4233-0-3-452    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           9              4             3              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             82            82             77
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -42            -39           -41            -41
    1604    Direct loans and interest
              receivable, net...............          43             43            41             36
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          43             43            41             36
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          52             47            44             39
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          52             47            44             44
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          52             47            44             44
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          52             47            44             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, for the purpose of
    promoting rural economic development and job creation projects,
    [$25,000,000] $15,000,000.
        For the cost of direct loans, including the cost of modifying loans
    as defined in section 502 of the Congressional Budget Act of 1974,
    [$5,978,000] $3,783,000.
        Of the funds derived from interest on the cushion of credit payments
    in fiscal year [1998] 1999, as authorized by section 313 of the Rural
    Electrification Act of 1936, [$5,978,000] $3,783,000 shall not be
    obligated and [$5,978,000] $3,783,000 are rescinded. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Subsidy...............           3           6           4
    00.05 Reestimates of direct loan subsidy           1
    00.09 Administrative expenses subject to
            limitation......................           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............           4           6           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           4           6           4
    23.95 New obligations...................          -4          -6          -4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           3           6           4
          Permanent:

    60.05   Appropriation (indefinite)......           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           4           6           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           5           5           7
    73.10 New obligations...................           4           6           4
    73.20 Total outlays (gross).............          -4          -3          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           5           7           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1
    86.93 Outlays from current balances.....           3           3           5
    86.97 Outlays from new permanent
            authority.......................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           3           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           6           4
    90.00 Outlays...........................           4           3           5
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................          12          25          15
                                               ---------   ---------  ----------
    1159    Total direct loan levels........          12          25          15
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       22.93       23.91       25.22
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       22.93       23.91       25.22
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........           3           6           4
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..           3           6           4
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................           4           3           5
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........           4           3           5
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1
    3590  Outlays...........................           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. The subsidy amounts are estimated on
    a present value basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           1
    41.0  Grants, subsidies, and
            contributions...................           4           6           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............           4           6           4
    ---------------------------------------------------------------------------

    [[Page 154]]

            Rural Economic Development Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................          12          25          15
    00.02 Interest Expense..................           3           4           5
                                               ---------   ---------  ----------
    10.00   Total obligations...............          16          29          20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           2           3           3
    22.00 New financing authority (gross)...          16          28          20
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.70 Balance of authority to borrow
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          19          31          23
    23.95 New obligations...................         -16         -29         -20
    24.40 Unobligated balance available, end
            of year: Uninvested.............           3           3           3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          15          19          11
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           9          10          13
    68.10   Change in orders on hand from
              Federal sources...............                       2          -1
    68.47   Portion applied to debt
              reduction.....................          -8          -3          -4
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................           1          10           8
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          16          29          20
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          13          14          22
    72.95   Receivables from program account           5           5           7
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          18          19          30
    73.10 New obligations...................          16          29          20
    73.20 Total financing disbursements
            (gross).........................         -14         -18         -24
    73.45 Adjustments in unexpired accounts.          -1
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...          14          22          19
    74.95   Receivables from program account           5           7           6
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          19          30          25
    87.00 Total financing disbursements
            (gross).........................          14          18          24
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Funds: Program Account          -4          -3          -4
    88.25     Interest on uninvested funds..          -1          -1          -2
    88.40     Non-Federal sources: Repayment
                of Principal................          -4          -6          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -9         -10         -13
    88.95 Change in receivables from program
            accounts........................                      -2           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           8          16           7
    90.00 Financing disbursements...........           5           8          11
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          12          25          15
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          12          25          15
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          35          42          50
    1231  Disbursements: Direct loan
            disbursements...................          11          14          20
    1251  Repayments: Repayments and
            prepayments.....................          -4          -6          -7
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          42          50          62
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           8              6             7              9
            Investments in US securities:
    1106      Program Account...............           4              5             7              6
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          35             42            50             62
    1405    Allowance for subsidy cost (-)..          -8             -9            -3             -1
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          27             32            48             61
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          39             43            61             76
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...          35             38            54             70
    2105    Other...........................           4              5             7              6
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          39             43            61             76
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          39             43            61             76
    -----------------------------------------------------------------------------------------------

              Rural Economic Development Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3104-0-1-271      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           7           8          10
    22.00 New budget authority (gross)......           1           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8          10          12
    24.40 Unobligated balance available, end
            of year: Uninvested.............           8          10          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............           1           2           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.20 Total outlays (gross).............           1           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          -1          -2          -2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources:
              Repayment of Principal........          -1          -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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           7           6           4
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................          -1          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           6           4           2
    ---------------------------------------------------------------------------

        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

    [[Page 155]]

    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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           5              6             5              3
    1601  Net value of assets related to
            pre-1992 direct loans receivable
            and acquired defaulted
            guaranteed loans receivable:
            Direct loans, gross.............           6              5             4              3
    1801  Other Federal assets: Cash and
            other monetary assets...........           2              2             4              7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          13             13            13             13
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          13             13            13             13
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          13             13            13             13
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          13             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 are] $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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      1997 actual   1998 est.   1999 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:
    22.00 New budget authority (gross)......           8           7          10
    23.95 New obligations...................          -8          -7         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           7           7          10
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           8           7          10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           6           6           6
    73.10 New obligations...................           8           7          10
    73.20 Total outlays (gross).............          -8          -8          -8
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           6           6           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           3           3           3
    86.93 Outlays from current balances.....           5           5           4
    86.97 Outlays from new permanent
            authority.......................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           8           8
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................           7           7          10
    90.00 Outlays...........................           8           8           8
    ---------------------------------------------------------------------------

        These 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 1999, the corporation expects to participate in approximately 20
    investment opportunities. These opportunities should result in the
    creation of nearly 1,500 new jobs and bring a minimum of 6 new products
    into the marketplace.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    33.0  Investments and loans.............           5           5           5
    41.0  Grants, subsidies, and
            contributions...................           2           1           3
                                               ---------   ---------  ----------
    99.9    Total obligations...............           8           7          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           6          11          11
    ---------------------------------------------------------------------------

            National Sheep Industry Improvement Center Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4202-0-3-452      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Administrative expense............                       1           1
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              99.5).........................                       1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                      20          19
    22.00 New budget authority (gross)......          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20          20          19
    23.95 New obligations...................                      -1          -1
    24.40 Unobligated balance available, end
            of year: Uninvested.............          20          19          18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................          20
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...                       1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          20
    90.00 Outlays...........................                       1           1
    ---------------------------------------------------------------------------

        The Federal Agriculture Improvement Act of 1996 established the
    National Sheep Industry Improvement Center to

    [[Page 156]]

    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 (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] $145,593,000, of which [$3,231,000] $3,413,000 may
    be transferred from the Export Loan Program account in this Act, [and
    $1,035,000] $1,093,000 may be transferred from the Public Law 480
    program account in this Act, and $2,000,000 is available solely for the
    purpose of offsetting fluctuations in international currency exchange
    rates: Provided, That these funds and any other funds that are deposited
    into the overseas exchange rate account are available until expended:
    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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market access...................          21          23          25
    00.02   Market development..............          63          64          61
    00.03   Market intelligence.............          22          23          26
    00.04   Financial marketing assistance..          16          17          14
    00.05   Long-term market and
              infrastructure development....          12          13          15
                                               ---------   ---------  ----------
    00.91     Total direct program..........         134         140         141
    09.00 Reimbursable program..............          53          54          44
                                               ---------   ---------  ----------
    10.00   Total obligations...............         187         194         185
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           8           2           2
    22.00 New budget authority (gross)......         190         194         185
    22.30 Unobligated balance expiring......          -9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         189         196         187
    23.95 New obligations...................        -187        -194        -185
    24.40 Unobligated balance available, end
            of year: Uninvested.............           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         131         136         141
    42.00   Transferred from other accounts.           6           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         137         140         141
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          53          54          44
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         190         194         185
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          25          35          47
    73.10 New obligations...................         187         194         185
    73.20 Total outlays (gross).............        -175        -182        -181
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          35          47          51
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         111         118         117
    86.93 Outlays from current balances.....          10          10          20
    86.97 Outlays from new permanent
            authority.......................          53          54          44
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         175         182         181
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -53         -54         -44
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         137         140         141
    90.00 Outlays...........................         120         128         137
    ---------------------------------------------------------------------------

        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:

        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. Staff
    increases to improve market access work will be achieved by shifting
    resources from FAS' financial marketing efforts.

        Market Development, Promotion and Outreach: 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. Public Law 83-690,
    approved August 28, 1954, includes authority to establish up to 25
    Agricultural Trade Offices. Currently 17 such offices are in operation
    at key foreign trading centers to assist U.S. exporters, trade groups
    and state export marketing officials in trade promotion. Promotional
    activities are carried out chiefly in cooperation with non-profit
    agricultural trade associations and

    [[Page 157]]

    firms on a cost-sharing basis. The largest of FAS's promotional programs
    are the Market Development Cooperator Program and Market Access Program.
    In addition, FAS sponsors U.S. participation in several major trade
    shows and a number of single-industry exhibitions each year. These
    programs are designed to create demand for U.S. agricultural products in
    foreign markets, introduce U.S. food and agricultural products to
    potential foreign customers, and show foreign customers how to use U.S.
    products.

        For 1999, FAS will be receiving additional funds as a result of
    increased cost-share contributions from the Cooperator Program.

        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.
    These efforts are designed to strengthen the export knowledge/skills of
    producers and exporters so they can compete more effectively in the
    international marketplace. Outreach also includes targeting foreign
    buyers in educating them about the merits of U.S. products and how they
    can be purchased.

        Market Intelligence: 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 64 posts
    located throughout the world covering some 130 countries. Reporting
    includes information and/or data on foreign government policies,
    analysis of supply and demand conditions, commercial trade relationships
    and market opportunities. Advanced computer and telecommunications
    technology is used to improve and speed the flow of information between
    the posts and Washington. FAS analyzes agricultural information
    essential to the assessment of foreign supply and demand conditions in
    order to provide estimates of the current situation and to forecast the
    export potential for specific U.S. agricultural commodities.

        Financial Marketing 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.

        Long-term Market and Infrastructure Development: FAS helps USDA and
    other federal agencies, U.S. universities and others enhance the global
    competitiveness of U.S. agriculture and helps increase income and food
    availability in developing nations by mobilizing expertise for
    agriculturally led economic growth. Through the administration of a
    number of collaborative programs, 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 are carried out in emerging markets
    aimed at enhancing their food and rural business systems and expanding
    U.S. agricultural exports. 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.

        In 1999, funding for FAS computer and other information technology
    needs are included in the discretionary funds requested for the FAS
    account. No funds are assumed to be transferred from the Commodity
    Credit Corporation for this purpose.

        In 1999, FAS will conduct projects to: (1) develop an agency-wide
    performance tracking and evaluation system that determines success rates
    in implementing FAS' strategic plan; and (2) evaluate and re-engineer
    FAS' crop and market intelligence-gathering analysis and dissemination
    process to make this activity more efficient and responsive to customer
    needs. $250,000 is proposed for each of these projects, to enlist
    private sector expertise.

        In 1999, FAS will also establish an account to manage currency
    fluctuation, with an initial capitalization of no less than $2.0
    million. The new funds will be part of a revolving fund to accommodate
    exchange rate changes affecting FAS' overseas operations. Funds could be
    withdrawn from the funds only after exchange rate losses are verified
    every six months. Exchange rate gains would be deposited into the
    account.

        FAS will be responsible for the full costs incurred by its use of
    U.S. embassies, as agreed in the International Cooperative
    Administrative Support Services system. An additional $4 million for
    embassy expenses through ICASS is requested.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          40          42          40
    11.3      Other than full-time permanent           1           2           2
    11.5      Other personnel compensation..           1           1           1
    11.8      Special personal services
                payments....................           2           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          44          47          45
    12.1    Civilian personnel benefits.....          12          12          12
    21.0    Travel and transportation of
              persons.......................           5           5           5
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......          10           9           9
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          56          61          61
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           2           1           3
    41.0    Grants, subsidies, and
              contributions.................                                   1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         134         140         141
    99.0  Reimbursable obligations..........          53          54          44
                                               ---------   ---------  ----------
    99.9    Total obligations...............         187         194         185
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         763         763         701
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         118         118         118
    ---------------------------------------------------------------------------

    [[Page 158]]

            Scientific Activities Overseas (Foreign Currency Program)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1404-0-1-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           1           1           1
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           5           5           5
    73.20 Total outlays (gross).............          -1          -1          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           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 (7 U.S.C. 1691, 1701-1715, 1721-1726, 1727-1727f, and 1731-1736g),
    as follows: (1) $226,900,000 for Public Law 480 title I credit,
    including Food for Progress programs; (2) $17,608,000 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; (3) $837,000,000 is hereby appropriated for
    commodities supplied in connection with dispositions abroad pursuant to
    title II of said Act; and (4) $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, and the Food
    for Progress Act of 1985, including the cost of modifying credit
    agreements under said Act, $176,596,000.
        In addition, for administrative expenses to carry out the Public Law
    480 title I credit program, and the Food for Progress Act of 1985, to
    the extent funds appropriated for Public Law 480 are utilized,
    $1,850,000.] (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                    Public Law 480 Grants--Titles II and III

        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, as follows: (1) $837,000,000 for commodities supplied
    in connection with dispositions abroad pursuant to title II of said Act;
    and (2) $30,000,000 for commodities supplied in connection with
    dispositions abroad pursuant to title III of said Act: Provided, That
    sums made available to carry out title II or title III of said Act shall
    remain available until expended (7 U.S.C. 1691, 1721-26a, 1727-27e,
    1731-36g-3, 1737, 2209b).

