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


[[Page 59]]


                        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] $2,942,000: 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 by 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 
by this Act, including programs involving intergovernmental affairs and 
liaison within the executive branch, [$3,668,000] $3,805,000: 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] $2,325,000 
shall be transferred to agencies funded by 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] $2,061,000.

 Office of the [Assistant] Under Secretary for Marketing and Regulatory 
                                Programs

    For necessary salaries and expenses of the Office of the [Assistant] 
Under 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] 
$641,000.

              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] $469,000.

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] $595,000.

   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] $721,000.

           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] $612,000.

 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 Nutrition Service, 
[$554,000] $576,000. (7 U.S.C. 2201-2202; Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Office of the Secretary...........           3           3           3
00.02 Under/Assistant Secretaries.......           8           8          10
                                           ---------   ---------  ----------
10.00   Total new obligations...........          11          10          13
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1           1
22.00 New budget authority (gross)......          11          11          13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          12          12          14
23.95 Total new obligations.............         -11         -10         -13
24.40 Unobligated balance available, end 
        of year.........................           1           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          11          11          13
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6           5           1
73.10 Total new obligations.............          11          10          13
73.20 Total outlays (gross).............         -12         -15         -12
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           5           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           8          10          12
86.93 Outlays from current balances.....           4           5           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12          15          12
----------------------------------------------------------------------------

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

[[Page 60]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           6           6           6
12.1  Civilian personnel benefits.......           1           2           2
25.2  Other services....................           1           1           3
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..           8           9          11
99.5  Below reporting threshold.........           3           1           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          11          10          13
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          64          82          82
---------------------------------------------------------------------------

                                

                         Fund for Rural America

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0012-0-1-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Rural development activities......                                  30
00.02 Research, extension and education 
        grants..........................          34                      30
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          34                      60
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          34                      60
22.00 New budget authority (gross)......                      60
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          34          60          60
23.95 Total new obligations.............         -34                     -60
24.40 Unobligated balance available, end 
        of year.........................                      60
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.00 Appropriation.....................                      60          60
60.35 Appropriation rescinded 
        (unoblgated balances)...........                                 -60
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........                      60
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           4          29          17
73.10 Total new obligations.............          34                      60
73.20 Total outlays (gross).............          -9         -12         -39
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          29          17          38
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...           9          12          39
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      60
90.00 Outlays...........................           9          12          39
---------------------------------------------------------------------------

    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 from 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. Another $36 
million was provided for research, extension, and education grants.

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

    The Agricultural Research, Extension, and Education Reform Act of 
1998, P.L. 105-185 extended authorization for the Fund for Rural America 
through October 1, 2002, but reduced the amount to be available annually 
for the Fund to $60 million beginning in 1999. These funds are available 
for two years. The 1999 appropriations language blocked the use of the 
available funds in 1999. The 2000 budget blocks the second year's 
availability of the 1999 funds, but allows the authorized $60 million 
for 2000 to be expended. These funds will be restored beginning in 2001 
through a legislative proposal to maintain the originally authorized 
amounts.

                                

                               Trust Funds

                           Gifts and Bequests

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           1
    Receipts:
02.01 Gifts and bequests................           1           1           1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           2           1           1
    Appropriation:
05.01 Gifts and bequests................          -1          -1          -1
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           2           2
22.00 New budget authority (gross)......           1           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           3           3
23.95 Total new obligations.............                      -1          -1
24.40 Unobligated balance available, end 
        of year.........................           2           2           2
----------------------------------------------------------------------------

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

    Change in unpaid obligations:
73.10 Total new obligations.............                       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).

[[Page 61]]

                                


 
                          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, energy and new uses, 
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, [$5,620,000] $6,622,000.

                        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] $12,699,000.

                  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, [$6,120,000] $6,583,000. 
(7 U.S.C. 2201, 2202; 42 U.S.C. 2000d; Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropriations Act, 
1999, as included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Chief Economist...................           5           6           7
00.03 National Appeals Division.........          12          12          13
00.04 Budget and Program Analysis.......           6           6           6
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          24          25          27
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          24          25          27
23.95 Total new obligations.............         -24         -25         -27
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          23          23          26
42.00   Transferred from other accounts.                       1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........          23          24          26
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          24          25          27
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           4           5
73.10 Total new obligations.............          24          25          27
73.20 Total outlays (gross).............         -22         -24         -27
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           4           5           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          20          21          23
86.93 Outlays from current balances.....           1           2           3
86.97 Outlays from new permanent 
        authority.......................           1           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          22          24          27
----------------------------------------------------------------------------

    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..................          23          24          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, provides policy direction for 
biofuels and new uses, 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

                                     1998 actual  1999 est.   2000 est.
World Agricultural Supply and Demand 
Estimates Reports issued............          12          12          12
Weekly Weather and Crop Bulletin 
issued..............................          52          52          52
Significant and economically 
significant regulations reviewed....          64          50          50

    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.

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

                           WORKLOAD INDICATORS

                                     1998 actual  1999 est.   2000 est.
Regional or National Training.......           6           3           1
Percent of Hearing Officer 
determinations upheld on review.....        67.9        76.3        78.3

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          14          15          16
12.1  Civilian personnel benefits.......           3           3           3
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           2
25.2  Other services....................           3           3           3
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          23          24          26
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          24          25          26
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         238         259         260
---------------------------------------------------------------------------

                                

                  Office of the Chief Financial Officer

    For necessary expenses of the Office of the Chief Financial Officer, 
including employment pursuant to the second sentence of section

[[Page 62]]

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] 
$6,288,000: 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, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................           4           4           6
09.01 Reimbursable program..............           1           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........           5           6           8
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           6           6           8
23.95 Total new obligations.............          -5          -6          -8
23.98 Unobligated balance expiring......          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................           4           4           6
      Permanent:

        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).           1           2           2
68.10     From Federal sources: Change 
            in receivables and unpaid, 
            unfilled orders.............           1
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           6           6           8
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year           1
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............                       1           1
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............           1           1           1
73.10 Total new obligations.............           5           6           8
73.20 Total outlays (gross).............          -6          -6          -8
74.95 Unpaid obligations, end of year: 
        From Federal sources: 
        Receivables and unpaid, unfilled 
        orders..........................           1           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4           4           6
86.93 Outlays from current balances.....           1
86.97 Outlays from new permanent 
        authority.......................           1           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           6           6           8
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -2          -2
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           4           4           6
90.00 Outlays...........................           4           4           6
---------------------------------------------------------------------------

    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

                                     1998 actual  1999 est.   2000 est.
Percent of audit recommendations 
which are completed timely..........         54%         60%         70%
Percent of material FMFIA internal 
control deficiencies which are 
corrected timely....................         38%         70%         90%
Decrease the percentage of 
collectible delinquencies in 
relation to the receivables\1\......          2%        1.5%          1%
Issue management accountability 
report by March 31, 2000............   (Form and    (Project      Report
                                        content)   planning)     on time

    \1\ Based on 1998 figures, USDA's total receivables are $104,000 
million, of which $1.9 billion (2 percent) qualifies as collectible 
delinquent debt. Using these figures, OCFO projects that the Department will 
reduce the amount of collectible delinquent debt to $783 million (.75 
percent of total receivables).

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           3           3           5
12.1    Civilian personnel benefits.....           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..           4           4           6
99.0  Reimbursable obligations..........           1           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........           5           6           8
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......          53          53          67
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          13          19          19
---------------------------------------------------------------------------

                                

                 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, [$5,551,000] 
$7,998,000. (Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Office of the Chief Information 
        Officer.........................           6           6           8
00.02 Year 2000 remediation.............                      29
09.01 Reimbursable program..............           7           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          13          37          10
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          13          37          10
23.95 Total new obligations.............         -13         -37         -10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................           5           6           8
42.00   Transferred from other accounts.           1          29
                                           ---------   ---------  ----------
43.00     Appropriation (total).........           6          35           8
      Permanent:

        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).           1           2           2
68.10     From Federal sources: Change 
            in receivables and unpaid, 
            unfilled orders.............           6          -4
68.15     From Federal sources: 
            Adjustments to receivables 
            and unpaid, unfilled orders.                       4
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................           7           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          13          37          10
----------------------------------------------------------------------------

[[Page 63]]



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

72.40   Obligated balance, start of year                       1           6
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............                       6           2
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............                       7           8
73.10 Total new obligations.............          13          37          10
73.20 Total outlays (gross).............          -5         -36         -13
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..           1           6           3
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............           6           2           2
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................           7           8           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4          32           8
86.93 Outlays from current balances.....                                   3
86.97 Outlays from new permanent 
        authority.......................           1           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           5          36          13
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -2          -2
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          -6           4
88.96 From Federal sources: Adjustment 
        to receivables and unpaid, 
        unfilled orders.................                      -4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           6          35           8
90.00 Outlays...........................           4          33          13
---------------------------------------------------------------------------

    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.

    Public Law 105-277 appropriated funds to be available beginning in 
fiscal year 1999 through 2001, for Year 2000 work planned by the 
Department for 1999. These multi-year funds support an aggressive 
program of remediation activities to address Year 2000 computer and 
embedded chip problems and ensure the uninterrupted delivery of USDA 
programs and services. 1999 reflects a transfer of $29 million of these 
funds to USDA.

                     Performance Measures for 1998-2000

                                         1998 actual   1999 est.   2000 est.
Establish USDA policy on IT management 
 using the Capital Planning and 
 Investment Control (CPIC) methodology:.    complete
Number of USDA agencies using CPIC in 
 the selection, evaluation, and control 
 of their IT investment portfolio.......           5          10          20
Number of agency IT management reviews 
 performed..............................           2           4           6
Number of Service Center Oversight 
 Implementation Independent Validations 
 and Verifications conducted............           4           4           6
Ensure all USDA agency critical 
 information systems are Year 2000 
 compliant and operational (%)..........          68         100         100

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           4           4           4
12.1    Civilian personnel benefits.....           1           1           1
25.2    Other services..................                       6           2
25.3    Purchases of goods and services 
          from Government accounts......                       1
31.0    Equipment.......................                      22
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..           5          34           7
99.0  Reimbursable obligations..........           7           1           1
99.5  Below reporting threshold.........           1           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          13          37          10
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......          49          69          74
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......           9           4           2
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                          Working Capital Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

09.01   Administration..................          24          21          21
09.02   Communications..................           4           4           5
09.03   Finance and management..........         140         153         165
09.04   Information technology..........          49          48          51
09.05 Executive secretariat.............           2           1           1
                                           ---------   ---------  ----------
09.09   Subtotal, operating expenses....         219         227         243
      Purchase of equipment:

09.11   Administration..................           1           1           1
09.12   Finance and management..........           9           9           9
09.13   Information technology..........           6          12          10
                                           ---------   ---------  ----------
09.19   Subtotal, purchase of equipment.          16          22          20
                                           ---------   ---------  ----------
10.00   Total new obligations...........         235         249         263
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          19          25          25
22.00 New budget authority (gross)......         244         249         263
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         262         274         288
23.95 Total new obligations.............        -235        -249        -263
24.40 Unobligated balance available, end 
        of year.........................          25          25          25
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         244         249         263
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          15           9           9
73.10 Total new obligations.............         235         249         263
73.20 Total outlays (gross).............        -242        -249        -263
73.45 Adjustments in unexpired accounts.           1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           9           9           9
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         242         249         263
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -244        -249        -263
----------------------------------------------------------------------------

[[Page 64]]



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

    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 
$32 million as of September 30, 1998. 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. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          84          94         100
11.3    Other than full-time permanent..           2           3           3
11.5    Other personnel compensation....           2           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          88          98         104
12.1  Civilian personnel benefits.......          16          18          19
21.0  Travel and transportation of 
        persons.........................           2           2           2
22.0  Transportation of things..........           1           1           1
23.1  Rental payments to GSA............           5           3           3
23.2  Rental payments to others.........           2           2           2
23.3  Communications, utilities, and 
        miscellaneous charges...........          20          21          22
24.0  Printing and reproduction.........           1           2           2
25.2  Other services....................          73          70          79
26.0  Supplies and materials............           6           7           7
31.0  Equipment.........................          21          25          22
                                           ---------   ---------  ----------
99.9    Total new obligations...........         235         249         263
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......       2,039       2,078       2,089
---------------------------------------------------------------------------

                                


 
                       DEPARTMENTAL ADMINISTRATION

                              Federal Funds

General and special funds:

                       Departmental Administration

                     (including transfers of funds)

    For Departmental Administration, [$32,168,000] $36,117,000, 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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.08 Direct program....................          26          32          36
09.01 Reimbursable program..............          19          15          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........          45          47          50
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          47          47          50
23.95 Total new obligations.............         -45         -47         -50
23.98 Unobligated balance expiring......          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          29          32          36
41.00   Transferred to other accounts...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........          28          32          36
      Permanent:

        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).          13          15          14
68.10     From Federal sources: Change 
            in receivables and unpaid, 
            unfilled orders.............          20         -40
68.15     From Federal sources: 
            Adjustments to receivables 
            and unpaid, unfilled orders.         -13          40
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................          20          15          14
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          48          47          50
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          -9         -28          14
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............          20          40
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          11          12          14
73.10 Total new obligations.............          45          47          50
73.20 Total outlays (gross).............         -44         -45         -48
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..         -28          14          16
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............          40
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          12          14          16
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          27          30          32
86.93 Outlays from current balances.....           3                       2
86.97 Outlays from new permanent 
        authority.......................           5          15          14
86.98 Outlays from permanent balances...           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          44          45          48
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -13         -15         -14
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................         -20          40
88.96 From Federal sources: Adjustment 
        to receivables and unpaid, 
        unfilled orders.................          13         -40
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          27          32          36
90.00 Outlays...........................          31          31          34
---------------------------------------------------------------------------

    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, ethics, 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

[[Page 65]]

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 funds needed to process program civil 
rights complaints submitted under the change to the statute of 
limitations enacted in the Omnibus Consolidated and Emergency 
Supplemental Appropriations Act, 1999.

             DEPARTMENTAL ADMINISTRATION WORKLOAD INDICATORS

                                     1998 actual  1999 est.   2000 est.
Subcontracting plans reviewed.......          29          40          40
Small businesses counseled..........       5,800       6,000       6,000
Small business procurement 
conferences conducted or sponsored 
by USDA/OSDBU.......................          16          17          14
Number of outreach conferences 
attended by OSDBU staff.............           3           4           4
Procurement assistance reviews 
conducted...........................                       2           2
Training conferences conducted......           3           3           3

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          17          22          25
12.1    Civilian personnel benefits.....           3           4           5
21.0    Travel and transportation of 
          persons.......................                       1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........                       1           1
25.3    Purchases of goods and services 
          from Government accounts......           3           3           3
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          24          32          36
99.0  Reimbursable obligations..........          18          14          14
99.5  Below reporting threshold.........           3           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          45          47          50
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         318         345         374
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          67          78          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] $22,700,000, 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, 
1999, as included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............          20          17          23
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           4           1
22.00 New budget authority (gross)......          16          16          23
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          21          17          23
23.95 Total new obligations.............         -20         -17         -23
24.40 Unobligated balance available, end 
        of year.........................           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          16          16          23
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          16          21          17
73.10 Total new obligations.............          20          17          23
73.20 Total outlays (gross).............         -15         -21         -22
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          21          17          17
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          15          11          16
86.93 Outlays from current balances.....                      10           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          15          21          22
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          16          16          23
90.00 Outlays...........................          15          21          22
---------------------------------------------------------------------------

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

                                     1998 actual  1999 est.   2000 est.
Number of USDA properties screened 
to identify potential contaminated 
sites 1, 2...............          98          50   completed
Number of sites assessed/
characterized on need for cleanup...          43          54          55
Number of removal and remediation 
plans completed 2, 3.....    included          13          12
                                           above                        
Nunber of removal and remedial 
actions completed 2, 3...          25          17          24
Number of cleanup/restoration 
agreements with potentially 
responsible parties (PRP's) 
3, 4.....................           8          20          20
Estimated value of cleanup/
restoration work performed by PRP's 
($ millions) \4\....................          20          30          35
Number of UST cleanups completed....           5           3           2

    \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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Direct obligations: Other services          16          17          23
99.5  Below reporting threshold.........           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........          20          17          23
---------------------------------------------------------------------------

[[Page 66]]



                                

        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, [$132,184,000] 
$140,364,000: 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] 
$26,000,000, to remain available until expended; making a total 
appropriation of [$137,184,000] $166,364,000. (7 U.S.C. 2201, 2202, 
2208; Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Rental payments to GSA: Non-
          recurring repairs.............          98         108         115
00.02   Building operations and 
          maintenance...................          24          33          25
00.04   Strategic space plan............          23           7          26
00.05   Relocation expenses.............           3
09.02 Reimbursable program..............           4           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........         152         153         171
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          29          11
22.00 New budget authority (gross)......         135         142         171
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         164         153         171
23.95 Total new obligations.............        -152        -153        -171
24.40 Unobligated balance available, end 
        of year.........................          11
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         131         137         166
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           4           5           5
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         135         142         171
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          25          33          40
73.10 Total new obligations.............         152         153         171
73.20 Total outlays (gross).............        -144        -146        -167
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          33          40          44
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         112         108         132
86.93 Outlays from current balances.....          28          33          30
86.97 Outlays from new permanent 
        authority.......................           4           5           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         144         146         167
----------------------------------------------------------------------------

    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..................         131         137         166
90.00 Outlays...........................         140         141         162
---------------------------------------------------------------------------

    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 were made available for the construction 
and occupancy of an office facility at the Beltsville Agricultural 
Research Center and the design and implementation of a long-term program 
to renovate and modernize the South Building.

                           WORKLOAD INDICATORS

                                     1998 actual  1999 est.   2000 est.
Maintenance and Repairs:
  Minor repairs (number)............         300         300         300
  Maintenance (thousands of hours)..          19          19          19
  Service calls (thousands).........          11          11          11

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      1998 actual   1999 est.   2000 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..........          98         108         115
23.3    Communications, utilities, and 
          miscellaneous charges.........           8           5           5
25.2    Other services..................          35          29          40
31.0    Equipment.......................           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         148         148         166
99.0  Reimbursable obligations..........           4           5           5
                                           ---------   ---------  ----------
99.9    Total new obligations...........         152         153         171
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          77          86          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, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0601-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................           3           3          10
09.00 Reimbursable program..............           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........           8           8          10
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           8           8          10
23.95 Total new obligations.............          -8          -8         -10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

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

        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).           3           5
68.10     From Federal sources: Change 
            in receivables and unpaid, 
            unfilled orders.............           3          -3
68.15     From Federal sources: 
            Adjustments to receivables 
            and unpaid, unfilled orders.          -1           3
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................           5           5
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           8           8          10
----------------------------------------------------------------------------

[[Page 67]]



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

72.40   Obligated balance, start of year           2           3
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............                       3
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............           2           6
73.10 Total new obligations.............           8           8          10
73.20 Total outlays (gross).............          -4         -14         -10
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..           3
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............           3
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                       3          10
86.93 Outlays from current balances.....           1           4
86.97 Outlays from new permanent 
        authority.......................           3           5
86.98 Outlays from permanent balances...                       2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           4          14          10
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -3          -5
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          -3           3
88.96 From Federal sources: Adjustment 
        to receivables and unpaid, 
        unfilled orders.................           1          -3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           3           3          10
90.00 Outlays...........................           1           7          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 to and enter into contracts and other 
agreements with eligible community-based organizations, 1890/1862/1994 
Land-Grant Institutions, Tuskegee University, Native American Community 
Colleges and Hispanic Servicing Institutions with demonstrated 
experience in providing education or other agriculture-related services 
to socially disadvantaged farmers and ranchers.

    In 2000, 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

                                     1998 actual  1999 est.   2000 est.
Number of grants....................          22          26          26
Amount of grants (in millions of 
dollars)............................           3           3          10

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0601-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....           3           3          10
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................           5           5
                                           ---------   ---------  ----------
99.9    Total new obligations...........           8           8          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] 
$9,300,000, 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, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program: Public affairs....           8           8           9
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           9           9          10
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           9           9          10
23.95 Total new obligations.............          -9          -9         -10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................           8           8           9
      Permanent:

        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).                       1           1
68.10     From Federal sources: Change 
            in receivables and unpaid, 
            unfilled orders.............           1
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           9           9          10
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.95 Unpaid obligations, start of year: 
        From Federal sources: 
        Receivables and unpaid, unfilled 
        orders..........................           1           2           2
73.10 Total new obligations.............           9           9          10
73.20 Total outlays (gross).............          -8          -9         -10
74.95 Unpaid obligations, end of year: 
        From Federal sources: 
        Receivables and unpaid, unfilled 
        orders..........................           2           2           2
----------------------------------------------------------------------------

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

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -1          -1
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          -1
----------------------------------------------------------------------------

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

    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.

[[Page 68]]

                          PERFORMANCE MEASURES

                                     1998 actual  1999 est.   2000 est.
Percent of USDA policy/program 
decisions, with communication plans 
prior to the announcement of mission 
or program priorities and 
initiatives.........................         50%         60%         75%
Random Surveys of selected 
communications initiatives reveal 
that intended audience received the 
material or information distributed.          NA         90%         95%

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      1998 actual   1999 est.   2000 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           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..           8           8           9
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           9           9          10
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          92          95          95
---------------------------------------------------------------------------

                                


 
                     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, [$65,128,000] $68,246,000, 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; and including [a sum] not to exceed [$100,000] 
$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 for fiscal year [1999] 2000 and 
thereafter, 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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          63          65          68
09.01 Reimbursable program..............           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          66          68          71
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          66          68          71
23.95 Total new obligations.............         -66         -68         -71
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          63          65          68
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           3           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          66          68          71
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6           7           9
73.10 Total new obligations.............          66          68          71
73.20 Total outlays (gross).............         -66         -68         -71
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           7           9           9
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          59          59          62
86.93 Outlays from current balances.....           4           6           6
86.97 Outlays from new permanent 
        authority.......................           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          66          68          71
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -3          -3          -3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          63          65          68
90.00 Outlays...........................          61          65          68
---------------------------------------------------------------------------

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          39          41          43
11.5      Other personnel compensation..           4           4           4
                                           ---------   ---------  ----------
11.9        Total personnel compensation          43          45          47
12.1    Civilian personnel benefits.....          11          11          12
21.0    Travel and transportation of 
          persons.......................           5           5           5
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           3           3           3
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          63          65          68
99.0  Reimbursable obligations..........           3           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          66          68          71
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         737         753         753
---------------------------------------------------------------------------

[[Page 69]]



                                


 
                      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, 
[$29,194,000] $32,675,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          29          29          33
09.00 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          30          30          34
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          30          30          33
23.95 Total new obligations.............         -30         -30         -34
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          29          29          33
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          30          30          34
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           1           1           2
73.10 Total new obligations.............          30          30          34
73.20 Total outlays (gross).............         -30         -30         -34
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           2           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          28          27          31
86.93 Outlays from current balances.....                                   2
86.97 Outlays from new permanent 
        authority.......................           1           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          30          30          34
----------------------------------------------------------------------------

    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..................          29          29          33
90.00 Outlays...........................          28          29          33
---------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          22          23          25
12.1    Civilian personnel benefits.....           5           5           6
23.3    Communications, utilities, and 
          miscellaneous charges.........           1                       1
25.2    Other services..................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          29          29          33
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          30          30          34
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         332         366         371
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......           8           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 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627) and other laws, 
[$65,757,000] $55,628,000: Provided, [That $2,000,000 shall be 
transferred to and merged with the appropriation for ``Food and 
Nutrition Service, Food Program Administration'' for studies and 
evaluations: 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). (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, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          72          63          56
09.00 Reimbursable program..............           6           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........          78          69          62
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          78          69          62
23.95 Total new obligations.............         -78         -69         -62
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          72          66          56
41.00   Transferred to other accounts...                      -3
                                           ---------   ---------  ----------
43.00     Appropriation (total).........          72          63          56
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           6           6           6
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          78          69          62
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          14          31          39
73.10 Total new obligations.............          78          69          62
73.20 Total outlays (gross).............         -61         -61         -63
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          31          39          38
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          45          55          49
86.93 Outlays from current balances.....          10                       8
86.97 Outlays from new permanent 
        authority.......................           6           6           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          61          61          63
----------------------------------------------------------------------------

[[Page 70]]



    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..................          72          63          56
90.00 Outlays...........................          55          55          57
---------------------------------------------------------------------------

    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 2000 request includes funding for six new initiatives: to 
enhance the agency's commodity market analysis, concerning the economic 
incentives for carbon sequestration and trace gas emissions control in 
agriculture, to support U.S. global climate research program national 
assessment activities, to provide economic analysis in food-safety risk 
assessment, concerning the information needs of small farmers, and 
concerning electric utility deregulation. The 1999 appropriation 
included funds for certain evaluation activities of the USDA Food and 
Nutrition Service, which are proposed to be funded through that account 
in 2000. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          30          30          30
11.3      Other than full-time permanent           3           3           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation          33          33          33
12.1    Civilian personnel benefits.....           6           6           6
13.0    Benefits for former personnel...           1
21.0    Travel and transportation of 
          persons.......................           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           9           5           2
25.3    Purchases of goods and services 
          from Government accounts......          11           7           6
25.5    Research and development 
          contracts.....................           5           6           5
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           1           1
41.0    Grants, subsidies, and 
          contributions.................           3           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          72          63          56
99.0  Reimbursable obligations..........           6           6           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........          78          69          62
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         504         506         506
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          27          27          27
---------------------------------------------------------------------------

                                


 
                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 [(Public Law 105-113)], and other laws, 
[$103,964,000] $100,559,000, of which up to [$23,599,000] $16,490,000 
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. (7 U.S.C. 411, 411a, 411b, 427, 471, 
475, 476, 501, 951, 953, 955-57, 1621-27, 2201, 2202, 2204, 2225, 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, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Agricultural estimates..........          78          77          81
00.02   Statistical research and service           3           3           3
00.03   Census of Agriculture...........          36          24          16
09.01 Reimbursable program..............           9          10          10
                                           ---------   ---------  ----------
10.00   Total new obligations...........         127         114         110
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         127         114         110
23.95 Total new obligations.............        -127        -114        -110
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         118         104         101
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           9          10          10
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         127         114         110
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          24           9          12
73.10 Total new obligations.............         127         114         110
73.20 Total outlays (gross).............        -133        -112        -111
73.40 Adjustments in expired accounts...          -9
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           9          12          11
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         116          93          90
86.93 Outlays from current balances.....           8           9          11
86.97 Outlays from new permanent 
        authority.......................           9          10          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         133         112         111
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................         118         104         101
90.00 Outlays...........................         124         102         101
---------------------------------------------------------------------------



[[Page 71]]



    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 2000 program includes an 
increase of $2 million for a Fruit and Vegetable Food Safety Survey, and 
$2 million for implementation 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 was taken and processed during 1998 and released 
in 1999. An increase of $2 million is requested for implementation of an 
Agricultural Economic Land Ownership survey. The 2000 request reflects a 
decrease of $8 million due to the cyclical nature of the census.

    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         1998 actual  1999 est.   2000 est.
Percentage of total national 
agricultural production included in 
the NASS program....................          93          98          98
Percentage of reports issued that 
meet scheduled release date and 
contain no data errors..............          98          99          99

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          49          50          52
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          50          51          53
12.1    Civilian personnel benefits.....          12          12          13
21.0    Travel and transportation of 
          persons.......................           2           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           6           3           3
24.0    Printing and reproduction.......                       1           1
25.2    Other services..................          26          22          19
25.3    Purchases of goods and services 
          from Government accounts......          14           8           6
25.7    Operation and maintenance of 
          equipment.....................           1           1           1
26.0    Supplies and materials..........           2           1           1
31.0    Equipment.......................           3           2           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         118         102         100
99.0  Reimbursable obligations..........           9           8          10
99.5  Below reporting threshold.........           4           4           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........         127         114         110
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       1,057       1,044       1,050
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          90          96          96
---------------------------------------------------------------------------

                                


 
                      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, 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 percent 
of the total value of the land or interests transferred out of Federal 
ownership, [$785,518,000] $836,868,000: Provided, That appropriations 
hereunder shall be available for temporary employment pursuant to the 
second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C. 
2225), and not to exceed $115,000 shall be available for employment 
under 5 U.S.C. 3109: Provided further, That appropriations hereunder 
shall be available for the operation and maintenance of aircraft and the 
purchase of not to exceed one for replacement only: Provided further, 
That appropriations hereunder shall be available pursuant to 7 U.S.C. 
2250 for the construction, alteration, and repair of buildings and 
improvements, but unless otherwise provided, the cost of constructing 
any one building shall not exceed $250,000, except for headhouses or 
greenhouses which shall each be limited to $1,000,000, and except for 
ten buildings to be constructed or improved at a cost not to exceed 
$500,000 each, and the cost of altering any one building during the 
fiscal year shall not exceed 10 percent of the current replacement value 
of the building or $250,000, whichever is greater: Provided further, 
That the limitations on alterations contained in this Act shall not 
apply to modernization or replacement of existing facilities at 
Beltsville, Maryland: Provided further, That 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.
    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 fiscal year [1999] 2000, 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, 1999, as 
included in Public Law 105-277, section 101(a).)
    [``Agriculture Research Service'', Department of Agriculture, 
$23,000,000, for additional counterdrug research and development 
activities: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That such amounts 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

[[Page 72]]

request as an emergency requirement as defined in such Act is 
transmitted by the President to the Congress.] (Omnibus Consolidated and 
Emergency Supplemental Appropriations Act, 1999, Public Law 105-277, 
Division B, Title V, chapter 1.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Research on soil and water 
          conservation..................          84          86         108
00.02   Research on plant science.......         253         302         278
00.03   Research on animal science......         120         127         131
00.04   Research on commodity conversion 
          and delivery..................         148         162         160
00.05   Human nutrition research........          70          68          89
00.06   Integration of agricultural 
          systems.......................          28          30          31
00.07   Repair and maintenance of 
          facilities....................          18          18          18
00.08   Contingencies...................           1           1           1
00.11   Agricultural information and 
          library science...............          20          19          21
09.00 Reimbursable program..............          38          50          50
                                           ---------   ---------  ----------
10.00   Total new obligations...........         780         863         887
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                       1
22.00 New budget authority (gross)......         783         864         887
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         783         865         887
23.95 Total new obligations.............        -780        -863        -887
23.98 Unobligated balance expiring......          -3
24.40 Unobligated balance available, end 
        of year.........................           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         744         809         837
42.00   Transferred from other accounts.           1           5
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         745         814         837
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          38          50          50
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         783         864         887
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         179         205         220
73.10 Total new obligations.............         780         863         887
73.20 Total outlays (gross).............        -750        -849        -882
73.40 Adjustments in expired accounts...          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         205         220         225
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         578         651         670
86.93 Outlays from current balances.....         134         148         163
86.97 Outlays from new permanent 
        authority.......................          38          50          50
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         750         849         882
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -34         -43         -43
88.40     Non-Federal sources...........          -4          -7          -7
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -38         -50         -50
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         745         814         837
90.00 Outlays...........................         712         799         832
---------------------------------------------------------------------------

    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 2000, the Service proposes increased emphases for critical 
research needs in agriculture, such as: Emerging Infectious Diseases and 
Exotic Pests, the President's Food Safety Initiative, Human Nutrition, 
Agricultural Genomics, Pest Management requirements of the Food Quality 
Protection Act, Sustainable Ecosystems, Air Quality, and Global Climate 
Change. The Service expects to submit 70 new patent applications, 
participate in 90 new Cooperative Research and Development Agreements 
(CRADAs), license 30 new products, and develop 70 new plant varieties to 
release to industry for further development and marketing in 2000.

