[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
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                      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.)