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Commodities supplied in connection
            with dispositions abroad (Title
            II).............................         813         837         837
    00.02 Commodities supplied in connection
            with dispositions abroad (Title
            III)............................          39          30          30
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................         852         867         867
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           6          30          68
    22.00 New budget authority (gross)......         867         867         867
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8          38
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         882         935         935
    23.95 New obligations...................        -852        -867        -867
    24.40 Unobligated balance available, end
            of year: Uninvested.............          30          68          68
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         867         867         867
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         510         594         508
    73.10 New obligations...................         852         867         867
    73.20 Total outlays (gross).............        -760        -915        -866
    73.45 Adjustments in unexpired accounts.          -8         -38
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         594         508         509
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         507         545         545
    86.93 Outlays from current balances.....         253         370         321
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         760         915         866
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         867         867         867
    90.00 Outlays...........................         760         915         866
    ---------------------------------------------------------------------------

        This account funds the non-credit components of Public Law 480,
    title II and title III.

            Public Law 480 Title I Ocean Freight Differential Grants

        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, $9,395,000 for ocean freight differential costs for
    the shipment of agricultural commodities pursuant to title I of said
    Act, including Food for Progress programs as authorized by the Food for
    Progress Act of 1985, as amended: Provided, That funds made avail-

    [[Page 159]]

    able for the cost of title I agreements and for title I ocean freight
    differential may be used interchangeably between the two accounts:
    Provided further, That sums made available shall remain available until
    expended (7 U.S.C. 1701b, 2209b).

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 P.L. 480 Grant--Title I: Ocean
            freight differential (OFD)......          17          18           9
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................          17          18           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          21          13          13
    22.00 New budget authority (gross)......          13          18           9
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    22.21 Unobligated balance transferred to
            other accounts..................          -9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          30          31          22
    23.95 New obligations...................         -17         -18          -9
    24.40 Unobligated balance available, end
            of year: Uninvested.............          13          13          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          13          18           9
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          42          43          29
    73.10 New obligations...................          17          18           9
    73.20 Total outlays (gross).............         -11         -31         -13
    73.45 Adjustments in unexpired accounts.          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          43          29          25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1          10           5
    86.93 Outlays from current balances.....          10          21           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          11          31          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          13          18           9
    90.00 Outlays...........................          11          31          13
    ---------------------------------------------------------------------------

        This account funds the title I ocean freight differential program.

    Credit accounts:

                         Public Law 480 Program Account

        For the cost, as defined in section 502 of the Congressional Budget
    Act of 1974, of these agreements, including the cost of modifying credit
    arrangements under said Act, $88,667,000: Provided, That sums made
    available shall remain available until expended.
        In addition, for administrative expenses to carry out the Public Law
    83-480 title I credit program, and the Food for Progress Act of 1985, as
    amended, to the extent funds appropriated for Public Law 83-480 are
    utilized, $1,938,000, of which not to exceed $1,093,000 may be
    transferred to and merged with the appropriation for salaries and
    expenses, Foreign Agricultural Service, and of which not to exceed
    $845,000 may be transferred to and merged with the appropriation for
    salaries and expenses, Farm Service Agency. (7 U.S.C. 1691, 1701-04,
    1731-36g-3, 2209b).

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          37          38          38
        Receipts:
    02.01 Downward reestimates of subsidies.           1
                                               ---------   ---------  ----------
    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 12-2277-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         138         177          89
    00.09 Administrative expenses...........           2           2           2
                                               ---------   ---------  ----------
    10.00   Total obligations...............         140         179          91
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           7          63          69
    22.00 New budget authority (gross)......         188         179          91
    22.10 Resources available from
            recoveries of prior year
            obligations.....................                       6
    22.21 Unobligated balance transferred to
            other accounts..................          -1
    22.22 Unobligated balance transferred
            from other accounts.............           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         203         248         160
    23.95 New obligations...................        -140        -179         -91
    24.40 Unobligated balance available, end
            of year: Uninvested.............          63          69          69
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         188         179          91
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         106         118          96
    73.10 New obligations...................         140         179          91
    73.20 Total outlays (gross).............        -128        -193        -126
    73.45 Adjustments in unexpired accounts.                      -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         118          96          62
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          52         103          53
    86.93 Outlays from current balances.....          76          90          74
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         128         193         126
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         188         179          91
    90.00 Outlays...........................         128         193         126
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................         186         227         102
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         186         227         102
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       81.79       77.83       86.79
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       81.79       77.83       86.79
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........         138         177          89
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         138         177          89
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................         126         190         124
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         126         190         124
    ----------------------------------------------------------------------------

        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.

    [[Page 160]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........           2           2           2
    41.0  Grants, subsidies, and
            contributions...................         138         177          89
                                               ---------   ---------  ----------
    99.9    Total obligations...............         140         179          91
    ---------------------------------------------------------------------------

                 Public Law 480 Direct Credit Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         183         227         102
    00.02 Interest on Treasury borrowing....          29          25          25
    00.04 Interest reestimate on direct loan
            subsidy.........................           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         213         252         127
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         211         252         127
    23.95 New obligations...................        -213        -252        -127
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          43          50          13
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         181         250         201
    68.10   Change in receivables from
              program account...............          10         -22         -34
    68.47   Portion applied to debt
              reduction.....................         -23         -26         -53
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         168         202         114
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         211         252         127
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...          60          69          96
    72.95   Receivable from program account.         108         118          96
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         168         187         192
    73.10 New obligations...................         213         252         127
    73.20 Total financing disbursements
            (gross).........................        -194        -247        -153
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...          69          96         104
    74.95   Receivables from program account         118          96          62
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         187         192         166
    87.00 Total financing disbursements
            (gross).........................         194         247         153
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................        -126        -191        -124
    88.00       Interest from Treasury......          -7
              Non-Federal sources:
    88.40       Interest received on loans..         -29         -44         -45
    88.40       Principal received on loans.          -4         -15         -32
    88.45     Offsetting governmental
                collections--Jordan Debt
                Forgiveness.................         -15
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -181        -250        -201
    88.95 Change in receivables from program
            accounts........................         -10          22          34
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          20          24         -40
    90.00 Financing disbursements...........          13          -3         -48
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         183         227         102
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         183         227         102
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,264       1,371       1,596
    1231  Disbursements: Direct loan
            disbursements...................         156         240         152
    1251  Repayments: Repayments and
            prepayments.....................          -4         -15         -32
    1264  Write-offs for default: Other
            adjustments, net--Jordan........         -45
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,371       1,596       1,716
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          60             69            96            104
            Investments in US securities:
    1106      Receivables, net..............         179            118            96             62
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,264          1,371         1,596          1,716
    1402    Interest receivable.............          30             34            38             42
    1405    Allowance for subsidy cost (-)..      -1,040         -1,068        -1,278         -1,416
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         254            337           356            342
    1901  Other Federal assets: Other assets
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         493            524           548            508
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           7              8             8              8
    2103    Debt............................         383            404           428            388
    2105    Other...........................         103            112           112            112
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         493            524           548            508
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         493            524           548            508
    -----------------------------------------------------------------------------------------------

                        Debt Reduction--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to liquidating accounts...                       8          18
    00.02 Interest on debt to Treasury......           6           4           4
                                               ---------   ---------  ----------
    10.00   Total obligations...............           6          12          22
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...           6          12          22
    23.95 New obligations...................          -6         -12         -22
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..           5          10           3
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           2          19
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           6          12          22
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           6          12          22
    73.20 Total financing disbursements
            (gross).........................          -6         -12         -22
    87.00 Total financing disbursements
            (gross).........................           6          12          22
    ----------------------------------------------------------------------------

    [[Page 161]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--debt
                reduction transfers.........                      -1         -18
    88.40     Non-Federal sources...........          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -1          -2         -19
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           5          10           3
    90.00 Financing disbursements...........           5          10           3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                      27         262
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                      27         262
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          66          63          89
    1233  Disbursements: Purchase of loans
            assets from a liquidating
            account.........................                      27         262
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1          -1
    1264  Write-offs for default: Other
            adjustments, net................          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          63          89         350
    ---------------------------------------------------------------------------

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          66             63            89            350
    1405    Allowance for subsidy cost (-)..         -30            -30           -50           -312
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          36             33            39             38
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          36             33            39             38
        LIABILITIES:
    2103  Federal liabilities: Debt.........          36             41            51             54
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          36             41            51             54
        NET POSITION:
    3300  Cumulative results of operations..                         -8           -12            -16
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                         -8           -12            -16
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          36             33            39             38
    -----------------------------------------------------------------------------------------------

           P.L. 480 Title I Food for Progress Credits, Program Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2273-0-1-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          29           4
    22.21 Unobligated balance transferred to
            other accounts..................         -25          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4
    24.40 Unobligated balance available, end
            of year: Uninvested.............           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total outlays (gross).............
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest to Treasury on borrowings          15          10          10
                                               ---------   ---------  ----------
    10.00   Total obligations...............          15          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          38          38
    22.00 New financing authority (gross)...          18          13          13
    22.40 Capital transfer to general fund..                     -38
    22.60 Redemption of debt................          -3          -3          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          10          10
    23.95 New obligations...................         -15         -10         -10
    24.40 Unobligated balance available, end
            of year: Uninvested.............          38
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............          18          13          13
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................          15          10          10
    73.20 Total financing disbursements
            (gross).........................         -15         -10         -10
    87.00 Total financing disbursements
            (gross).........................          15          10          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -3
    88.40     Interest collections..........         -15         -13         -13
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -18         -13         -13
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -3          -3          -3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4078-0-3-351      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...
    ----------------------------------------------------------------------------

    [[Page 162]]

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         508         508         508
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          38             38
            Investments in US securities:
    1106      Receivables, net..............          24             27
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         508            508           508            508
    1405    Allowance for subsidy cost (-)..        -315           -321          -315           -315
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         193            187           193            193
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         255            252           193            193
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................
    2103    Debt............................         228            225           193            193
    2105    Other...........................          27             27
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         255            252           193            193
        NET POSITION:
    3600  Other.............................
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         255            252           193            193
    -----------------------------------------------------------------------------------------------

      Expenses, Public Law 480, Foreign Assistance Programs, Agriculture,
                               Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         128         136
    22.00 New budget authority (gross)......           6                      18
    22.40 Capital transfer to general fund..           2        -136         -18
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         136
    24.40 Unobligated balance available, end
            of year: Uninvested.............         136
    ----------------------------------------------------------------------------

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

            Offsetting collections (cash):
    68.00     Offsetting collections (cash).         559         604         521
    68.00     Offsetting collections--
                Treasury Debt Restructuring
                Program Account--Jordan.....           6
    68.00     Offsetting collections (debt
                forgiveness)................                                  18
    68.27   Capital transfer to general fund        -559        -604        -521
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................           6                      18
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           6                      18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources--Jordan debt
                  forgiveness...............          -6
    88.00       Federal sources--debt
                  forgiveness...............                                 -18
    88.40     Principal and interest
                collections.................        -559        -604        -521
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -565        -604        -539
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -559        -604        -521
    90.00 Outlays...........................        -565        -604        -539
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       9,767       9,446       9,092
          Repayments:

            Repayments and prepayments:
    1251      Repayments and prepayments....        -303        -354        -321
    1251      Repayments and prepayments--
                debt reduction..............         -18                     -85
          Write-offs for default:

    1263    Direct loans....................
    1264    Other adjustments, net..........
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       9,446       9,092       8,686
    ---------------------------------------------------------------------------