    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- 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.

[[Page 73]]

    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.

    Collaborative Research Program.--Funds from the U.S. Agency for 
International Development (AID), allows USDA to provide short-term 
scientific exchanges to the New Independent States of the former Soviet 
Union (NIS), in developing a market-based agricultural system necessary 
to meet the food needs of their populations and to develop and 
strengthen trade linkages between their countries and related 
agribusiness and agricultural enterprise in the U.S.

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         301         327         344
11.3      Other than full-time permanent          21          26          24
11.5      Other personnel compensation..          13          13          13
                                           ---------   ---------  ----------
11.9        Total personnel compensation         335         366         381
12.1    Civilian personnel benefits.....          76          86          89
21.0    Travel and transportation of 
          persons.......................          14          16          17
22.0    Transportation of things........           2           2           2
23.2    Rental payments to others.......           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........          31          32          34
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          13          16          17
25.3    Purchases of goods and services 
          from Government accounts......           4           4           5
25.4    Operation and maintenance of 
          facilities....................          26          26          27
25.5    Research and development 
          contracts.....................         108         120         120
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..........          64          74          71
31.0    Equipment.......................          39          40          42
32.0    Land and structures.............           3           4           3
41.0    Grants, subsidies, and 
          contributions.................          16          16          17
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         742         813         837
99.0  Reimbursable obligations..........          38          50          50
                                           ---------   ---------  ----------
99.9    Total new obligations...........         780         863         887
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       7,224       7,555       7,555
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         120         120         120
---------------------------------------------------------------------------

                                

                        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, [$56,437,000] 
$44,500,000, 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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations.................          47          75          65
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          69         102          84
22.00 New budget authority (gross)......          81          56          45
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         150         158         128
23.95 Total new obligations.............         -47         -75         -65
24.40 Unobligated balance available, end 
        of year.........................         102          84          63
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          81          56          44
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          76          68          68
73.10 Total new obligations.............          47          75          65
73.20 Total outlays (gross).............         -56         -75         -70
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          68          68          64
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4           7           5
86.93 Outlays from current balances.....          52          68          65
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          56          75          70
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          81          56          45
90.00 Outlays...........................          56          75          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 2000 request provides the continuing modernization of the Beltsville 
Agricultural Research Center, Beltsville, MD; Regional Research Centers 
at Peoria, IL; New Orleans, LA; Wyndmoor, PA; Albany, CA; the Western 
Human Nutrition Research Center at Davis, CA; and the Plum Island Animal 
Disease Center at Greenport, NY. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................          27          30          25
32.0  Land and structures...............          13          45          40
41.0  Grants, subsidies, and 
        contributions...................           7
                                           ---------   ---------  ----------
99.9    Total new obligations...........          47          75          65
---------------------------------------------------------------------------

                                

                               Trust Funds

                     Miscellaneous Contributed Funds

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Science and Education 
        Administration contributed funds          20          20          20
    Appropriation:
05.01 Miscellaneous contributed funds...         -20         -20         -20
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............          16          19          19
----------------------------------------------------------------------------

[[Page 74]]



    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           9          12          13
22.00 New budget authority (gross)......          20          20          20
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          29          32          33
23.95 Total new obligations.............         -16         -19         -19
24.40 Unobligated balance available, end 
        of year.........................          12          13          13
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................          20          20          20
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           5           7
73.10 Total new obligations.............          16          19          19
73.20 Total outlays (gross).............         -14         -17         -20
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           5           7           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................           6           7           7
86.98 Outlays from permanent balances...           8          10          13
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          14          17          20
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          20          20          20
90.00 Outlays...........................          14          17          20
---------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           4           5           5
12.1  Civilian personnel benefits.......           1           1           1
25.2  Other services....................           7           9           9
26.0  Supplies and materials............           3           3           3
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          16          19          19
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          87          87          87
---------------------------------------------------------------------------

                                


 
      COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

                              Federal Funds

General and special funds:

                          Integrated Activities

    For the integrated research, education, and extension competitive 
grants programs, including necessary administrative expenses, 
$72,844,000, as follows: for payments for the small farms initiative 
$4,000,000; payments for the water quality program, $16,204,000; 
payments for the food safety program, $15,000,000; payments for the 
national agriculture pesticide impact assessment program, $4,640,000; 
payments for the Food Quality Protection Act risk mitigation program for 
major food crop systems, $10,000,000; payments for the crops affected by 
FQPA implementation, $3,000,000; payments for the methyl bromide 
transition program, $5,000,000, as authorized under section 406 of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7626); $15,000,000 for gleaning and food recovery activities, of 
which $2,850,000 shall be for payment to states and territories under 
section 3(d) of the Smith-Lever Act, $2,150,000 shall be for grants 
under 406 of the Agricultural, Research, Extension, and Education Reform 
Act of 1998, and $10,000,000 shall be for grants under the same terms 
and conditions as those found in subsections (c), (d), (f), and (g) of 
section 25 of the Food Stamp Act of 1977.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.10   Small farms initiative..........                                   4
00.20   Water quality...................                                  16
00.30   Food safety.....................                                  15
00.40   Pesticide impact assessment.....                                   5
00.50   Crops at risk...................                                   3
00.60   Food Quality Protection Act risk 
          mitigation program............                                  10
00.70   Methyl bromide transition 
          program.......................                                   5
00.80   Gleaning and food recovery......                                  15
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  73
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  73
23.95 Total new obligations.............                                 -73
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  73
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  73
73.20 Total outlays (gross).............                                  -7
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  66
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                   7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  73
90.00 Outlays...........................                                   7
---------------------------------------------------------------------------
    Note.--2000 estimate includes water quality grants, food safety and 
pesticide impact assessments, activities previously financed from the USDA 
Cooperative State Research, Education, and Extension Service Research and 
Education Activities and Extension Activities accounts.

    In accordance with section 406 of the Agricultural Research, 
Extension, and Education Reform Act of 1998 an integrated research, 
education, and extension competitive grants program to provide funding 
for integrated, multifunctional agricultural research, extension, and 
education activities is proposed. A 100% non-Federal match would be 
required for commodity or location-specific activities. Programs 
proposed for funding under this account are:

    Small farms initiative.--In 2000, 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.

    Water quality.--This funding will enable CSREES and the State 
Agricultural Experiment Stations and the Cooperative Extension system to 
become viable partners with other state and federal agencies in 
addressing water quality issues of national importance. Funds will be 
awarded based upon peer review of competitive proposals for projects 
that have components for research and extension.

    Food safety.--Funding will support research, education and extension 
programs to improve safety of food products and create a more informed 
public about food safety issues.

    National agricultural pesticide impact assessment.--Funding will 
provide management and coordination for USDA and State activities that 
support informed regulatory decisions concerning pesticides that 
significantly benefit U.S. food production without causing adverse 
effects on the environment.

    Crops at risk from FQPA implementation.--Funding will support the 
development of new multi-tactic IPM strategies. Grant opportunities will 
be available to state Land-Grant and

[[Page 75]]

federal scientists, non-Land-Grant institutions, and grower commodity 
group partnerships with these groups.

    FQPA Risk mitigation program for major food crop systems.--Funds are 
proposed to support a new approach to risk mitigation that will have a 
food production system focus, integrating food safety and water quality 
considerations as impacted by FQPA. Emphasis will be placed on 
development and implementation of new innovative pest management systems 
designed to maintain crop productivity and profitability while meeting 
or exceeding environmental quality and human health standards.

    Methyl bromide transition program.--This is a new competitive grants 
program designed to support the discovery and implementation of 
practical pest management alternatives for commodities affected by the 
methyl bromide phase-out in 2005.

    Gleaning and food recovery.--Funds are proposed to establish a 
three-pronged gleaning and food recovery program which will support 
competitively-awarded projects. Funds will be used to support 
infrastructure projects for the acquisition of facilities and equipment 
to improve food transportation, storage, and distribution; to establish 
a technical assistance and education network; and to establish a grants 
program to develop and extend technical issues in food recovery.

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......                                   8
---------------------------------------------------------------------------

                                

                    Research and Education Activities

    For payments to agricultural experiment stations, for cooperative 
forestry and other research, for facilities, and for other expenses, 
including [$180,545,000] $153,672,000 to carry into effect the 
provisions of the Hatch Act (7 U.S.C. 361a-i); [$21,932,000] $19,882,000 
for grants for cooperative forestry research (16 U.S.C. 582a-a7); 
[$29,676,000] $27,735,000 for payments to the 1890 land-grant colleges, 
including Tuskegee University (7 U.S.C. 3222); [$63,116,000] $5,094,000 
for special grants for agricultural research (7 U.S.C. 450i(c)); 
[$15,048,000] $18,369,000 for special grants for agricultural research 
on improved pest control (7 U.S.C. 450i(c)); [$119,300,000] $200,000,000 
for competitive research grants (7 U.S.C. 450i(b)); [$5,109,000] 
$4,775,000 for the support of animal health and disease programs (7 
U.S.C. 3195); [$750,000 for supplemental and alternative crops and 
products (7 U.S.C. 3319d); $600,000 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] $667,000 for the 1994 research program 
(7 U.S.C. 301 note); $3,000,000 for higher education graduate fellowship 
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 multicultural 
scholars program (7 U.S.C. 3152(b)(5)), to remain available until 
expended (7 U.S.C. 2209b); [$2,850,000] $3,183,000 for an education 
grants program for Hispanic-serving Institutions (7 U.S.C. 3241); 
[$500,000 for a secondary agriculture education program and two-year 
post-secondary education (7 U.S.C. 3152 (h));] $4,000,000 for 
aquaculture grants (7 U.S.C. 3322); [$8,000,000] $8,500,000 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); 
[$1,552,000] $1,500,000 for payments to the 1994 Institutions pursuant 
to section 534(a)(1) of Public Law 103-382; and [$10,688,000] $4,038,000 
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, [$481,216,000] $468,965,000.
    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, 1999, as included in Public Law 
105-277, section 101(a).)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Federal payment, Native American 
        Institutions Endowment Fund.....           5           5           5
02.02 Earnings on investments...........                       1           1
                                           ---------   ---------  ----------
02.99   Total receipts..................           5           6           6
    Appropriation:
05.01 Cooperative state research 
        activities......................          -5          -6          -6
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............          -5          -6          -6
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Payments under the Hatch Act....         169         181         154
00.02   Cooperative forestry research...          20          22          20
00.03   Payments to 1890 colleges and 
          Tuskegee University...........          28          30          28
00.04   Special research grants.........          80          91          36
00.05   National research initiative 
          competitive grants............          69         163         200
00.06   Animal health and disease 
          research......................           5           5           5
00.07   Federal administration..........          11          11           4
00.08   Higher education................          24          22          22
00.09   Native American Institutions 
          Endowment Fund................           5           6           6
00.10   Initiative for Future 
          Agriculture and Food Systems..                                 120
09.00 Reimbursable program..............          15          16          16
                                           ---------   ---------  ----------
10.00   Total new obligations...........         426         547         611
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          19          44         120
22.00 New budget authority (gross)......         451         623         491
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         470         667         611
23.95 Total new obligations.............        -426        -547        -611
24.40 Unobligated balance available, end 
        of year.........................          44         120
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         431         481         469
40.20   Appropriation (special fund, 
          definite).....................           5           5           5
40.25   Appropriation (special fund, 
          indefinite)...................                       1           1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         436         487         475
      Permanent:

60.00   Appropriation...................                     120         120
60.35   Unobligated Balances Rescission 
          Proposal......................                                -120
                                           ---------   ---------  ----------
63.00     Appropriation (total).........                     120
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          15          16          16
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         451         623         491
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         348         328         401
73.10 Total new obligations.............         426         547         611
73.20 Total outlays (gross).............        -446        -474        -476
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         328         401         536
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         206         237         214
86.93 Outlays from current balances.....         224         221         234
86.97 Outlays from new permanent 
        authority.......................          15          16          16

[[Page 76]]

86.98 Outlays from permanent balances...                                  12
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         446         474         476
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -15         -16         -16
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         436         607         475
90.00 Outlays...........................         430         458         460
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......           9          14
92.02 Total investments, end of year: 
        U.S. securities: Par value......          14
---------------------------------------------------------------------------
    Note.--In 2000 funding for water quality grants, food safety and 
pesticide impact assessments is included in the account for integrated 
activities.

    Cooperative State Research, Education, and Extension Service 
participates in a nationwide system of agricultural re- 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 
IR-4 minor crop pest management, pest management alternatives, and 
sustainable agriculture. Funding is also proposed for integrated pest 
management. 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 2000 
IR-4 will complete 525 pesticide clearances. These will include 200 
clearances for ``safer'' and reduced risk alternatives on food crops 
together with biologically-based and IPM-compatible pest control 
products; 325 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 $2 million grant program for global change is proposed for 
research at universities as part of a coordinated Federal initiative. 
Funding is also proposed for the National Biological Impact Assessment 
Program, rural development centers, and aquaculture centers.

    National research initiative competitive grants.--Increased funding 
is being proposed for the National Research Initiative (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 2000 the proposed increase to $200 
million will provide resources needed for the program to enhance and 
develop scientific areas that are critical such as: agricultural 
genomics, food safety, environment and natural resource management and 
competitiveness and profitability of agriculture.

    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.

    1994 Institutions Research.--Funding is proposed for a new 
competitive research grants program to build the research capacity at 
the thirty 1994 institutions by supporting agricultural research 
activities that address tribal, national and multistate priorities.

    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.

[[Page 77]]

    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 (30 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.

    1998 Research Act.--The Agricultural Research, Extension, and 
Education Reform Act of 1998 authorized the annual appropriation of $120 
million for high priority research extension and education. These funds 
are available for two years. The 1999 appropriations language blocked 
the use of the available funds in 1999. The 2000 budget blocks the 
second year's availability of the 1999 funds, but allows the authorized 
$120 million for 2000 to be expended. These funds will be restored 
beginning in 2001 through a legislative proposal to maintain the 
originally authorized amounts.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          10          11          12
12.1    Civilian personnel benefits.....           2           2           3
21.0    Travel and transportation of 
          persons.......................           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........                       1
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................                       3           3
25.3    Purchases of goods and services 
          from Government accounts......           1           3           3
26.0    Supplies and materials..........                       1
41.0    Grants, subsidies, and 
          contributions.................         396         508         572
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         411         531         595
99.0  Reimbursable obligations..........          15          16          16
                                           ---------   ---------  ----------
99.9    Total new obligations...........         426         547         611
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         192         193         218
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......           9           9           9
---------------------------------------------------------------------------

                                

                        buildings and facilities

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1501-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................           1           4
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5           4
23.95 Total new obligations.............          -1          -4
24.40 Unobligated balance available, end 
        of year.........................           4
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         199         139         103
73.10 Total new obligations.............           1           4
73.20 Total outlays (gross).............         -61         -40         -25
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         139         103          78
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          61          40          25
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          61          40          25
---------------------------------------------------------------------------

    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 2000.

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1501-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......           3           1
---------------------------------------------------------------------------

                                

                          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, [$276,548,000] 
$257,753,000; payments for extension work at the 1994 Institutions under 
the Smith-Lever Act (7 U.S.C. 343(b)(3)), [$2,060,000] $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] $61,043,000; 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, $3,000,000; payments for the pesticide impact assessment 
program under section 3(d) of the Act, $3,214,000] $12,269,000; payments 
for pesticide applicator training under section 3(d) of the Act, 
$1,500,000; payments to upgrade research, extension, and teaching 
facilities at the 1890 land-grant colleges, including Tuskegee 
University, as authorized by section 1447 of Public Law 95-113 (7 U.S.C. 
3222b), [$8,426,000] $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, $9,561,000;] payments for youth-at-risk programs under 
section 3(d) of the Act, [$9,000,000; payments for a food safety program 
under section 3(d) of the Act, $7,365,000] $10,000,000; payments for 
carrying out the provisions of the Renewable Resources Extension Act of 
1978, $3,192,000; payments for Indian reservation agents under section 
3(d) of the Act, [$1,714,000] $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, [$25,843,000] $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, 
[$11,741,000] $6,039,000; in all, [$437,987,000] $401,603,000: 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, 1999, 
as included in Public Law 105-277, section 101(a).)

[[Page 78]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Smith-Lever Act, 3(b) and 3(c)..         268         276         258
00.02   Youth at Risk...................          10          10          10
00.03   Water quality...................           9           9
00.04   Expanded food and nutrition 
          education program (EFNEP).....          59          59          61
00.05   Pest management.................          11          11          12
00.06   Farm safety.....................           3           3
00.07   Pesticide impact assessment.....           3           3
00.08   Pesticide applicator training...                                   2
00.09   Indian reservation extension 
          agents........................           2           2           5
00.10   Agricultual telecommunications..           1
00.11   Food safety.....................           2           7
00.12   Rural development...............           1           1           1
00.13   Payments to 1890 colleges and 
          Tuskegee University...........          25          26          25
00.15   Renewable resources extension 
          act...........................           3           3           3
00.16   Federal administration..........          11          12           6
00.18   Rural health and safety 
          education.....................           3           3
00.19   1890 facilities (section 1447)..           7          12          12
00.21   Sustainable agriculture.........           3           3           3
00.22   1994 Institutions activities....           2           2           4
09.00 Reimbursable program..............          23          25          25
                                           ---------   ---------  ----------
10.00   Total new obligations...........         446         467         427
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           4           4
22.00 New budget authority (gross)......         446         463         427
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         450         467         427
23.95 Total new obligations.............        -446        -467        -427
24.40 Unobligated balance available, end 
        of year.........................           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         423         438         402
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          23          25          25
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         446         463         427
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         213         223         235
73.10 Total new obligations.............         446         467         427
73.20 Total outlays (gross).............        -436        -455        -449
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         223         235         215
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         265         281         258
86.93 Outlays from current balances.....         148         149         166
86.97 Outlays from new permanent 
        authority.......................          23          25          25
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         436         455         449
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -23         -25         -25
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         423         438         402
90.00 Outlays...........................         413         430         424
---------------------------------------------------------------------------
    Note.--In 2000 funding for water quality grants, food safety and 
pesticide impact assessments is included in the account for integrated 
activities.

    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 and expanded food and nutrition education program (EFNEP), 
provide support for the Cooperative Extension System to address 
identified priority issues.

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

    In 2000 increases have been requested for: the Expanded Food and 
Nutrition Education Program, pest management, children, youth and 
families at risk, extension services on Indian reservations, pesticide 
applicator training, 1890's facilities, and 1994 (Native American) 
institutions.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          10          10          11
12.1    Civilian personnel benefits.....           3           3           3
21.0    Travel and transportation of 
          persons.......................           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........          15           1           1
25.2    Other services..................           4           1           1
25.3    Purchases of goods and services 
          from Government accounts......                       1           1
41.0    Grants, subsidies, and 
          contributions.................         390         425         384
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         423         442         402
99.0  Reimbursable obligations..........          23          25          25
                                           ---------   ---------  ----------
99.9    Total new obligations...........         446         467         427
---------------------------------------------------------------------------

[[Page 79]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         200         202         205
---------------------------------------------------------------------------

                                


 
               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, [$425,803,000] $435,445,000, of which 
$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 may be deemed 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 [1999] 2000, 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 
[1999, $88,000,000] 2000, $95,000,000 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, 1999, as included in Public Law 105-277, section 
101(a).)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          91         105         118
    Receipts:
02.01 Agricultural quarantine inspection 
        fees............................         152         160         219
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         243         265         337
    Appropriation:
05.01 Salaries and expenses.............        -138        -147        -214
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............        -138        -147        -214
07.99 Total balance, end of year........         105         118         123
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Pest and disease exclusion......         242         254         311
00.02   Plant and animal health 
          monitoring....................          73          76          82
00.03   Pest and disease management 
          programs......................          97          90          75
00.04   Animal care.....................          10          10          10
00.05   Scientific and technical 
          services......................          55          52          55
00.06   Contingencies...................           4           4           4
00.07   Emergency program funding.......          30          95
                                           ---------   ---------  ----------
01.00   Total direct program............         511         581         537
09.01 Reimbursable program..............          58          55          55
                                           ---------   ---------  ----------
10.00   Total new obligations...........         569         636         592
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          37          30          29
22.00 New budget authority (gross)......         531         539         609
22.22 Unobligated balance transferred 
        from other accounts.............          31          95
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         599         664         638
23.95 Total new obligations.............        -569        -636        -592
24.40 Unobligated balance available, end 
        of year.........................          30          29          46
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         338         338         340
40.20   Appropriation (special fund, 
          definite).....................          88          88          95
41.00   Transferred to other accounts...                      -1
42.00   Transferred from other accounts.           1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         427         425         435
      Permanent:

60.25   Appropriation (special fund, 
          indefinite)...................          50          59         119
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          54          55          55
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         531         539         609
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          68          78         153
73.10 Total new obligations.............         569         636         592
73.20 Total outlays (gross).............        -559        -561        -608
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          78         153         137
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         417         404         413
86.93 Outlays from current balances.....          27          14          21
86.97 Outlays from new permanent 
        authority.......................          91         102         174
86.98 Outlays from permanent balances...          24          43
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         559         561         608
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -29         -24          -7
88.40     Non-Federal sources...........         -25         -31         -48
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -54         -55         -55
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         477         484         554
90.00 Outlays...........................         505         506         553
---------------------------------------------------------------------------

[[Page 80]]



                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         477         484         554
  Outlays...........................         505         508         553
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  -9
  Outlays...........................                                  -9
                                    ------------------------------------
Total:
  Budget Authority..................         477         484         545
  Outlays...........................         505         508         544
                                    ====================================

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         209         217         243
11.3      Other than full-time permanent          15          15          17
11.5      Other personnel compensation..          18          32          34
                                           ---------   ---------  ----------
11.9        Total personnel compensation         242         264         294
12.1    Civilian personnel benefits.....          60          62          73
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................          21          23          18
22.0    Transportation of things........           4           4           4
23.2    Rental payments to others.......           4           6           6
23.3    Communications, utilities, and 
          miscellaneous charges.........          15          11          11
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          94          84          70
26.0    Supplies and materials..........          21          22          20
31.0    Equipment.......................          20          15          14
        Grants, subsidies, and 
            contributions:
41.0      United States-Colombia 
            Commission to Prevent Foot-
            and-Mouth Disease...........           2           2           2
41.0      Joint Screwworm eradication 
            programs....................          16          16          16
41.0      Joint Commission on the 
            Mediterranean fruit fly.....           3           3           3
41.0      Other grants, subsidies, and 
            contributions...............           3           2           2
        Insurance claims and 
            indemnities:
42.0      Brucellosis...................           1           1
42.0      Other insurance claims and 
            indemnities.................           2          64           2
44.0    Refunds.........................           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         511         581         537
99.0  Reimbursable obligations..........          58          55          55
                                           ---------   ---------  ----------
99.9    Total new obligations...........         569         636         592
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
      Total compensable workyears:

1001    Full-time equivalent employment.       3,611       3,563       5,682
1011    Exempt Full-time equivalent 
          employment....................       2,000       2,128
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         629         660         668
---------------------------------------------------------------------------

                                

                          Salaries and Expenses

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Animal welfare..................                                  -4
00.02   Biotechnology...................                                  -5
                                           ---------   ---------  ----------
01.00   Total direct program............                                  -9
09.01 Reimbursable program..............                                   9
                                           ---------   ---------  ----------
10.00   Total new obligations...........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................                                  -9
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                                   9
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  -9
86.97 Outlays from new permanent 
        authority.......................                                   9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........
----------------------------------------------------------------------------

[[Page 81]]



    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                  -9
----------------------------------------------------------------------------

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

    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, and for activities associated with the 
issuance of biotechnology certificates.

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................                                  -5
12.1    Civilian personnel benefits.....                                  -2
26.0    Supplies and materials..........                                  -1
31.0    Equipment.......................                                  -1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..                                  -9
99.0  Reimbursable obligations..........                                   9
                                           ---------   ---------  ----------
99.9    Total new obligations...........
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......                                -110
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......                                 110
---------------------------------------------------------------------------

                                

                        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, [$7,700,000] 
$7,200,000, to remain available until expended. (Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1601-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............          20          11           7
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          28          10           8
22.00 New budget authority (gross)......           4           8           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          32          18          15
23.95 Total new obligations.............         -20         -11          -7
24.40 Unobligated balance available, end 
        of year.........................          10           8           7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................           4           8           7
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6          21          13
73.10 Total new obligations.............          20          11           7
73.20 Total outlays (gross).............          -7         -17         -14
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          21          13           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           2           2
86.93 Outlays from current balances.....           6          13          13
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           7          17          14
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           4           8           7
90.00 Outlays...........................           7          17          14
---------------------------------------------------------------------------

    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 2000 budget proposes $7 million for this program, which consists 
of $4 million for repairs, alterations, preventive maintenance, and 
renovations for currently owned APHIS facilities, and $3 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................           4           4           4
32.0  Land and structures...............          16           7           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          20          11           7
---------------------------------------------------------------------------

                                

  

                               Trust Funds

                        Miscellaneous Trust Funds

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           1           1           8
    Receipts:
02.02 Miscellaneous contributed funds...          14          14          14
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          15          15          22
    Appropriation:
05.01 Miscellaneous trust funds.........         -14          -7          -7
07.99 Total balance, end of year........           1           8          15
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.03 Miscellaneous contributed funds...          12           7           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........          12           7           7
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           4           5           6
22.00 New budget authority (gross)......          14           7           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          18          12          13
23.95 Total new obligations.............         -12          -7          -7
24.40 Unobligated balance available, end 
        of year.........................           5           6           6
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................          14           7           7
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          12           7           7
73.20 Total outlays (gross).............         -14          -7          -7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          12           6           6
86.98 Outlays from permanent balances...           2           1           1
                                           ---------   ---------  ----------

[[Page 82]]


87.00   Total outlays (gross)...........          14           7           7
----------------------------------------------------------------------------

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

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

     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. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............           2           1           1
11.3    Other than full-time permanent..           2           1           1
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..           5           3           3
12.1  Civilian personnel benefits.......           1           1           1
21.0  Travel and transportation of 
        persons.........................           2           1           1
25.2  Other services....................           2           2           2
31.0  Equipment.........................           1
44.0  Refunds...........................           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          12           7           7
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         102         110         111
---------------------------------------------------------------------------

                                


 
                   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]

                                     1998 actual  1999 est.   2000 est.
Appropriations:
  Enacted/requested:
    Budget authority................         589         617         653
    Outlays.........................         592         617         651
User Fee:
    Budget authority................                                 504
    Outlays.........................                                 504
                                    ------------------------------------
  Total:
    Budget authority................         589         617         149
    Outlays.........................         592         617         147
                                    ====================================

                                

                              Federal Funds

General and special funds:

                          Salaries and Expenses

    For necessary expenses to carry out services authorized by the 
Federal Meat Inspection Act, the Poultry Products Inspection Act, and 
the Egg Products Inspection Act, [$616,986,000] $652,955,000, 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 available for employment under 
5 U.S.C. 3109: Provided further, That this appropriation shall be 
available pursuant to law (7 U.S.C. 2250) for the alteration and repair 
of buildings and improvements, but the cost of altering any one building 
during the fiscal year shall not exceed 10 percent of the current 
replacement value of the building. (7 U.S.C. 450, 1901-06; 10 U.S.C. 
2306; 18 U.S.C. 1114; 21 U.S.C. 451-470, 601-624, 641-645, 661, 671-680, 
691-692; 694-695; Public Law 99-641; Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropriations Act, 
1999, as included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................         589         617         653
09.01 Reimbursable program..............          85          85          85
                                           ---------   ---------  ----------
10.00   Total new obligations...........         674         702         738
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1
22.00 New budget authority (gross)......         674         702         738
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         675         703         738
23.95 Total new obligations.............        -674        -702        -738
24.40 Unobligated balance available, end 
        of year.........................           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         590         617         653
40.36   Unobligated balance rescinded...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         589         617         653
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          85          85          85
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         674         702         738
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          37          33          33
73.10 Total new obligations.............         674         702         738
73.20 Total outlays (gross).............        -677        -702        -738
73.40 Adjustments in expired accounts...          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          33          33          33
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         562         586         620
86.93 Outlays from current balances.....          30          31          31
86.97 Outlays from new permanent 
        authority.......................          85          85          85
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         677         702         738
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -85         -85         -85
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         589         617         653
90.00 Outlays...........................         592         617         653
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         589         617         653
  Outlays...........................         592         617         651
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                -504
  Outlays...........................                                -504
                                    ------------------------------------
Total:
  Budget Authority..................         589         617         149
  Outlays...........................         592         617         147
                                    ====================================

                                                            

[[Page 83]]



    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 2000 budget proposes a $36 million increase for 
inspection of meat, poultry, and egg products. This increase will cover 
pay cost increases for Federal and State inspection programs, and 
initiatives for: redeployment of inspection workforce; validation of 
State HACCP requirements; improved emergency response coordination with 
States; and civil rights training and program improvements.

    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 2000, 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 initiatives for 1998 and 1999 have 
laid the foundation for building a strong, scientific base for a farm-
to-table food safety system that protects public health by monitoring 
and addressing a broad range of food safety hazards. The 2000 Food 
Safety Initiative builds on this foundation and will increase 
department-wide by $32 million over the 1999 level of $119 million. 
Resources are targeted to: (1) further develop a nationally integrated 
food safety system by expanding and strengthening the partnership 
between Federal, State, and local agencies; (2) continue enhancing 
surveillance of foodborne diseases and increasing the speed and 
efficiency of responses to outbreaks of foodborne illness; and (3) put 
greater emphasis on the control of foodborne hazards in the pre-harvest 
phase of the farm-to-table continuum. Continued investment is required 
to realize the President's goal of establishing a seamless, science-
based food safety system.

    In 1998 the President's Council on Food Safety was established to 
develop a comprehensive strategy for food safety activities, including 
coordinating research efforts and budget submissions among the food 
safety agencies.