                               Program Activities

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
    Ocean freight differential (title I)          17          18           9
    Commodities supplied in connection
    with dispositions abroad (title II).         813         837         837
    Commodities supplied in connection
    with dispositions abroad (title III)          39          30          30
                                        ------------------------------------
          Total program level...........         869         885         876
                                        ====================================

       RECONCILIATION OF PROGRAM LEVEL TO PROGRAM COSTS FUNDED BY P.L. 480

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
                   Title I

    Commodity credits...................         185         227         102
    Ocean freight differential and ocean
    transportation......................          17          18           9
                                        ------------------------------------
          Total program level, current
            year........................         202         245         111
    Prior year obligations financed.....         111         174         114
    Obligations financed in succeeding
    years...............................        -174        -114         -62
    Administrative costs................           2           2           2
                                        ------------------------------------
          Total program costs, funded
            program level...............         141         307         165
                                        ====================================
                  Title II

    Commodity costs.....................         456         504         504
    Ocean and inland transportation.....         357         333         333
                                        ------------------------------------
          Total program level, current
            year........................         813         837         837
    Prior year obligations financed.....         278         397         350
    Current year obligations financed in
    succeeding years....................        -397        -350        -351
                                        ------------------------------------
          Total program costs, funded
            program level...............         694         884         836
                                        ====================================
                  Title III

    Commodity costs.....................          28          23          23
    Ocean and inland transportation.....          11           7           7
                                        ------------------------------------
          Total program level, current
            year........................          39          30          30
    Prior year obligations financed.....          50          24          23
    Current year obligations financed in
    succeeding years....................         -24         -23         -22
                                        ------------------------------------
          Total program costs, funded
            program level...............          65          31          31
                                        ====================================

        Financing sales of agricultural commodities to developing countries
    for dollars on credit terms, or for local currencies

    [[Page 163]]

    (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]

                                         1997 actual  1998 est.   1999 est.
    Item:
      Expenses of shipments (Title I):
        Commodity costs:
          Long-term credit..............         185         227         102
                                        ------------------------------------
              Total commodity costs.....         185         227         102
                                        ====================================
        Ocean freight and freight
          differential (support of U.S.
          Merchant Marine):
          Long-term credit..............          17          18          19
                                        ------------------------------------
              Total ocean freight and
                freight differential....          17          18          19
                                        ------------------------------------
      Total expenses of shipments.......         202         245         111
                                        ====================================
    Appropriation--Title I loan subsidy.         194         177          89
                                        ====================================
    Appropriation--Ocean freight
    differential........................           5          18           9
                                        ====================================
    Title I credit not subsidized
    through appropriation...............          43          50          13
                                        ====================================

        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]

                                         1997 actual  1998 est.   1999 est.
    Item:
      Expenses of shipments:
        Commodity Credit Corporation
          stocks and other costs in
          connection with commodities
          supplied......................         456         504         504
        Ocean transportation............         357         333         333
                                        ------------------------------------
          Total program costs...........         813         837         837
                                        ====================================
          Appropriation or estimate.....         813         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):

           COMMODITIES SUPPLIED IN CONNECTION WITH DISPOSITIONS ABROAD

                                   (TITLE III)

                            [In millions of dollars]

                                         1997 actual  1998 est.   1999 est.
    Item:
      Expenses of shipments:
        Commodity Credit Corporation
          stocks and other costs in
          connection with commodities
          supplied......................          28          23          23
        Ocean transportation............          11           7           7
                                        ------------------------------------
          Total program costs...........          39          30          30
                                        ====================================

    [[Page 164]]

          Appropriation or estimate.....          39          30          30
                                        ====================================

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-2274-0-1-151    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         128            136
            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...........       9,767          9,464         9,092          8,771
    1601      Direct loans, adjustment--Debt
                Reduction for Jordan........                        -18
    1601      Direct loans, debt forgiveness                                                     -85
    1602    Interest receivable.............         131            125           131            131
    1603    Allowance, loans receivable (-).      -5,680         -5,447        -5,417         -5,417
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       4,218          4,124         3,806          3,400
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,351          4,260         3,806          3,400
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................                         19
    2104    Resources payable to Treasury...       4,351          4,259         3,806          3,485
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,351          4,278         3,806          3,485
        NET POSITION:
          Cumulative results of operations:

    3300    Cumulative results of
              operations--Jordan............                        -18
    3300    Cumulative results of
              operations--debt forgiveness..                                                     -85
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                        -18                          -85
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,351          4,260         3,806          3,400
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                   3
        Receipts:
    02.01 Deposits of miscellaneous
            contributed funds, International
            Cooperation and Development.....                       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      1997 actual   1998 est.   1999 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.......           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.............           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] NUTRITION SERVICE

                                  Federal Funds

    General and special funds:

                           Food Program Administration

        For necessary administrative expenses of the domestic food programs
    funded under this Act, [$107,619,000] $111,848,000, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program: Food program
            administration..................         106         108         112
    09.01 Reimbursable administrative
            services provided to Federal
            agencies........................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         107         109         113
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         107         109         113
    23.95 New obligations...................        -107        -109        -113
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         106         108         112
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         107         109         113
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           8           9          10
    73.10 New obligations...................         107         109         113
    73.20 Total outlays (gross).............        -106        -108        -111
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           9          10          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          97          99         103
    86.93 Outlays from current balances.....           8           8           9
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         106         108         111
    ----------------------------------------------------------------------------

    [[Page 165]]

        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..................         106         108         112
    90.00 Outlays...........................         106         107         110
    ---------------------------------------------------------------------------

        Food program administration funds the Federal operating expenses of
    the Food and Nutrition Service.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          73          74          76
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           1           1           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          76          77          80
    12.1    Civilian personnel benefits.....          15          15          15
    21.0    Travel and transportation of
              persons.......................           2           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    25.2    Other services..................           6           6           7
    26.0    Supplies and materials..........           1           1           2
    31.0    Equipment.......................           2           3           3
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         104         107         112
    99.0  Reimbursable obligations..........           1           1           1
    99.5  Below reporting threshold.........           2           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         107         109         113
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,553       1,560       1,612
    ---------------------------------------------------------------------------

                               Food Stamp Program

        For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
    2011 et seq.), [$25,140,479,000] $24,701,806,000, of which
    [$100,000,000] $1,000,000,000 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, 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 none of the funds made available under this
    heading shall be used for studies and evaluations.]: Provided further,
    That funds made available for Employment and Training under this head
    shall remain available until expended, as authorized by section 16(h)(1)
    of the Food Stamp Act, as amended.
        For necessary expenses to carry out the Food Stamp Act for the first
    quarter of fiscal year 2000, $5,200,000,000, to remain available through
    January 31, 2000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Properly issued benefits........      18,281      17,263      18,371
    00.02   Estimated State erroneous
              issuances.....................       1,369       1,299       1,383
    00.03   State administration............       1,739       1,812       2,098
    00.04   Employment and training program.         212         363         369
    00.05   Other program costs.............          76          72          62
    00.06   Puerto Rico.....................       1,174       1,204       1,236
    00.07   Food distribution program on
              indian reservations
              (Commodities in lieu of food
              stamps).......................          53          54          54
    00.08   Food distribution program on
              Indian reservations
              (Cooperator administrative
              expense)......................          19          21          21
    00.09   The emergency food assistance
              program (commodities).........          80         100         100
    00.10   Modified Food Stamp Program in
              American Samoa................           5           5           5
    00.11   Community Food Project..........           3           3           3
                                               ---------   ---------  ----------
    00.91     Total direct program..........      23,011      22,196      23,702
    09.01 Reimbursable program..............           9         185         235
                                               ---------   ---------  ----------
    10.00   Total obligations...............      23,020      22,381      23,937
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      27,627      25,010      24,937
    22.30 Unobligated balance expiring......      -4,608      -2,629      -1,000
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,019      22,381      23,937
    23.95 New obligations...................     -23,020     -22,381     -23,937
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................      27,618      25,140      24,702
    41.00   Transferred to other accounts...                    -315
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........      27,618      24,825      24,702
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           9         185         235
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      27,627      25,010      24,937
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         420         602         482
    73.10 New obligations...................      23,020      22,381      23,937
    73.20 Total outlays (gross).............     -22,866     -22,501     -23,893
    73.40 Adjustments in expired accounts...          28
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         602         482         526
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority      22,437      21,714      23,176
    86.93 Outlays from current balances.....         420         602         482
    86.97 Outlays from new permanent
            authority.......................           9         185         235
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      22,866      22,501      23,893
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -9        -185        -235
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      27,618      24,825      24,702
    90.00 Outlays...........................      22,857      22,316      23,658
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................      27,618      24,825      24,702
      Outlays...........................      22,857      22,316      23,658
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                     100         355
      Outlays...........................                     100         375
                                        ------------------------------------
    Total:
      Budget Authority..................      27,618      24,925      25,057
      Outlays...........................      22,857      22,416      24,033
                                        ====================================

        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.

        The Budget reflects a transfer of $315 million in 1998 from the Food
    Stamp Program to the Child Nutrition Program for funds needed for
    increased participation levels.

        Language is requested to clarify that funds made available for
    Employment and Training activities authorized under Sec.

    [[Page 166]]

    16(h)(1) of the Food Stamp Act, as amended, shall remain available until
    expended.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           3           4           4
    21.0    Travel and transportation of
              persons.......................           1           2           2
    22.0    Transportation of things........           4           4           3
    24.0    Printing and reproduction.......          24          27          21
    25.1    Advisory and assistance services           3                       6
    25.2    Other services..................          39          34          26
    26.0    Supplies and materials..........           1           2           2
    31.0    Equipment.......................                                   1
    41.0    Grants, subsidies, and
              contributions.................      22,936      22,123      23,637
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..      23,011      22,196      23,702
    99.0  Reimbursable obligations..........           9         185         235
                                               ---------   ---------  ----------
    99.9    Total obligations...............      23,020      22,381      23,937
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      1997 actual   1998 est.   1999 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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Benefits..........................                     100         535
    00.03 State administration..............                                -180
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                     100         355
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     100         355
    23.95 New obligations...................                    -100        -355
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                     100         355
                                                                 100         355
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                     100         355
    73.20 Total outlays (gross).............                    -100        -375
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...                                 -20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                     100         375
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     100         355
    90.00 Outlays...........................                     100         375
    ---------------------------------------------------------------------------

        The Administration is proposing to restore Food Stamp benefits to
    certain legal immigrants made ineligible by restrictions in the Personal
    Responsibility and Work Opportunity Reconciliation Act of 1996. The
    Administration is also proposing reforms to prevent Federal costs from
    increasing due to changes in State plans to allocate administrative
    costs between public assistance programs, including Food Stamps,
    Medicaid, and Temporary Assistance for Needy Families.

                            Child Nutrition Programs

                         (including transfers of funds)

        For necessary expenses to carry out the National School Lunch Act
    (42 U.S.C. 1751 et seq.), except section 21, and the Child Nutrition Act
    of 1966 (42 U.S.C. 1771 et seq.), except sections 17 and 21;
    [$7,767,816,000] $9,229,897,000, to remain available through September
    30, [1999] 2000, of which [$2,616,425,000] $3,897,703,000 is hereby
    appropriated and [$5,151,391,000] $5,332,194,000 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 none of the funds made available
    under this heading shall be used for studies and evaluations: Provided
    further,] That up to [$4,124,000] $4,300,000 shall be available for
    independent verification of school food service claims. (Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          School lunch program:

    00.01   Above 185% of poverty...........         300         309         320
    00.02   130-185% of poverty.............         443         457         474
    00.03   Below 130% of poverty...........       4,289       4,420       4,590
                                               ---------   ---------  ----------
    00.91   Subtotal, school lunch..........       5,032       5,186       5,384
          School breakfast program:

    01.01   Above 185% of poverty...........          72          78          83
    01.02   130-185% of poverty.............         107         115         123
    01.03   Below 130% of poverty...........       1,034       1,114       1,191
                                               ---------   ---------  ----------
    01.91   Subtotal, school breakfast......       1,213       1,307       1,397
          Child and adult care feeding program:

    02.01   Above 185% of poverty...........         668         213         226
    02.02   130-185% of poverty.............          76          73          78
    02.03   Below 130% of poverty...........         839       1,204       1,278
    02.04   Audits..........................          26          30          30
                                               ---------   ---------  ----------
    02.91   Subtotal, child and adult care
              feeding.......................       1,609       1,520       1,612
    03.01 Summer Food Service Program.......         258         272         295
    03.02 Special milk program..............          18          18          18
    03.03 State administrative expenses.....         104         118         118
    03.04 Commodity procurement.............         296         340         370
          Discretionary activities:

    04.01   School meals initiative.........          10          10          10
    04.02   Coordinated Review..............           4           4           4
    04.03   Nutrition studies and surveys...           2                       3
    04.04   Nutrition education and training           4           4          10
    04.05   Computer support and processing.           6           8           7
    04.06   Demonstrations..................           4           4
    04.07   Food safety education...........                                   2
                                               ---------   ---------  ----------
    04.91   Subtotal, discretionary
              activities....................          30          30          36
          Activities with permanent appropriations:

    05.01   Homeless children nutrition
              program.......................           2           3           4
    05.02   Boarder babies and information
              clearinghouse.................           1           1
    05.03   Food Service Management
              Institute.....................           2           2           2
                                               ---------   ---------  ----------
    05.91   Subtotal, activities with
              permanent appropriations......           5           6           6
                                               ---------   ---------  ----------
    10.00   Total obligations...............       8,565       8,797       9,236
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         386         607           2
    22.00 New budget authority (gross)......       8,659       8,089       9,236
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         136         104
    22.30 Unobligated balance expiring......         -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       9,171       8,800       9,238
    23.95 New obligations...................      -8,565      -8,797      -9,236
    24.40 Unobligated balance available, end
            of year: Uninvested.............         607           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       3,219       2,617       3,898
    42.00   Transferred from other accounts.                     315
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........       3,219       2,932       3,898
          Permanent:

    60.00   Appropriation...................           6           6           6

    [[Page 167]]

    62.00   Transferred from other accounts.       5,434       5,151       5,332
                                               ---------   ---------  ----------
    63.00     Appropriation (total).........       5,440       5,157       5,338
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       8,659       8,089       9,236
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...       1,159       1,307       1,206
    73.10 New obligations...................       8,565       8,797       9,236
    73.20 Total outlays (gross).............      -8,265      -8,796      -9,073
    73.40 Adjustments in expired accounts...         -16
    73.45 Adjustments in unexpired accounts.        -136        -104
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...       1,307       1,206       1,368
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,666       2,332       2,529
    86.93 Outlays from current balances.....       1,159       1,307       1,206
    86.97 Outlays from new permanent
            authority.......................       5,440       5,157       5,338
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       8,265       8,796       9,073
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       8,659       8,089       9,236
    90.00 Outlays...........................       8,265       8,796       9,073
    ---------------------------------------------------------------------------

        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.

        The Budget reflects a transfer of $315 million from the Food Stamp
    Program to the Child Nutrition Program in fiscal year 1998. These funds
    are necessary to support increased participation in the lunch and child
    care programs.

        A number of provisions in the child nutrition programs expire at the
    end of fiscal year 1998, for which the Administration fully supports
    cost neutral reauthorization. While the Budget proposes no specific
    legislation, the Administration is considering various options and may
    propose a specific package at a later date.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           4           4           5
    12.1  Civilian personnel benefits.......           1           1           1
    21.0  Travel and transportation of
            persons.........................           1           1
    24.0  Printing and reproduction.........           2           2           2
    25.1  Advisory and assistance services..           2
    25.2  Other services....................           5           3           5
    26.0  Supplies and materials
            (Commodities)...................         302         341         371
    41.0  Grants, subsidies, and
            contributions...................       8,248       8,445       8,852
                                               ---------   ---------  ----------
    99.9    Total obligations...............       8,565       8,797       9,236
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         101         109         109
    ---------------------------------------------------------------------------

    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), [$3,924,000,000] $4,081,000,000, to remain
    available through September 30, [1999] 2000, of which $20,000,000, 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 costs exceed budget estimates: [Provided, That none of the
    funds made available under this heading shall be used for studies and
    evaluations: Provided further, That up to $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
    notwithstanding sections 17(g), (h), and (i) of such Act, the Secretary
    shall adjust fiscal year [1998] 1999 State allocations to reflect food
    funds available to the State from fiscal year [1997] 1998 under sections
    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)] fiscal year 1999 funds in a manner that provides a portion of the
    food funds to all States to meet inflation, and a portion of food funds
    to States whose funding is less than their fair share of funds, as
    defined by regulations promulgated under section 17(g), unless the
    Secretary has published a revised funding formula regulation prior to
    the allocation of fiscal year 1999 funds: 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: Provided further, That
    for fiscal year 1999 and thereafter, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................       4,046       4,024       4,161
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         118
    22.00 New budget authority (gross)......       3,806       3,924       4,081
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         122         100         100
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,046       4,024       4,181
    23.95 New obligations...................      -4,046      -4,024      -4,161
    24.40 Unobligated balance available, end
            of year: Uninvested.............                                  20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       3,806       3,924       4,081
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         239         289         264
    73.10 New obligations...................       4,046       4,024       4,161
    73.20 Total outlays (gross).............      -3,866      -3,949      -4,052
    73.40 Adjustments in expired accounts...          -8
    73.45 Adjustments in unexpired accounts.        -122        -100        -100
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         289         264         274
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       3,749       3,660       3,787
    86.93 Outlays from current balances.....         117         289         264
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,866       3,949       4,052
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,806       3,924       4,081
    90.00 Outlays...........................       3,866       3,949       4,052
    ---------------------------------------------------------------------------

        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.

    [[Page 168]]

        WIC expires at the end of 1998. While the budget proposes no
    specific legislation, the administration fully supports reauthorization
    and is considering management and other program integrity issues and may
    propose legislation at a later date.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           4                       3
    41.0  Grants, subsidies, and
            contributions...................       4,042       4,024       4,158
                                               ---------   ---------  ----------
    99.9    Total obligations...............       4,046       4,024       4,161
    ---------------------------------------------------------------------------

                          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) [and, for administrative
    expenses pursuant to section 204 of]; the nutrition program for the
    elderly as authorized by section 311 of the Older Americans Act of 1965
    (42 U.S.C. 3030a); special assistance for the nuclear affected islands
    as authorized by the Omnibus Insular Areas Act of 1992; section 4(a) of
    the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
    note); farmers' market nutrition program as authorized by section 17(m)
    of the Child Nutrition Act of 1966; food gleaning and recovery systems;
    and the Emergency Food Assistance Act of 1983, [$141,000,000,]
    $317,081,000, to remain available through September 30, [1999] 2000:
    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 section
    311 of the Older Americans Act of 1965 (42 U.S.C. 3030a), $141,165,000,
    to remain available through September 30, 1999.] (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Commodity supplemental food program:

    00.01   Commodity procurement...........          74          77          77
    00.02   Administrative costs............          19          19          19
                                               ---------   ---------  ----------
    01.92   Subtotal, commodity supplemental
              food program..................          93          96          96
          The emergency food assistance program:

    02.01   Administrative costs............          41          45          45
    02.02   Commodity procurement...........          51
    02.03 Food gleaning and recovery........                                  20
                                               ---------   ---------  ----------
    02.92   Subtotal, the emergency food
              assistance program............          92          45          65
    03.01 Food distribution program on
            indian reservations.............           1
    04.01 Pacific island assistance.........           1           1           1
    05.01 Nutrition program for the elderly.         145         141         140
    06.01 Farmers' market nutrition program.                                  15
                                               ---------   ---------  ----------
    10.00   Total obligations...............         332         283         317
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          19           1
    22.00 New budget authority (gross)......         307         282         317
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           7
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         332         283         317
    23.95 New obligations...................        -332        -283        -317
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         307         282         317
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          59          52          45
    73.10 New obligations...................         332         283         317
    73.20 Total outlays (gross).............        -319        -290        -315
    73.40 Adjustments in expired accounts...         -12
    73.45 Adjustments in unexpired accounts.          -7
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          52          45          47
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         259         238         270
    86.93 Outlays from current balances.....          60          52          45
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         319         290         315
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         307         282         317
    90.00 Outlays...........................         319         290         315
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Commodity assistance program..........         166         141         317
      Food donations programs for selected
        groups..............................         141         141
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Commodity assistance program..........         178         147         315
      Food donations programs for selected
        groups..............................         148         143
      Commodity supplemental food program...          -1
      Temporary emergency food assistance
        program.............................          -6
    ---------------------------------------------------------------------------

        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. Funds are requested
    to support food gleaning and recovery.

        Assistance is also provided to residents of the Nuclear Affected
    Islands and Palau and funds are made available for non-presidentially
    declared disasters.

        Funds are provided for the Farmers' Market Nutrition Program
    (previously funded under the Special Supplemental Nutrition Program for
    Women, Infants and Children) for states' administrative expenses and
    vouchers redeemable by participants for fresh produce at farmers'
    markets.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials
            (commodities)...................         130          82          82
    41.0  Grants, subsidies, and
            contributions...................         202         201         235
                                               ---------   ---------  ----------
    99.9    Total obligations...............         332         283         317
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                                   5
    ---------------------------------------------------------------------------

    [[Page 169]]

                                 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 forest planning, inventory, and
    monitoring,] and for administrative expenses associated with the
    management of funds provided under the headings ``Forest and Rangeland
    Research'', ``State and Private Forestry'', ``National Forest System'',
    ``Wildland Fire Management'', ``Reconstruction and Construction'', and
    ``Land Acquisition'', [$1,348,377,000] $1,417,708,000, to remain
    available until expended, which shall include 50 percent of all moneys
    received during prior fiscal 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
    $10,000,000 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 any such project must
    be approved by the House and Senate Committees on Appropriations in
    compliance with the reprogramming procedures contained in House Report
    105-163: 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, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............          67          68           4
        Receipts:
    02.01 Fees, operation and maintenance of
            recreational facilities.........           7           4           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          74          72           7
        Appropriation:
    05.01 National forest system............          -6         -68          -4
    07.99 Total balance, end of year........          68           4           3
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   National Forest System..........       1,312       1,351       1,429
    00.04   Flood Supplemental..............          11          15
    00.05   Disaster Relief.................           6          34
                                               ---------   ---------  ----------
    00.91     Total direct program..........       1,329       1,400       1,429
    09.01 Reimbursable program..............          77          81          83
                                               ---------   ---------  ----------
    10.00   Total obligations...............       1,406       1,481       1,512
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         141         140         137
    22.00 New budget authority (gross)......       1,398       1,468       1,516
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
    22.21 Unobligated balance transferred to
            other accounts..................          -3
    22.22 Unobligated balance transferred
            from other accounts.............           1          10           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,546       1,618       1,653
    23.95 New obligations...................      -1,406      -1,481      -1,512
    24.40 Unobligated balance available, end
            of year: Uninvested.............         140         137         141
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       1,312       1,279       1,414
    40.15   Appropriation (emergency).......           3
    40.25   Appropriation (special fund,
              indefinite)...................           6          68           4
    42.00   Transferred from other accounts.                       1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........       1,321       1,348       1,418
          Permanent:

    62.00   Transferred from other accounts.                      39          15
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          77          81          83
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,398       1,468       1,516
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         162         222         222
    73.10 New obligations...................       1,406       1,481       1,512
    73.20 Total outlays (gross).............      -1,337      -1,481      -1,510
    73.45 Adjustments in unexpired accounts.          -9
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         222         222         224
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,098       1,178       1,218
    86.93 Outlays from current balances.....         162         222         209
    86.97 Outlays from new permanent
            authority.......................          77          81          83
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,337       1,481       1,510
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -54         -71         -73
    88.40     Non-Federal sources...........         -23         -10         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -77         -81         -83
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,321       1,387       1,433
    90.00 Outlays...........................       1,260       1,400       1,427
    ---------------------------------------------------------------------------

           Status of Contingent Emergency Funding (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    0199  Balance of contingent emergency
            funding, start of year..........           3           3           3
                                               ---------   ---------  ----------
    0799  Balance of contingent emergency
            funding, end of year............           3           3           3
    ---------------------------------------------------------------------------

        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

                                         1997 actual  1998 est.   1999 est.
    Area administered and protected
    (million acres).....................         192         192         192
    Timber sales offered (billion board
    feet)...............................         4.0         3.8         3.4

    [[Page 170]]

    Recreation: Seasonal capacity
    available (million people-at-one-
    time)...............................         157         157         160
    Soil and water resource improvements
    (thousand acres)....................          46          28          40
    Road system maintained to standard
    (percentage)........................          38          38          45
    Wildlife habitat restored or
    enhanced (hundred acres)............         206         220         250
    Anadromous fish streams habitat
    restored or enhanced (miles)........         900         930       1,000
    Terrestrial habitat restored or
    enhanced (thousand acres)...........         122         218         242
    Rangeland improvements (thousand
    acres)..............................          34          34          42