                 FEDERALLY FUNDED INSPECTION ACTIVITIES

                                     1998 actual  1999 est.   2000 est.
Federally inspected establishments:
  Slaughter plants..................         254         245         235
  Processing plants.................       4,297       4,270       4,255
  Combination slaughter and 
    processing plants...............         985         970         960
  Talmadge-Aiken plants.............         256         250         245
  Import establishments.............         135         130         120
  Egg plants........................          78          78          76
Federally inspected and passed 
    production (millions of pounds):
  Meat slaughter....................      41,400      42,000      42,000
  Poultry slaughter.................      43,200      44,000      44,000
  Egg products......................       3,310       3,400       3,400
  Product inspected and passed under 
    HACCP system: a......      64,996      72,900      80,700
Import/export activity (millions of 
    pounds):
  Meat and poultry imported.........       2,861       2,918       2,977
  Meat and poultry exported.........       9,306       9,400       9,400
States and territories with 
    cooperative programs: 
    b
  Intrastate inspection.............          25          26          26
  Talmadge-Aiken inspection.........           9           9           9
  Number of slaughter and/or 
    processing plants (excludes 
    exempt plants)..................       2,542       2,585       2,585
  Pounds inspected slaughter 
    (millions)......................         906         906         906
Compliance activities:
  Marketplace reviews...............                  20,000c 
                                                                 100,000
  Corrective action reviews.........      26,178      50,000      50,000
  Corrective actions completed......         589         600         700
Product Testing (samples analyzed):
  Food chemistry....................      16,241      10,000      10,000
  Food microbiology.................      92,132      94,000      94,000
  Chemical residues.................      43,802      40,000      40,000
  Antibiotic residues...............     181,249     181,000     181,000
  Pathology samples.................       4,987       5,000       5,000
Egg Products:
  Food chemistry....................           0         200         200
  Food microbiology.................       2,033       2,000       2,000
  Chemical residues.................         743         900         900
Consumer Education and public 
    outreach:
  Meat and Poultry Hotline Calls 
    received........................d 
                                         164,575     115,000     115,000
Epidemiological Investigations:
  Cooperative efforts with State and 
    public health offices...........          24          30          30
  Illnesses reported and treated 
    e....................       8,051       8,100       8,100
Field Automation and Information 
    Management Project (cumulative):
  Number of computers to be provided 
    to federal field inspection 
    staff...........................       2,779       3,539       4,249
  Number of computers to be provided 
    to state field inspection staff.                     916       1,832
    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 marketplace sampling, testing, reviewing and 
evaluation.
    d Volume increased due to contractor support in November 
1997.
    e 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         338         349         365
11.3      Other than full-time permanent          16          17          17
11.5      Other personnel compensation..          18          18          19
                                           ---------   ---------  ----------
11.9        Total personnel compensation         372         384         401
12.1    Civilian personnel benefits.....          99         104         113
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................          25          25          26
22.0    Transportation of things........           3           4           6
23.2    Rental payments to others.......           2           2           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           6           5           6
24.0    Printing and reproduction.......           1           1           1
25.1    Advisory and assistance services           5           6           6
25.2    Other services..................          11          17          19
25.3    Purchases of goods and services 
          from Government accounts......           6           6           6
25.4    Operation and maintenance of 
          facilities....................           2           2           2
26.0    Supplies and materials..........           8           8           9
31.0    Equipment.......................           6           6           7
41.0    Grants, subsidies, and 
          contributions.................          41          46          47
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         588         617         651
99.0  Reimbursable obligations..........          85          85          85
99.5  Below reporting threshold.........           1                       2
                                           ---------   ---------  ----------
99.9    Total new obligations...........         674         702         738
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       9,403       9,407       9,407
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         250         250         250
---------------------------------------------------------------------------

[[Page 84]]



                                

                          Salaries and Expenses

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................                                -504
09.01 Reimbursable program..............                                 504
                                           ---------   ---------  ----------
10.00   Total new obligations...........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................                                -504
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                                 504
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                -504
86.97 Outlays from new permanent 
        authority.......................                                 504
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                -504
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -504
90.00 Outlays...........................                                -504
---------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........                                -304
11.3      Other than full-time permanent                                 -14
11.5      Other personnel compensation..                                 -16
                                           ---------   ---------  ----------
11.9        Total personnel compensation                                -334
12.1    Civilian personnel benefits.....                                 -94
13.0    Benefits for former personnel...                                  -1
21.0    Travel and transportation of 
          persons.......................                                 -22
22.0    Transportation of things........                                  -5
23.2    Rental payments to others.......                                  -1
23.3    Communications, utilities, and 
          miscellaneous charges.........                                  -5
24.0    Printing and reproduction.......                                  -1
25.1    Advisory and assistance services                                  -5
25.2    Other services..................                                 -16
25.3    Purchases of goods and services 
          from Government accounts......                                  -5
25.4    Operation and maintenance of 
          facilities....................                                  -1
26.0    Supplies and materials..........                                  -8
31.0    Equipment.......................                                  -6
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..                                -504
99.0  Reimbursable obligations..........                                 504
                                           ---------   ---------  ----------
99.9    Total new obligations...........
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......                              -7,262
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......                               7,262
---------------------------------------------------------------------------

                                

                               Trust Funds

     Expenses and Refunds, Inspection and Grading of Farm Products 

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Fees for inspection and grading of 
        farm products...................           4           4           4
    Appropriation:
05.01 Expenses and refunds, inspection 
        and grading of farm products....          -4          -4          -4
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

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

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

    Change in unpaid obligations:
73.10 Total new obligations.............           4           4           4
73.20 Total outlays (gross).............          -4          -4          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          -1
----------------------------------------------------------------------------

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

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

    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.

[[Page 85]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      1998 actual   1999 est.   2000 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
                                           ---------   ---------  ----------
99.9    Total new obligations...........           4           4           4
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          45          45          45
---------------------------------------------------------------------------

                                


 
         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, [$26,787,000] $26,448,000: 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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Standardization...................           3           4           4
00.02 Compliance........................           5           4           5
00.03 Methods development...............           3           3           3
00.04 Packers and stockyards program....          13          16          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........          24          27          27
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          24          27          26
23.95 Total new obligations.............         -24         -27         -27
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          24          27          26
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           4           4           4
73.10 Total new obligations.............          24          27          27
73.20 Total outlays (gross).............         -24         -27         -27
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           4           4           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          21          24          23
86.93 Outlays from current balances.....           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          24          27          27
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          24          27          26
90.00 Outlays...........................          24          27          27
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................          24          27          26
  Outlays...........................          24          27          26
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -15
  Outlays...........................                                 -15
                                    ------------------------------------
Total:
  Budget Authority..................          24          27          11
  Outlays...........................          24          27          11
                                    ====================================

    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 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 2000, authorizing legislation will be submitted to permit, 
subject to appropriations, the collection and use of fees to cover the 
cost of standardization activities.

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

    Authorizing legislation will be submitted that would establish a 
license fee that, subject to appropriations, would allow

[[Page 86]]

the collection and expenditure of funds for all costs associated with 
administering the Packers and Stockyards Act.

                          MAIN WORKLOAD FACTORS

                                     1998 actual  1999 est.   2000 est.
U.S. standards in effect at end of 
year................................          19          19          19
Standards reviews in progress.......           3           3           3
Standards reviews completed.........           3           3           3
Inspection techniques developed.....           2           2           2
On-site investigations..............           5           7           8
Designations renewed................          21          21          21
Registration certificates issued....          80          81          79
Investigations......................       1,684       1,600       1,700
Market agencies/dealers registered..       6,391       6,350       6,350
Stockyards posted...................       1,298       1,290       1,285
Slaughtering and processing packers 
subject to the Act (estimated)......       6,000       6,000       6,000
Distributors, brokers, and dealers 
subject to the Act (estimated)......       6,800       6,800       6,800
Poultry operations subject to the 
Act.................................         210         210         210

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          15          15           8
12.1  Civilian personnel benefits.......           4           5           2
21.0  Travel and transportation of 
        persons.........................           1           2           2
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................           2           3          12
26.0  Supplies and materials............                                   1
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          24          27          27
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         304         322         322
---------------------------------------------------------------------------

                                

                          Salaries and Expenses

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Standardization.................                                  -4
00.04   Packers and stockyards program..                                 -15
00.05   Start-up costs..................                                   4
09.01 Reimbursable program..............                                  29
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  14
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                   4
23.95 Total new obligations.............                                 -14
24.40 Unobligated balance available, end 
        of year.........................                                 -12
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................                                 -15
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                                  19
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                   4
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  14
73.20 Total outlays (gross).............                                  -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                 -15
86.97 Outlays from new permanent 
        authority.......................                                  19
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                                   4
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

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

    Legislation will be proposed to establish a fee for the 
standardization activities of the Grain Inspection, Packers and 
Stockyards Administration, and a licensing fee to cover the costs of 
administering meat packing and stockyard activities.

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................                                  10
99.5  Below reporting threshold.........                                   4
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  14
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......                                -222
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......                                 222
---------------------------------------------------------------------------

                                

Public enterprise funds:

                    Inspection and Weighing Services

         limitation on inspection and weighing service expenses

    Not to exceed $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, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............          32          43          43
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           3           4           4
22.00 New budget authority (gross)......          33          43          43
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          36          47          47
23.95 Total new obligations.............         -32         -43         -43
24.40 Unobligated balance available, end 
        of year.........................           4           4           4
----------------------------------------------------------------------------

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

[[Page 87]]



    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           2           2           2
73.10 Total new obligations.............          32          43          43
73.20 Total outlays (gross).............         -32         -43         -43
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           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...........................           2
---------------------------------------------------------------------------

    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 
54 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).

                                     1998 actual  1999 est.   2000 est.
Export grain inspected and/or 
    weighed (million metric tons):
  By Federal personnel..............        71.3        78.1        95.6
  By delegated States...............        21.5        24.7        30.2
Quantity of grain inspected (all 
official inspections) domestically 
million metric tons.................       121.6       121.0       121.0
Number of inspections and 
    reinspections:
  By Federal personnel..............     122,325     122,000     122,000
  By delegated state/official agency 
    licenses........................   1,830,992   1,800,000   1,800,000
Number of appeals...................       3,443       3,400       3,400
Number of appeals carried to the 
Board of Appeals and Review.........         351         300         300
Quantity of rice inspected (million 
metric tons)........................         3.9         4.0         4.2
Quantity of rice exports (million 
metric tons)........................         3.3         3.0         2.8

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      1998 actual   1999 est.   2000 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
                                           ---------   ---------  ----------
99.9    Total new obligations...........          32          43          43
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         453         453         453
---------------------------------------------------------------------------

                                


 
                     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, [$48,831,000] $60,182,000, 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] level

    Not to exceed $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, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Market news service.............          22          22          24
00.02   Inspection and standardization..           6           6           6
00.03   Market protection and promotion.          14          16          25
00.04   Wholesale market development....           2           2           2
00.05   Transportation services.........           2           3           3
09.01 Reimbursable program..............          50          64          64
                                           ---------   ---------  ----------
10.00   Total new obligations...........          96         113         124
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          35          42          42
22.00 New budget authority (gross)......         104         113         124
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         139         155         166
23.95 Total new obligations.............         -96        -113        -124
23.98 Unobligated balance expiring......           1
24.40 Unobligated balance available, end 
        of year.........................          42          42          42
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          47          49          60
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          58          64          64
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         105         113         124
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          24          21          28
73.10 Total new obligations.............          96         113         124
73.20 Total outlays (gross).............         -99        -107        -122

[[Page 88]]

74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          21          28          29
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          41          43          53
86.93 Outlays from current balances.....           3                       6
86.97 Outlays from new permanent 
        authority.......................          55          64          64
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          99         107         122
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -58         -64         -64
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          46          49          60
90.00 Outlays...........................          42          43          58
---------------------------------------------------------------------------

    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 2000, $6 million has been included as part of the 
Administration's Food Safety Initiative. This represents an increase of 
$3 million from the $3 million provided in 1999. These funds will be 
used to monitor microbiological pathogens and 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 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

                                     1998 actual  1999 est.   2000 est.
Percentage of reports released on 
time................................          94          94          95

                   COTTON AND TOBACCO USER FEE PROGRAM

                                     1998 actual  1999 est.   2000 est.

Cotton classed (samples in millions)        19.0        12.9        15.3
Tobacco graded at auction markets 
(million pounds)....................       2,052       1,848       1,848
Imported tobacco inspected at 
markets and ports of entry (million 
pounds).............................         207         186         186

         FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

                                     1998 actual  1999 est.   2000 est.

States and Commonwealths with 
cooperative agreements..............          46          45          46
Percentage of noncomplying shell egg 
lots that are reprocessed or 
diverted............................         100         100         100

                       STANDARDIZATION ACTIVITIES

                                     1998 actual  1999 est.   2000 est.
International and U.S. standards in 
effect, end of fiscal year..........         577         561         555
Number of commodities covered.......         224         211         211
Standards revised...................          14          15          19

    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

                                     1998 actual  1999 est.   2000 est.
Pesticide Data Program:
  Number of analyses performed......  \1\ 59,200  \2\ 50,000      55,000
  Percentage of sampling and 
    analysis goal...................         100         100         100
Pesticide Recordkeeping:
  Number of State/Federal 
    Inspections.....................       4,993       4,800       4,800
  Percentage of sampling goal 
    attained........................         107          98          98
Seed Act:
  Interstate investigations:
    Completed.......................         563         600         600
    Pending.........................         525         550         500
  Seed samples tested...............       2,355       2,350       2,350
  Percentage of cases submitted that 
    are completed...................          96          92          92
Plant Variety Protection Act:
  Percentage of application 
    processing goal completed.......          81          89          89
  Number of applications received...         390         350         350
  Certificates of protection issued.         116         275         275
Research and promotion collections 
    (dollars in millions):
  Beef..............................        45.2        43.0        43.0
  Cotton............................        58.0        55.0        58.0
  Dairy--National...................        79.2        78.0        78.5
  Honey.............................         3.4         3.4         3.4
  Pork..............................        49.5        50.0        55.0
  Egg...............................        16.0        17.0        17.0
  Potato............................         8.6         8.6         8.6
  Watermelon........................         1.3         1.3         1.3
  Mushroom..........................         2.4         2.7         2.7
  Popcorn...........................         0.5         0.5         0.5
  Soybean...........................        40.8        40.0        40.0
  Kiwi Fruit........................         0.0         0.0         2.0
  Fluid Milk........................       105.6       105.8       106.2
  Peanuts...........................         0.0         0.0        10.0
  Percentage of board budgets and 
    marketing plans approved within 
    time frame goal.................          67          91          91
  Sales of certified organic 
    products (dollars in billions)..         4.8         5.8         7.0
    \1\ Partially funded by EPA.
    \2\ Decrease in number of samples due to change in type of chemical 
analysis and type of product (fresh vs. processed).

    Wholesale market development.--This program is designed to enhance 
the marketing of agricultural commodities in the

[[Page 89]]

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

                                     1998 actual  1999 est.   2000 est.
Weighted average of customer survey 
results for various market projects 
and information products............         100         105         110
Market studies initiated............           9           9          12
Studies and projects completed......          10          10          13

                   TRANSPORTATION SERVICES ACTIVITIES

                                     1998 actual  1999 est.   2000 est.
Weighted average of customer survey 
results for various market projects 
and information products............         100         105         110
Number of reports produced..........           5           8           8
Number of workshops sponsored.......           2           2           2

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          20          21          23
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          21          22          24
12.1    Civilian personnel benefits.....           5           5           6
21.0    Travel and transportation of 
          persons.......................           1           1           2
23.2    Rental payments to others.......           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.2    Other services..................          11          12          19
25.3    Purchases of goods and services 
          from Government accounts......           2           3           3
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..          46          49          60
99.0  Reimbursable obligations..........          50          64          64
                                           ---------   ---------  ----------
99.9    Total new obligations...........          96         113         124
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         482         489         528
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         732         722         722
---------------------------------------------------------------------------

                                

                   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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2501-0-1-352      1998 actual   1999 est.   2000 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 Total 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, start of year           1           1           1
73.10 Total new obligations.............           1           1           1
73.20 Total outlays (gross).............          -1          -1          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Deposits of Perishable 
        Agricultural Commodities Act 
        fees............................           8           7           7
    Appropriation:
05.01 Perishable Agricultural 
        Commodities Act fund............          -8          -7          -7
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           6           6           5
22.00 New budget authority (gross)......           8           7           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          14          13          12
23.95 Total new obligations.............          -8          -9          -9
24.40 Unobligated balance available, end 
        of year.........................           6           5           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.25 Appropriation (special fund, 
        indefinite).....................           8           7           7
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6           5           5
73.10 Total new obligations.............           8           9           9
73.20 Total outlays (gross).............          -8          -9          -9
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           5           5           5
----------------------------------------------------------------------------

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

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

    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).

[[Page 90]]

    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

                                     1998 actual  1999 est.   2000 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           4           5           5
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           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........           8           9           9
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          95          97          97
---------------------------------------------------------------------------

                                

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

                     (including transfers of funds)

    Funds available under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c) shall be used only for commodity program expenses as 
authorized therein, and other related operating expenses, except for: 
(1) transfers to the Department of Commerce as authorized by the Fish 
and Wildlife Act of August 8, 1956; (2) transfers otherwise provided in 
this Act; and (3) not more than [$10,998,000] $12,443,000 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, 1999, as 
included in Public Law 105-277, section 101(a).)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............         395         372
    Receipts:
02.01 30% of customs duties, funds for 
        strengthening markets, income 
        and supply (section 32).........       5,707       5,330       5,891
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       6,102       5,702       5,891
    Appropriation:
05.01 Funds for strengthening markets, 
        income, and supply (section 32).      -5,730      -5,702      -5,664
07.99 Total balance, end of year........         372                     227
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Commodity program payments:
00.01     Child nutrition program 
            purchases...................         400         400         400
00.02     Emergency surplus removal.....         195         134         115
00.03     Disaster relief...............          15
                                           ---------   ---------  ----------
00.91     Subtotal, Commodity program 
            payments....................         610         534         515
01.01 Administrative expenses...........          16          18          21
                                           ---------   ---------  ----------
01.92   Total direct program............         626         552         536
09.11 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         627         553         537
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         234         132         167
22.00 New budget authority (gross)......         514         589         670
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          11
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         759         721         837
23.95 Total new obligations.............        -627        -553        -537
24.40 Unobligated balance available, end 
        of year.........................         132         167         300
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.25 Appropriation (special fund, 
        indefinite).....................       5,730       5,702       5,664
61.00 Transferred to other accounts.....      -5,217      -5,114      -4,995
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........         513         587         669
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         514         589         670
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3         105         105
73.10 Total new obligations.............         627         553         537
73.20 Total outlays (gross).............        -513        -552        -536
73.45 Adjustments in unexpired accounts.         -11
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         105         105         105
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         276         315         299
86.98 Outlays from permanent balances...         237         237         237
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         513         552         536
----------------------------------------------------------------------------

    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..................         513         588         669
90.00 Outlays...........................         513         551         535
---------------------------------------------------------------------------

    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 Nutrition 
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.

[[Page 91]]

                           WORKLOAD INDICATORS

                                     1998 actual  1999 est.   2000 est.
Administrative costs in constant 
dollars as a percentage of commodity 
purchases...........................         1.0         1.2         1.9

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           9          10          10
12.1    Civilian personnel benefits.....           2           2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           1           1           1
25.3    Purchases of goods and services 
          from Government accounts......           2           2           4
25.7    Operation and maintenance of 
          equipment.....................           1           1           1
26.0    Supplies and materials: Grants 
          of commodities to States......         610         534         515
31.0    Equipment.......................                       1           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         626         552         536
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         627         553         537
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         157         165         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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Deposits of fees from inspection 
        and grading of farm products....         100         106         106
    Appropriation:
05.01 Miscellaneous trust funds.........        -100        -106        -106
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9972-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Dairy products....................           5           5           5
00.02 Fruits and vegetables.............          52          52          52
00.03 Meat grading......................          22          21          21
00.04 Poultry products..................          22          21          21
00.05 Miscellaneous agricultural 
        commodities.....................           9           7           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........         110         106         106
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          30          20          20
22.00 New budget authority (gross)......         100         106         106
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         130         126         126
23.95 Total new obligations.............        -110        -106        -106
24.40 Unobligated balance available, end 
        of year.........................          20          20          20
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................         100         106         106
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         -24         -16         -16
73.10 Total new obligations.............         110         106         106
73.20 Total outlays (gross).............        -102        -106        -106
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         -16         -16         -16
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          96         102         103
86.98 Outlays from permanent balances...           6           4           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         102         106         106
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         100         106         106
90.00 Outlays...........................         102         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

                                     1998 actual  1999 est.   2000 est.
Weighted average cost per cwt. (1990 
index)..............................       $0.07       $0.08       $0.08

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9972-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          55          54          54
11.3    Other than full-time permanent..           4           7           7
11.5    Other personnel compensation....           8           6           6
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          67          67          67
12.1  Civilian personnel benefits.......          16          16          16
13.0  Benefits for former personnel.....           1           1           1
21.0  Travel and transportation of 
        persons.........................           7           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...........           2           3           3
25.2  Other services....................           8           6           6
25.3  Purchases of goods and services 
        from Government accounts........           3           3           3
26.0  Supplies and materials............           2           1           1
31.0  Equipment.........................           2           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         110         106         106
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9972-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       1,598       1,581       1,542
---------------------------------------------------------------------------

                                

                   Milk Market Orders Assessment Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          27          28          28

[[Page 92]]

22.00 New budget authority (gross)......          37          39          42
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          64          67          70
23.95 Total new obligations.............         -37         -39         -42
24.40 Unobligated balance available, end 
        of year.........................          28          28          28
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          37          39          42
----------------------------------------------------------------------------

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

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          36          38          14
86.98 Outlays from permanent balances...           1           1          28
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          37          39          42
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -37         -39         -42
----------------------------------------------------------------------------

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

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......           7           7           7
92.02 Total investments, end of year: 
        U.S. securities: Par value......           7           7           7
---------------------------------------------------------------------------
    Note.--The administration fund totals are comprised of 31 separate 
independent order accounts in 1998.

    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

                                     1998 actual  1999 est.   2000 est.
Percentage of formal and informal 
rulemaking completed within internal 
timeframes..........................          94          85          85

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          23          25          27
12.1  Civilian personnel benefits.......           5           5           5
21.0  Travel and transportation of 
        persons.........................           2           3           3
23.2  Rental payments to others.........           2           2           2
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................           1           1           1
26.0  Supplies and materials............           1           1           2
31.0  Equipment.........................           2           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          37          39          42
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         440         457         449
---------------------------------------------------------------------------

                                


 
                         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] $70,716,000: Provided, That not to exceed $700 shall be 
available for official reception and representation expenses, as 
authorized by 7 U.S.C. 1506(i). (Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations Act, 1999, 
as included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Salaries and expenses.............          63          64          71
00.02 Administrative expense 
        reimbursements..................         189
                                           ---------   ---------  ----------
10.00   Total new obligations...........         252          64          71
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         253          64          71
23.95 Total new obligations.............        -252         -64         -71
23.98 Unobligated balance expiring......          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         253          64          71
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          13          21          16
73.10 Total new obligations.............         252          64          71
73.20 Total outlays (gross).............        -243         -70         -70
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          21          16          17
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         240          58          64
86.93 Outlays from current balances.....           3          12           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         243          70          70
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         253          64          71
90.00 Outlays...........................         243          70          70
---------------------------------------------------------------------------

    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. In 1998, discretionary funding was provided for the 
reimbursement of agents' sales

[[Page 93]]

commissions in accordance with the Federal Crop Insurance Reform Act of 
1994. The Agricultural Research, Extension and Education Reform Act of 
1998, (P.L. 105-185) provides mandatory funding for the reimbursement of 
administrative expenses to private insurance companies for delivering 
crop insurance for the 1999 and subsequent crop years.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          25          25          26
11.3    Other than full-time permanent..           3           3           3
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          28          28          29
12.1  Civilian personnel benefits.......           6           7           7
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.2  Rental payments to others.........           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           2           2           2
25.2  Other services....................         211          21          27
26.0  Supplies and materials............           1           1           1
31.0  Equipment.........................           2           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         252          64          71
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         530         545         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, 
1999, as included in Public Law 105-277, section 101(a).)

                                

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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Delivery and other expenses.......         248         405         429
01.01 Indemnities.......................         867       1,145       1,207
01.02 Dairy options pilot program.......           1
                                           ---------   ---------  ----------
01.91   Subtotal, direct program........         868       1,145       1,207
09.01 Offsetting collections--insurance 
        premiums........................         527         835         876
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,643       2,385       2,512
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       1,855       1,449       1,440
22.00 New budget authority (gross)......       1,227       2,385       1,873
22.21 Unobligated balance transferred to 
        other accounts..................                      -9
22.22 Unobligated balance transferred 
        from other accounts.............          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,092       3,825       3,313
23.95 Total new obligations.............      -1,643      -2,385      -2,512
24.40 Unobligated balance available, end 
        of year.........................       1,449       1,440         800
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         700       1,550         997
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         527         835         876
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,227       2,385       1,873
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         864         949       1,196
73.10 Total new obligations.............       1,643       2,385       2,512
73.20 Total outlays (gross).............      -1,557      -2,138      -2,477
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         949       1,196       1,231
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         553         742         479
86.93 Outlays from current balances.....         477         560       1,123
86.97 Outlays from new permanent 
        authority.......................         527         835         876
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,557       2,138       2,477
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....        -527        -835        -876
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         700       1,550         997
90.00 Outlays...........................       1,031       1,303       1,601
---------------------------------------------------------------------------

    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 (Reform Act) 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 is an integral 
part of the broad-based safety net and includes programs involving 
revenue insurance, and education in the use of futures markets to manage 
risks.

    Under the 1996 Act, farmers are no longer required to obtain 
Catastrophic Crop insurance (CAT), as previously mandated by the Reform 
Act. Producers can instead agree in writing to waive eligibility for 
emergency crop loss assistance in connection with the crop. (However, 
the 1999 Appropriation Act required uninsured producers who elected to 
receive the emergency crop loss payments provided by the Act to enroll 
in crop insurance for the subsequent two crop years.) For producers who 
continue to obtain CAT, which compensates the farmer for losses up to 50 
percent of the individual's average yield at 55 percent of the expected 
market price, premium is entirely subsidized. The cost to the producer 
for this type of coverage is an annual administrative fee of $50 per 
crop per county. Commercial insurance companies deliver the product to 
the producer for all states.

    Additional coverage is available to producers who wish to insure 
crops above the 50 percent coverage level/55 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 coverage of protection selected and vary 
from crop to crop and county to county. Producers are assessed a fee of 
$20 per crop (may be $60 in some cases of limited coverage), 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 crop insurance as 
loan collateral and to achieve greater financial security.

[[Page 94]]

    As mandated by the 1996 Act, revenue insurance programs are 
available under which producers of wheat, certain feed grains, soybeans, 
rice, and cotton are protected against loss of revenue stemming from low 
prices, poor yields, or a combination of both. Two of the revenue 
insurance plans were privately developed and submitted to FCIC: Crop 
Revenue Coverage (CRC) and Revenue Assurance (RA). The Income Protection 
(IP) plan was 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. CRC and RA also 
provide protection against price increases at the time of harvest from 
an initial price guarantee established near the time of planting. 
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. For 1999, a Group Risk Income 
Protection plan was developed by the private sector to provide 
protection against decline in county revenue, based on futures market 
prices and NASS county average yields, as adjusted by FCIC. FCIC is also 
piloting an Adjusted Gross Revenue program, which is designed to insure 
a portion of a producers gross revenue based on their Schedule F Farm 
and Income Tax reports.

    The Risk Management Education (RME) program has expanded its 
influence significantly since its launch at the September 1997 National 
Risk Management Education Summit meeting. National, regional, and state 
partnerships between the public and private sectors have been 
established to develop and promote effective risk management educational 
activities. These activities focus on the tools and strategies needed to 
deal with five major risk areas: production, marketing, financial, 
legal, and human resources. Fifteen regional and state ``train-the-
trainer'' conferences or workshops were held during 1998. Activities 
will extend broadly to the local level during 1999. RME conferences and 
workshops have been supplemented with national publications and a $3 
million program of grants for projects dealing with risk management 
educational delivery, a curriculum, and research, including the 
development of new decision aids. The Dairy Options Pilot Program (DOPP) 
will provide dairy producers with the educational opportunity to 
directly experience the use of ``put'' options in managing the risks 
inherent in fluctuating dairy prices. It will be in operation beginning 
in early 1999.

    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 1998, 186.3 million acres were insured, with an 
estimated $1,814 million in total premium income, including $914 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 2000. Amounts in the 1998 column are as of September 30, 
1998, and pertain to the 1998 crop year.

                                        1998        1999        2000
                                      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).......      25,449      24,613      26,109
Insured acreage (millions)..........         186         186         186
                                    ====================================
Producer premium (millions)\1\......         931         905         962
Premium subsidy (millions)\1\.......         946         902         958
                                    ------------------------------------
      Total premium (millions)\1\...       1,877       1,807       1,920
                                    ====================================
Indemnities (million)\1\............       1,143       1,943       2,064
Loss ratio..........................         .61       1.075       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]

                                        1998         1999        2000
                                     fiscal year fiscal year fiscal year
                                       actual      estimate    estimate
Premiums:
  Producer premium..................         929         905         954
  Amount of subsidies...............         940         903         949
    Additional coverage.............         577         575         608
    Catastrophic coverage--FSA......          13
    Catastrophic coverage--
      Reinsurance...................         350         328         341
                                    ------------------------------------
      Total premiums................       1,869       1,808       1,903
                                    ====================================
Indemnities.........................       1,394       1,944       2,047
    Additional coverage.............       1,414       1,592       1,680
    Catastrophic coverage--FSA......         -10
    Catastrophic coverage--
      Reinsurance...................          17         352         367
    Noninsured Assistance Program...         -27

    For crop years 1948 through 1997, indemnities ($16,756 million) 
exceeded premium income ($14,404 million) by $2,352 million; the loss 
ratio for the period was 1.16.

    The following table summarizes the insurance operations for 1998, 
1999 and 2000:

             NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                        [In millions of dollars]

                                        1998        1999        2000
                                       actual       est.        est.
Premium less indemnities............        -465      -1,039      -1,093
Interest expense, net...............           1
Delivery expenses \1\...............        -240        -390        -414
Other income or expense, net........           8          57          57
Crop insurance purchase requirements 
costs...............................                     -48         -48
Dairy options pilot program.........          -1         -10         -11
Research and development expenses...          -7          -4          -4
Reinsurance underwriting gain (+) or 
loss (-)............................        -412        -126        -134
                                    ------------------------------------
Net income or loss (-)..............      -1,116      -1,560      -1,647
                                    ====================================
    \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 and 2000, all expenses are paid by the 
Fund in accordance with the Agricultural Research, Extension and Education 
Reform Act of 1998, P.L. 105-185.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4085-0-3-351    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         502            527           835            876
0102  Expense...........................      -1,525         -1,643        -2,385         -2,513
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............      -1,023         -1,116        -1,550         -1,637
                                        ------------ --------------  ------------  -------------
0199  Net income or loss................      -1,023         -1,116        -1,550         -1,637
-----------------------------------------------------------------------------------------------

[[Page 95]]



                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4085-0-3-351    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       2,815          2,544         2,576          2,567
1206  Non-Federal assets: Receivables, 
        net.............................         740            760           750            750
1803  Other Federal assets: Property, 
        plant and equipment, net........           2              1             1              1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,557          3,305         3,327          3,318
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................                          9            10              1
2105    Other...........................         222            175           175            175
      Non-Federal liabilities:

2201    Accounts payable................         188             70            70             70
2207    Other...........................       1,485          1,749         1,750          1,750
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,895          2,003         2,005          1,996
    NET POSITION:
3100  Appropriated capital..............       1,120            680           700            700
3200  Invested capital..................           1              1             1              1
3300  Cumulative results of operations..      -3,949         -3,868        -3,868         -3,868
3500  Future funding requirements.......          -6             -7            -7             -7
3600  Other.............................       4,496          4,496         4,496          4,496
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       1,662          1,302         1,322          1,322
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,557          3,305         3,327          3,318
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

25.2    Other services..................         249         405         429
        Insurance claims and 
            indemnities:
42.0      Insurance claims and 
            indemnities (FSA 
            catastrophic)...............         -10
42.0      Insurance claims and 
            indemnities (reinsured CAT).          17
42.0      Insurance claims and 
            indemnities (reinsured 
            buyup)......................         887       1,145       1,207
42.0      Insurance claims and 
            indemnities (NAP Operations)         -27
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       1,116       1,550       1,636
42.0  Reimbursable obligations: 
        Insurance claims and indemnities         527         835         876
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,643       2,385       2,512
---------------------------------------------------------------------------

                                


 
                         Support Services Bureau

                  Administrative Salaries and Expenses

    From any Department of Agriculture account, the Secretary of 
Agriculture is authorized to transfer to and merge with this account 
such sums as are necessary to provide consolidated administrative and 
information technology support functions for the Farm and Foreign 
Agricultural Services and Rural Development Mission Areas, and the 
Natural Resources Conservation Service. In addition, $74,050,000 is 
appropriated to support the Service Center Modernization initiative, 
including the Common Computing Environment: Provided, That such amounts 
shall remain available until expended, but that the total amount of the 
transfers in fiscal year 2000 may not exceed the total amount obligated 
by these agencies for these support functions during fiscal year 1998: 
Provided further, That obligation of these funds shall be subject to the 
approval of the Support Services Bureau Executive Director, and for 
information technology, the concurrence of the Department's Chief 
Information Officer: Provided further, That funds under this heading are 
available for employment pursuant to the second sentence of section 
706(a) of the Organic Act of 1944 (7 U.S.C. 225) and not to exceed 
$250,000 shall be available for employment under 5 U.S.C. 3109.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3900-0-4-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 31.0).....................                                  90
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  74
22.22 Unobligated balance transferred 
        from other accounts.............                                  16
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                                  90
23.95 Total new obligations.............                                 -90
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  74
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  90
73.20 Total outlays (gross).............                                 -14
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  76
----------------------------------------------------------------------------

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

    Net budget authority and outlays:
89.00 Budget authority..................                                  74
90.00 Outlays...........................                                  14
---------------------------------------------------------------------------

    This new account reflects implementation of the Secretary's 
administrative convergence initiative to provide efficient 
administrative services to the Department's county-based agencies. A new 
consolidated organization, the USDA Support Services Bureau, will 
provide these services. The salaries and expenses of the new Bureau will 
be financed on a reimbursable basis by the serviced agencies. The 
transferred amounts in 2000 will not exceed the 1998 level of 
administrative and technology support function spending by the separate 
agencies. Except for the common computing information technology 
funding, estimates for these expenses were not yet available at the time 
the budget was published.

    The requested appropriation will continue financing of a common 
computing system, and business process reengineering necessary to 
implement the Administration's goal of providing one stop service to 
farm and rural customers at the county level. This appropriation will 
replace the individual agency appropriations previously provided to the 
county-based agencies.

                                


 
                           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, 
[$714,499,000] $794,839,000: Provided, That the Secretary is authorized 
to use the services, facilities, and authorities (but not the funds) of 
the Commodity Credit Corporation to make program payments for all 
programs administered by the Agency: Provided further, That other funds 
made available to the Agency for authorized activities may be advanced 
to and merged with this account: Provided further, That these funds 
shall be available for employment pursuant to the second sentence of 
section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to 
exceed $1,000,000 shall be available for employment under 5 U.S.C. 3109.
    [For an additional amount for ``Salaries and Expenses'', 
$40,000,000, to remain available until expended: Provided, That the 
entire amount is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.] (Agriculture, Rural 
Development, Food and Drug Administration, and Re

[[Page 96]]

lated Agencies Appropriations Act, 1999, as included in Public Law 105-
277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Farm programs...................         490         548         582
00.02   Conservation and environment....         190         185         189
00.03   Commodity operations............          20          22          24
                                           ---------   ---------  ----------
03.00     Subtotal, direct program......         700         755         795
        Reimbursable program:
09.01     Farm loans....................         210         210         210
09.02     Other programs................          84          78          84
                                           ---------   ---------  ----------
09.99   Subtotal, reimbursable program..         294         288         294
                                           ---------   ---------  ----------
10.00   Total new obligations...........         994       1,043       1,089
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         994       1,043       1,089
23.95 Total new obligations.............        -994      -1,043      -1,089
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         701         755         795
40.35   Appropriation rescinded.........          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         700         755         795
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         294         288         294
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         994       1,043       1,089
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         127         108         185
73.10 Total new obligations.............         994       1,043       1,089
73.20 Total outlays (gross).............      -1,008        -966      -1,085
73.40 Adjustments in expired accounts...          -5
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         108         185         189
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         628         678         713
86.93 Outlays from current balances.....          86                      77
86.97 Outlays from new permanent 
        authority.......................         294         288         294
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,008         966       1,085
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -276        -271        -277
88.40     Non-Federal sources...........         -18         -17         -17
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -294        -288        -294
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         700         755         795
90.00 Outlays...........................         714         678         791
---------------------------------------------------------------------------

    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 currently 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.

    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- 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, protecting the public health of 
communities through implementation of the Hazardous Waste Management 
Program, assisting NRCS with EQIP program policy and procedure 
development, and implementing administrative processes and procedures 
for contracting, financial reporting, and other

[[Page 97]]

financial operations. 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). Objectives of the Agency include improving the 
economic viability of farmers and ranchers, reducing losses in direct 
loan programs, responding to loan making and servicing requests, and 
maximizing financial and technical assistance to under-served groups. 
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.--This is a Departmental initiative to 
coordinate the functions and personnel of the different field agencies 
to provide a more seamless and efficient delivery system. The initiative 
creates a Support Services Bureau by consolidating the agencies' 
administrative units, both at the National level and in each State. The 
activities of the new entity will include human resources, management 
services, information technology, and accounting services. To begin this 
process, the information technology expenses of the consolidated service 
units of the Farm Service Agency, Natural Resources Conservation 
Service, and Rural Development activities will be pooled into a single 
account and these expenditures will be subject to approval by the Chief 
Information Officer.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         109         122         122
11.3      Other than full-time permanent           8           9           9
11.5      Other personnel compensation..           3           3           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation         120         134         134
12.1    Civilian personnel benefits.....          28          32          31
13.0    Benefits for former personnel...           4           1           2
21.0    Travel and transportation of 
          persons.......................           8          10          13
22.0    Transportation of things........           2           2           2
23.2    Rental payments to others.......          10          10          10
23.3    Communications, utilities, and 
          miscellaneous charges.........           8          10          11
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          28          31          34
26.0    Supplies and materials..........           5           5           6
31.0    Equipment.......................           2           3           1
41.0    Grants, subsidies, and 
          contributions.................         483         515         549
42.0    Insurance claims and indemnities           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         700         755         795
99.0  Reimbursable obligations..........         294         288         294
                                           ---------   ---------  ----------
99.9    Total new obligations...........         994       1,043       1,089
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,176       2,406       2,365
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       3,490       3,439       3,380
---------------------------------------------------------------------------

                                

                         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. (Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0170-0-1-351      1998 actual   1999 est.   2000 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 Total 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, start of year           1           1           1
73.10 Total new obligations.............           2           2           4
73.20 Total outlays (gross).............          -2          -2          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           1           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           1           2
86.93 Outlays from current balances.....           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...........................           2           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.

[[Page 98]]

                            GRANT OBLIGATIONS

                                     1998 actual  1999 est.   2000 est.
Number of grants....................          21          22          24
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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          11           3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          14           3
23.95 Total new obligations.............         -11          -3
23.98 Unobligated balance expiring......          -3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          14
50.05 Reappropriation (indefinite)......                       3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          14           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6          13           8
73.10 Total new obligations.............          11           3
73.20 Total outlays (gross).............          -3          -8          -8
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          13           8
----------------------------------------------------------------------------

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

    Net budget authority and outlays:
89.00 Budget authority..................          14           3
90.00 Outlays...........................           3           8           8
---------------------------------------------------------------------------

    Funding for the Tree Assistance Program (TAP) was provided by the 
1998 Emergency Supplemental Appropriations Act, P.L. 105-174, enacted 
May 1, 1998. The $14 million appropriation was made available for 
obligation through September 30, 1998, with any unobligated funding 
expiring. However, the 1999 Appropriations Act, P.L. 105-277, Section 
757 of the General Provisions, authorizes the use of unobligated 1998 
TAP funds for losses due to disasters that occurred between May 1 and 
August 1, 1998. Eligibility for these funds is also extended to 
producers whose trees are lost or destroyed by May 31, 1999, as a direct 
result of fire blight infestation (a destructive disease caused by 
bacteria) that was caused by a natural disaster.

    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 1998. 
Eligible owners may not receive more than $25,000 per person.

    During 1998, 24 State, participated in the program, obligating a 
total of $11 million. The remaining $3 million is available for 
obligation during 1999.

                                

                      Conservation Reserve Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3319-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Technical assistance..............          67          21
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          25.2).........................          67          21
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          86          21
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          88          21
23.95 Total new obligations.............         -67         -21
24.40 Unobligated balance available, end 
        of year.........................          21
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          25          52
73.10 Total new obligations.............          67          21
73.20 Total outlays (gross).............         -38         -73
73.45 Adjustments in unexpired accounts.          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          52
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          38          73
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          38          73
---------------------------------------------------------------------------

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

    In 1997 and 1998, 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 and 
are expected to be exhausted by the end of 1999. 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 1998, $67 million was obligated for the 
technical assistance services of NRCS and FS and $44 million in CRP 
appropriated funds was paid to NRCS and FS.

    CRP program payments 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          23          33          33
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          33          33          33
24.40 Unobligated balance available, end 
        of year.........................          33          33          33
----------------------------------------------------------------------------

[[Page 99]]



    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          76          43          27
73.20 Total outlays (gross).............         -23         -16         -15
73.45 Adjustments in unexpired accounts.         -10
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          43          27          12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          23          16          15
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          23          16          15
---------------------------------------------------------------------------

    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 1998, 
there were $43 million in unliquidated obligations for ACP agreements.

                                

                     Emergency Conservation Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3316-0-1-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          29          84
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          79          84
22.00 New budget authority (gross)......          34
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         113          84
23.95 Total new obligations.............         -29         -84
24.40 Unobligated balance available, end 
        of year.........................          84
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          34
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          24          26          56
73.10 Total new obligations.............          29          84
73.20 Total outlays (gross).............         -26         -55         -28
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          26          56          29
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          26          55          28
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          34
90.00 Outlays...........................          26          55          28
---------------------------------------------------------------------------

    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 1998, pursuant to P.L. 105-174, enacted May 1, 1998, $34 million 
in supplemental funding was provided to the Emergency Conservation 
Programs, to remain available until expended. Of this amount, $4 million 
was set aside to provide costs-share assistance to maple producers to 
replace taps and tubing that were damaged by ice storms in northeastern 
States in 1998.

    Under the 1998 program, cost-sharing and technical assistance were 
provided in 41 States as well as the Virgin Islands to treat farmlands 
damaged by floods, hurricanes, drought, ice storms, tornadoes, and other 
natural disasters. The 1998 program rehabilitated approximately 
2,190,045 acres of farmland damaged by these natural disasters.

    No funding was provided in the 1999 Agriculture Appropriations Act 
for this program. The 2000 budget proposes no funding.

                                


 
                           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, [$510,682,000] $559,422,000, of which [$425,031,000] 
$431,373,000 shall be for guaranteed loans; operating loans, 
[$1,648,276,000] $2,295,284,000, of which [$948,276,000] $1,697,842,000 
shall be for unsubsidized guaranteed loans and [$200,000,000] 
$97,442,000 shall be for subsidized guaranteed loans; Indian tribe land 
acquisition loans as authorized by 25 U.S.C. 488, [$1,000,000] 
$1,028,000; for emergency insured loans, [$25,000,000] $53,000,000 to 
meet the needs resulting from natural disasters; and for boll weevil 
eradication program loans as authorized by 7 U.S.C. 1989, $100,000,000.
    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, [$19,580,000] $7,243,000, 
of which [$6,758,000] $2,416,000, shall be for guaranteed loans; 
operating loans, [62,630,000] $61,825,000, of which [$11,000,000] 
$23,940,000 shall be for unsubsidized guaranteed loans and [$17,480,000] 
$8,585,000 shall be for subsidized guaranteed loans; Indian tribe land 
acquisition loans as authorized by 25 U.S.C. 488, [$153,000] $21,000; 
and for emergency insured loans, [$5,900,000] $8,231,000 to meet the 
needs resulting from natural disasters[; and for boll weevil eradiction 
program loans as authorized by 7 U.S.C. 1989, $1,440,000].
    In addition, for administrative expenses necessary to carry out the 
direct and guaranteed loan programs, [$219,861,000] $214,161,000, of 
which $209,861,000 shall be transferred to and merged with the 
appropriation for ``Farm Service Agency, Salaries and Expenses''.
    [For an additional gross obligation for the principal amount of 
direct and guaranteed farm operating loans as authorized by 7 U.S.C. 
1928-1929, to be available from funds in the Agricultural Credit 
Insurance Fund, $540,510,000, of which $150,000,000 shall be for 
unsubsidized guaranteed loans and $156,704,000 shall be for subsidized 
guaranteed loans.]
    [For the additional cost of direct and guaranteed farm operating 
loans, including the cost of modifying such loans as defined in section 
502 of the Congressional Budget Act of 1974, farm operating loans, 
$31,405,000, of which $15,969,000 shall be for direct loans, $13,696,000 
for guaranteed subsidized loans, and $1,740,000 for unsubsidized 
guaranteed loans: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.]

                         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

[[Page 100]]

of use and the contamination is not due to the fault of the farmer, 
$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 the farmer's 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, 1999, as included in Public Law 105-277, section 
101(a).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Agriculture credit insurance, 
        downward reestimates of 
        subsidies.......................         172
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          76          83          42
00.02 Guaranteed loan subsidy...........          50          51          35
00.05 Reestimates of direct loan subsidy          97
00.06 Interest on reestimates of direct 
        loan subsidy....................          26
00.07 Reestimates of guaranteed loan 
        subsidy.........................         125
00.08 Interest on reestimates of 
        guaranteed loan subsidy.........          42
      Administrative expenses:

00.09   Administrative expenses--
          salaries and expenses.........         210         210         210
00.10   Administrative expenses--non-
          recoverable costs.............          10          10           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         636         354         291
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          13          15
22.00 New budget authority (gross)......         638         341         291
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         656         356         291
23.95 Total new obligations.............        -636        -354        -291
23.98 Unobligated balance expiring......          -4          -2
24.40 Unobligated balance available, end 
        of year.........................          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         355         341         291
40.35   Appropriation rescinded.........          -8
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         347         341         291
      Permanent:

60.05   Appropriation (indefinite)......         291
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         638         341         291
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          23          16          16
73.10 Total new obligations.............         636         354         291
73.20 Total outlays (gross).............        -638        -354        -298
73.45 Adjustments in unexpired accounts.          -5
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          16          16           9
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         329         336         283
86.93 Outlays from current balances.....          18          17          16
86.97 Outlays from new permanent 
        authority.......................         291
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         638         354         298
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         638         341         291
90.00 Outlays...........................         638         354         298
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Farm ownership....................          64          86         128
1150  Farm operating....................         560         734         500
1150  Emergency disaster................         112          25          53
1150  Indian tribe land acquisition.....           1           1           1
1150  Credit sales of acquired property.          25
1150  Boll weevil eradication...........          40         100         100
                                           ---------   ---------  ----------
1159    Total direct loan levels........         802         946         782
    Direct loan subsidy (in percent):
1320  Farm ownership....................       13.04       14.97        3.77
1320  Farm operating....................        6.57        6.83        5.86
1320  Emergency disaster................       24.03       23.60       15.53
1320  Indian tribe land acquisition.....       13.20       15.25        2.00
1320  Credit sales of acquired property.       13.02       13.04        1.60
1320  Boll weevil eradication...........        1.18        1.44       -4.38
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        9.23        8.33        5.42
    Direct loan subsidy budget authority:
1330  Farm ownership....................           8          13           5
1330  Farm operating....................          37          50          29
1330  Emergency disaster................          27           6           8
1330  Credit sales of acquired property.           3
1330  Boll weevil eradication...........                       1
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..          75          70          42
    Direct loan subsidy outlays:
1340  Farm ownership....................          14          13           5
1340  Farm operating....................         152          49          30
1340  Emergency disaster................          27          19           8
1340  Credit sales of acquired property.           3
1340  Boll weevil eradication...........                       1
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         196          82          43
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Farm ownership, unsubsidized......         425         425         431
2150  Farm operating, unsubsidized......         993       1,098       1,698
2150  Farm operating, subsidized........         235         357          97
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....       1,653       1,880       2,226
    Guaranteed loan subsidy (in percent):
2320  Farm ownership, unsubsidized......        3.86        1.59        0.56
2320  Farm operating, unsubsidized......        1.17        1.16        1.41
2320  Farm operating, subsidized........        9.64        8.74        8.81
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        3.48        2.70        1.57
    Guaranteed loan subsidy budget authority:
2330  Farmer ownership, unsubsidized....          16           7           2
2330  Farm operating, unsubsidized......          12          13          24
2330  Farm operating, subsidized........          23          31           9
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..          51          51          35
    Guaranteed loan subsidy outlays:
2340  Farmer ownership, unsubsidized....          18          10           4
2340  Farm operating, unsubsidized......         175          12          22
2340  Farm operating, subsidized........          25          29          12
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........         218          51          38
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         220         220         214
3590  Outlays...........................         220         220         214
---------------------------------------------------------------------------

    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 was provided by a 1998 supplemental 
appropriation, P.L. 105-74, for direct and guaranteed farm ownership, 
direct operating, guaranteed subsidized operating, boll weevil 
eradication, and emergency disaster loans. Emergency disaster funding is 
to be available until expended. Funding was rescinded from the 
guaranteed unsubsidized operating loan program.

[[Page 101]]

    Additional emergency funding was also provided by the 1999 
appropriation, P.L. 105-277, for direct and guaranteed subsidized and 
unsubsidized operating loans.

    For 2000, legislation will be proposed to expand eligibility for 
emergency disaster loans to agricultural-related enterprises that are 
currently ineligible for either USDA or Small Business Administration 
disaster loans. Interest rates on these loans will be above those 
charged for family-sized farms.

    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 manufacturers 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 1999, an estimated $418 thousand will be paid to producers and 
manufacturers who file claims under the program.

    The 2000 budget requests $450 thousand for this program. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........         220         220         214
41.0  Grants, subsidies, and 
        contributions...................         416         134          77
                                           ---------   ---------  ----------
99.9    Total new obligations...........         636         354         291
---------------------------------------------------------------------------

                                

    Agricultural Credit Insurance Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................         796       1,000         782
00.02   Advances on behalf of borrowers.           1           3           3
00.04   Interest on Treasury borrowing..         175         205         172
00.09   Civil rights claims.............           1
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....         973       1,208         957
      Reestimates:

08.02   Downward reestimate of subsidy..          84
08.03   Downward reestimate of subsidy-
          interest......................          16
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimates...........         100
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,073       1,208         957
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         139         208
22.00 New financing authority (gross)...       1,643       1,000         957
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          21
22.60 Redemption of debt................        -509
22.70 Balance of authority to borrow 
        withdrawn.......................         -12
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,282       1,208         957
23.95 Total new obligations.............      -1,073      -1,208        -957
24.40 Unobligated balance available, end 
        of year.........................         208
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..         829         440         224
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         823         784         778
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............          -9
68.47   Portion applied to debt 
          reduction.....................                    -224         -45
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         814         560         733
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,643       1,000         957
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          86          70          83
72.95   Receivables from program account          18           9           9
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         104          79          92
73.10 Total new obligations.............       1,073       1,208         957
73.20 Total financing disbursements 
        (gross).........................      -1,077      -1,195        -975
73.45 Adjustments in unexpired accounts.         -21
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          70          83          65
74.95   Receivables from program account           9           9           9
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          79          92          74
87.00 Total financing disbursements 
        (gross).........................       1,077       1,195         975
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            program account.............        -202         -82         -44
88.25     Interest on uninvested funds..         -55         -49         -43
          Non-Federal sources:
88.40       Repayments of principal.....        -470        -543        -565
88.40       Non-Federal sources.........         -96        -110        -126
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -823        -784        -778
88.95 Change in receivables from program 
        accounts........................           9
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         829         216         179
90.00 Financing disbursements...........         254         411         197
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         803         946         782
1112  Unobligated direct loan limitation         -65
1113  Unobligated limitation carried 
        forward.........................          58          53
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         796         999         782
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       2,258       2,715       3,004
1231  Disbursements: Direct loan 
        disbursements...................         816         859         867
1251  Repayments: Repayments and 
        prepayments.....................        -327        -543        -601
1263  Write-offs for default: Direct 
        loans...........................         -32         -27         -30
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       2,715       3,004       3,240
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and beyond (including 
credit sales of acquired property that resulted from obligations in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals.

    This account finances direct loans for farm ownership, farm 
operating, emergency disaster, and credit sales of acquired property.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4212-0-3-351    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

1106    Federal assets: Receivables, net         225            278           275            180
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       2,258          2,715         3,004          2,564
1402    Interest receivable.............          13             42            40             38
1403    Accounts receivable from 
          foreclosed property...........          32             13            15             15

[[Page 102]]

1405    Allowance for subsidy cost (-)..        -628           -697          -760           -667
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       1,675          2,073         2,299          1,950
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,900          2,351         2,574          2,130
    LIABILITIES:
2103  Federal liabilities: Debt.........       1,885          2,344         2,562          2,115
2207  Non-Federal liabilities: Other....          15              9            12             15
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,900          2,353         2,574          2,130
    NET POSITION:
3100  Appropriated capital..............
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,900          2,353         2,574          2,130
-----------------------------------------------------------------------------------------------

                                

  Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Default claims..................          51          75          89
00.02   Interest assistance on 
          guaranteed loans..............          61         100         100
00.04   Interest payments to Treasury...           5           5           5
00.05   Capital investments.............          11          11          11
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....         128         191         205
      Reestimates:

08.02   Downward reestimate of subsidy..          56
08.03   Downward reestimate of subsidy--
          interest......................          15
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimates...........          71
                                           ---------   ---------  ----------
10.00   Total new obligations...........         199         191         205
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          48         132          88
22.00 New financing authority (gross)...         296         172         153
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          20
22.60 Redemption of debt................         -32         -25         -25
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         332         279         216
23.95 Total new obligations.............        -199        -191        -205
24.40 Unobligated balance available, end 
        of year.........................         132          88          11
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..          50          92          85
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         246          80          68
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         296         172         153
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         163         184         300
73.10 Total new obligations.............         199         191         205
73.20 Total financing disbursements 
        (gross).........................        -158         -75         -92
73.45 Adjustments in unexpired accounts.         -20
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         184         300         413
87.00 Total financing disbursements 
        (gross).........................         158          75          92
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.        -217         -51         -34
88.25     Interest on uninvested funds..         -15         -15         -15
88.40     Fees and premiums.............         -14         -14         -19
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -246         -80         -68
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          50          92          85
90.00 Financing disbursements...........         -88          -5          24
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........       1,653       1,880       2,227
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       1,653       1,880       2,227
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       6,039       6,292       6,827
2231  Disbursements of new guaranteed 
        loans...........................       1,493       1,842       2,182
2251  Repayments and prepayments........      -1,183      -1,232      -1,351
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................         -57         -75         -89
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       6,292       6,827       7,569
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       6,290       6,212       6,960
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         211            316           307            357
        Investments in US securities:
1106      Receivables, net..............
1206  Non-Federal assets: Receivables, 
        net.............................
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         211            316           307            357
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................         163            184           209            234
2203    Debt............................          42             60
2204    Liabilities for loan guarantees.           6             73            98            123
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         211            317           307            357
    NET POSITION:
3300  Cumulative results of operations..
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         211            317           307            357
-----------------------------------------------------------------------------------------------

                                

         Agricultural Credit Insurance Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment:

00.04   Purchase of guaranteed loans 
          from investors................           1
00.08   Loan recoverable costs..........          13          30          30
                                           ---------   ---------  ----------
00.91     Total capital investment......          14          30          30
      Operating expenses:

01.07   Loss settlement expenses on 
          guaranteed loans..............           7           5           5
01.08   Admininstrative expenses--
          Department of Justice fees....           1           1           1
01.09   Costs incident to acquisition of 
          property......................           3           3           3
01.10   Undistributed charges...........           1           1           1
01.13   Interest assistance--guaranteed 
          loans.........................           1           1

[[Page 103]]

01.17   Unclassified costs..............          11           5           5
                                           ---------   ---------  ----------
01.91     Total operating expenses......          24          16          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........          38          46          45
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                       2
22.00 New budget authority (gross)......          49          42          45
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          20
22.40 Capital transfer to general fund..                       2
22.70 Balance of authority to borrow 
        withdrawn.......................         -29
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          40          46          45
23.95 Total new obligations.............         -38         -46         -45
24.40 Unobligated balance available, end 
        of year.........................           2
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...       1,199       1,186       1,155
68.27   Capital transfer to general fund      -1,150      -1,144      -1,110
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          49          42          45
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          87          72          74
73.10 Total new obligations.............          38          46          45
73.20 Total outlays (gross).............         -33         -42         -44
73.45 Adjustments in unexpired accounts.         -20
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          72          74          74
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          33          42          44
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Rent on acquired property...          -3          -3          -3
88.40       Guaranteed insurance 
              purchased from holders--
              principal.................          -1          -1          -1
88.40       Interest on loans...........        -398        -375        -360
88.40       Guaranteed loss recoveries..          -1          -1          -1
88.40       Loan repayments received on 
              behalf of investors.......          -1          -1          -1
88.40       Interest on judgments.......          -2          -1          -1
88.40       Repayments on loans--
              principal.................        -708        -700        -690
88.40       Judgments--principal........         -14         -12         -12
88.40       Shared appreciation 
              recapture.................         -11         -13         -13
88.40       Sale of acquired property/
              chattels..................         -71         -75         -70
88.40       Miscellaneous income........                      -1          -1
88.40       Undistributed receipts......          11          -3          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,199      -1,186      -1,155
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      -1,150      -1,144      -1,110
90.00 Outlays...........................      -1,166      -1,144      -1,111
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       7,709       6,699       5,692
1232  Disbursements: Purchase of loans 
        assets from the public..........                       2           2
1251  Repayments: Repayments and 
        prepayments.....................        -707        -706        -696
1261  Adjustments: Capitalized interest.          46          50          49
      Write-offs for default:

1263    Direct loans....................        -288        -300        -300
1264    Other adjustments, net\1\.......         -61         -53         -53
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       6,699       5,692       4,694
---------------------------------------------------------------------------
    \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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         994         776         563
2231  Disbursements of new guaranteed 
        loans...........................
2251  Repayments and prepayments........        -209        -201        -200
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................          -9         -12         -12
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         776         563         351
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         698         508         317
---------------------------------------------------------------------------

    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. Payments to settle certain 
discrimination claims against USDA may also be made from this account.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4140-0-3-351    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         561            440           539            534
0102  Expense...........................         532           -309          -270           -175
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............       1,093            131           269            359
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4140-0-3-351    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          59             74            50             50
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       7,709          6,699         5,692          4,694
1602    Interest receivable.............         425            374           489            389
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -1,537         -1,574        -1,500         -1,500
1604    Direct loans and interest 
          receivable, net...............       6,597          5,499         4,681          3,583
1606    Foreclosed property.............         187            125           104             94
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       6,784          5,624         4,785          3,677
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       6,843          5,698         4,835          3,727
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       5,654          5,597         5,000          4,500
      Non-Federal liabilities:

2201    Accounts payable................          78            182            41             31
2202    Interest payable................                                                       1
2203    Debt............................           2              2             2
2204    Liabilities for loan guarantees.         172
2207    Other...........................          46             35            30             25
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       5,952          5,816         5,073          4,557
    NET POSITION:
3300  Cumulative results of operations..         891           -118          -238           -830
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         891           -118          -238           -830
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       6,843          5,698         4,835          3,727
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................          16          10          10
33.0  Investments and loans.............          21          35          34
43.0  Interest and dividends............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          38          46          45
---------------------------------------------------------------------------

[[Page 104]]



                                


 
                      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, 
1999, as included in Public Law 105-277, section 101(a).)

                                

Public enterprise funds:

                    Commodity Credit Corporation Fund

    For fiscal year [1999] 2000, such sums as may be necessary to 
reimburse the Commodity Credit Corporation for net realized losses 
sustained, but not previously reimbursed [(estimated to be 
$8,439,000,000 in the President's fiscal year 1999 Budget Request (H. 
Doc. 105-177)), but not to exceed $8,439,000,000], 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 [1999] 2000, 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.