        Funding for road and infrastructure maintenance, range restoration,
    watershed improvements, and the Interior Columbia Basin Initiative in
    this account is proposed as part of the Environmental Resources Fund for
    America. This proposal highlights the Administration's priority to
    provide deficit neutral funding for investments in many of our Nation's
    key environmental programs. A discussion of the Environmental Resources
    Fund for America and two other funds for research and transportation can
    be found in Section II of the  Budget volume.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         546         564         564
    11.3      Other than full-time permanent          61          64          64
    11.5      Other personnel compensation..          18          19          19
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         625         647         647
    12.1    Civilian personnel benefits.....         147         153         152
    13.0    Benefits for former personnel...           8           8           8
    21.0    Travel and transportation of
              persons.......................          49          53          49
    22.0    Transportation of things........          10          11          11
    23.1    Rental payments to GSA..........          18          18          18
    23.2    Rental payments to others.......          23          25          23
    23.3    Communications, utilities, and
              miscellaneous charges.........          45          48          45
    24.0    Printing and reproduction.......           6           6           6
    25.2    Other services..................         264         285         333
    26.0    Supplies and materials..........          61          66          62
    31.0    Equipment.......................          63          68          64
    32.0    Land and structures.............           2           3           3
    41.0    Grants, subsidies, and
              contributions.................           2           2           2
    42.0    Insurance claims and indemnities           4           5           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       1,327       1,398       1,427
    99.0  Reimbursable obligations..........          77          81          83
          Allocation Account:

    11.1    Personnel compensation: Full-
              time permanent................           1           1           1
    25.2    Other services..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, allocation account..           2           2           2
                                               ---------   ---------  ----------
    99.9    Total obligations...............       1,406       1,481       1,512
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......      17,918      17,867      17,695
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         508         535         546
        Allocation account:
    3001  Total compensable workyears: Full-
            time equivalent employment......       1,301       1,075       1,023
    ---------------------------------------------------------------------------

                         Reconstruction and Construction

        For necessary expenses of the Forest Service, not otherwise provided
    for, [$166,045,000] $160,914,000, 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. (Department of the Interior and Related
    Agencies Appropriations Act, 1998.)

        The following table shows the amounts appropriated by program/
    activity (in millions of dollars):
                                         1997 actual  1998 est.   1999 est.
    Facilities Reconstruction/
    Construction........................          60          51          52
    Trail Reconstruction/Construction...          22          27          13
    Forest Road System Rehabilitation...          34          41          73
    Timber Access Roads Oversight.......          59          47          23
    Total Emergency.....................          33
    Appropriation (contingency).........           5
    Contingent emergency appropriation
    not available for obligations.......          -5
    Line item veto cancellation.........                      -1
                                        ------------------------------------
      Appropriation (total).............         208         165         161

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Reconstruction and construction.         161         128         153
    00.03   Flood supplemental and other....          25          35          27
                                               ---------   ---------  ----------
    00.91     Total construction............         186         163         180
    09.01 Reimbursable program..............           5           4           3
                                               ---------   ---------  ----------
    10.00   Total obligations...............         191         167         183
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         114         142         144
    22.00 New budget authority (gross)......         218         169         164
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         333         311         308
    23.95 New obligations...................        -191        -167        -183
    24.40 Unobligated balance available, end
            of year: Uninvested.............         142         144         125
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         208         166         161
    40.15   Appropriation (emergency).......           5
    40.60   Contingent emergency
              appropriation not available
              for obligations...............          -5
    40.79   Line item veto cancellation.....                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         208         165         161
          Permanent:

    60.65   Contingent emergency
              appropriation released........           5
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           5           4           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         218         169         164
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          94          82          67
    73.10 New obligations...................         191         167         183
    73.20 Total outlays (gross).............        -202        -182        -196
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          82          67          54
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         103          96          93
    86.93 Outlays from current balances.....          94          82         100
    86.97 Outlays from new permanent
            authority.......................           5           4           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         202         182         196
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3          -2          -2
    88.40     Non-Federal sources...........          -2          -2          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -5          -4          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         213         165         161

    [[Page 171]]

    90.00 Outlays...........................         196         178         193
    ---------------------------------------------------------------------------

           Status of Contingent Emergency Funding (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    0199  Balance of contingent emergency
            funding, start of year..........
    0300  New emergency funding not
            available for obligation........           5
    0400  Releases of contingent emergency
            appropriations..................          -5
                                               ---------   ---------  ----------
    0799  Balance of contingent emergency
            funding, end of year............
    ---------------------------------------------------------------------------

        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. Receipt credit for roads constructed and/or
    reconstructed by a timber purchaser will not be offered in 1999.

        Funding for road, trail, and facility reconstruction and
    rehabilitation is proposed as part of the Environmental Resources Fund
    for America. This proposal highlights the Administration's priority to
    provide deficit neutral funding for investments in many of our Nation's
    key environmental programs. A discussion of the Environmental Resources
    Fund for America and two other funds for research and transportation can
    be found in Section II of the Budget volume.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          54          46          44
    11.3      Other than full-time permanent           5           4           3
    11.5      Other personnel compensation..           2           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          61          51          48
    12.1    Civilian personnel benefits.....          14          12          12
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           3           2           3
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........           3           3           2
    23.2    Rental payments to others.......           2           1           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           4           3           3
    25.2    Other services..................          52          55          74
    26.0    Supplies and materials..........           9           7           6
    31.0    Equipment.......................           5           4           2
    32.0    Land and structures.............          26          20          23
    41.0    Grants, subsidies, and
              contributions.................           4           3           3
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         185         163         180
    99.0  Reimbursable obligations..........           5           4           3
    25.2  Allocation Account: Other services           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         191         167         183
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,614       1,355       1,233
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          21          17          17
    ---------------------------------------------------------------------------

                          Forest and Rangeland Research

        For necessary expenses of forest and rangeland research as
    authorized by law, [$187,944,000] $198,122,000, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.06 Forest and Rangeland Research.....         179         185         206
    09.01 Reimbursable program..............          11          12          12
                                               ---------   ---------  ----------
    10.00   Total obligations...............         190         197         218
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          14          17          20
    22.00 New budget authority (gross)......         192         200         210
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         207         217         230
    23.95 New obligations...................        -190        -197        -218
    24.40 Unobligated balance available, end
            of year: Uninvested.............          17          20          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         180         188         198
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         181         188         198
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          11          12          12
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         192         200         210
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          58          58          74
    73.10 New obligations...................         190         197         218
    73.20 Total outlays (gross).............        -189        -181        -208
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          58          74          84
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         120         152         160
    86.93 Outlays from current balances.....          58          17          36
    86.97 Outlays from new permanent
            authority.......................          11          12          12
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         189         181         208
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -10         -10         -10
    88.40     Non-Federal sources...........          -1          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -11         -12         -12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         181         188         198
    90.00 Outlays...........................         178         169         196
    ---------------------------------------------------------------------------

        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 pol-

    [[Page 172]]

    icy 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.

        Funding for Forest and Rangeland Research is proposed as part of the
    Research Fund for America. This proposal highlights the Administration's
    priority to providing needed and sustained investments in important
    Federal research programs on a deficit neutral basis. A discussion of
    the Research fund for America, and two other funds for the environment
    and transportation, can be found in Section II of the Budget volume.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          89          89          93
    11.3      Other than full-time permanent           8           8           9
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          98          98         103
    12.1    Civilian personnel benefits.....          21          21          22
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           7           8           9
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           6           7           7
    24.0    Printing and reproduction.......           1           1           1
    25.5    Research and development
              contracts.....................          24          25          38
    26.0    Supplies and materials..........           6           7           8
    31.0    Equipment.......................           9          10          10
    41.0    Grants, subsidies, and
              contributions.................           3           4           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         179         185         206
    99.0  Reimbursable obligations..........          11          12          12
                                               ---------   ---------  ----------
    99.9    Total obligations...............         190         197         218
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,295       2,295       2,416
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          84          84          84
    ---------------------------------------------------------------------------

                           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 health management, cooperative forestry, and
    education and land conservation activities, [$161,237,000] $162,900,000,
    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, $800,000 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: Provided further,
    That activities conducted pursuant to funds provided herein for the
    Alaska Spruce Bark Beetle task force shall be exempt from the
    requirements of the Federal Advisory Committee Act]. (Department of the
    Interior and Related Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.05   Forest health management........          64          66          69
    00.06   Cooperative forestry............          90          97         101
    00.07   Emergency pest suppression......           4
                                               ---------   ---------  ----------
    00.91     Total direct program..........         158         163         170
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations...............         159         164         171
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          22          21          21
    22.00 New budget authority (gross)......         156         162         164
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         180         183         185
    23.95 New obligations...................        -159        -164        -171
    24.40 Unobligated balance available, end
            of year: Uninvested.............          21          21          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         156         161         163
    41.00   Transferred to other accounts...          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         155         161         163
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         156         162         164
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         141         142         146
    73.10 New obligations...................         159         164         171
    73.20 Total outlays (gross).............        -157        -160        -163
    73.45 Adjustments in unexpired accounts.          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         142         146         154
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         121         121         122
    86.93 Outlays from current balances.....          35          38          41
    86.97 Outlays from new permanent
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         157         160         163
    ----------------------------------------------------------------------------

        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..................         155         161         163
    90.00 Outlays...........................         156         159         162
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      State and private forestry............         155         161         163
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      State and private forestry............         147         154         162
      Emergency pest suppression fund.......          10           5
    ---------------------------------------------------------------------------

        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, and cooperative
    lands.

        Cooperative Fire Protection.--Includes funding to enhance the
    capacity of States to provide coordinated fire suppression response and
    to promote safe and effective initial fire attack

    [[Page 173]]

    in wildland/urban interface areas by volunteer fire departments. In
    previous years, funding for these two components was included under the
    Forest Service Forest Health Management program and the Agriculture
    Rural Community Fire Protection program, respectively.

        Cooperative Forestry.--Includes forest stewardship, the stewardship
    incentives program, the forest legacy program, urban and community
    forestry, economic action programs, and Pacific Northwest community
    assistance programs. Forest stewardship includes: forest resource
    management; and seedlings, nursery, and tree improvement programs.
    Economic action programs include economic recovery, rural development,
    and forest products conservation and recycling programs.

        Funding for Forest Stewardship and the Stewardship Incentive Program
    in this account is proposed as part of the Environmental Resources Fund
    for America. This proposal highlights the Administration's priority to
    provide deficit neutral funding for investments in many of our Nation's
    key environmental programs. A discussion of the Environmental Resources
    Fund for America and two other funds for research and transportation can
    be found in Section 11 of the Budget volume.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          29          29          28
    11.3      Other than full-time permanent           2           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          31          31          30
    12.1    Civilian personnel benefits.....           5           6           6
    21.0    Travel and transportation of
              persons.......................           5           5           5
    23.1    Rental payments to GSA..........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................          18          19          24
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................           2           2           2
    32.0    Land and structures.............           3           4           4
    41.0    Grants, subsidies, and
              contributions.................          89          92          95
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         157         163         170
    99.0  Reimbursable obligations..........           1           1           1
    25.2  Allocation Account: Other services           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............         159         164         171
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         698         699         662
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           5           5           5
    ---------------------------------------------------------------------------

                            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, [$584,707,000] $554,437,000, to remain available until expended:
    Provided, That such funds are available for repayment of advances from
    other appropriations accounts previously transferred for such purposes.
        For an additional amount to cover necessary expenses for emergency
    rehabilitation, presuppression due to emergencies, and wildfire
    suppression activities of the Forest Service, $102,000,000, to remain
    available until expended: Provided, That the entire amount is designated
    by Congress as an emergency requirement pursuant to section
    252(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended: Provided further, That these funds shall be
    available only to the extent an official budget request for a specific
    dollar amount, that includes designation of the entire amount of the
    request as an emergency requirement as defined in the Balanced Budget
    and Emergency Deficit Control Act of 1985, as amended, is transmitted by
    the President to the Congress. (Department of the Interior and Related
    Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fire management...................         623         614         587
    09.01 Reimbursable program..............          34          23          22
                                               ---------   ---------  ----------
    10.00   Total obligations...............         657         637         609
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         -79         128          99
    22.00 New budget authority (gross)......         864         608         576
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         785         736         675
    23.95 New obligations...................        -657        -637        -609
    24.40 Unobligated balance available, end
            of year: Uninvested.............         128          99          66
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         830         585         554
    40.15   Appropriation (emergency).......                                 102
    40.60   Contingent emergency
              appropriation not available
              for obligations...............                                -102
                                               ---------   ---------  ----------
    43.00     Appropriation (total).........         830         585         554
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          34          23          22
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         864         608         576
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         211          99          34
    73.10 New obligations...................         657         637         609
    73.20 Total outlays (gross).............        -768        -702        -557
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          99          34          86
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         602         580         443
    86.93 Outlays from current balances.....         132          99          92
    86.97 Outlays from new permanent
            authority.......................          34          23          22
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         768         702         557
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -30         -20         -19
    88.40     Non-Federal sources...........          -4          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -34         -23         -22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         830         585         554
    90.00 Outlays...........................         734         679         535
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Wildland fire management..............         830         585         554
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Wildland fire management..............       1,196         679         535
      Forest Service fire protection........        -259
      Emergency Forest Service firefighting
        fund................................        -203
    ---------------------------------------------------------------------------

           Status of Contingent Emergency Funding (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    0199  Balance of contingent emergency
            funding, start of year..........                     250         250
    0300  New emergency funding not
            available for obligation........         250                     102
                                               ---------   ---------  ----------

    [[Page 174]]

    0799  Balance of contingent emergency
            funding, end of year............         250         250         362
    ---------------------------------------------------------------------------

        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.