             [dairy production disaster assistance program]

    [An additional $3,000,000 is provided for the dairy production 
indemnity program as established by Public Law 105-174: Provided, That 
the entire amount shall be available only to the extent that an official 
budget request for $3,000,000, 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: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of such Act.] (Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Support and related programs:

        Operating expenses:
00.01     Commodity purchases and 
            related inventory 
            transactions................         666       1,453         609
00.02     Storage, transportation, and 
            other obligations not 
            included above..............          93         107          48
00.03     Export enhancement program....           2         550         579
00.04     Market access program.........          92          89          91
00.05     Dairy export incentive program         103         103          99
00.06     Section 416/Food for progress 
            ocean transportation........          40         681          65
          Direct producer payments:
00.07       Feed grains.................       3,291       6,147       2,992
00.08       Wheat.......................       1,850       2,287       1,328
00.09       Rice........................         479         705         430
00.10       Cotton......................       1,059       1,584         710
00.11       Dairy--Marketing loss 
              assistance................                     200
00.12       Dairy option pilot program..                      10          10
00.13       Noninsured assistance 
              program...................          23          67          89
00.14       Oilseeds loan deficency.....         139       2,141       1,893
00.15       Marketing loan writeoffs....         157         337         745
00.16       Crop disaster...............                   2,375
00.17       Livestock assistance........                     200
00.18       Livestock indemnity.........           5           4
00.19       Disaster reserve assistance.           1          18           4
00.20       Disaster reserve flood 
              compensation..............                      12
00.21       Conservation reserve program       1,693       1,508       1,578
00.22       Environmental quality 
              incentives program--EQIP..         152         136         156
00.23       Wetlands reserve program....         212         118         191
00.24       Farmland protection program.          17
00.25       Conservation farm option 
              program...................                                  35
00.26     Reimbursement agreement and 
            transfers to State and 
            Federal agencies............          38          33          36
          Interest:
00.27       Treasury....................         292         497         362
00.28       Other.......................          18          18          18
00.29     EQIP technical assistance.....          38          33          38
00.30     EQIP educational assistance...           4           5           6
                                           ---------   ---------  ----------
00.91       Total operating expenses....      10,464      21,418      12,112
        Capital investment:
          Direct loans:
01.02       Purchase of ADP equipment...          29          11
                                           ---------   ---------  ----------
01.92     Total support and related 
            programs....................      10,493      21,429      12,112
02.02 Other PL 480 operating expenses...         370         476         327
      Reimbursable program:

09.01   Commodity loans.................       7,189       8,813      10,124
09.02   Dairy recourse commodity loans..                                 400
09.03 Commodities procured--PL 480 
        Titles II and III commodity 
        costs...........................         424         488         472
                                           ---------   ---------  ----------
09.09   Subtotal, reimbursable programs.       7,613       9,301      10,996
                                           ---------   ---------  ----------
10.00   Total new obligations...........      18,476      31,206      23,435
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      18,547      32,034      23,451
22.21 Unobligated balance transferred to 
        other accounts..................         -71        -841         -16
22.22 Unobligated balance transferred 
        from other accounts.............                      13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      18,476      31,206      23,435
23.95 Total new obligations.............     -18,476     -31,206     -23,435
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         794       8,492      14,368
40.47   Portion applied to debt 
          reduction.....................        -794      -8,460     -14,368
41.00   Transferred to other accounts...                     -32
                                           ---------   ---------  ----------
43.00     Appropriation (total).........
      Permanent:

67.10   Authority to borrow.............      10,599      20,965      11,391
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).       7,948      11,069      12,060
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      18,547      32,034      23,451
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year      23,842      13,713      15,848
73.10 Total new obligations.............      18,476      31,206      23,435
73.20 Total outlays (gross).............     -18,105     -29,070     -24,182
73.40 Adjustments in expired accounts...     -10,500
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..      13,713      15,848      15,101
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................      10,237      20,698      11,109
86.98 Outlays from permanent balances...       7,867       8,372      13,073
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      18,105      29,070      24,182
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

88.00         Sales to special 
                activities..............        -424        -488        -473
88.00         Interest revenue..........           4
88.00         Advance from foreign 
                assistance programs 
                (P.L. 480)..............        -895        -964        -799
          Non-Federal sources (62 
              stat.1070): Support and 
              related programs:
88.40       Sales and other proceeds....         -37        -192        -122
88.40       Assessments.................         -67         -62        -101
88.40       Interest revenue............        -248        -230        -240
88.40       Other revenue...............         -10
88.40       Loans repaid................      -6,232      -9,096     -10,287
88.40       Export credit sales program 
              repayments................          -6          -8         -10

[[Page 105]]

88.40       Interest revenue............         -33         -29         -28
                                           ---------   ---------  ----------
88.90         Total, offsetting 
                collections (cash)......      -7,948     -11,069     -12,060
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      10,599      20,965      11,391
90.00 Outlays...........................      10,156      18,001      12,122
---------------------------------------------------------------------------

                                  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)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................      10,599      20,965      11,391
  Outlays...........................      10,156      18,001      12,122
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                  60
  Outlays...........................                                  -2
                                    ------------------------------------
Total:
  Budget Authority..................      10,599      20,965      11,451
  Outlays...........................      10,156      18,001      12,120
                                    ====================================

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          SHORT TERM CREDIT LOANS
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         388         384         375
1251  Repayments: Repayments and 
        prepayments.....................          -6          -9         -10
1261  Adjustments: Capitalized interest.           2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         384         375         365
----------------------------------------------------------------------------

          COMMODITY LOANS
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       7,189       8,813      10,524
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       7,189       8,813      10,524
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,351       2,219       1,835
1231  Disbursements: Direct loan 
        disbursements...................       7,189       8,813      10,524
1251  Repayments: Repayments and 
        prepayments.....................      -6,232      -9,096     -10,287
1264  Write-offs for default: Other 
        adjustments, net................         -89        -101        -100
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       2,219       1,835       1,972
----------------------------------------------------------------------------

          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 1999 and 2000 budget estimates: (a) national 
income will rise both in 1999 and 2000 from the present level; (b) 1999 
crop production will decrease from 1998 crop levels for some 
commodities; (c) generally, exports of agricultural commodities in 2000 
are expected to be higher than 1999 levels; (d) yields for the 1999 
crops are based on recent averages adjusted for trend; (e) acreage 
allotments and marketing quotas will be in effect for the 1999 crops of 
certain kinds of tobacco; and (f) poundage quotas will be in effect for 
the 1999 crop of peanuts.

    It is difficult to accurately forecast requirements for the year 
ending September 30, 2000, 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 
2002. The enrollment assumptions reflect Signup 18 enrollment which adds 
approximately 5.8 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 million acres through 2002. Signup 18, which was held from October 
26 through December 11, 1998 will be reflected in the 2000 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 18. 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:

                              2000 ESTIMATE

                        [In millions of dollars]

               Program                  Gross
                                     obligations        
                                                 Net outlays Net realized
                                                            loss for year
Farm income, marketing assistance 
    loans, and price support:
  Commodity loans...................      10,124         582
  Dairy recourse loan program.......         400         400
  Feed grain payments...............       2,992       3,503       2,992
  Wheat payments....................       1,328       1,328       1,328
  Rice payments.....................         430         430         430
  Cotton payments...................         710         700         710
  Export enhancement program........         579         579         579
  Other support and related.........       3,622       2,117       3,195
Other items not distributed by 
    program:
    Interest........................         381         181         112
    All other.......................          54         358          56
                                    ------------------------------------
      Total, farm income, marketing 
        assistance loans, and price-
        support programs............      20,620      10,178       9,402
Conservation programs:
  Conservation reserve program......       1,578       1,578       1,719
  Environmental quality incentives 
    program.........................         200         140         140
  Wetlands reserve program..........         201         214         214
  Farmland protection program.......                       9           9
  Conservation farm option program..          37           3           3
                                    ------------------------------------
    Total, conservation programs....       2,016       1,944       2,085
        Total, Commodity Credit 
          Corporation...............      22,636      12,122      11,487

                       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 produc

[[Page 106]]

ers 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 (the 1949 Act), as 
amended, and the Federal Agriculture Improvement and Reform Act of 1996 
(the 1996 Act).

    Price support is mandatory for tobacco, peanuts, and dairy products. 
Marketing assistance loans are mandatory for wheat, feed grains, 
oilseeds, upland cotton, and rice. Loans are also required to be made 
for sugar and extra long staple cotton.

    One method of providing support is loans to and purchases from 
producers. With limited exceptions, loans made on commodities are 
nonrecourse. The commodities serve as collateral for the loan and on 
maturity the producer may deliver or forfeit such collateral to satisfy 
the loan obligation without further payment.

    Direct purchases may be made from processors as well as producers, 
depending on the commodity involved. Also, special purchases are made 
under various laws for the removal of surpluses; for example, the Act of 
August 19, 1958, as amended, and section 416 of the Agricultural Act of 
1949, as amended.

    Production flexibility contract payments.--The 1996 Act requires 
that the Corporation offer eligible producers a one-time opportunity to 
execute 7-year production flexibility contracts. Production flexibility 
contract participants who comply with applicable provisions receive 
annual payments beginning in 1996 and ending in 2002. Participants 
received a 50-percent advance payment for the 1996 crop within 30 days 
after contract approval. The balance of the 1996 payment was issued by 
September 30, 1996. In subsequent years, participants will receive final 
payments by September 30, with an 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. Although tobacco marketing assessments are authorized through 
crop year 1998, the budget will include a proposal to extend and 
increase tobacco assessments about 2 percent in 2000.

    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 to 
utilize CCC, 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 pilot program is under the supervision of the 
Administrator of the Risk Management Agency. 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. The Farm Service Agency administers CCC's 
Noninsured Assistance 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 1999, and $9.90 per 
hundredweight for calendar year 1999. In lieu of the price support 
program, Section 142 of 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 program will 
assist dairy processors in managing their inventories of eligible dairy 
products and assure a greater degree of price stability for the dairy 
industry. The program is a transition between the Dairy Price Support 
Program that has been in effect since 1949 and the dairy industry 
functioning with no Governmental intervention in a global economy. Dairy 
processors acquire their milk from dairy farmers that manufacture these 
eligible dairy products. The program indirectly assists dairy farmers 
similar to the Dairy price Support Program. 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

[[Page 107]]

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 are authorized. The 18th 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 
fiscal year 1999 program was limited to $174 million by section 726 of 
the FY 1999 Agriculture Appropriations Act, P.L. 105-277, section 
101(a). The Budget provides an additional $100 million over authorized 
levels, for a program total of $300 million, in support of the Clean 
Water Action Plan and its Animal Feeding Operations Strategy.

    The Farmland Protection Program (FPP) authorizes the Secretary to 
assist State, local, and tribal governments in purchasing conservation 
easements. The Secretary was authorized to use $35 million in CCC funds 
to carry out the program. These funds were exhausted in 1998. The Budget 
provides $28 million in 2000.

    The Wildlife Habitat Incentives Program (WHIP) makes available 
assistance to help landowners improve wildlife habitat on private lands. 
A total of $50 million in CRP funds were made available for fiscal years 
1996 through 2002 for this program. These funds were exhausted in 1999. 
The Budget provides $10 million in 2000.

    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: $15 million in fiscal 
year 1999, $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 years 1997 and 1998. Section 740 of 
the 1999 Appropriations Act precludes operations of the CFO in 1999. In 
2000, savings in the CFO are proposed to offset mandatory funding 
proposals in the FPP and WHIP.

    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. The program was not implemented in fiscal years 1997 and 
1998, and it is assumed that it will not be implemented in future years.

    Additional Disaster Assistance.--The 1998 Supplemental Appropriatons 
and Rescission Act (Public Law 105-174) made available $4 million for 
livestock indemnity payments and $7 million for milk losses for 
producers affected by natural disasters. The FY 1999 Appropriations Act 
made available nearly $6,000 million for various payments to producers 
who had incurred income losses due to natural disasters and declining 
commodity prices in 1998. $2,857 million was made available to producers 
who had executed production flexibility contracts with CCC; $200 million 
to dairy producers; $200 million for livestock feed losses; $1.5 billion 
for 1998 crop losses; $875 million for producers with multi-year losses 
occurring in 1998 and prior years; $50 million for assistance to salmon 
fishermen; and recourse loan programs for mohair and honey producers.

    Surplus Removal and Other CCC Activities.--Section 5 of the CCC 
Charter Act authorizes CCC to undertake specific actions with respect to 
agricultural commodities. Section 5(d) specifically authorizes CCC to 
remove and dispose of or aid in the removal or disposition of surplus 
agricultural commodities. Pursuant to this authority, CCC will purchase 
5 million metric tons of wheat in the course of 1999 and 2000, which 
will subsequently be used for donation purposes under Section 416(b) of 
the Agricultural Act of 1949. A portion of this initiative is a part of 
the comprehensive U.S. food aid package to Russia, as announced by the 
President in November 1998. An estimated 1,500,000 metric tons shall be 
shipped to Russia. The wheat initiative includes purchases of primarily 
wheat and wheat flour during 1999 and 2000.

    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

[[Page 108]]

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. 
Section 1125 of the FY 1999 Agriculture Appropriations Act increased the 
$30 million and $10 million limitations to $35 million and $15 million, 
respectively, for fiscal year 1999.

    Loan operations.--The following table reflects commodity loan 
operations of the Corporation:

                        [In millions of dollars]

                Item                 1999 actual  1999 est.   2000 est.
Loans outstanding, gross, start of 
    year:
  Commodity Credit Corporation......       1,351       2,219       1,835
  Additional loans made.............       7,189       8,813      10,524
Deduct:
  Loans repaid......................      -6,232      -9,096     -10,287
  Acquisition of loan collateral....         -66        -101        -100
  Write-offs........................         -23
                                    ------------------------------------
      Total loans outstanding, 
        gross, end of year..........       2,219       1,835       1,972
                                    ====================================

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

                        AGRICULTURAL COMMODITIES

                        [In millions of dollars]

                Item                 1999 actual  1999 est.   2000 est.
On hand, start of year, gross.......         377         531         481
                                    ====================================
Acquisitions:
  Forfeiture of loan collateral.....          65         101         101
  Excess of collateral acquired over 
    loans canceled..................           1           1           1
  Purchases.........................         660       1,417         605
Carrying charges:
  Charges to inventory..............           5          34           2
  Storage and handling (non-add)....        (28)        (36)        (37)
  Transportation (non-add)..........         (4)        (15)         (3)
                                    ------------------------------------
      Total acquisitions............         731       1,553         709
                                    ====================================
Dispositions:
  Domestic donations to:
    Families........................          10          16          10
    Institutions....................          16          58          10
                                    ------------------------------------
      Total domestic donations......          26          74          20
                                    ====================================
  Export donations..................          98         850         166
  Sales and transfers:
    Special programs: Title II, 
      Public Law 480................         412         469         472
    Title III, Public Law 480.......          12          18
    Other sales.....................          29         192         123
    Net loss or gain (-) on sales 
      and transfers.................                                  -6
                                    ------------------------------------
      Total sales and transfers.....         453         679         589
                                    ====================================
      Total dispositions............         577       1,603         775
                                    ====================================
On hand, end of year, gross.........         531         481         415
Allowances for losses...............        -186        -169        -145
                                    ------------------------------------
On hand, end of year, net...........         345         312         270
                                    ====================================

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

                  DATA ON SUPPORT AND RELATED PROGRAMS

                        [In millions of dollars]

                Item                 1999 actual  1999 est.   2000 est.
Loans made..........................       7,189       8,813      10,524
Loans repaid........................       6,232       9,096      10,287
Loan collateral forfeited...........          66         101         101
Loans outstanding, end of year......       2,219       1,835       1,972
Acquisitions........................         732       1,553         709
Cost of commodities sold............         454         679         589
Cost of commodities donated.........         124         924         186
Inventory, end of year..............         531         481         415
Investment in loans and inventory, 
end of year.........................       2,750       2,316       2,387
Direct producer payments............       8,434      15,138       9,746
Net expenditures....................      10,143      18,204      12,365
Realized losses.....................       9,318      21,433      11,487

    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. Subsequent legislation reduced allowable ADP expenditures 
through 2002 to $188 million. The remaining funds are expected to be 
exhausted during 2000, and the Budget proposes to fund $35 million per 
year on these expenditures through CCC.

    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

[[Page 109]]

fiscal year 1995 cap was revised to $36.209 million effective fiscal 
year 1999 to exclude the Emerging Markets Program because such transfers 
are not made pursuant to Section 11 of the CCC Charter Act.

    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:

                                         2000 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............           150             184
(2) Commodities supplied in connection 
 with dispositions abroad (Title II)....           837             813
(3) Commodities supplied in connection 
 with dispositions abroad (Title III)...                            10
                                         -------------  --------------

   Total................................           987           1,007
                                         -------------  --------------

    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                 1999 actual  1999 est.   2000 est.
Statutory borrowing authority.......      30,000      30,000      30,000
Deduct: Borrowings from Treasury....      16,692      27,219      25,088
Net statutory borrowing authority 
available...........................      13,308       2,781       4,912

    Note.--Accounts payable, accrued liabilities, and other outstanding 
obligations not reflected on this table do not become charges against 
the statutory borrowing authority until they result in borrowings from 
the Treasury.

    Contract authority.--Price support and other programs required by 
statute may result in the Corporation incurring obligations in excess of 
available funds and borrowing authority. Such obligations are liquidated 
from subsequent appropriations and other funds that may become available 
to the Corporation. Any increase in obligations in excess of available 
fund resources is reported as contract authority in the year involved; a 
decrease is reported as the application of appropriations and other 
funds to liquidate the authority.

    Appropriations.--Under section 2 of Public Law 87-155 annual 
appropriations are authorized for each fiscal year to reimburse the 
Corporation for net realized losses incurred as of the close of each 
year.

    The special activities are financed as indicated in the program 
descriptions above. In addition to certain reimbursements from other 
agencies, appropriations are made for foreign assistance programs.

    Deficit.--The net realized losses of the Corporation have previously 
been reimbursed as follows:

                     SUPPORT AND RELATED PROGRAMS

                       [In millions of dollars]
                                                  1998 actual
Realized losses, 1933 to 1998, inclusive                       262,727
 Reimbursements by the Treasury:
  Reimbursements of realized losses:
   Appropriations (59 times)............       241,763
   Note cancellations (6 times).........         2,698
   Less dividends paid to Treasury (4 
    times)..............................          -138
                                         -------------  --------------

    Total reimbursements for net 
     realized losses....................       244,323
                                         -------------  --------------

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

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

  Total.................................                       244,920
                                         -------------  --------------

Realized deficit as of September 30, 
 1998, support and related programs.....                        17,807
                                         -------------  --------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4336-0-3-999    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................       1,346          1,078         1,459          1,387
0102  Expense...........................      -9,916        -10,396       -22,892        -12,874
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............      -8,570         -9,318       -21,433        -11,487
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4336-0-3-999    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....        -693         -1,612          -693           -693
        Investments in US securities:
1106      Receivables, net..............          24             24            25             26
1107      Advances and prepayments......          14             56            56             56
      Non-Federal assets:

1206    Receivables, net................         333             35            35             35
1207    Advances and prepayments........           5              5             5              5
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       1,769          2,632         2,240          2,367
1602    Interest receivable.............         185            209           190            170
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -78           -171          -155           -139

[[Page 110]]

1604    Direct loans and interest 
          receivable, net...............       1,876          2,670         2,275          2,398
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       1,876          2,670         2,275          2,398
      Other Federal assets:

1801    Cash and other monetary assets..         555             77            77             77
1802    Inventories and related 
          properties....................         377            345           313            270
1803    Property, plant and equipment, 
          net...........................          90             87            90             88
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,581          1,687         2,183          2,262
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           3              4             4              4
2102    Interest payable................         139            160           264            192
2103    Debt............................       6,897         16,692        27,219         25,028
2105    Other...........................         398            446           442            398
      Non-Federal liabilities:

2201    Accounts payable................          56            107           107            107
2206    Pension and other actuarial 
          liabilities...................                         63
2207    Other...........................       3,285          2,413         2,407          2,407
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      10,778         19,885        30,443         28,136
    NET POSITION:
3200  Invested capital..................         100            100           100            100
3300  Cumulative results of operations..      -8,297        -18,298       -28,360        -25,974
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      -8,197        -18,198       -28,260        -25,874
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,581          1,687         2,183          2,262
-----------------------------------------------------------------------------------------------
    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

22.0    Transportation of things........         414       1,172         395
        Other services:
25.2      Other services................         143         129          89
25.2      Other services: Storage and 
            handling....................          28          35          37
26.0    Supplies and materials: Costs of 
          commodities sold or donated-PL 
          480...........................         666       1,453         609
31.0    ADP equipment...................          29          11
41.0    Grants, subsidies, and 
          contributions.................       9,273      18,590      10,928
43.0    Interest and dividends..........         310         515         381
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..      10,863      21,905      12,439
      Reimbursable obligations:

26.0    Supplies and materials: Cost of 
          commodities sold or donated--
          PL 480........................         424         488         472
33.0    Investments and loans...........       7,189       8,813      10,524
                                           ---------   ---------  ----------
99.0      Subtotal, reimbursable 
            obligations.................       7,613       9,301      10,996
                                           ---------   ---------  ----------
99.9    Total new obligations...........      18,476      31,206      23,435
---------------------------------------------------------------------------

                                

                    Commodity Credit Corporation Fund

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-4-3-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Support and related programs:

        Operating expenses:
00.01     FAS Market development program                                  28
00.02     FAS Quality samples program...                                   2
00.03     Export enhancement program....                                 -85
00.04     Environmental quality 
            incentives program (EQIP)...                                 100
00.05     Farmland protection program 
            (FPP).......................                                  28
00.06     Conservation farm option 
            program.....................                                 -38
          CCC ADP obligations:
00.09       Other ADP costs.............                                  27
00.10       Purchase of ADP equipment...                                   8
                                           ---------   ---------  ----------
01.92     Total support and related 
            programs....................                                  70
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  70
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  60
23.95 Total new obligations.............                                 -70
24.40 Unobligated balance available, end 
        of year.........................                                 -10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
61.00 Transferred to other accounts.....                                 -10
67.10 Authority to borrow...............                                  70
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                  60
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  70
73.20 Total outlays (gross).............                                   2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  72
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                                  -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  60
90.00 Outlays...........................                                  -2
---------------------------------------------------------------------------

    This schedule reflects proposed funding changes in CCC programs. 
These offset the Administration's proposals to provide funding for 
expansion of the Environmental Quality Incentives Program (EQIP), other 
conservation programs, and other Administration initiatives.

    The Administration will propose legislation to increase CCC funding 
for EQIP by $100 million annually beginning in 2000, and by a total of 
$400 million for the period 2000 to 2003. The annual increase in EQIP 
outlays, as a result of this increase in program level, will be offset 
by an equal reduction in the annual authorized Export Enhancement 
Program levels.

    In April 1996, a cap of $275 million for CCC-funded ADP obligations 
for fiscal year 1997 through 2002 was established by P.L. 104-127, the 
Federal Agriculture Improvement and Reform Act of 1996. Subsequently, 
the Agriculture Research, Extension, and Education Reform Act of 1998 
reduced the CCC ADP cap to $193 million. Finally, the 1999 
Appropriations Act (P.L. 105-277) reduced the CCC ADP cap to $188 
million. With these cap reductions, and a $16.2 million transfer of CCC 
ADP funds to the central county-based agencies administrative support 
services account, the cap will be exhausted at the beginning of fiscal 
year 2000. Legislation is proposed to increase the cap by $35 million 
per year, offset by an equal reduction in the annual authorized Export 
Enhancement Program (EEP) levels.

    Legislation also will be proposed beginning in fiscal year 2000 to 
provide $27.5 million in CCC annual funding for the Farmland Protection 
Program and $10 million annually for transfers to the Wildlife Habitat 
Incentive Program. This annual increase of $37.5 million will be offset 
by an equal reduction in the Conservation Farm Option Program levels. A 
legislative proposal will also be forwarded to authorize the shift of 
funding for the Foreign Market Development Cooperator Program (FMDCP) 
from the Foreign Agricultural Service annual appropriation to the 
Commodity Credit Corporation. Funding FMDCP from CCC is consistent with 
Section 5(f) of the CCC Charter Act, which authorizes the use of CCC 
funds for export promotion and overseas market development activities of 
U.S. agricultural products. Other program funding for market development 
activities carried out by FAS is already funded through CCC. This action 
would consolidate the source of funding and financial management for 
these activities. The proposal will provide long-term stability for 
future program activities and will benefit program partici

[[Page 111]]

pants. Legislation will also be proposed to provide an annual amount of 
$2.5 million in CCC funds for a new Quality Samples Program. Under this 
initiative, samples of U.S. agricultural products will be provided to 
foreign importers to promote a better understanding and appreciation for 
the high quality of U.S. agricultural products. Both the Cooperator 
Program and the Quality Samples Program will be carried out through 
commodity organizations and agricultural trade associations. The funding 
will be offset by an equal reduction in the annual authorized EEP 
levels. An authorized level of $494 million remains available for the 
Export Enhancement Program, if needed, following these reductions. 
Legislation also will be proposed to enable unused balances in EEP 
during the fourth quarter of the fiscal year to be transferred to other 
USDA export financing programs, including P.L. 480 Title I.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-4-3-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................                                  77
31.0  Equipment.........................                                   8
41.0  Grants, subsidies, and 
        contributions...................                                 -15
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  70
---------------------------------------------------------------------------

                                

        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 
[$3,231,000] $3,413,000 may be transferred to and merged with the 
appropriation for ``Foreign Agricultural Service and General Sales 
Manager'' and [$589,000] $672,000 may be transferred to and merged with 
the appropriation for ``Farm Service Agency, Salaries and Expenses''. 
(Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed Loan Subsidy...........         301         437         439
00.09 Administrative expenses...........           4           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         305         441         443
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         268         166          56
22.00 New budget authority (gross)......         204         331         444
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         472         497         500
23.95 Total new obligations.............        -305        -441        -443
24.40 Unobligated balance available, end 
        of year.........................         166          56          57
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

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

60.05   Appropriation (indefinite)......         200         327         440
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         204         331         444
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         156         199         191
73.10 Total new obligations.............         305         441         443
73.20 Total outlays (gross).............        -263        -449        -482
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         199         191         152
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4           4           4
86.97 Outlays from new permanent 
        authority.......................                     262         353
86.98 Outlays from permanent balances...         259         183         126
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         263         449         482
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         204         331         444
90.00 Outlays...........................         263         449         482
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Loan guarantee levels.............       5,000       4,721       4,506
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....       5,000       4,721       4,506
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................        8.16        9.26        9.76
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        8.16        9.26        9.76
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........         408         437         440
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..         408         437         440
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................         259         445         478
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........         259         445         478
----------------------------------------------------------------------------

    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 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 deter

[[Page 112]]

mined 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 2000 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........           4           4           4
41.0  Grants, subsidies, and 
        contributions...................         301         437         439
                                           ---------   ---------  ----------
99.9    Total new obligations...........         305         441         443
---------------------------------------------------------------------------

                                

     Commodity Credit Corporation Export Guarantee Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................          72         402         465
00.02 Interest on debt to Treasury......          62          62          62
                                           ---------   ---------  ----------
10.00   Total new obligations...........         134         464         527
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       1,010       1,548       1,688
22.00 New financing authority (gross)...         411         604         654
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         261
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,682       2,152       2,342
23.95 Total new obligations.............        -134        -464        -527
24.40 Unobligated balance available, end 
        of year.........................       1,548       1,688       1,815
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         411         604         654
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                    -199        -137
73.10 Total new obligations.............         134         464         527
73.20 Total financing disbursements 
        (gross).........................         -72        -402        -465
73.45 Adjustments in unexpired accounts.        -261
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..        -199        -137         -75
87.00 Total financing disbursements 
        (gross).........................          72         402         465
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.        -259        -445        -478
88.25     Interest on uninvested funds..         -54         -34         -38
          Non-Federal sources:
88.40       Loan origination fee........         -17         -30         -28
88.40       Principal collections.......          -3          -8         -15
88.40       Interest collections........         -78         -87         -95
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -411        -604        -654
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........        -339        -202        -189
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
2131  Guaranteed loan commitments exempt 
        from limitation.................       5,000       4,721       4,506
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       5,000       4,721       4,506
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       4,548       4,332       4,803
2231  Disbursements of new guaranteed 
        loans...........................       2,733       4,721       4,506
2251  Repayments and prepayments........      -2,877      -3,848      -4,296
2261  Adjustments: Terminations for 
        default that result in loans 
        receivable......................         -72        -402        -465
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       4,332       4,803       4,548
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       4,236       4,792       4,542
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       1,306       1,375       1,769
2331    Disbursements for guaranteed 
          loan claims...................          72         402         465
2351    Repayments of loans receivable..          -3          -8         -15
2364    Other adjustments, net..........
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       1,375       1,769       2,219
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,010          1,548         1,688          1,777
        Investments in US securities:
1106      Receivables, net..............          74            173
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............       1,299          1,375         1,769          2,219
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............       1,299          1,375         1,769          2,219
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,383          3,096         3,457          3,996
    LIABILITIES:
2103  Federal liabilities: Debt.........         851            851           851            851
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.       1,532          2,245         2,606          3,145
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,383          3,096         3,457          3,996
    NET POSITION:
3100  Appropriated capital..............
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,383          3,096         3,457          3,996
-----------------------------------------------------------------------------------------------

[[Page 113]]



                                

    Commodity Credit Corporation Guaranteed Loans Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4338-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          85         277
22.00 New budget authority (gross)......         283         246         240
22.40 Capital transfer to general fund..         -85        -523        -240
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         283
23.95 Total new obligations.............          -6
24.40 Unobligated balance available, end 
        of year.........................         277
----------------------------------------------------------------------------

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

        Offsetting collections (cash):
68.00     Offsetting collections (cash).         283         227         240
68.00     Offsetting collections--Debt 
            Reduction...................                      19
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         283         246         240
----------------------------------------------------------------------------

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

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................           6
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources--Debt 
            Reduction...................                     -19
          Non-Federal sources:
88.40       Repayments of principal.....         -83         -58         -80
88.40       Interest received on loans..        -200        -164        -160
88.40       Nonrescheduled debt.........                      -5
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -283        -246        -240
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -277        -246        -240
---------------------------------------------------------------------------
    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          16
2251  Repayments and prepayments........         -10
2261  Adjustments: Terminations for 
        default that result in loans 
        receivable......................          -6
                                           ---------   ---------  ----------
2290    Outstanding, end of year........
----------------------------------------------------------------------------

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

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

2310    Outstanding, start of year......       4,999       4,923       4,790
2331    Disbursements for guaranteed 
          loan claims...................           6
        Repayments of loans receivable:
2351      Repayments of loans receivable         -82         -58         -80
2351      Repayments of loans 
            receivable--Debt Reduction..                     -19
2364    Other adjustments, net..........                     -56
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       4,923       4,790       4,710
---------------------------------------------------------------------------

    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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4338-0-3-351    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          85            277
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

        Defaulted guaranteed loans, 
            gross:
1701      Defaulted guaranteed loans, 
            gross.......................       4,999          4,923         4,863          4,784
1701      Defaulted guaranteed loans, 
            adjustment--Debt Reduction..                                      -74
1702    Interest receivable.............          27             25            23             21
1703    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -1,322         -1,456        -1,322         -1,300
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............       3,704          3,492         3,490          3,505
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,789          3,769         3,490          3,505
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       3,765          3,745         3,564          3,505
2207  Non-Federal liabilities: Other....          24             24
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       3,789          3,769         3,564          3,505
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,789          3,769         3,564          3,505
-----------------------------------------------------------------------------------------------

                                


 
                 NATURAL RESOURCES CONSERVATION SERVICE

                         Conservation Operations

    For necessary expenses for carrying out 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); 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, 
[$641,243,000] $680,679,000, to remain available until expended (7 
U.S.C. 2209b), of which not less than [$5,990,000] $6,124,000 is for 
snow survey and water forecasting and not less than [$9,025,000] 
$9,238,000 is for operation and establishment of the plant materials 
centers: Provided, That appropriations hereunder shall be available 
pursuant to 7 U.S.C. 2250 for construction and improvement of buildings 
and public improvements at plant materials centers, except that the cost 
of alterations and improvements to other buildings and other public 
improvements shall not exceed $250,000: Provided further, That when 
buildings or other structures are erected on non-Federal land, that the 
right to use such land is obtained as provided in 7 U.S.C. 2250a: 
Provided further, That this appropriation shall be available for 
technical assistance and related expenses to carry out programs 
authorized by section 202(c) of title II of the Colorado River Basin 
Salinity Control Act of 1974 (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 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). (7 U.S.C. 2201-02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11; Agriculture, 
Rural Development, Food and Drug

[[Page 114]]

Administration, and Related Agencies Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Technical Assistance..............         536         560         585
00.02 Soil Surveys......................          77          79          81
00.03 Snow Survey and Water Forecasting.           6           6           6
00.04 Plant Materials Centers...........           9          10           9
09.00 Reimbursable program..............         132         135         198
                                           ---------   ---------  ----------
10.00   Total new obligations...........         760         790         879
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           9          14
22.00 New budget authority (gross)......         765         776         879
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         774         790         879
23.95 Total new obligations.............        -760        -790        -879
24.40 Unobligated balance available, end 
        of year.........................          14
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         633         641         681
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         132         135         198
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         765         776         879
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          97         130         105
73.10 Total new obligations.............         760         790         879
73.20 Total outlays (gross).............        -728        -815        -879
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         130         105         104
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         537         564         599
86.93 Outlays from current balances.....          59         116          81
86.97 Outlays from new permanent 
        authority.......................         132         135         198
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         728         815         879
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -118        -118        -180
88.40     Non-Federal sources...........         -14         -17         -18
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -132        -135        -198
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         633         641         681
90.00 Outlays...........................         596         680         681
---------------------------------------------------------------------------

    Funding within this account for partnership grants is proposed as 
part of the Clean Water Action Plan. Competitive Partnership Grants ($20 
million) are proposed to be used to enhance institutional capacity for 
locally-based institutions, including watershed councils, conservation 
districts, and cooperatives. 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 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 will assist 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.

    In support of the Clean Water Action Plan's Animal Feeding 
Operations (AFOs) Strategy, conservation technical assistance funding 
targeted to AFOs will increase by $20 million over 1999 levels, for a 
total of $57 million in 2000. These funds will help livestock producers 
develop nutrient and waste management plans, a cornerstone of the 
strategy.

    Funding within this account is also provided for several other 
initiatives. In support of the Administration's Livability Initiative, 
$5 million is provided for the Community/Federal Information 
Partnership. These funds will be used to enter into cooperative 
agreements with state and local governments to develop publicly 
available geospatial data that adheres to Federal Geographic Data 
Commission standards. This data will allow states and communities to 
make more informed land-use planning decisions, promoting ``smart 
growth.''

    The Budget also provides $15 million in new climate change money. 
$12 million will be used to expand soil carbon studies in support of the 
U.S. Global Change Research Program. These projects will provide 
validated soil carbon inventories and assess alternative soil management 
impacts on soil carbon stocks at national, regional, and field level 
scales. In cooperation with the Agricultural Research Service, NRCS will 
field test soil carbon prediction and planning tools. An additional $3 
million is provided as part of the Climate Change Technology Initiative. 
These funds will be used to carry out research pilot projects on AFO and 
livestock management issues and cropland management.

                          MAIN WORKLOAD FACTORS

                                      1998 est.   1999 est.   2000 est.
Decisionmakers receiving technical 
services............................     742,200     750,000     715,000
Onsite technical and informational 
assistance..........................     340,000     400,000     380,000
Acres treated with conservation 
technical assistance................  61,200,000  61,200,000  58,100,000

    Inventory and monitoring, resource appraisal, and program 
development activities are also funded through this account. 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 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.

    As this account is the major NRCS salaries and expenses account, 
figures for 2000 include the transfer of technical assistance funds 
proposed to be appropriated to the Watershed and Flood Prevention 
Program, and the Watershed Surveys and Planning Program.

    A new Support Services Bureau is proposed to be established that 
will fund the administrative expenses for the county-based offices, 
including the NRCS. This bureau will be financed on a reimbursable basis 
by the NRCS and other agencies, as appropriate. Estimates for these 
expenses were not yet available at the time the budget was published.

    Soil surveys.--Soil surveys and investigations are made of the 
Nation's soil resources, and NRCS provides interpretations and 
publications that provide physical land facts needed

[[Page 115]]

for program development, resource conservation planning, installation of 
planned practices, and information 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

                                     1998 actual  1999 est.   2000 est.
Acres mapped annually (millions)....        20.5          20          20
Soil surveys ready for publication 
(number)............................          56          50          50

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         334         348         350
11.3      Other than full-time permanent          13          14          16
11.5      Other personnel compensation..           4           5           6
                                           ---------   ---------  ----------
11.9        Total personnel compensation         351         367         372
12.1    Civilian personnel benefits.....          85          90          91
13.0    Benefits for former personnel...           4           4           3
21.0    Travel and transportation of 
          persons.......................          17          18          19
22.0    Transportation of things........           4           4           4
23.2    Rental payments to others.......          11          11          13
23.3    Communications, utilities, and 
          miscellaneous charges.........          20          20          22
24.0    Printing and reproduction.......           3           3           3
25.2    Other services..................          81          84         102
26.0    Supplies and materials..........          15          16          17
31.0    Equipment.......................          37          38          33
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         628         655         679
99.0  Reimbursable obligations..........         132         135         198
99.5  Below reporting threshold.........                                   2
                                           ---------   ---------  ----------
99.9    Total new obligations...........         760         790         879
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       7,913       8,863       8,102
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       2,126       1,761       1,870
---------------------------------------------------------------------------

                                

                     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), [$10,368,000] $11,732,000: 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: 
Provided further, That this appropriation shall be transferred to the 
Natural Resources Conservation Service, ``Conservation Operations'' 
account. (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, 1999, as included in Public Law 
105-277, section 101(a).)

                                

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          11          11          12
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          12          12          13
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          12          12          13
23.95 Total new obligations.............         -12         -12         -13
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          11          11          12
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          12          12          13
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           1           2           2
73.10 Total new obligations.............          12          12          13
73.20 Total outlays (gross).............         -11         -12         -13
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2           2           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           9          10          10
86.93 Outlays from current balances.....           1           1           2
86.97 Outlays from new permanent 
        authority.......................           1           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          11          12          13
----------------------------------------------------------------------------

    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..................          11          11          12
90.00 Outlays...........................          10          11          12
---------------------------------------------------------------------------

    Under the authorities of Public Law 83-566, watershed planning 
assistance is provided to States and communities to address specific 
resource problems on a watershed scale. The Watershed Surveys and 
Planning funds are used to cooperate with other agencies and the States 
in providing local decision makers with resource data, derived from 
Cooperative River Basin Surveys and Floodplain Management studies, for 
use in decision making. Leveraging these funds through cost-sharing with 
States is encouraged. Watershed plans are developed which provide 
alternatives to reduce the damage from floodwater, sediment, nonpoint 
source pollution, and erosion; conserve, develop, and use water 
resources; and conserve and properly use lands.

    Funding provided to the Watershed Surveys and Planning program will 
be used to address one of the most critical strategic objectives of the 
USDA Government Performance and Results Act (GPRA) Strategic Plan: 
``Restoring healthy watersheds, providing clean and abundant water 
supplies for people and the environment.'' Program activities reflect 
high priority natural resource concerns such as: agriculture-induced 
water quality impacts, wetlands restoration, and flood damage risk 
reduction. All of these activities also support the Clean Water Act and 
the Safe Drinking Water Act.

    The Budget reflects funding being appropriated to this account and 
then transferred to Conservation Operations.

[[Page 116]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           6           7
12.1    Civilian personnel benefits.....           1           1           1
25.2    Other services..................           2           2           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..           9           9          10
99.0  Reimbursable obligations..........           1           1           1
99.5  Below reporting threshold.........           2           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          12          12          13
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         131         122         134
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          10          14          13
---------------------------------------------------------------------------

                                

                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 
and 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, [$99,443,000] $83,423,000, 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 and 16 U.S.C. 1006a)): 
Provided, That not to exceed [$47,000,000] $44,423,000 of this 
appropriation shall be available for technical assistance, which amount 
shall be transferred to the Natural Resources Conservation Service, 
``Conservation Operations'' account: 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 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, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Watershed operations (P.L. 534).          15          16           9
00.03   Emergency watershed protection 
          operations....................         130         131
00.04   Small watershed operations (P.L. 
          566)..........................          90          87          74
09.01 Reimbursable program..............          18          25          25
                                           ---------   ---------  ----------
10.00   Total new obligations...........         253         259         108
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         189         135
22.00 New budget authority (gross)......         199         124         108
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         388         259         108
23.95 Total new obligations.............        -253        -259        -108
24.40 Unobligated balance available, end 
        of year.........................         135
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         101          99          83
40.15   Appropriation (emergency).......          80
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         181          99          83
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          18          25          25
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         199         124         108
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         171         185         140
73.10 Total new obligations.............         253         259         108
73.20 Total outlays (gross).............        -239        -304        -201
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         185         140          47
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          77          57          56
86.93 Outlays from current balances.....         144         222         120
86.97 Outlays from new permanent 
        authority.......................          18          25          25
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         239         304         201
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -11         -15         -15
88.40     Non-Federal sources...........          -7         -10         -10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -18         -25         -25
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         181          99          83
90.00 Outlays...........................         221         279         176
---------------------------------------------------------------------------

    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 for the program ($44 
million) will be transferred to Conservation Operations beginning in 
2000.

    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.

    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

                                     1998 actual  1999 est.   2000 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

[[Page 117]]

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 
causes 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. Since 1944, the Federal government has invested 
$8.5 billion to develop a watershed infrastructure through the Small 
Watershed program. This investment yields annual benefits estimated at 
$500 million.

    $1 million of the program funds will be used to provide educational 
assistance to communities about the need to examine and possibly repair 
older systems. Inspections of these systems may be carried out by 
private engineers or NRCS staff on a reimbursable basis.

    The following tabulation shows the status of Public Law 566 
projects:

                          MAIN WORKLOAD FACTORS

                                     1998 actual  1999 est.   2000 est.
Status of operational projects:
  Projects receiving land treatment.         185         190         195
  Structural projects...............         268         260         252
  Land treatment and structural.....          62          60          59
                                    ------------------------------------
      Subtotal active projects......         515         510         506
  Projects continuing post-
    installation assistance.........         911         926         938
  Inactive projects.................          17          17          17
  Completed projects................          32          34          36
  Deauthorized projects.............         155         155         155
                                    ------------------------------------
      Total operational projects....       1,630       1,642       1,652
                                    ------------------------------------
  New projects approved during year.          16          12          10
                                    ====================================

    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 2000.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          42          47          23
11.3      Other than full-time permanent           1           1           1
11.5      Other personnel compensation..           1           2           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          44          50          25
12.1    Civilian personnel benefits.....           9          10           5
21.0    Travel and transportation of 
          persons.......................           2           3           1
23.2    Rental payments to others.......           2           2           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
        Other services:
25.2      Other services................           8          10           7
25.2      Other services................          89          81          18
26.0    Supplies and materials..........           2           1           1
31.0    Equipment.......................           3           4           2
32.0    Land and structures.............          18          20
41.0    Grants, subsidies, and 
          contributions.................          54          52          22
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         232         234          83
99.0  Reimbursable obligations..........          18          25          25
      Allocation Account:

11.1    Personnel compensation: Full-
          time permanent................           1
25.2    Other services..................           2
                                           ---------   ---------  ----------
99.0      Subtotal, allocation account..           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         253         259         108
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         976         930         543
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          39          43          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), [$35,000,000] $35,265,000, 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, 1999, as 
included in Public Law 105-277, section 101(a).) 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Direct program: Technical 
        assistance......................          35          36          35
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          36          37          36
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1
22.00 New budget authority (gross)......          35          36          36
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          36          37          36
23.95 Total new obligations.............         -36         -37         -36
24.40 Unobligated balance available, end 
        of year.........................           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          34          35          35
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          35          36          36
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6           9           9
73.10 Total new obligations.............          36          37          36
73.20 Total outlays (gross).............         -33         -37         -37
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           9           9           8
----------------------------------------------------------------------------

[[Page 118]]



    Outlays (gross), detail:
86.90 Outlays from new current authority          30          32          32
86.93 Outlays from current balances.....           2           4           3
86.97 Outlays from new permanent 
        authority.......................           1           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          33          37          37
----------------------------------------------------------------------------

    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..................          34          35          35
90.00 Outlays...........................          32          36          36
---------------------------------------------------------------------------

    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-related 
conservation projects. Financial contributions, loans, and other Federal 
assistance may be used to help carry out projects specified in RC and D 
area plans. 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.

    The following tabulation shows the status of RC and D areas 
authorized to receive technical and financial assistance.

                          MAIN WORKLOAD FACTORS

                                     1998 actual  1999 est.   2000 est.
Areas authorized at beginning of 
year................................         290         315         315
Areas authorized at end of year.....         315         315         315
Project plans adopted...............       3,119       3,200       3,200
Projects being implemented..........      66,310      69,500      69,500
Projects completed..................       2,815       2,900       2,900

                Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          17          17          18
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          18          18          19
12.1    Civilian personnel benefits.....           4           4           4
21.0    Travel and transportation of 
          persons.......................           1           1           1
23.2    Rental payments to others.......           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................           7           8           6
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          35          36          35
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          36          37          36
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         408         404         392
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......           4           5           5
---------------------------------------------------------------------------

                                

                             Debt for Nature

    For necessary expenses to carry out section 349 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1997), $5,000,000, to remain 
available until expended. 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1001-2-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

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

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

    Change in unpaid obligations:
73.10 Total new obligations.............                                   5
73.20 Total outlays (gross).............                                  -3
----------------------------------------------------------------------------

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

    Net budget authority and outlays:
89.00 Budget authority..................                                   5
90.00 Outlays...........................                                   3
---------------------------------------------------------------------------

    The Debt for Nature program will complement NRCS and USDA efforts to 
provide the best possible assistance to minority, limited resource, and 
socially disadvantaged landowners by providing Farm Services Agency loan 
recipients in financial difficulty with direct financial assistance for 
implementing conservation measures planned and designed through NRCS 
technical assistance. A loan recipient could request technical 
assistance from NRCS to design and plan a conservation plan for his/her 
farm or ranch. In exchange for his/her agreement to carryout the 
provisions of the conversation plan and arrange for installation of 
needed practices, FSA would forgive all or a portion of this loan 
recipient's debt load. If the loan recipient could not afford to pay out 
of pocket for the cost of installation practices, and funding from some 
other private source was not forthcoming, then NRCS would pay for all or 
part of the installation as financial assistance.

    This program will provide the resources needed to actively implement 
these conservation initiatives, furnish interested farm loan 
participants with the opportunity to participate, and develop 
conservation plans for each participant. Field staff will be provided 
specific training and potential partner organizations will be identified 
and brought into the effort, and farm loan recipients will be contacted 
and advised of the various opportunities. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1001-2-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................                                   1
41.0  Grants, subsidies, and 
        contributions...................                                   4
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                   5
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1001-2-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......                                  12
---------------------------------------------------------------------------



[[Page 119]]



                                

                    Great Plains Conservation Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2268-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           2
24.40 Unobligated balance available, end 
        of year.........................           2
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          17          11          10
73.20 Total outlays (gross).............          -4          -3          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          11          10           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           4           3           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           4           3           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.

                          MAIN WORKLOAD FACTORS

                                     1998 actual  1999 est.   2000 est.
Program participants:
  Number of contracts serviced 
    during year.....................       3,970       3,000       2,100
  Number of acres under contracts...  12,458,400   9,400,000   6,600,000

    As of September 30, 1998, there were 3,970 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.

                                

                       Forestry Incentives Program

    [For necessary expenses, not otherwise provided for, to carry out 
the program of forestry incentives, as authorized by 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.]
    [For an additional amount to carry out the program of forestry 
incentives, as authorized by the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2101), including technical assistance and related 
expenses, $10,000,000, to remain available until expended, as authorized 
by that Act: Provided, That the entire amount shall be available only to 
the extent that an official budget request for $10,000,000, 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: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
such Act.] (Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3336-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................           6          16
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           6          16
23.95 Total new obligations.............          -6         -16
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................           6          16
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          11          11          16
73.10 Total new obligations.............           6          16
73.20 Total outlays (gross).............          -6         -11          -8
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          11          16           8
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           3           8
86.93 Outlays from current balances.....           3           3           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           6          11           8
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           6          16
90.00 Outlays...........................           5          11           8
---------------------------------------------------------------------------

    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 is incompatible with the agency 
strategic plan, which is focused on water quality and habitat goals. 
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 1998 program provided funding for 81,396 acres of tree planting, 
and 17,931 acres in timber stand improvements, and 1,559 acres targeted 
towards special forestry and site preparation.

                                

                           Water Bank Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3320-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                       1
24.40 Unobligated balance available, end 
        of year.........................           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          30          22          16
73.20 Total outlays (gross).............          -8          -6          -6
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          22          16          10
----------------------------------------------------------------------------

[[Page 120]]



    Outlays (gross), detail:
86.93 Outlays from current balances.....           8           6           6
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           8           6           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 1999. For 2000, USDA does not request program funding.

    Under the Water Bank Program, the Secretary of Agriculture, through 
designated county offices, uses program funds to enter into 10-year 
agreements with landowners and operators for the conservation of 
specified wetlands. Provisions exist to renew agreements for additional 
periods, to make annual payments on agreements, and under certain 
conditions to increase payment rates in the fifth year of a contract or 
at the time of renewal. During the period of the agreement, the 
landowner agrees not to drain, burn, fill, or otherwise destroy the 
wetland character of such areas.

                                

              Colorado River Basin Salinity Control Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3318-0-1-304      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                       1
23.95 Total new obligations.............                      -1
24.40 Unobligated balance available, end 
        of year.........................           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5           3           4
73.10 Total new obligations.............                       1
73.20 Total outlays (gross).............          -1          -1          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           3           4           3
----------------------------------------------------------------------------

    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
---------------------------------------------------------------------------

    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 1998 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.

                                

                        Wetlands Reserve Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1080-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.03 Technical Assistance..............          18           3           2
00.04 Easement Overhead Costs...........           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          19           4           2
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          25           6           2
23.95 Total new obligations.............         -19          -4          -2
24.40 Unobligated balance available, end 
        of year.........................           6           2
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          39          25
73.10 Total new obligations.............          19           4           2
73.20 Total outlays (gross).............         -33         -29          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          25
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          33          29           2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          33          29           2
---------------------------------------------------------------------------

    The Wetlands Reserve Program (WRP) is authorized by Section 1237 of 
the Food Security Act of 1985 (P.L. 99-198), as amended by the Food, 
Agriculture, Conservation and Trade Act of 1990 (P.L. 101-624), the 
Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66), the Federal 
Agriculture Improvement and Reform Act of 1996 (P.L. 104-127). WRP is a 
mandatory Commodity Credit Corporation (CCC) program administered by the 
Natural Resources Conservation Service (NRCS). However, the Farm Service 
Agency (FSA), with CCC financial responsibility, handles program 
payments and financial reporting.

    The primary objectives of the program are to restore and protect 
wetlands, improve wildlife habitat, and protect migratory waterfowl. 
This program offers landowners an opportunity to establish long-term 
conservation and wildlife practices and protection beyond that which can 
be obtained through other USDA programs. The Secretary of Agriculture, 
through NRCS field offices, uses program funds to acquire permanent or 
30-year easements or to enter into 10-year restoration cost-share 
agreements. For easements, participants receive compensation in an 
amount not to exceed the agricultural fair market value of the land 
being offered. In addition, they receive cost-share assistance in 
amounts up to 75 percent for 30-year easements and 100 percent for 
permanent easements for establishing required wetlands restoration and 
wildlife practices. CCC pays for all the overhead costs associated with 
recording the easement in the local land records office including 
recording fees, charges for abstracts, surveys,

[[Page 121]]

appraisal fees, and title insurance associated with acquiring an 
easement. For restoration cost-share agreements, participants receive up 
to 75 percent of the cost of establishing required practices. Other 
agencies and private organizations may provide additional assistance for 
easement payments and restoration costs as a way to leverage program 
funds and achieve greater program benefits.

    NRCS continues to provide assistance to participating landowners 
after the initial completion of restoration activities. The assistance 
may be in the form of review of restoration measures, clarification of 
technical and administrative aspects of easement and agreement 
management needs, and basic biological and engineering advice on how to 
achieve optimum results for wetland dependent wildlife.

    The program is available, on eligible lands, in all 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
Islands of the United States, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the Trust territories of the Pacific 
Islands. To be eligible for WRP, land must be restorable and be suitable 
for wildlife benefits. However, wetlands converted after December 23, 
1985 and not restored, certain lands enrolled in the Conservation 
Reserve Program, Federal lands, and lands where conditions make 
restoration impossible are not eligible.

    The WRP has a total acre enrollment limitation of 975,000 acres 
through 2002. At the current rate of enrollment this maximum enrollment 
level will be met in 2000.

    From program inception in 1992 through 1998, approximately 655,000 
acres have been enrolled. The Secretary has the authority to enroll 
120,000 acres in 1999. Roughly 775,000 acres are expected to be enrolled 
in WRP by the beginning of the 2000.
    Year and WRP enrollment information:
        1992--42,230 acres were enrolled in 9 pilot states.
        1993--No funding was provided for operating a fiscal year 1993 
    program.
        1994--75,000 acres were enrolled in 20 States, including the 
    nine pilot States.
        1995--The program was made available nationwide. 115,944 acres 
    were enrolled under multiple signups to elevate a backlog of 1994 
    easement offers. Note: The 1995 appropriation was amended by the 
    expiring 1985 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 
    Act.
        1996--80,000 acres enrolled. Note: $5 million of WRP funds were 
    transferred to the Fish and Wildlife Foundation under an interagency 
    agreement of joint partnership.
        1997--130,000 acres enrolled.
        1998--212,000 acres enrolled.
        1999--The Secretary has the authority to enroll 120,000 acres.
        2000--An estimated 199,826 acres will be enrolled.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1080-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          12           2           1
12.1  Civilian personnel benefits.......           3           1           1
23.2  Rental payments to others.........           1
25.4  Operation and maintenance of 
        facilities......................           2
32.0  Land and structures...............           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          19           4           2
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1080-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         238          44          25
---------------------------------------------------------------------------

                                

                   Wildlife Habitat Incentive Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3322-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............          26          24
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                       4
22.22 Unobligated balance transferred 
        from other accounts.............          30          20
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          30          24
23.95 Total new obligations.............         -26         -24
24.40 Unobligated balance available, end 
        of year.........................           4
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                      22          32
73.10 Total new obligations.............          26          24
73.20 Total outlays (gross).............          -5         -14         -10
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          22          32          22
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           5          14          10
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           5          14          10
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................
  Outlays...........................           5          14          10
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                  10
  Outlays...........................                                   3
                                    ------------------------------------
Total:
  Budget Authority..................                                  10
  Outlays...........................           5          14          13
                                    ====================================

    The Wildlife Habitat Incentives Program (WHIP) is a voluntary 
program to support and encourage landowners through technical assistance 
and cost share payments to develop and improve fish and wildlife habitat 
on private lands. The 1996 Federal Agriculture Improvement and Reform 
Act made available a total of $50 million for WHIP from the Commodity 
Credit Corporation for the years 1996-2002. These funds were exhausted 
in 1999. The Budget provides $10 million in CCC funds for WHIP in 2000.

    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 are 
preferred: WHIP may be implemented in cooperation with other Federal, 
State, or local agencies, conservation districts, or private 
conservation groups. State priorities 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           3           3
12.1  Civilian personnel benefits.......           1           1
41.0  Grants, subsidies, and 
        contributions...................          21          19
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          25          23
99.5  Below reporting threshold.........           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          26          24
---------------------------------------------------------------------------

[[Page 122]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3322-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          67          62
---------------------------------------------------------------------------

                                

                   Wildlife Habitat Incentive Program

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3322-4-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............                                  10
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
62.00 Transferred from other accounts...                                  10
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  10
73.20 Total outlays (gross).............                                  -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                   7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                                   3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  10
90.00 Outlays...........................                                   3
---------------------------------------------------------------------------

    Legislation will be proposed to transfer $10 million annually from 
the Commodity Credit Corporation to finance the program.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3322-4-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................                                   1
41.0  Grants, subsidies, and 
        contributions...................                                   7
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..                                   8
99.5  Below reporting threshold.........                                   2
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  10
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3322-4-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......                                  30
---------------------------------------------------------------------------

                                

                        Rural Clean Water Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3337-0-1-304      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           3           3           3
24.40 Unobligated balance available, end 
        of year.........................           3           3           3
----------------------------------------------------------------------------

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

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

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

    This experimental Rural Clean Water Program, authorized by Public 
Law 96-108 and Public Law 96-528, was a cooperative endeavor among 
farmers, various USDA agencies, and other organizations to develop and 
test means of controlling agricultural nonpoint source water pollution 
in rural areas.

    Recommended project areas were developed by local and State 
committees and approved by the Secretary of Agriculture in consultation 
with the Administrator of the Environmental Protection Agency. Full 
funding was provided in previous appropriations for all approved 
projects. The implementation period for all projects has ended, and no 
additional obligations will be incurred. Payment of prior year 
obligations is expected to continue through calendar year 1999. Similar 
activities will be carried out through the mandatory Environmental 
Quality Incentives Program.

                                

                       Farmland Protection Program

    For necessary expenses in providing financial and technical 
assistance to State, local, and tribal governments for the preservation 
of farmland through permanent easements, as authorized by section 388 of 
the Federal Agriculture Improvement and Reform Act (7 U.S.C. 7201), 
$50,000,000, to be derived from the Land and Water Conservation Fund, to 
remain available until expended.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5447-0-2-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............                                  50
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  50
23.95 Total new obligations.............                                 -50
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.20 Appropriation (special fund, 
        definite).......................                                  50
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  50
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  48
----------------------------------------------------------------------------

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

    Net budget authority and outlays:
89.00 Budget authority..................                                  50
90.00 Outlays...........................                                   1
---------------------------------------------------------------------------

    Funding increases for the Farmland Protection Program (FPP) are 
provided as part of the President's Land Legacy Initiative to be derived 
from the Land and Water Conservation Fund. These funds, along with 
increases in other accounts, highlight the Administration's commitment 
to making new tools available to States, tribes, and local governments 
to protect great places; to conserve open space for recreation and 
wildlife habitat; and to preserve forests, farmlands, and coastal areas.

    The FPP was established to protect farmland from urban development 
and other nonagricultural land conversions; preserve farmland for future 
generations; maintain, restore, and enhance ecosystems, protect 
historical landscapes, scenic beauty, and open space; and sustain rural 
economic stability and development.