        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 Operations 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 Operations 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 includes $102 million in contingent
    funding for 1999 to be utilized for emergency wildland fire activities,
    if needed, beyond the amount requested in this budget. In addition, $250
    million in emergency contingency funds for firefighting operations
    remains from 1997 appropriations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          97         115         115
    11.3      Other than full-time permanent          22          25          25
    11.5      Other personnel compensation..          33          39          39
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         152         179         179
    12.1    Civilian personnel benefits.....          37          43          43
    13.0    Benefits for former personnel...           7           8           8
    21.0    Travel and transportation of
              persons.......................          18          12          11
    22.0    Transportation of things........           3           2           2
    23.1    Rental payments to GSA..........           2           2           2
    23.2    Rental payments to others.......           5           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........          12           8           7
    24.0    Printing and reproduction.......           2           1           1
    25.2    Other services..................         331         319         298
    26.0    Supplies and materials..........          34          23          20
    31.0    Equipment.......................          15          10           9
    32.0    Land and structures.............           1           1           1
    41.0    Grants, subsidies, and
              contributions.................           3           2           2
    42.0    Insurance claims and indemnities           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         623         614         587
    99.0  Reimbursable obligations..........          34          23          22
                                               ---------   ---------  ----------
    99.9    Total obligations...............         657         637         609
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       5,410       6,375       6,311
    ---------------------------------------------------------------------------

               Payments to States--Northern Spotted Owl Guarantee

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1117-0-1-806      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................         135         130         125
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         135         130         125
    23.95 New obligations...................        -135        -130        -125
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........         135         130         125
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................         135         130         125
    73.20 Total outlays (gross).............        -135        -130        -125
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         135         130         125
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         135         130         125
    90.00 Outlays...........................         135         130         125
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         135         130         125
      Outlays...........................         135         130         125
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 145
      Outlays...........................                                 145
                                        ------------------------------------
    Total:
      Budget Authority..................         135         130         270
      Outlays...........................         135         130         270
                                        ====================================

        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. Proposed
    legislation, to be transmitted later, would stabilize funding levels
    through payments to States nationwide, beginning in 1999, to provide
    predictable stable payments for county roads and schools.

                Payments to States-Northern Spotted Owl Guarantee

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1117-4-1-806      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                                 145
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 145

    [[Page 175]]

    23.95 New obligations...................                                -145
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........                                 145
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 145
    73.20 Total outlays (gross).............                                -145
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                 145
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 145
    90.00 Outlays...........................                                 145
    ---------------------------------------------------------------------------

        This proposal would extend the guaranteed county payments, enacted
    with implementation of the President's Northwest Forest Plan, to all
    counties nationwide that currently receive receipt sharing payments from
    national forests. The proposal would extend the owl-county guaranteed
    payments past the 2003 expiration date, and would stabilize the current
    declining formula. In addition, the same level of payment guarantee
    would be extended to all qualifying counties.

                     Southeast Alaska Economic Disaster Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1108-0-1-451      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................          20          13          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          60          40          27
    23.95 New obligations...................         -20         -13         -13
    24.40 Unobligated balance available, end
            of year: Uninvested.............          40          27          14
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          27
    73.10 New obligations...................          20          13          13
    73.20 Total outlays (gross).............         -47         -13         -13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          47          13          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          47          13          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          47          13          13
    ---------------------------------------------------------------------------

        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 1999. 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 percent 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 percent 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, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           2           2           1
        Receipts:
    02.01 Cooperative range improvements....           3           3           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           5           5           4
        Appropriation:
    05.01 Range betterment fund.............          -3          -4          -3
    07.99 Total balance, end of year........           2           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................           3           4           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......           1           1           1
    22.00 New budget authority (gross)......           3           4           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           5           4
    23.95 New obligations...................          -3          -4          -3
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.25 Appropriation (special fund,
            indefinite).....................           3           4           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           1           1           1
    73.10 New obligations...................           3           4           3
    73.20 Total outlays (gross).............          -4          -4          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           3           4           3
    86.93 Outlays from current balances.....           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           4           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           4           3
    90.00 Outlays...........................           4           4           4
    ---------------------------------------------------------------------------

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    25.2  Other services....................           1           2           1
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............           3           4           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          41          39          37
    ---------------------------------------------------------------------------

    [[Page 176]]

                            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
    through 11), including administrative expenses, and for acquisition of
    land or waters, or interest therein, in accordance with statutory
    authority applicable to the Forest Service, $52,976,000, 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, $57,336,000, to remain available until expended, to
    be derived as follows: from the Land and Water Conservation Fund, as
    amended (16 U.S.C. 4601, 4-11, 516-67a, and 555a), $56,057,000; 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, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............           1           1           1
        Receipts:
    02.01 National forest lands under
            special acts....................           1           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           2           2           2
        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          37         190          64
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          13          19          50
    22.00 New budget authority (gross)......          42         221          57
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          55         240         107
    23.95 New obligations...................         -37        -190         -64
    24.40 Unobligated balance available, end
            of year: Uninvested.............          19          50          43
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Appropriation (special fund, definite):

    40.20   Appropriation (LWCF)............          41         220          56
    40.20   Appropriation (Special Act))....           1           1           1
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........          42         221          57
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          42         221          57
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          15          10          44
    73.10 New obligations...................          37         190          64
    73.20 Total outlays (gross).............         -42        -156        -113
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          10          44          -5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          27         146          38
    86.93 Outlays from current balances.....          15          10          75
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          42         156         113
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          42         221          57
    90.00 Outlays...........................          42         156         113
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Land acquisition accounts.........                                  57
      Land Acquisition..................          41         220
      Acquisition of Lands for National
        Forest, Special Acts............           1           1
      Acquisition of Lands To Complete
        Land Exchanges..................           1
    ------------------------------------------------------------------------
    Distribution of outlays by account:
      Land acquisition accounts.........                                  38
      Land Acquisition..................          41         155          75
      Acquisition of Lands for National
        Forest, Special Acts............           1           1
      Acquisition of Lands To Complete
        Land Exchanges..................
    ------------------------------------------------------------------------

        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
    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 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.

        Funding for land acquisition from the Land and Water Conservation
    Fund is proposed as part of the Environmental Resources Fund for
    America. This proposal highlights the Administration's priority to
    provide deficit neutral funding for investments in many of our Nation's
    key environmental programs. A discussion of the Environmental Resources
    Fund for America and two other funds for research and transportation can
    be found in Section II of the Budget volume.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           5           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           1           9           9
    32.0  Land and structures...............          30         175          49
                                               ---------   ---------  ----------
    99.9    Total obligations...............          37         190          64
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-300      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         110         103         104
    ---------------------------------------------------------------------------

    [[Page 177]]

                     Forest Service Permanent Appropriations

              [midewin national tallgrass prairie restoration fund]

        [All funds collected for admission, occupancy, and use of the
    Midewin National Tallgrass Prairie, and the salvage value proceeds from
    sale of any facilities and improvements pursuant to sections 2915(d) and
    (e) of Public Law 104-106, are hereby appropriated and made available
    until expended for the necessary expenses of restoring and administering
    the Midewin National Tallgrass Prairie in accordance with section
    2915(f) of the Act.] (Department of the Interior and Related Agencies
    Appropriations Act, 1998.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............         294         285         235
        Receipts:
    02.01 National forests fund, Agriculture         -46
    02.02 Payments to states................         121         103         135
    02.03 Payments to states, legislative
            proposal subject to PAYGO.......                                -135
    02.04 Timber roads, purchaser elections.           6           6           6
    02.05 Road and trails for States,
            National Forest Fund............          25          25          28
    02.06 Timber salvage sales..............         177         171         159
    02.07 Deposits, brush disposal..........          19          24          26
    02.08 Recreational fee demonstration
            program.........................                      16          20
    02.09 Rents and charges for quarters....           7           7           8
    02.10 National Grasslands...............          13          14          14
    02.11 Miscellaneous special funds,
            Forest Service..................           2           2           2
    02.12 National forests fund, Interior...          11          10          10
                                               ---------   ---------  ----------
    02.99   Total receipts..................         335         378         273
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         629         663         508
        Appropriation:
    05.01 Forest Service permanent
            appropriations..................        -344        -428        -388
    05.02 Forest Service permanent
            appropriations, legislative
            proposal........................                                 135
                                               ---------   ---------  ----------
    05.99 Subtotal appropriation............        -344        -428        -253
    07.99 Total balance, end of year........         285         235         255
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payments to States, National
            forest fund.....................         119         103         135
    00.02 Payment to Minnesota..............           1           1           1
    00.03 Payments to counties, National
            Grasslands......................           5           6           6
    00.04 Recreation fee collection costs...           1           2           1
    00.05 Recreation demonstration pilot
            project.........................           4          18          20
    00.06 Timber purchaser roads constructed
            by Forest Service...............           7           6           6
    00.07 Timber salvage sales..............         174         151         141
    00.08 Roads and trails for States.......                      50          28
    00.09 Expenses, brush disposal..........          21          23          25
    00.10 Restoration of forest lands and
            improvements....................          32           3           1
    00.11 Operation and maintenance of
            quarters........................           7           7           8
    00.12 Miscellaneous special funds.......           1           1           1
    00.13 Pipeline Restoration Fund.........                                   6
                                               ---------   ---------  ----------
    10.00   Total obligations...............         372         371         379
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         259         265         322
    22.00 New budget authority (gross)......         368         428         388
    22.22 Unobligated balance transferred
            from other accounts.............          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         637         693         710
    23.95 New obligations...................        -372        -371        -379
    24.40 Unobligated balance available, end
            of year: Uninvested.............         265         322         331
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................         344         428         388
    62.00 Transferred from other accounts...          24
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........         368         428         388
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         368         428         388
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          38          38          39
    73.10 New obligations...................         372         371         379
    73.20 Total outlays (gross).............        -372        -370        -384
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          38          39          34
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         334         332         346
    86.98 Outlays from permanent balances...          38          38          38
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         372         370         384
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         368         428         388
    90.00 Outlays...........................         372         370         384
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Payments to States, National
        Forest Fund.....................         119         103         135
      Payment to Minnesota..............                       1           1
      Payments to counties, National
        Grasslands......................           5           6           6
      Recreation fee collection costs...           1           1           1
      Recreation fee demonstration
        program.........................                      18          20
      Timber purchaser roads constructed
        by Forest Service...............           6           6           6
      Roads and Trails for States.......          25          50          28
      Timber salvage sales..............         177         201         156
      Expenses, brush disposal..........          19          32          26
      Restoration of Forestlands and
        Improvements....................          35           3           1
      Operation and Maintenance of
        Quarters........................           7           7           8
    ------------------------------------------------------------------------
    Distribution of outlays by account:
      Payments to States, National
        Forest Fund.....................         119         103         135
      Payment to Minnesota..............                       1           1
      Payments to counties, National
        Grasslands......................           5           6           6
      Recreation fee collection costs...           1           1           1
      Recreation fee demonstration
        program.........................          -4          18          20
      Timber purchaser roads constructed
        by Forest Service...............           6           5           5
      Roads and Trails for States.......                      50          28
      Timber salvage sales..............         180         153         152
      Expenses, brush disposal..........          22          23          25
      Restoration of Forestlands and
        Improvements....................          33           3           3
      Operation and Maintenance of
        Quarters........................           7           7           8

    ------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1997 actual  1998 est.   1999 est.
    Enacted/requested:
      Budget Authority..................         368         428         388
      Outlays...........................         372         370         384
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                -135
      Outlays...........................                                -135
                                        ------------------------------------
    Total:
      Budget Authority..................         368         428         253
      Outlays...........................         372         370         249
                                        ====================================

        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, reconstruction, 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 as
    amended, amounts collected at fee demonstration areas, sites, or
    projects are available for maintenance and development of recreation
    facilities. A legislative proposal to authorize collection and use of
    all recreation receipts in fiscal year 2000 and after is included.