    The FPP meets these goals by providing matching funds (up to 50 
percent of the fair market easement value) to state,

[[Page 123]]

local, and tribal governments to leverage their farmland preservation 
efforts. To be eligible, a state, local, or tribal government must have 
a farmland protection program that provides for the purchase of 
permanent farmland easements, and it must have pending easement offers. 
These entities submit funding applications to NRCS, which then 
prioritizes them based on criteria such as quality of the land 
(including environmental, historical, and scenic qualities, likelihood 
of conversion, and availability of nonfederal funds.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5447-0-2-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................                                   1
32.0  Land and structures...............                                  48
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..                                  49
99.5  Below reporting threshold.........                                   1
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  50
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5447-0-2-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......                                  24
---------------------------------------------------------------------------

                                

Credit accounts:

    Agricultural Resource Conservation Demonstration Guaranteed Loan 
                            Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 interest assistance on guaranteed 
        loans...........................           2           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           2           1           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5           3           2
23.95 Total new obligations.............          -2          -1          -1
24.40 Unobligated balance available, end 
        of year.........................           3           2           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............           2           1           1
73.20 Total financing disbursements 
        (gross).........................          -2          -1          -1
87.00 Total financing disbursements 
        (gross).........................           2           1           1
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........           2           1           1
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351      1998 actual   1999 est.   2000 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........          24          24          24
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          24          24          24
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          24          24          24
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           5              5             3              3
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           5              5             3              3
-----------------------------------------------------------------------------------------------

                                

                               Trust Funds

                     Miscellaneous Contributed Funds

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           1           2           2
    Receipts:
02.01 Miscellaneous contributed funds...           1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           2           2           2
07.99 Total balance, end of year........           2           2           2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............           1          19
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          19          19
23.95 Total new obligations.............          -1         -19
24.40 Unobligated balance available, end 
        of year.........................          19
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           1           1          10
73.10 Total new obligations.............           1          19
73.20 Total outlays (gross).............          -1         -10          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1          10           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...           1          10           4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           1          10           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 12-8210-0-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
32.0  Land and structures...............           1           9
41.0  Grants, subsidies, and 
        contributions...................                      10
                                           ---------   ---------  ----------
99.9    Total new obligations...........           1          19
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......           3           1           1
---------------------------------------------------------------------------

[[Page 124]]



                                


 
                            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, 1926d, and 1932, except for 
sections 381E[-H], 381G, 381H, 381N, and 381O of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009f), [$722,686,000] $670,103,000, 
to remain available until expended, of which [$29,786,000] $28,387,000 
shall be for rural community programs described in section 381E(d)(1) of 
[the Consolidated Farm and Rural Development] such Act; of which 
[$645,007,000] $569,646,000 shall be for the rural utilities programs 
described in section 381E(d)(2) of such Act, as provided in 7 U.S.C. 
1926[(a) and 7 U.S.C. 1926C] 1926c, and 1926d; and of which 
[$47,893,000] $72,070,000 shall be for the rural business and 
cooperative development programs described in section 381E(d)(3) and 
310B(f), of such Act: Provided, That of the amount appropriated for 
rural community programs, $5,000,000 shall be made available for 
hazardous weather early warning systems: 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; and 
$5,000,000 shall be made available for partnership technical assistance 
grants to rural communities: Provided further, That of the amount 
appropriated for rural utilities programs, not to exceed $20,000,000 
shall be for water and waste disposal systems to benefit the Colonais 
along the United States/Mexico borders, including grants pursuant to 
section 306C of such Act; not to exceed $20,000,000 shall be for water 
and waste disposal systems for rural and native villages in Alaska 
pursuant to section 306D of such Act; not to exceed $16,215,000 shall be 
for technical assistance grants for rural waste systems pursuant to 
section 306(a)(14) of such Act; and not to exceed $5,300,000 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 amount appropriated, not to exceed 
[$33,926,000] $45,245,000 shall be available through June 30, [1999] 
2000, for empowerment zones and enterprise communities, as authorized by 
Public Law 103-66, of which [$1,844,000] $2,106,000 shall be for rural 
community programs described in section 381E(d)(1) of such Act; of which 
[$23,948,000] $34,704,000 shall be for the rural utilities programs 
described in section 381E(d)(2) of such Act; of which [$8,134,000] 
$8,435,400 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 from prior years 
for the ``Rural Utilities Assistance Program'' account, shall be 
transferred to and merged with this account. (Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Rural water and waste disposal, 
        downward restimates of subsidies                      18
0102  Rural business and industry, 
        negative subsidies..............           1
0103  Rural business and industry, 
        downward reestimates of 
        subsidies.......................                       2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          94         144          79
00.02 Guaranteed loan subsidy...........          12          11          31
00.05 Reestimate of direct loan subsidy.                      35
00.06 Interest on reestimate of direct 
        loan subsidy....................                       3
00.07 Reestimate of guaranteed loan 
        subsidy.........................                      45
00.08 Interest on reestimate of 
        guaranteed loan subsidy.........                       8
00.11 Water and waste disposal systems 
        grants..........................         516         534         503
00.12 Solid waste management grants.....           3           3           3
00.13 Community facility grants.........           9           7          13
00.14 Rural business enterprise grants..          37          37          36
00.15 Rural opportunity grants..........                                   5
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................         671         827         670
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5          13
22.00 New budget authority (gross)......         653         814         670
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          26
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         684         827         670
23.95 Total new obligations.............        -671        -827        -670
24.40 Unobligated balance available, end 
        of year.........................          13
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         652         723         670
      Permanent:

60.05   Appropriation (indefinite) 
          Reestimates...................                      91
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         653         814         670
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,636       1,691       1,759
73.10 Total new obligations.............         671         827         670
73.20 Total outlays (gross).............        -581        -759        -683
73.40 Adjustments in expired accounts...          -9
73.45 Adjustments in unexpired accounts.         -26
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,691       1,759       1,746
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          38          43          59
86.93 Outlays from current balances.....         542         625         624
86.97 Outlays from new permanent 
        authority.......................           1          91
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         581         759         683
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: NADBank.................          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         652         814         670
90.00 Outlays...........................         580         759         683
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct water and waste disposal 
        loan levels.....................         752         724         900
1150  Direct community facility loan 
        levels..........................         206         169         250
1150  Direct business and industry loan 
        levels..........................          21          50          50
                                           ---------   ---------  ----------
1159    Total direct loan levels........         979         943       1,200
    Direct loan subsidy (in percent):
1320  Direct water and waste disposal 
        loans subsidy rate..............        9.76       16.52        7.10
1320  Direct community facility loans 
        subsidy rate....................        8.38       13.74        6.06
1320  Direct business and industry loans 
        subsidy rate....................       -7.16      -14.64      -14.16
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        9.10       14.37        5.99
    Direct loan subsidy budget authority:
1330  Direct water and waste disposal 
        loans subsidy budget authority..          73         120          64
1330  Direct community facility loans 
        subsidy budget authority........          17          23          15
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..          90         143          79
    Direct loan subsidy outlays:
1340  Direct water and waste disposal 
        loans subsidy outlays...........          93         121          94
1340  Direct community facility loans 
        subsidy outlays.................          17          21          25
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         110         142         119
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Water and waste disposal loan 
        guarantee levels................          15          75          75
2150  Community facility loan guarantee 
        levels..........................          65         210         210
2150  Business and industry loan 
        guarantee levels................       1,087       1,000       1,000
                                           ---------   ---------  ----------

[[Page 125]]


2159    Total loan guarantee levels.....       1,167       1,285       1,285
    Guaranteed loan subsidy (in percent):
2320  Guaranteed water and waste 
        disposal loan subsidy rate......       -1.90       -1.08       -0.83
2320  Guranteed community facility loan 
        subsidy rate....................        0.40       -0.54       -0.54
2320  Guaranteed business and industry 
        loan subsidy rate...............        0.97        1.02        3.11
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.89        0.64        2.28
    Guaranteed loan subsidy budget authority:
2330  Guaranteed community facility 
        loans subsidy budget authority..
2330  Guaranteed business and industry 
        loans subsidy budget authority..          11          10          31
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..          11          10          31
    Guaranteed loan subsidy outlays:
2340  Guaranteed community facility loan 
        subsidy outlays.................           1
2340  Guranteed business and industry 
        loan subsidy outlays............           3          10          31
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........           4          10          31
---------------------------------------------------------------------------

    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 2000 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.

    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. Grants to 
finance early warning radar systems are also proposed, to provide 
communities susceptible to sudden, dangerous weather such as tornadoes 
and flooding, with early warning alarm transmitters.

    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 
310B(c) and 310B(f) 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 
306(a)(11)(A) 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. 
Partnership Technical Assistance Grants are provided to help rural 
communities develop comprehensive strategies for revitalization and to 
better coordinate Federal and other sources of assistance.

                                


 
                          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, [$60,978,000] $61,979,000: 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: Provided 
further, That the Administrator may expend not more than $10,000 to 
provide modest nonmonetary awards to non-USDA employees. (Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1952-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          57          61          62
09.01 Reimbursable program..............         412         415         437
                                           ---------   ---------  ----------
10.00   Total new obligations...........         469         476         499
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         470         476         499
23.95 Total new obligations.............        -469        -476        -499
23.98 Unobligated balance expiring......          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          58          61          62

[[Page 126]]

      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         412         415         437
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         470         476         499
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          69          82          79
73.10 Total new obligations.............         469         476         499
73.20 Total outlays (gross).............        -470        -479        -495
73.40 Adjustments in expired accounts...          14
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          82          79          83
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          49          52          53
86.93 Outlays from current balances.....           8          10           6
86.97 Outlays from new permanent 
        authority.......................         356         357         376
86.98 Outlays from permanent balances...          57          60          59
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         470         479         495
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -412        -415        -437
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          58          61          62
90.00 Outlays...........................          56          64          58
---------------------------------------------------------------------------

    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 
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. This is a Departmental initiative to 
coordinate the functions and personnel of the different field agencies 
to provide a more seamless and efficient delivery system. A new Support 
Services Bureau is proposed to be established that will fund the 
administrative expenses for the county based offices including Rural 
Development. This bureau will be financed on a reimbursable basis by the 
Rural Housing Service and other agencies, as appropriate. Estimates for 
these expenses were not yet available at the time the budget was 
published. The activities of the new entity will include human 
resources, management services, information technology, and accounting 
services.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1952-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          30          32          33
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          31          33          34
12.1    Civilian personnel benefits.....           7           7           7
21.0    Travel and transportation of 
          persons.......................           2           2           2
23.2    Rental payments to others.......           3           3           3
23.3    Communications, utilities, and 
          miscellaneous charges.........           4           4           4
25.2    Other services..................           3           5           5
25.3    Purchases of goods and services 
          from Government accounts......           4           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..          57          61          62
99.0  Reimbursable obligations..........         412         415         437
                                           ---------   ---------  ----------
99.9    Total new obligations...........         469         476         499
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1952-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         840         883         845
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       5,189       5,226       5,236
---------------------------------------------------------------------------

                                

                          Salaries and Expenses

                      (Farmers Home Administration)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2001-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          22          14
73.20 Total outlays (gross).............          -2
73.40 Adjustments in expired accounts...          -4         -14
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           2
----------------------------------------------------------------------------

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

    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, 1490e, and 1490m, [$41,000,000] $54,000,000, to remain 
available until expended: Provided, That of the total amount 
appropriated, [$1,200,000] $3,250,000 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, [1999] 2000, they shall remain 
available for other authorized purposes under this head. (Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1953-0-1-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Domestic farm labor grants........          13          14          15
00.03 Very low-income housing repair 
        grants..........................          26          20          30
00.05 Supervisory and technical 
        assistance grants...............                       1
00.07 Rural housing preservation grants.          11           7           9
                                           ---------   ---------  ----------

[[Page 127]]


10.00   Total obligations (object class 
          41.0).........................          50          42          54
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           2           2           1
22.00 New budget authority (gross)......          46          41          54
22.22 Unobligated balance transferred 
        from other accounts.............           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          51          43          55
23.95 Total new obligations.............         -50         -42         -54
24.40 Unobligated balance available, end 
        of year.........................           2           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          46          41          54
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          56          57          37
73.10 Total new obligations.............          50          42          54
73.20 Total outlays (gross).............         -48         -60         -58
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          57          37          34
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          24          21          31
86.93 Outlays from current balances.....          24          39          26
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          48          60          58
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          46          41          54
90.00 Outlays...........................          48          60          58
---------------------------------------------------------------------------

    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, [$583,397,000;] 
$640,000,000, to remain available until expended, of which $440,000,000 
shall become available on October 1, 1999, and $200,000,000 shall become 
available on October 1, 2000, 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 [1999] 2000  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, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0137-0-1-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................         545         583         440
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           4
22.00 New budget authority (gross)......         541         583         440
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         545         583         440
23.95 Total new obligations.............        -545        -583        -440
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         541         583         440
40.05 Appropriation (indefinite)........          82          61          54
40.47 Portion applied to debt reduction.         -82         -61         -54
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........         541         583         440
----------------------------------------------------------------------------

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

        Obligated balance, start of 
            year:
72.40     Obligated balance, 
            appropriation, start of year       1,650       1,742       1,825
72.40     Obligated balance, authority 
            to borrow, start of year....         893         811         750
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       2,543       2,553       2,575
73.10 Total new obligations.............         545         583         440
73.20 Total outlays (gross).............        -533        -562        -583
73.40 Adjustments in expired accounts...          -2
      Unpaid obligations, end of year:

        Obligated balance, end of year:
74.40     Obligated balance, 
            appropriation, end of year..       1,742       1,825       1,736
74.40     Obligated balance, authority 
            to borrow, end of year......         811         750         696
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       2,553       2,575       2,432
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          16          20          15
86.93 Outlays from current balances.....         435         480         514
86.98 Outlays from permanent balances...          82          61          54
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         533         562         583
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         541         583         440

[[Page 128]]

90.00 Outlays...........................         533         562         583
---------------------------------------------------------------------------

    The rental assistance program is authorized under section 521(a)(2) 
of the Housing Act of 1949, as amended, and is designed to reduce rents 
paid by very low-income and low-income families living in RHS-financed 
rural rental and farm labor housing projects. Funding under this account 
is provided for renewals of existing rental assistance contracts, 
assistance for newly constructed units financed by the section 515 rural 
rental and cooperative housing program or the 514/516 farm labor housing 
loan and grant programs, and for additional servicing assistance for 
existing projects. Assistance is also provided in lieu of debt 
forgiveness or payments for eligible households to subsidize tenant 
rents in projects purchased by eligible nonprofit organizations or 
public agencies as authorized by section 502(c)(5)(D) of the Act.

    From 1978 through 1991, the rental assistance program was funded 
under the Rural Housing Insurance Fund. Beginning in 1992, pursuant to 
Credit Reform, a separate grant account was established for this 
program.

    In 2000, $640 million in multi-year rental assistance contracts are 
proposed, of which $200 million will be provided through an advance 
appropriation for 2001. This will not affect the availability of rental 
assistance for recipients.

                                

                     Rural Housing Voucher Program 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2002-0-1-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           3           2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           3           2           2
----------------------------------------------------------------------------

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

    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] $30,000,000, to 
remain available until expended (7 U.S.C. 2209b): Provided, That of the 
total amount appropriated, $1,000,000 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, [1999] 2000, they shall remain 
available for other authorized purposes under this head. (Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2006-0-1-604      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          27          26          30
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          26          26          30
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          27          26          30
23.95 Total new obligations.............         -27         -26         -30
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          26          26          30
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          26          34          34
73.10 Total new obligations.............          27          26          30
73.20 Total outlays (gross).............         -18         -26         -27
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          34          34          37
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           3           5           6
86.93 Outlays from current balances.....          15          21          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          18          26          27
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          26          26          30
90.00 Outlays...........................          18          26          27
---------------------------------------------------------------------------

    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

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2067-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

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

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

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

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

    Net budget authority and outlays:
89.00 Budget authority..................           2
90.00 Outlays...........................           1           1           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

[[Page 129]]

firefighting forces, including those of Indian tribes or other Native 
American groups, to prevent, control, and suppress fires threatening 
human lives, crops, livestock, farmsteads or other improvements, 
pastures, orchards, wildlife, rangeland, woodland, and other resources 
in rural areas.

    In 1997, funding for the Rural Community Fire Protection grant 
program was appropriated to the Rural Housing Assistance Program and 
transferred to this account for administration. In 1998, funding for 
these grants was appropriated to this account. Beginning in 1999, 
funding for this program is 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................         211         171         250
00.02   Interest on Treasury borrowing..          42          44          53
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....         253         215         303
      Subtotal, Reestimates:

08.02   Downward reestimate paid to 
          receipt account...............                      12
08.03   Interest on downward reestimate 
          paid to receipt account.......                       2
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimates...........                      14
                                           ---------   ---------  ----------
10.00   Total new obligations...........         253         229         303
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          21          11
22.00 New financing authority (gross)...         241         217         304
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          14
22.70 Balance of authority to borrow 
        withdrawn.......................         -12
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         264         228         304
23.95 Total new obligations.............        -253        -229        -303
24.40 Unobligated balance available, end 
        of year.........................          11
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..         192         116         192
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          77          98         121
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............          -1           3          -9
68.47   Portion applied to debt 
          reduction.....................         -27
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          49         101         112
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         241         217         304
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year         278         339         314
72.95   Receivables from program account          40          39          42
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         318         378         356
73.10 Total new obligations.............         253         229         303
73.20 Total financing disbursements 
        (gross).........................        -178        -250        -271
73.45 Adjustments in unexpired accounts.         -14
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..         339         314         355
74.95   Receivables from program account          39          42          33
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         378         356         388
87.00 Total financing disbursements 
        (gross).........................         178         250         271
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -17         -21         -25
88.25     Interest on uninvested funds..         -10         -19         -25
          Non-Federal sources:
88.40       Repayment of principal......         -24         -17         -21
88.40       Interest received on loans..         -27         -41         -50
88.40       Other.......................           1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -77         -98        -121
88.95 Change in receivables from program 
        accounts........................           1          -3           9
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         165         116         192
90.00 Financing disbursements...........         101         152         150
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4225-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         206         169         250
1113  Unobligated limitation carried 
        forward.........................           5
1131  Direct loan obligations exempt 
        from limitation.................                       2
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         211         171         250
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         493         606         782
1231  Disbursements: Direct loan 
        disbursements...................         137         193         217
1251  Repayments: Repayments and 
        prepayments.....................         -24         -17         -22
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         606         782         977
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          65             82           139            160
        Investments in US securities:
1106      Receivables, net..............          40             39            43             43
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         492            606           782            977
1402    Interest receivable.............           7             26            40             50
1405    Allowance for subsidy cost (-)..         -76           -128          -197           -178
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         423            504           625            849
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         528            625           807          1,052
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................         492            606           782          1,037
2203  Non-Federal liabilities: Liability 
        for deposit funds...............           1              1             2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         493            607           784          1,037
    NET POSITION:
3100  Appropriated capital..............          35             18            23             15
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          35             18            23             15
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         528            625           807          1,052
-----------------------------------------------------------------------------------------------

                                

       Rural Community Facility Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4228-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
08.01 Negative subsidy paid to receipt 
        account.........................                       1           1
08.02 Downward reestimate paid to 
        receipt account.................                       4
                                           ---------   ---------  ----------

[[Page 130]]


10.00   Total obligations...............                       5           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           6           7           7
22.00 New financing authority (gross)...           1           6           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7          13           8
23.95 Total new obligations.............                      -5          -1
24.40 Unobligated balance available, end 
        of year.........................           7           7           7
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............           1           6           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                       5           1
73.20 Total financing disbursements 
        (gross).........................                      -6          -1
87.00 Total financing disbursements 
        (gross).........................                       6           1
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                      -4
88.25     Interest on uninvested funds..          -1          -1
88.40     Non-Federal sources...........                      -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -1          -6          -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 12-4228-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........          81         210         210
2112  Uncommitted loan guarantee 
        limitation......................         -16
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................          65         210         210
2199  Guaranteed amount of guaranteed 
        loan commitments................          52         168         168
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         121         155         229
2231  Disbursements of new guaranteed 
        loans...........................          47          81         131
2251  Repayments and prepayments........         -12          -7         -12
2264  Adjustments: Other adjustments, 
        net.............................          -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         155         229         348
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         124         183         279
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           6              7             7              7
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           6              7             7              7
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           6              7             7              7
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           6              7             7              7
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           6              7             7              7
-----------------------------------------------------------------------------------------------

                                

              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, to 
be available from funds in the rural housing insurance fund, as follows: 
[$3,965,313,000] $4,300,000,000 for loans to section 502 borrowers, as 
determined by the Secretary, of which [$3,000,000,000] $3,200,000,000 
shall be for unsubsidized guaranteed loans; [$25,001,000] $32,396,000 
for section 504 housing repair loans; $100,000,000 for section 538 
guaranteed multi-family housing loans; [$20,000,000] $25,001,000 for 
section 514 farm labor housing; [$114,321,000] $100,000,000 for section 
515 rental housing; $5,152,000 for section 524 site loans; [$16,930,000] 
$7,503,000 for credit sales of acquired property, of which up to 
[$5,001,000] $1,250,000 may be for multi-family credit sales; and 
$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, [$116,800,000] $113,350,000, 
of which [$2,700,000] $19,520,000 shall be for unsubsidized guaranteed 
loans; section 504 housing repair loans, [$8,808,000] $9,900,220; 
section 538 multi-family housing guaranteed loans, [$2,320,000] 
$480,000; section 514 farm labor housing, [$10,406,000] $11,307,960; 
section 515 rental housing, [$55,160,000] $39,680,000; section 524 site 
loans, [$17,000] $4,120; credit sales of acquired property, [$3,492,000] 
$874,000, of which up to [$2,416,000] $494,250 may be for multi-family 
credit sales; and section 523 self-help housing land development loans, 
[$282,000] $280,500: Provided, That of the total amount appropriated in 
this paragraph, [$10,380,000] $9,829,000 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, [1999] 2000, 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, [$360,785,000] $383,879,000, 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, 1999, as included in Public Law 105-277, section 
101(a).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Rural housing insurance, downward 
        reestimates of subsidies........                      34
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         219         192         156
00.02 Guaranteed loan subsidy...........           8           5          20
00.05 Reestimates of direct loan subsidy                      96
00.06 Interest on reestimates of direct 
        loan subsidy....................                      20
00.07 Reestimates of guaranteed loan 
        subsidy.........................                     109
00.08 Interest on reestimates of 
        guaranteed loan subsidy.........                      13
00.09 Administrative expenses--salaries, 
        expenses........................         355         361         384
                                           ---------   ---------  ----------

[[Page 131]]


10.00   Total new obligations...........         582         796         560
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5
22.00 New budget authority (gross)......         581         797         560
22.21 Unobligated balance transferred to 
        other accounts..................          -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         583         797         560
23.95 Total new obligations.............        -582        -796        -560
23.98 Unobligated balance expiring......          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         581         558         560
      Permanent:

60.05   Appropriation (indefinite)......                     239
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         581         797         560
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         204         200         156
73.10 Total new obligations.............         582         796         560
73.20 Total outlays (gross).............        -576        -841        -588
73.40 Adjustments in expired accounts...         -10
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         200         156         128
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         468         470         491
86.93 Outlays from current balances.....         108         133          97
86.97 Outlays from new permanent 
        authority.......................                     239
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         576         841         588
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         581         797         560
90.00 Outlays...........................         576         841         588
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Single family housing.............       1,000         965       1,100
1150  Multi-family housing..............         149         114         100
1150  Housing repair....................          30          25          32
1150  Farm labor housing................          15          20          25
1150  Site development..................                       5           5
1150  Single family credit sales........          22          20           6
1150  Multi-family credit sales.........                       4           1
1150  Self-help housing.................                       5           5
                                           ---------   ---------  ----------
1159    Total direct loan levels........       1,216       1,158       1,274
    Direct loan subsidy (in percent):
1320  Single family housing.............       12.81       11.82        8.53
1320  Multi-family housing..............       45.83       48.25       39.68
1320  Housing repair....................       34.36       35.23       30.56
1320  Farm labor housing................       49.25       52.03       45.23
1320  Site development..................       -1.19        0.33        0.08
1320  Single family credit sales........       13.97        9.02        6.08
1320  Multi-family credit sales.........       13.97       48.31       39.54
1320  Self-help housing.................        3.41        5.64        5.61
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       17.84       12.32       12.24
    Direct loan subsidy budget authority:
1330  Single family housing.............         128         114          94
1330  Multi-family housing..............          69          55          40
1330  Housing repair....................          10           9          10
1330  Farm labor housing................           7          10          11
1330  Single family credit sales........           3           2
1330  Multi-family credit sales.........                       2           1
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..         217         192         156
    Direct loan subsidy outlays:
1340  Single family housing.............         113         118          96
1340  Multi-family housing..............          67          93          67
1340  Housing repair....................          10           8          11
1340  Farm labor housing................           9          13           9
1340  Single family credit sales........           3           2
1340  Multi-family credit sales.........                       2           1
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         202         236         184
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Single family housing--
        unsubsidized....................       2,822       3,000       3,200
2150  Multi-family housing..............          40          75         100
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....       2,862       3,075       3,300
    Guaranteed loan subsidy (in percent):
2320  Single family housing--
        unsubsidized....................        0.23        0.09        0.61
2320  Multi-family housing..............        3.00        3.10        0.48
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.27        0.16        0.61
    Guaranteed loan subsidy budget authority:
2330  Single family housing--
        unsubsidized....................           7           3          20
2330  Multi-family housing..............           1           2
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..           8           5          20
    Guaranteed loan subsidy outlays:
2340  Single family housing--
        unsubsidized....................           7           3          20
2340  Multi-family housing..............           1           2
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........           8           5          20
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         355         361         384
3590  Outlays...........................         355         361         384
---------------------------------------------------------------------------

    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, 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........         355         361         384
41.0  Grants, subsidies, and 
        contributions...................         227         435         176
                                           ---------   ---------  ----------
99.9    Total new obligations...........         582         796         560
---------------------------------------------------------------------------

[[Page 132]]



                                

              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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Multifamily Housing...............                                 100
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....                                 100
    Guaranteed loan subsidy (in percent):
2320  Multi Family Housing..............                               -3.00
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                               -0.05
---------------------------------------------------------------------------

    This proposed legislation would eliminate the provision in the 
Housing Act of 1949 that requires that at least 20 percent of the 
section 538 multi-family housing loans be subsidized through interest 
rate buydowns. In most cases, the tenants this program serves have 
incomes high enough to guarantee sufficient cash flow to borrowers to 
allow them to pay back the loan.

                                

       Rural Housing Insurance Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................       1,234       1,158       1,275
00.02   Advances on behalf of borrowers.          45          87          87
00.03   Collateral acquired by default..           1           5           5
00.04   Interest on Treasury borrowing..         508         572         616
00.06   Other expenses..................           5
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....       1,793       1,822       1,983
      Reestimates:

08.02   Downward subsidy reestimate paid 
          to receipt account............                      25
08.03   Interest on downward reestimate 
          paid to receipt account.......                       9
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimates...........                      34
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,792       1,856       1,983
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                      58
22.00 New financing authority (gross)...       1,833       1,797       1,984
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          41
22.70 Balance of authority to borrow 
        withdrawn.......................         -23
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,851       1,855       1,984
23.95 Total new obligations.............      -1,792      -1,856      -1,983
24.40 Unobligated balance available, end 
        of year.........................          58
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..       1,152       1,098       1,491
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         920       1,181       1,148
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............          -1         -44         -33
68.47   Portion applied to debt 
          reduction.....................        -238        -438        -622
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         681         700         492
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,833       1,798       1,983
----------------------------------------------------------------------------

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

        Obligated balance, start of 
            year:
72.40     Obligated balance with 
            Treasury, start of year.....         156         180         200
72.40     Obligated balance, authority 
            to borrow, start of year....         195         300         267
72.95   Receivables from program account         197         196         152
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         548         676         619
73.10 Total new obligations.............       1,792       1,856       1,983
73.20 Total financing disbursements 
        (gross).........................      -1,624      -1,913      -1,953
73.45 Adjustments in unexpired accounts.         -41
      Unpaid obligations, end of year:

        Obligated balance, end of year:
74.40     Obligated balance with 
            Treasury, end of year.......         180         200         228
74.40     Obligated balance, authority 
            to borrow, end of year......         300         267         302
74.95   Receivables from program account         196         152         119
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         676         619         649
87.00 Total financing disbursements 
        (gross).........................       1,624       1,913       1,953
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: payments from 
            program account.............        -213        -352        -189
88.25     Interest on uninvested funds..         -63         -73         -82
          Non-Federal sources:
88.40       Non-Federal sources: 
              Repayments of principal...        -285        -354        -421
88.40       Interest received on loans..        -345        -385        -438
88.40       Undistributed receipts......          10
88.40       Proceeds on sale of acquired 
              property..................         -11          -8          -8
88.40       Recaptured income...........          -9          -9         -10
88.40       Appraisal fees..............          -3
88.40       Miscellaneous collections...          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -920      -1,181      -1,148
88.95 Change in receivables from program 
        accounts........................           1          44          33
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         914         660         869
90.00 Financing disbursements...........         703         731         806
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........       1,230       1,158       1,275
1112  Unobligated direct loan limitation          -4
1113  Unobligated limitation carried 
        forward.........................
1131  Direct loan obligations exempt 
        from limitation.................
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,226       1,158       1,275
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       8,567       9,411      10,371
1231  Disbursements: Direct loan 
        disbursements...................       1,113       1,215       1,245
1251  Repayments: Repayments and 
        prepayments.....................        -285        -354        -421
1261  Adjustments: Capitalized interest.          17          18          20
      Write-offs for default:

1263    Direct loans....................                      -6          -7
1264    Other adjustments, net..........          -1          87          87
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       9,411      10,371      11,295
---------------------------------------------------------------------------

    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.

    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

[[Page 133]]

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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         156            180           200            228
        Investments in US securities:
1106      Receivables, net..............         197            312           152            119
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       8,567          9,411        10,371         11,295
1402    Interest receivable.............          81             42            46             50
1404    Foreclosed property.............           7             15            22             29
1405    Allowance for subsidy cost (-)..      -2,293         -2,497        -2,653         -2,782
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       6,362          6,971         7,785          8,592
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       6,715          7,463         8,137          8,939
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................                         33
2103    Debt............................       6,469          7,197         7,948          8,782
2104    Liability for subsidy related to 
          undisbursed loans.............                        196           152            119
2105    Other...........................
2207  Non-Federal liabilities: Other....          49             37            37             38
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       6,518          7,463         8,137          8,939
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       6,518          7,463         8,137          8,939
-----------------------------------------------------------------------------------------------

                                

     Rural Housing Insurance Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................          25          40          56
                                           ---------   ---------  ----------
10.00   Total new obligations...........          25          40          56
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          71          80         211
22.00 New financing authority (gross)...          34         171          64
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         105         251         275
23.95 Total new obligations.............         -25         -40         -56
24.40 Unobligated balance available, end 
        of year.........................          80         211         220
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          34         171          64
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          25          40          56
73.20 Total financing disbursements 
        (gross).........................         -25         -40         -56
87.00 Total financing disbursements 
        (gross).........................          25          40          56
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -8        -128         -20
88.25     Interest on uninvested funds..          -5         -14         -13
88.40     Non-Federal sources: guarantee 
            fees........................         -21         -29         -31
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -34        -171         -64
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........          -9        -131          -8
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........       3,040       3,075       3,300
2112  Uncommitted loan guarantee 
        limitation......................        -178
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       2,862       3,075       3,300
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       5,039       7,206       9,791
2231  Disbursements of new guaranteed 
        loans...........................       2,416       2,927       3,120
2251  Repayments and prepayments........        -222        -298        -394
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................         -27         -44         -61
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       7,206       9,791      12,456
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       6,485       8,812      11,211
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          71             80           211            220
        Investments in US securities:
1106      Receivables, net..............
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          71             80           211            220
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.          71             80           211            220
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          71             80           211            220
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          71             80           211            220
-----------------------------------------------------------------------------------------------

                                

     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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                   1
24.40 Unobligated balance available, end 
        of year.........................                                   1
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                                   1
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

[[Page 134]]



    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      1998 actual   1999 est.   2000 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...........................                                   5
2251  Repayments and prepayments........                                  -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                                   4
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                                   4
---------------------------------------------------------------------------

    This account reflects the additional guaranteed loan level requested 
under the legislative proposal for section 538 multi-family housing 
loans, to eliminate the requirement that a certain percentage of 
guaranteed loans be subsidized through an interest rate buydown.