        Midewin National Tallgrass Prairie rental fees.--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.

    [[Page 178]]

        Midewin National Tallgrass Prairie Restoration Fund.--Monies
    received from user fees and the salvage value proceeds from sale of any
    facilities and improvements pursuant to Section 2915(d) and (e) of
    Public Law 104-106, as amended by Public Law 105-83, are available to
    cover the costs of restoration and administrative activities.

        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). Proposed legislation, to be transmitted later, would stabilize
    funding levels through payments to States, beginning in 1999, to provide
    predictable ``in lieu of tax'' payment for county roads and schools. New
    funding for this legislative proposal is proposed in the Payments to
    States--Northern Spotted Owl Guarantee account.

        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 northern forestlands 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)). This program is
    proposed for continuation in the Administrative Provisions.

        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).

        Timber salvage sales.--Funds are used for salvage of insect-
    infested, dead, damaged, or down timber, and to remove associated trees
    for stand improvement (16 U.S.C. 472a(h)).

        Timber Sales Pipeline Restoration Fund.--As authorized under Section
    327 of the Omnibus Consolidated Recissions and Appropriations Act of
    1996, funds from revenues received from timber sales released under
    Section 2001(k) of the 1995 Supplemental Appropriations for Disaster
    Assistance and Recissions Act for the purpose of restoring the timber
    pipeline and funding the backlog of recreation projects on National
    Forest System lands.

        Purchaser Road Credits.--The budget eliminates purchaser road
    credits beginning in 1999. 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................         126          96          92
    12.1  Civilian personnel benefits.......          28          27          26
    41.0  Grants, subsidies, and
            contributions...................         218         248         261
                                               ---------   ---------  ----------
    99.9    Total obligations...............         372         371         379
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       3,601       3,029       2,828
    ---------------------------------------------------------------------------

                     Miscellaneous Permanent Appropriations

                     (Legisltive proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-4-2-999      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payments to States, National
            forest fund.....................                                -135
                                               ---------   ---------  ----------
    10.00   Total obligations...............                                -135
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -135
    23.95 New obligations...................                                 135
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.25 Appropriation (special fund,
            indefinite).....................                                -135
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                -135
    73.20 Total outlays (gross).............                                 135
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                -135
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -135
    90.00 Outlays...........................                                -135
    ---------------------------------------------------------------------------

    [[Page 179]]

        Current receipt sharing payments (``Twenty-Five Percent Fund'') are
    proposed to be replaced by a stable, guaranteed level of payments
    consistent with the guaranteed payments ``Payments to States, Northern
    Spotted Own Guarantee''. See the legislative proposal under that
    account.

        The Recreation Fee Demonstration Program is proposed to be
    permanently extended beyond 2000, and would authorize the direct
    expenditure of all recreation fees collected by the Forest Service and
    Department of Interior agencies.

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Operating expenses................         114          73          73
    09.02 Capital investment................          56          58          58
                                               ---------   ---------  ----------
    10.00   Total obligations...............         170         131         131
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         138         114         117
    22.00 New budget authority (gross)......         146         134         134
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         284         248         251
    23.95 New obligations...................        -170        -131        -131
    24.40 Unobligated balance available, end
            of year: Uninvested.............         114         117         120
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         146         134         134
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          41          69          66
    73.10 New obligations...................         170         131         131
    73.20 Total outlays (gross).............        -142        -134        -134
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          69          66          63
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....          41
    86.97 Outlays from new permanent
            authority.......................         101         134         134
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         142         134         134
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -146        -134        -134
    ----------------------------------------------------------------------------

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

        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.

        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.

        Computer Services.--The Fund provides computer hardware, software,
    and radio equipment.

        Supply Services.--The fund operates the following common services,
    and provides for cost-recovery of Working Capital Fund Program
    Management:

        Photo reproduction laboratories that store, reproduce, and supply
    aerial photographs, aerial maps, and other photographs of National
    Forest lands. 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. Signs are sold to
    National Forests and Experiment Stations at cost.

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         152            146           134            134
    0102  Expense...........................        -136           -113          -131           -131
                                            ------------ --------------  ------------  -------------
    0109  Net income........................          16             33             3              3
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4605-0-4-302    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         198            197           203            209
          Other Federal assets:

    1802    Inventories and related
              properties....................          28             26            27             28
    1803    Property, plant and equipment,
              net...........................         329            335           345            355
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         555            558           575            592
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable.........................          13             12            12             12
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          13             12            12             12
        NET POSITION:
    3300  Cumulative results of operations..         542            546           563            580
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         542            546           563            580
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         555            558           575            592
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      1997 actual   1998 est.   1999 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...........           1           1           1
    25.2  Other services....................          48          16          16
    26.0  Supplies and materials............          29          20          20
    31.0  Equipment.........................          88          90          90
                                               ---------   ---------  ----------
    99.9    Total obligations...............         170         131         131
    ---------------------------------------------------------------------------
        Note.--Personnel totals are included with personnel totals of all
    other Forest Service programs.

    [[Page 180]]

                                   Trust Funds

                           Forest Service Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............
        Receipts:
    02.01 Forest Service Cooperative fund...         180         196         186
    02.02 Transfers from general fund of
            amounts equal to certain customs
            duties..........................          30          30          30
                                               ---------   ---------  ----------
    02.99   Total receipts..................         210         226         216
        Appropriation:
    05.01 Forest Service trust funds........        -210        -226        -216
    07.99 Total balance, end of year........
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          85         261         216
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         182         307         272
    22.00 New budget authority (gross)......         210         226         216
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         392         533         488
    23.95 New obligations...................         -85        -261        -216
    24.40 Unobligated balance available, end
            of year: Uninvested.............         307         272         272
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................         210         226         216
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          53          51          44
    73.10 New obligations...................          85         261         216
    73.20 Total outlays (gross).............         -88        -268        -216
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          51          44          44
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          35         217         146
    86.98 Outlays from permanent balances...          53          51          70
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          88         268         216
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         210         226         216
    90.00 Outlays...........................          88         268         216
    ---------------------------------------------------------------------------
    Distribution of budget authority by
        account:
      Reforestation trust fund..............          30
      Cooperative Work trust fund...........         180
    ----------------------------------------------------------------------------

    Distribution of outlays by account:
      Reforestation trust fund..............          31
      Cooperative Work trust fund...........          57
    ---------------------------------------------------------------------------

        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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          69          64          59
    11.3    Other than full-time permanent..          12          10           9
    11.5    Other personnel compensation....           4           3           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          85          77          71
    12.1  Civilian personnel benefits.......                      18          16
    13.0  Benefits for former personnel.....                       2           2
    21.0  Travel and transportation of
            persons.........................                       3           3
    22.0  Transportation of things..........                       1           1
    23.1  Rental payments to GSA............                       3           3
    23.2  Rental payments to others.........                       2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........                       4           4
    25.2  Other services....................                     124          87
    26.0  Supplies and materials............                      18          18
    31.0  Equipment.........................                       5           5
    32.0  Land and structures...............                       3           3
    41.0  Grants, subsidies, and
            contributions...................                       1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          85         261         216
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,705       2,833       2,565
    ---------------------------------------------------------------------------

             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: (1) purchase of not to exceed [159] 177
    passenger motor vehicles of which 22 will be used primarily for law
    enforcement purposes and of which [156] 176 shall be for replacement;
    acquisition of 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 aircraft
    from excess sources] sufficient aircraft from excess sources to maintain
    the operable fleet at 198 aircraft for use in 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 purchase price for
    the replacement aircraft; (2) services pursuant to 7 U.S.C. 2225, and
    not to exceed $100,000 for employment under 5 U.S.C. 3109; (3) purchase,
    erection, and alteration of buildings and other public improvements (7
    U.S.C. 2250); (4) acquisition of land, waters, and interests therein,
    pursuant to 7 U.S.C. 428a; (5) for expenses pursuant to the Volunteers
    in the National Forest Act of 1972 (16 U.S.C. 558a, 558d, and 558a
    note); (6) the cost of uniforms as authorized by 5 U.S.C. 5901-5902; and
    (7) 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 without the consent of the House and
    Senate Committees on Appropriations.]

    [[Page 181]]

         Any appropriations or funds available to the Forest Service may be
    [advanced]: (1) transferred to the Wildland Fire Management
    appropriation [and may be used] for forest firefighting [and the],
    emergency rehabilitation of burned-over or damaged lands or waters under
    its jurisdiction, and fire preparedness due to severe burning
    conditions; or (2) charged directly for costs of forest firefighting,
    emergency rehabilitation of burned-over or damaged lands or waters under
    its jurisdiction, and fire preparedness due to severe burning conditions
    when funds appropriated to the Wildland Fire Management appropriation
    have been exhausted.
        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 the report accompanying this
    bill.]
        [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 the report accompanying this bill.]
        [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 law,hereafter 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, hereafter 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 hereafter 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, hereafter 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, of
    the funds available to the Forest Service, up to $2,250,000 may be
    advanced in a lump sum as Federal financial assistance to the National
    Forest Foundation, without regard to when the Foundation incurs
    expenses, for administrative expenses or projects on or benefitting
    National Forest System lands or related to Forest Service programs:
    Provided, That of the Federal funds made available to the Foundation, no
    more than [$750,000] $500,000 shall be available for administrative
    expenses: Provided further, That the Foundation shall obtain, [by the
    end of the period of Federal financial assistance] within twelve months
    from the date of such advance, private contributions to match on at
    least one-for-one basis funds made available by the Forest Service:
    Provided further, That the Foundation may transfer Federal funds to a
    non-Federal recipient [of Federal financial assistance] for a project at
    the same rate that the recipient has obtained the non-Federal matching
    funds: Provided further, That hereafter, the National Forest Foundation
    may hold Federal funds made available but not immediately disbursed and
    may use any interest or other investment income earned (before, on, or
    after the date of enactment of this Act) on Federal funds to carry out
    the purposes of Public Law 101-593: Provided further, That such
    investments may be made only in interest-bearing obligations of the
    United States or in obligations guaranteed as to both principal and
    interest by the United States.
        Pursuant to section 2(b)(2) of Public Law 98-244, up to $2,000,000
    of the funds available to the Forest Service shall be available for
    matching funds to the National Fish and Wildlife Foundation, as
    authorized by 16 U.S.C. 3701-3709, and may be advanced in a lump sum as
    Federal financial assistance, without regard to when expenses are
    incurred, for projects on or benefitting National Forest System lands or
    related to Forest Service programs: Provided, That the Foundation shall
    obtain, [by the end of the period of Federal financial assistance,]
    within twelve months from the date of such advance private contributions
    to match on at least one-for-one basis funds advanced by the Forest
    Service: Provided further, That the Foundation may transfer Federal
    funds to a non-Federal recipient [of Federal financial assistance] for a
    project at the same rate that the recipient has obtained the non-Federal
    matching funds.
         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.
        [Any funds available to the Forest Service may be used for
    retrofitting the Commanding Officer's Building (S-2), to accommodate the
    relocation of the Forest Supervisor's Office for the San Bernardino
    National Forest: 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.]
         The Secretary of Agriculture is authorized to enter into grants,
    contracts, and cooperative agreements as appropriate with the Pinchot
    Institute for Conservation, as well as with public and other private
    agencies, organizations, institutions, and individuals, to provide for
    the development, administration, maintenance, or restoration of land,
    facilities, or Forest Service programs, at the Grey Towers National
    Historic Landmark: Provided, That, subject to such terms and conditions
    as the Secretary of Agriculture may prescribe, any such public or
    private agency, organization, institution, or individual may solicit,
    accept, and administer private gifts of money and real or personal
    property for the benefit of, or in connection with, the activities and
    services at the Grey Towers National Historic Land-

    [[Page 182]]

    mark: Provided further, That such gifts may be accepted notwithstanding
    the fact that a donor conducts business with the Department of
    Agriculture in any capacity.
         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).
         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 employee
    for the period of assignment.]
        [No funds appropriated under this or any other Act for the purpose
    of operations conducted at the Forest Service Region 10 headquarters,
    including those funds identified for centralized field costs for
    employees of this office, shall be obligated or expended in excess of
    $17,500,000 from the total funds appropriated for Region 10, without 60
    days prior notice to Congress. Funds appropriated by this Act to
    implement the Revised Tongass National Forest Land Management Plan,
    shall be spent and obligated at the Forest Supervisor and Ranger
    District levels, with the exception of specific management and oversight
    expenses, provided such expenses are included in the funding ceiling of
    $17,500,000.]
        Notwithstanding 16 U.S.C. 472a(i), for purchasers qualified under
    such section to elect that the Secretary build roads specified by a
    timber sale contract, the option to elect shall hereafter be available.
    (Department of the Interior and Related Agencies Appropriations Act,
    1998.)

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      12-181100  National grasslands........          12          14          18
      12-222100  National forest fund.......         116         104         102
        Legislative proposal, subject to
          PAYGO.............................                                 135
      12-262400  Proceeds from sale of real
        property............................           1
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................         129         118         255
    ---------------------------------------------------------------------------

                       Other Consolidated Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
      12-977210  Miscellaneous contributed
        funds...............................           2
    ---------------------------------------------------------------------------

                          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 [1998] 1999 under this Act shall be available for the purchase, in
    addition to those specifically provided for, of not to exceed [394] 440
    passenger motor vehicles, of which [391] 437 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 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 1997 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 (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 in 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
    [1998] 1999 shall remain available until expended to cover obligations
    made in fiscal year [1998] 1999 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.

    [[Page 183]]

        Sec. [715] 714. Such sums as may be necessary for fiscal year [1998]
    1999 pay raises for programs funded by this Act shall be absorbed within
    the levels appropriated in this Act.
        [Sec. 716. Hereafter: (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 use cooperative
    agreements to reflect a relationship between the 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 percent 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] 717. 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. 720. 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. 721. 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
    $150,000,000.]
        Sec. [722] 718. 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. 723. 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. 724. None of the funds appropriated or otherwise made
    available to the Department of Agriculture shall be used to transmit or
    otherwise make available to any non-Department of Agriculture employee
    questions or responses to questions that are a result of information
    requested for the appropriations hearing process.]
        [Sec. 725. None of the funds appropriated or otherwise made
    available in this Act may be expended or obligated to fund the
    activities of the Western Director and Special Assistant to the
    Secretary within the Office of the Secretary of Agriculture or any
    similar position.]
        [Sec. 726. None of the funds made available to the Department of
    Agriculture by this Act may be used to acquire new information
    technology systems or significant upgrades, as determined by the Office
    of the Chief Information Officer, without the approval of the Chief
    Information Officer and the concurrence of the Executive Information
    Technology Investment Review Board.]
        [Sec. 727. (a) None of the funds provided by this Act, or provided
    by previous Appropriations Acts to the agencies funded by this Act that
    remain available for obligation or expenditure in fiscal year 1998, or
    provided from any accounts in the Treasury of the United States derived
    by the collection of fees available to the agencies funded by this Act,
    shall be available for obligation or expenditure through a reprogramming
    of funds which: (1) creates new programs; (2) eliminates a program,
    project, or activity; (3) increases funds or personnel by any means for
    any project or activity for which funds have been denied or restricted;
    (4) relocates an office or employees; (5) reorganizes offices, programs,
    or activities; or (6) contracts out or privatizes any functions or
    activities presently performed by Federal employees; unless the
    Appropriations Committees of both Houses of Congress are notified
    fifteen days in advance of such reprogramming of funds.
         (b) None of the funds provided by this Act, or provided by previous
    Appropriations Acts to the agencies funded by this Act that remain
    available for obligation or expenditure in fiscal year 1998, or provided
    from any accounts in the Treasury of the United States derived by the
    collection of fees available to the agencies funded by this Act, shall
    be available for obligation or expenditure for activities, programs, or
    projects through a reprogramming of funds in excess of $500,000 or 10
    percent, whichever is less, that: (1) augments existing programs,
    projects, or activities; (2) reduces by 10 percent funding for any
    existing program, project, or activity, or numbers of personnel by 10
    percent as approved by Congress; or (3) results from any general savings
    from a reduction in personnel which would result in a change in existing
    programs, activities, or projects as approved by Congress; unless the
    Appropriations Committees of both Houses of Congress are notified
    fifteen days in advance of such reprogramming of funds.]
        [Sec. 728. Section 3(c) of the Federal Noxious Weed Act of 1974 (7
    U.S.C. 2802(c)) is amended by inserting before the period at the end the
    following: ``, and includes kudzu (Pueraria lobata Dc)''.]
        [Sec. 729. Notwithstanding section 520 of the Housing Act of 1949,
    (42 U.S.C. 1490) the Martin Luther King area of Pawley's Island, South
    Carolina, located in Georgetown County, shall be eligible for loans and
    grants under section 504 of the Housing Act of 1949.]
        [Sec. 730. None of the funds made available to the Food and Drug
    Administration by this Act shall be used to close or relocate the Food
    and Drug Administration Division of Drug Analysis in St. Louis,
    Missouri.]
        [Sec. 731. Effective on October 1, 1998, section 136(a) of the
    Agricultural Market Transition Act (7 U.S.C. 7236(a)) is amended--
             (1) in paragraph (1)--
                 (A) by striking ``Subject to paragraph (4), during'' and
            inserting ``During''; and
                 (B) in subparagraph (B), by striking ``130'' and inserting
            ``134'';
             (2) by striking paragraph (4); and
             (3) by redesignating paragraph (5) as paragraph (4).]
        [Sec. 732. Study of Northeast Interstate Dairy Compact. (a)
    Definitions.--In this section:
             (1) Child, senior, and low-income nutrition programs.--The term
        ``child, senior, and low-income nutrition programs'' includes--
                 (A) the food stamp program established under the Food Stamp
            Act of 1977 (7 U.S.C. 2011 et seq.);
                 (B) the school lunch program established under the National
            School Lunch Act (42 U.S.C. 1751 et seq.);
                 (C) the summer food service program for children
            established under section 13 of that Act (42 U.S.C. 1761);
                 (D) the child and adult care food program established under
            section 17 of that Act (42 U.S.C. 1766);

    [[Page 184]]

                 (E) the special milk program established under section 3 of
            the Child Nutrition Act of 1966 (42 U.S.C. 1772);
                 (F) the school breakfast program established under section
            4 of that Act (42 U.S.C. 1773);
                 (G) the special supplemental nutrition program for women,
            infants, and children authorized under section 17 of that Act
            (42 U.S.C. 1786); and
                 (H) the nutrition programs and projects carried out under
            part C of title III of the Older Americans Act of 1965 (42
            U.S.C. 3030e et seq.).
             (2) Compact.--The term ``Compact'' means the Northeast
        Interstate Dairy Compact.
             (3) Northeast interstate dairy compact.--The term ``Northeast
        Interstate Dairy Compact'' means the Northeast Interstate Dairy
        Compact referred to in section 147 of the Agricultural Market
        Transition Act (7 U.S.C. 7256).
             (4) Director.--The term ``Director'' means the Director of the
        Office of Management and Budget.
         (b) Evaluation.--Not later than December 31, 1997, the Director
    shall conduct, complete, and transmit to Congress a comprehensive
    economic evaluation of the direct and indirect effects of the Northeast
    Interstate Dairy Compact and other factors which affect the price of
    fluid milk.
         (c) Components.--In conducting the evaluation, the Director shall
    consider, among other factors, the effects of implementation of the
    rules and regulations of the Northeast Interstate Dairy Compact
    Commission, such as rules and regulations relating to over-order Class I
    pricing and pooling provisions. This evaluation shall consider such
    effects prior to implementation of the Compact and that would have
    occurred in the absence of the implementation of the Compact. The
    evaluation shall include an analysis of the impacts on--
             (1) child, senior, and low-income nutrition programs including
        impacts on schools and institutions participating in the programs,
        on program recipients, and other factors;
             (2) the wholesale and retail cost of fluid milk;
             (3) the level of milk production, the number of cows, the
        number of dairy farms, and milk utilization in the Compact region,
        including--
                 (A) changes in the level of milk production, the number of
            cows, and the number of dairy farms in the Compact region
            relative to trends in the level of milk production and trends in
            the number of cows and dairy farms prior to implementation of
            the Compact;
                 (B) changes in the disposition of bulk and packaged milk
            for Class I, II, or III use produced in the Compact region to
            areas outside the region relative to the milk disposition to
            areas outside the region;
                 (C) changes in--
                     (i) the share of milk production for Class I use of the
                total milk production in the Compact region; and
                     (ii) the share of milk production for Class II and
                Class III use of the total milk production in the Compact
                region;
             (4) dairy farmers and dairy product manufacturers in States and
        regions outside the Compact region with respect to the impact of
        changes in milk production, and the impact of any changes in
        disposition of milk originating in the Compact region, on national
        milk supply levels and farm level milk prices nationally; and
             (5) the cost of carrying out the milk price support program
        established under section 141 of the Agricultural Market Transition
        Act (7 U.S.C. 7251).
         (d) Additional States and Compacts.--The Director shall evaluate
    and incorporate into the evaluation required under subsection (b) an
    evaluation of the economic impact of adding additional States to the
    Compact for the purpose of increasing prices paid to milk producers.]
        [Sec. 733. From proceeds earned from the sale of grain in the
    disaster reserve established in the Agricultural Act of 1970, the
    Secretary may use up to an additional $2,000,000 to implement a
    livestock indemnity program as established in Public Law 105-18.]
        [Sec. 734. Planting of Wild Rice on Contract Acreage.--None of the
    funds appropriated in this Act may be used to administer the provision
    of contract payments to a producer under the Agricultural Market
    Transition Act (7 U.S.C. 7201 et seq.) for contract acreage on which
    wild rice is planted unless the contract payment is reduced by an acre
    for each contract acre planted to wild rice.]
        [Sec. 735. Rural Housing Programs. (a) 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
    1997'' and inserting ``fiscal year 1998''.
         (b) Housing and Related Facilities for Elderly Persons and Families
    and Other Low-Income Persons and Families.--
             (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, 1997'' and inserting ``September 30, 1998''.
             (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 1997'' and inserting ``fiscal
        year 1998''.
             (3) Loan term.--Section 515 of the Housing Act of 1949 (42
        U.S.C. 1485) is amended--
                 (A) in subsection (a)(2), by striking ``up to fifty'' and
            inserting ``up to 30''; and
                 (B) in subsection (b)--
                     (i) by striking paragraph (2) and inserting the
                following:
                 ``(2) such a loan may be made for a period of up to 30
            years from the making of the loan, but the Secretary may provide
            for periodic payments based on an amortization schedule of 50
            years with a final payment of the balance due at the end of the
            term of the loan;'';
                     (ii) in paragraph (5), by striking ``and'' at the end;
                     (iii) in paragraph (6), by striking the period at the
                end and inserting ``; and''; and
                     (iv) by adding at the end the following:
             ``(7) the Secretary may make a new loan to the current borrower
        to finance the final payment of the original loan for an additional
        period not to exceed twenty years, if--
                 ``(A) the Secretary determines--
                     ``(i) it is more cost-efficient and serves the tenant
                base more effectively to maintain the current property than
                to build a new property in the same location; or
                     ``(ii) the property has been maintained to such an
                extent that it warrants retention in the current portfolio
                because it can be expected to continue providing decent,
                safe, and affordable rental units for the balance of the
                loan; and
                 ``(B) the Secretary determines--
                     ``(i) current market studies show that a need for low-
                income rural rental housing still exists for that area; and
                     ``(ii) any other criteria established by the Secretary
                has been met.''.
         (c) Loan Guarantees for Multifamily Rental Housing in Rural
    Areas.--Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is
    amended--
             (1) in subsection (q), by striking paragraph (2) and inserting
        the following:
             ``(2) Annual limitation on amount of loan guarantee.--In each
        fiscal year, the Secretary may enter into commitments to guarantee
        loans under this section only to the extent that the costs of the
        guarantees entered into in such fiscal year do not exceed such
        amount as may be provided in appropriation Acts for such fiscal
        year.'';
             (2) by striking subsection (t) and inserting the following:
             ``(t) Authorization of Appropriations.--There are authorized to
        be appropriated for fiscal year 1998 for costs (as such term is
        defined in section 502 of the Congressional Budget Act of 1974) of
        loan guarantees made under this section such sums as may be
        necessary for such fiscal year.''; and
             (3) in subsection (u), by striking ``1996'' and inserting
        ``1998''.
         This Act may be cited as the ``Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act,
    1998''.]
        Sec. 719. Funds made available to the Farm Service Agency, the
    Natural Resources Conservation Service, and the Rural Development
    agencies may be used to support a staff office established to provide
    common support services, including the common computer system for use by
    such agencies. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 1998.)