    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    1997 actual    1998 actual     1999 est.      2000 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment:

00.02   Advances on behalf of borrowers.          51          79          58
00.04   Purchases of certificates of 
          beneficial ownership..........                       2           7
00.05   Collateral acquired by default..           2           1           1
00.07   Unclassified recoverable costs..          28
00.08   Restoration of direct loan 
          obligations...................          16
                                           ---------   ---------  ----------
00.91     Total capital investment......          97          82          66
      Operating expenses:

01.02   Interest on certificates of 
          beneficial ownership..........                       1           1
01.03   Interest on FFB borrowings......       1,274         858         566
01.06   Interest credits on loans sold 
          to investors..................           2           2           2
01.07   Other costs incident to loans...           1           1           1
01.08   Undistributed charges...........           1
                                           ---------   ---------  ----------
01.91     Total operating expenses......       1,278         862         570
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,375         943         636
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,375         943         636
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          16
22.70 Balance of authority to borrow 
        withdrawn.......................         -16
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,375         943         636
23.95 Total new obligations.............      -1,375        -943        -636
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........       3,469       1,102         125
60.47 Portion applied to debt reduction.      -1,762        -159
60.53 Portion substituted for borrowing 
        authority.......................        -332
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........       1,375         943         125
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       2,273       2,215       2,096
68.47   Portion applied to debt 
          reduction.....................      -2,273      -2,215      -1,585
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                                 511
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,375         943         636
----------------------------------------------------------------------------

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

        Obligated balance, start of 
            year:
72.40     Obligated fund balance with 
            treasury, end of year.......         390         583         470
72.40     Obligated authority to borrow 
            balance, start of year......         348
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         738         583         470
73.10 Total new obligations.............       1,375         943         636
73.20 Total outlays (gross).............      -1,515      -1,056        -736
73.45 Adjustments in unexpired accounts.         -16
      Unpaid obligations, end of year:

        Obligated balance, end of year:
74.40     Obligated fund balance with 
            Treasury, end of year.......         583         470         370
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         583         470         370
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................       1,374         942         592
86.98 Outlays from permanent balances...         141         114         144
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,515       1,056         736
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Repayments of loans and 
              advances..................      -1,263      -1,195      -1,147
88.40       Proceeds from sale of 
              acquired property.........         -31         -35         -30
88.40       Payments on judgments.......          -2          -2          -2
88.40       Interest payments from 
              borrowers.................        -909        -852        -793
88.40       Recapture of subsidies......        -120        -131        -124
88.40       Fees and other revenue......          -3
88.40       Undistributed receipts......          55
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -2,273      -2,215      -2,096
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................        -898      -1,272      -1,460
90.00 Outlays...........................        -759      -1,159      -1,360
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      20,947      19,704      18,512
1231  Disbursements: Direct loan 
        disbursements...................           6
1251  Repayments: Repayments and 
        prepayments.....................      -1,264      -1,195      -1,147
1261  Adjustments: Capitalized interest.          41          41          41
      Write-offs for default:

1263    Direct loans....................          -4         -24         -22
1264    Other adjustments, net..........         -22         -13         -15
                                           ---------   ---------  ----------

[[Page 135]]


1290    Outstanding, end of year........      19,704      18,512      17,369
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          30          27          24
2251  Repayments and prepayments........          -3          -3          -3
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          27          24          21
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          24          21          19
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................       1,892          1,275         1,205          1,111
0102  Expense...........................      -1,678         -1,515        -1,090           -753
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............         214           -240           115            358
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4141-0-3-371    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         390            583           470            370
1901    Other assets....................         491             21            21             21
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      14,633         13,112        12,235         11,404
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           1              1             1              1
2102    Interest payable................         693            525           395            295
2103    Debt............................      13,535          9,500         7,125          5,540
2104    Resources payable to Treasury...         224          2,978         4,611          5,472
2105    Liabilities for loan guarantees.                          4             3              2
      Non-Federal liabilities:

2201    Accounts payable................          23
2202    Interest payable................           1              1             1              1
2203    Debt............................          11             10             9              2
2207    Other...........................         145             93            90             91
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      14,633         13,112        12,235         11,404
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      14,633         13,112        12,235         11,404
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................           2           1           1
33.0  Investments and loans.............          97          82          66
41.0  Grants, subsidies, and 
        contributions...................           2           1           2
43.0  Interest and dividends............       1,274         859         567
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,375         943         636
---------------------------------------------------------------------------

                                


 
                   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] 
$24,612,000: 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, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1903-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          25          26          25
09.01 Reimbursable program..............          12           8           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........          37          34          33
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          37          34          33
23.95 Total new obligations.............         -37         -34         -33
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          26          26          25
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          11           8           8
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          37          34          33
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          13          16          13
73.10 Total new obligations.............          37          34          33
73.20 Total outlays (gross).............         -33         -35         -35
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          16          13          11
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          16          19          18
86.93 Outlays from current balances.....           6          10          11
86.97 Outlays from new permanent 
        authority.......................          11           6           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          33          35          35
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -11          -8          -8
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          26          26          25
90.00 Outlays...........................          22          27          27
---------------------------------------------------------------------------

    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. This a Departmental initiative to 
coordinate the functions and personnel of the different field agencies 
to provide a more seamless and efficient delivery system.

    A new Support Services Bureau is proposed to be established that 
will fund the administrative expenses for the county based offices 
including Rural Development. This bureau will be financed on a 
reimbursable basis by the Rural Business-Cooperative Service and other 
agencies, as appropriate. Estimates for these expenses were not yet 
available at the time the budget was published.

[[Page 136]]

        Rural Empowerment Zones and Enterprise Communities Grants

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0402-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Empowerment zones/enterprise 
        community grants................                      15
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                      15
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      15
23.95 Total new obligations.............                     -15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                      15
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                                  15
73.10 Total new obligations.............                      15
73.20 Total outlays (gross).............                                  -5
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                      15          10
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....                                   5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      15
90.00 Outlays...........................                                   5
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................                      15
  Outlays...........................                                   5
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                  15
  Outlays...........................
                                    ------------------------------------
Total:
  Budget Authority..................                      15          15
  Outlays...........................                                   5
                                    ====================================

    The goal of the Empowerment Zone/Enterprise Community (EZ/EC) 
initiative is to revitalize rural communities in a manner that attracts 
private sector investment and thereby provides self-sustaining community 
and economic development. First year funding for EZ/EC's designated as 
part of the second round of this initiative was provided through the FY 
1999 appropriation act. Legislation will be proposed to provide the 
outyear follow-on funding for the 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 are 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 multi-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.

    The activities of the new entity will include human resources, 
management services, information technology, and accounting services.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1903-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          11          13          14
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          12          14          15
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           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           7           5           3
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          25          25          24
99.0  Reimbursable obligations..........          10           7           7
99.5  Below reporting threshold.........           2           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          37          34          33
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1903-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         222         218         218
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          73          86          86
---------------------------------------------------------------------------

                                

           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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Empowerment zones/enterprise 
        community grants................                                  15
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  15
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  15
23.95 Total new obligations.............                                 -15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.00 Appropriation.....................                                  15
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  15
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  15
----------------------------------------------------------------------------

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

    This account provides grants for 5 rural empowerment zones which are 
entities designated under section 1391(g) of the Internal Revenue Code 
of 1986, to carry out a second round of the empowerment zone program in 
rural areas.

[[Page 137]]

Grants are also provided for 20 new rural enterprise communities. Funds 
for the rural enterprise communities are not for tax treatment under the 
Internal Revenue Code. Second round EZ/EC recipients were designated in 
January 1999. Legislation will be proposed to provide mandatory funding 
in 2000 and the out years for these recipients

                                

                          Salaries and Expenses

                   (rural development administration)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3400-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           2
73.20 Total outlays (gross).............          -1          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...           1           2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           1           2
---------------------------------------------------------------------------

    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), [$3,300,000] $9,000,000, of which [$1,300,000] $2,000,000 shall 
be available for cooperative agreements for the appropriate technology 
transfer for rural areas program and [$250,000 shall be available for an 
agribusiness and cooperative development program] $2,000,000 for 
cooperative research agreements. (Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations Act, 1999, 
as included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1900-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Rural cooperative development 
        grants..........................           2           2           5
00.02 Appropriate technology transfer 
        for rural areas.................           1           1           2
00.03 Cooperative research agreements...                                   2
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................           3           3           9
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           3           3           9
23.95 Total new obligations.............          -3          -3          -9
----------------------------------------------------------------------------

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

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           4           3
73.10 Total new obligations.............           3           3           9
73.20 Total outlays (gross).............          -2          -4          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           4           3           8
----------------------------------------------------------------------------

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

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

    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 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 requested for cooperative reserach 
agreements.

                                

                    Rural Economic Development Grants

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3105-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................          11          11           4
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          21          13           4
22.00 New budget authority (gross)......           2           3           3
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          24          16           7
23.95 Total new obligations.............         -11         -11          -4
24.40 Unobligated balance available, end 
        of year.........................          13           4           3
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...           1           2           3
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............           1           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................           2           3           3
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          19          17          16
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............           1           2           3
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          20          19          19
73.10 Total new obligations.............          11          11           4
73.20 Total outlays (gross).............         -11         -12         -10
73.45 Adjustments in unexpired accounts.          -1
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          17          16          10
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............           2           3           3
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          19          19          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................           1           1
86.98 Outlays from permanent balances...          10          12           9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          11          12          10
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -2          -3
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          -1          -1
----------------------------------------------------------------------------

[[Page 138]]



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

    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.

                                

Credit accounts:

       Rural Business and Industry Direct Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................          21          50          50
00.02   Interest on Treasury borrowings.           1           2           4
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....          22          52          54
      Non-operating program:

08.01   Negative subsidy paid to receipt 
          account.......................           2           7           7
08.02   Downward reestimate paid to 
          receipt account...............                       2
                                           ---------   ---------  ----------
08.91   Subtotal, Non-operating program.           2           9           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........          24          61          61
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...          24          61          61
23.95 Total new obligations.............         -24         -61         -61
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..          23          55          52
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           6           9
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          24          61          61
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           9          15          43
73.10 Total new obligations.............          24          61          61
73.20 Total financing disbursements 
        (gross).........................         -18         -33         -50
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          15          43          54
87.00 Total financing disbursements 
        (gross).........................          18          33          50
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..          -1          -1          -1
          Non-Federal sources:
88.40       Repayments of principal.....                      -1          -2
88.40       Interest received on loans..                      -4          -6
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -1          -6          -9
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          23          55          52
90.00 Financing disbursements...........          16          27          41
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          50          50          50
1112  Unobligated direct loan limitation         -29
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          21          50          50
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           3          19          40
1231  Disbursements: Direct loan 
        disbursements...................          16          22          40
1251  Repayments: Repayments and 
        prepayments.....................                      -1          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          19          40          78
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           3              2             3              5
1206  Non-Federal assets: Receivables, 
        net.............................
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..           3             19            40             78
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....           3             19            40             78
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           6             21            43             83
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................                          2             3              5
2104    Resources payable to Treasury...           6             19            40             78
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           6             21            43             83
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           6             21            43             83
-----------------------------------------------------------------------------------------------

                                

     Rural Business and Industry Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................           8          33          33
00.03 Investment in secondary market....           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........          13          33          33
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          39          54         103
22.00 New financing authority (gross)...          28          82          50
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          67         136         153
23.95 Total new obligations.............         -13         -33         -33
24.40 Unobligated balance available, end 
        of year.........................          54         103         120
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           2
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          26          82          50
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          28          82          50
----------------------------------------------------------------------------

[[Page 139]]



    Change in unpaid obligations:
73.10 Total new obligations.............          13          33          33
73.20 Total financing disbursements 
        (gross).........................         -13         -33         -33
87.00 Total financing disbursements 
        (gross).........................          13          33          33
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -10         -63         -31
88.25     Interest on uninvested funds..          -3          -2          -2
          Non-Federal sources:
88.40       Interest and principal on 
              purchased loans from 
              secondary market..........                      -1          -1
88.40       Guarantee fees..............         -13         -16         -16
88.40       NADBank fee collection......
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -26         -82         -50
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           2
90.00 Financing disbursements...........         -13         -49         -17
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........       1,099       1,078       1,000
2131  Guaranteed loan commitments exempt 
        from limitation.................          72          18
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       1,171       1,096       1,000
2199  Guaranteed amount of guaranteed 
        loan commitments................         923         866         791
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       1,258       1,855       2,734
2231  Disbursements of new guaranteed 
        loans...........................         801       1,019       1,019
2251  Repayments and prepayments........        -184        -107        -145
      Adjustments:

2262    Terminations for default that 
          result in acquisition of 
          property......................          -6
2263    Terminations for default that 
          result in claim payments......         -10         -33         -33
2264    Other adjustments, net..........          -4
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       1,855       2,734       3,575
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       1,466       2,160       2,807
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          40             54           103             86
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          40             54           103             86
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.          40             54           103             86
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          40             54           103             86
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          40             54           103             86
-----------------------------------------------------------------------------------------------

                                

               Rural Development Loan Fund Program Account

                     (including transfers of funds)

    For the cost of direct loans, [$16,615,000] $22,798,580, 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 
[$33,000,000] $52,495,000: Provided further, That [through June 30, 
1999,] of the total amount appropriated, [$3,215,520] $4,343,000 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] Public Law 103-66, to subsidize gross 
obligations for the principal amount of direct loans, [$7,246,000] 
$10,000,000: Provided further, That if such funds are not obligated for 
empowerment zones and enterprise communities by June 30, [1999] 2000, 
they shall remain available for other authorized purposes under this 
head.
    In addition, for administrative expenses to carry out the direct 
loan programs, [$3,482,000] $3,337,000 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, 1999, as 
included in Public Law 105-277, section 101(a).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Rural development loans, downward 
        reestimates of subsidies........                       8
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          17          17          23
00.04 Forest Service Loan Program.......                                  10
00.05 Reestimates of direct loan subsidy                       1
00.09 Administrative expense............           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          20          21          36
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          20          21          36
23.95 Total new obligations.............         -20         -21         -36
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          20          20          26
      Permanent:

60.05   Appropriation (indefinite)......                       1
68.00   Spending authority from 
          offsetting collections: Forest 
          Service Loan..................                                  10
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          20          21          36
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          67          61          54
73.10 Total new obligations.............          20          21          36
73.20 Total outlays (gross).............         -25         -28         -24
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          61          54          66
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4           4           4
86.93 Outlays from current balances.....          20          23          20
86.97 Outlays from new permanent 
        authority.......................                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          25          28          24
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Forest Service..........                                 -10
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          20          21          26
90.00 Outlays...........................          25          28          14
---------------------------------------------------------------------------

[[Page 140]]



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

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Intermediary Relending Loans......          35          33          52
1150  Smart Growth Partnership Program..                                  50
                                           ---------   ---------  ----------
1159    Total direct loan levels........          35          33         102
    Direct loan subsidy (in percent):
1320  Subsidy rate......................       48.25       50.35       43.43
1320  Subsidy rate......................        0.00        0.00       20.00
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       48.25       50.35       31.95
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........          17          17          23
1330  Subsidy budget authority..........                                  10
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..          17          17          33
    Direct loan subsidy outlays:
1340  Subsidy outlays...................          21          25          21
1340  Subsidy outlays...................
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........          21          25          21
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................           3           3           3
---------------------------------------------------------------------------

    This account finances loans to intermediary borrowers, who in turn 
relend the funds to small rural businesses, community development 
corporations, and other organizations for the purpose of improving 
economic opportunities in rural areas. Through the use of local 
intermediaries, this program serves small-scale enterprises and gives 
preference to those communities with the greatest need. It also finances 
a new Smart Growth Partnership loan program with funds transferred from 
the Forest Service. The program is administered by the Forest Service, 
with a contract to RBS to run the loan program.

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........           3           3           3
      Grants, subsidies, and contributions:

41.0    Grants, subsidies, and 
          contributions.................          17          18          23
41.0    Grants, subsidies, and 
          contributions.................                                  10
                                           ---------   ---------  ----------
99.9    Total new obligations...........          20          21          36
---------------------------------------------------------------------------

                                

        Rural Development Loan Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................          35          33         102
00.03   Interest on Treasury borrowing..           8           9          11
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....          43          42         113
      Non-operating program:

08.02   Downward subsidy reestimates 
          paid to the receipt account...                       7
08.03   Interest on downward reestimate 
          paid to receipt account.......                       1
                                           ---------   ---------  ----------
08.91   Subtotal, Non-operating program.                       8
                                           ---------   ---------  ----------
10.00   Total new obligations...........          43          50         113
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5
22.00 New financing authority (gross)...          38          50         113
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          43          50         113
23.95 Total new obligations.............         -43         -50        -113
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..          14          24          59
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          29          33          42
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............          -5          -7          12
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          23          26          54
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          38          50         113
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          58          57          50
72.95   Receivables from program account          66          61          54
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         125         119         104
73.10 Total new obligations.............          43          50         113
73.20 Total financing disbursements 
        (gross).........................         -48         -65         -53
73.45 Adjustments in unexpired accounts.          -1
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          57          50          99
74.95   Receivables from program account          61          54          66
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         119         104         165
87.00 Total financing disbursements 
        (gross).........................          48          65          53
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.         -22         -25         -31
88.25     Interest on uninvested funds..          -2          -2          -3
          Non-Federal sources:
88.40       Non-Federal sources--
              repayment of principal....          -4          -4          -5
88.40       Non-Federal sources--
              interest on loans.........          -1          -2          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -29         -33         -42
88.95 Change in receivables from program 
        accounts........................           5           7         -12
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          14          24          59
90.00 Financing disbursements...........          20          31          11
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          35          33         102
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          35          33         102
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         173         209         253
1231  Disbursements: Direct loan 
        disbursements...................          40          48          42
1251  Repayments: Repayments and 
        prepayments.....................          -4          -4          -6
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         209         253         289
---------------------------------------------------------------------------

    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

[[Page 141]]

development corporations, or 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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4219-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          26             24            22             22
        Investments in US securities:
1106      Receivables, net..............          67             61            54             69
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         169            209           253            289
1402    Interest receivable.............           2              1             3              3
1405    Allowance for subsidy cost (-)..         -87           -106          -121           -138
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          84            103           135            154
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         177            189           211            245
    LIABILITIES:
      Federal liabilities:

2104    Resources payable to Treasury...         110            128           156            180
2105    Other...........................          67             61            54             65
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         177            189           211            245
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         177            189           211            245
-----------------------------------------------------------------------------------------------

                                

             Rural Development Loan Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1           1
22.40 Capital transfer to general fund..                                  -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           1           1
24.40 Unobligated balance available, end 
        of year.........................           1           1
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...           5           5           4
68.27   Capital transfer to general fund          -5          -5          -4
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           2           1
73.20 Total outlays (gross).............          -1          -1          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...           1           1           1
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

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

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          82          77          73
1231  Disbursements: Direct loan 
        disbursements...................           1           1           1
1251  Repayments: Repayments and 
        prepayments.....................          -4          -4          -4
1263  Write-offs for default: Direct 
        loans...........................          -1          -1          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          77          73          70
---------------------------------------------------------------------------

    \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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................           1              1             1              1
0102  Expense...........................                          6             5              4
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           1              7             6              5
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4233-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           4              3             2              2
1206  Non-Federal assets: Receivables, 
        net.............................                          1             1              1
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............          82             77            73             70
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -39            -31           -25            -20
1604    Direct loans and interest 
          receivable, net...............          43             46            48             50
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          43             46            48             50
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          47             50            51             52
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............          47             50            51             52
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          47             50            51             52
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          47             50            51             52
-----------------------------------------------------------------------------------------------

                                

            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, 
$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, 
[$3,783,000] $3,453,000.
    Of the funds derived from interest on the cushion of credit payments 
in fiscal year [1999] 2000, as authorized by section 313 of the Rural 
Electrification Act of 1936, [$3,783,000] $3,453,000 shall not be 
obligated and [$3,783,000] $3,453,000 are rescinded. (Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Rural economic development loans, 
        downward reestimates of 
        subsidies.......................                       2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............           6           4           3
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           6           4           3
----------------------------------------------------------------------------

[[Page 142]]



    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           6           4           3
23.95 Total new obligations.............          -6          -4          -3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................           6           4           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5           6           5
73.10 Total new obligations.............           6           4           3
73.20 Total outlays (gross).............          -4          -6          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           6           5           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           1
86.93 Outlays from current balances.....           3           5           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           4           6           4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           6           4           3
90.00 Outlays...........................           4           6           4
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................          25          15          15
                                           ---------   ---------  ----------
1159    Total direct loan levels........          25          15          15
    Direct loan subsidy (in percent):
1320  Subsidy rate......................       23.91       25.22       23.02
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       23.91       25.22       23.02
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........           6           4           3
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..           6           4           3
    Direct loan subsidy outlays:
1340  Subsidy outlays...................           4           6           4
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........           4           6           4
---------------------------------------------------------------------------

    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.

                                

        Rural Economic Development Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................          25          15          15
00.03   Interest expense................           3           4           4
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....          28          19          19
      Reestimates:

08.02   Subsidy reestimates paid to the 
          receipt account...............                       1
08.03   Interest on downward re-estimate                       1
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimates...........                       2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          28          21          19
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           3           9           9
22.00 New financing authority (gross)...          33          21          19
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......          36          30          28
23.95 Total new obligations.............         -28         -21         -19
24.40 Unobligated balance available, end 
        of year.........................           9           9           9
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..          20          13          12
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          13          14          15
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............           1          -1          -1
68.47   Portion applied to debt 
          reduction.....................          -1          -5          -7
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          14           8           8
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          34          21          19
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          14          20          14
72.95   Receivables from program account           5           6           5
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          19          26          19
73.10 Total new obligations.............          28          21          19
73.20 Total financing disbursements 
        (gross).........................         -20         -27         -21
73.45 Adjustments in unexpired accounts.          -1
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          20          14          13
74.95   Receivables from program account           6           5           4
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          26          19          18
87.00 Total financing disbursements 
        (gross).........................          20          27          21
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal Funds: Program Account          -4          -6          -4
88.25     Interest on uninvested funds..          -1          -1          -1
88.40     Non-Federal sources: Repayment 
            of Principal................          -8          -7         -10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -13         -14         -15
88.95 Change in receivables from program 
        accounts........................          -1           1           1
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          19           8           5
90.00 Financing disbursements...........           7          13           6
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          25          15          15
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          25          15          15
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          42          50          65
1231  Disbursements: Direct loan 
        disbursements...................          16          22          17
1251  Repayments: Repayments and 
        prepayments.....................          -8          -7         -10
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          50          65          72
---------------------------------------------------------------------------

    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.

[[Page 143]]

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4176-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....           6              9             9              8
        Investments in US securities:
1106      Program Account...............           5              6             5              5
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          42             50            65             72
1405    Allowance for subsidy cost (-)..          -9            -11            -4             -4
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          33             39            61             68
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          44             55            75             81
    LIABILITIES:
      Federal liabilities:

2104    Resources payable to Treasury...          38             49            71             76
2105    Other...........................           5              6             5              5
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          43             55            76             81
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          43             55            76             81
-----------------------------------------------------------------------------------------------

                                

          Rural Economic Development Loans Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3104-0-1-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           8
22.40 Capital transfer to general fund..          -8
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...           1           1           1
68.27   Capital transfer to general fund          -1          -1          -1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................
----------------------------------------------------------------------------

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

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

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................          -1          -1          -1
90.00 Outlays...........................          -2          -2          -2
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3104-0-1-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           6           6           6
1251  Repayments: Repayments and 
        prepayments.....................                                  -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           6           6           5
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, all cash flows to and from the Government 
resulting from direct loans obligated prior to 1992. All new activity in 
this program is recorded in corresponding program and financing 
accounts.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-3104-0-1-271    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0111  Revenue...........................           1              1             1              1
0112  Expense...........................
                                        ------------ --------------  ------------  -------------
0119  Net income or loss (-)............           1              1             1              1
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-3104-0-1-271    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           6              8             9             11
1601  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Direct loans, gross.............           5              6             6              5
1801  Other Federal assets: Cash and 
        other monetary assets...........           2
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          13             14            15             16
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............          13              6             6              5
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          13              6             6              5
    NET POSITION:
3300  Cumulative results of operations..                          8             9             11
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                          8             9             11
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          13             14            15             16
-----------------------------------------------------------------------------------------------

                                

Public enterprise funds:

  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), 
[$3,500,000] $10,000,000 is appropriated to the Alternative Agricultural 
Research and Commercialization Corporation Revolving Fund. (Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4144-0-3-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Administrative expense............           1           1           1
00.02 Program activity..................           4           6           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........           5           7          10
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                       2
22.00 New budget authority (gross)......           7           4          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7           6          10
23.95 Total new obligations.............          -5          -7         -10
24.40 Unobligated balance available, end 
        of year.........................           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................           7           4          10
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5           1           1
73.10 Total new obligations.............           5           7          10
73.20 Total outlays (gross).............          -8          -8          -9
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4           3           8
86.93 Outlays from current balances.....           4           3           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           8           8           9
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           7           4          10
90.00 Outlays...........................           8           8           9
---------------------------------------------------------------------------



[[Page 144]]



    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 2000, the corporation expects to participate in approximately 20 
investment opportunities. These opportunities should result in the 
creation of nearly 1,680 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           1           1           1
33.0  Investments and loans.............           3           5           8
41.0  Grants, subsidies, and 
        contributions...................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           5           7          10
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4144-0-3-352      1998 actual   1999 est.   2000 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          20          20          20
23.95 Total new obligations.............                                  -1
24.40 Unobligated balance available, end 
        of year.........................          20          20          19
----------------------------------------------------------------------------

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

    Outlays (gross), detail:
86.98 Outlays from permanent balances...                                   1
----------------------------------------------------------------------------

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

    The Federal Agriculture Improvement Act of 1996 established the 
National Sheep Industry Improvement Center to promote activities to 
strengthen and enhance production or marketing of sheep and goat 
products in the United States. The Center may provide loans or grants to 
eligible entities to provide assistance to the industry for 
infrastructure development, business development, production, resource 
development, and market and environmental research. The 1996 Act 
provided up to $20 million in mandatory funding for the establishment 
and operation of the Center and authorized additional discretionary 
funding of $30 million. No additional discretionary funds have been 
provided or are proposed.

                                


 
                         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] $34,107,000: 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, 1999, as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1981-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          33          33          34
09.02 Reimbursable program..............          33          33          34
                                           ---------   ---------  ----------
10.00   Total new obligations...........          66          66          68
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          67          66          68
23.95 Total new obligations.............         -66         -66         -68
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          33          33          34
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          34          33          34
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          67          66          68
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          10          12          12
73.10 Total new obligations.............          66          66          68
73.20 Total outlays (gross).............         -64         -66         -68
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          12          12          12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          29          29          30
86.93 Outlays from current balances.....           4           4           4
86.97 Outlays from new permanent 
        authority.......................          29          29          30
86.98 Outlays from permanent balances...           2           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          64          66          68
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -34         -33         -34
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          33          33          34
90.00 Outlays...........................          31          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

[[Page 145]]

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.--This is a Departmental initiative to 
coordinate the functions and personnel of the different field agencies 
to provide a more seamless and efficient delivery system. A new Support 
Services Bureau is proposed to be established that will fund the 
administrative expenses for the county based offices including Rural 
Development. This bureau will be financed on a reimbursable basis by the 
Rural Utilities Service and other agencies, as appropriate. Estimates 
for these expenses were not yet available at the time the budget was 
published. The activities of the new entity will include human 
resources, management services, information technology, and accounting 
services.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1981-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          20          21          22
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          21          22          23
12.1    Civilian personnel benefits.....           5           5           5
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
25.2    Other services..................           4           3           3
31.0    Equipment.......................                                   1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          33          33          34
99.0  Reimbursable obligations..........          32          32          33
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          66          66          68
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1981-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         355         290         393
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         341         425         322
---------------------------------------------------------------------------

                                

Credit accounts:

      Rural Water and Waste Disposal Direct Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................         787         730         900
00.03   Interest on Treasury borrowing..         171         185         225
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....         958         915       1,125
      Reestimates:

08.02   Downward reestimate paid to 
          receipt account...............                      16
08.03   Interest on downward reestimate.                       2
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimates...........                      18
                                           ---------   ---------  ----------
10.00   Total new obligations...........         958         933       1,125
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         110          14
22.00 New financing authority (gross)...         853         920       1,125
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          65
22.70 Balance of authority to borrow 
        withdrawn.......................         -56
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         972         934       1,125
23.95 Total new obligations.............        -958        -933      -1,125
24.40 Unobligated balance available, end 
        of year.........................          14
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..         595         488         728
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         311         432         427
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............         -26                     -30
68.47   Portion applied to debt 
          reduction.....................         -27
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         258         432         397
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         853         920       1,125
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year       1,528       1,662       1,454
72.95   Receivables from program account         251         225         225
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       1,779       1,887       1,679
73.10 Total new obligations.............         958         933       1,125
73.20 Total financing disbursements 
        (gross).........................        -784      -1,141        -975
73.45 Adjustments in unexpired accounts.         -65
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..       1,662       1,454       1,634
74.95   Receivables from program account         225         225         195
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       1,887       1,679       1,829
87.00 Total financing disbursements 
        (gross).........................         784       1,141         975
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -93        -159         -94
88.25     Interest on uninvested funds..         -32         -48         -65
          Non-Federal sources:
88.40       Repayment of principal......         -64         -41         -51
88.40       Interest received on loans..        -120        -184        -217
88.40       Miscelleneous offsetting 
              collections...............          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -311        -432        -427
88.95 Change in receivables from program 
        accounts........................          26                      30
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         568         488         728
90.00 Financing disbursements...........         473         709         548
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         752         724         900
1112  Unobligated direct loan limitation
1113  Unobligated limitation carried 
        forward.........................          34
1131  Direct loan obligations exempt 
        from limitation.................                       6
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         786         730         900
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       2,260       2,807       3,703
1231  Disbursements: Direct loan 
        disbursements...................         613         937         751
1251  Repayments: Repayments and 
        prepayments.....................         -66         -41         -51
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       2,807       3,703       4,403
---------------------------------------------------------------------------

    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

[[Page 146]]

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   12-4226-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         167            200           200            200
        Investments in US securities:
1106      Receivables, net..............         251            225           225            225
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       2,260          2,807         3,703          4,403
1402    Interest receivable.............          31             36           156            198
1405    Allowance for subsidy cost (-)..        -429           -430          -430           -398
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       1,862          2,413         3,429          4,203
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,280          2,838         3,854          4,628
    LIABILITIES:
2103  Federal liabilities: Debt.........       2,024          2,760         3,732          4,563
2203  Non-Federal liabilities: Debt.....           5              1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,029          2,761         3,733          4,564
    NET POSITION:
3100  Appropriated capital..............         251             77           121             64
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         251             77           121             64
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,280          2,838         3,854          4,628
-----------------------------------------------------------------------------------------------

                                

    Rural Water and Waste Disposal Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4218-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
08.02 Negative subsidy paid to reciept 
        account.........................           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............           1           1           1
----------------------------------------------------------------------------

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

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           1           1
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                                   1
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           1           1           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       1
73.10 Total new obligations.............           1           1           1
73.20 Total financing disbursements 
        (gross).........................                      -2          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1
87.00 Total financing disbursements 
        (gross).........................                       2           1
----------------------------------------------------------------------------

    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...............           1           1
90.00 Financing disbursements...........                       2
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4218-0-3-452      1998 actual   1999 est.   2000 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......................         -60
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................          15          75          75
2199  Guaranteed amount of guaranteed 
        loan commitments................          12          60          60
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........           7          11          30
2231  Disbursements of new guaranteed 
        loans...........................           4          20          69
2251  Repayments and prepayments........                      -1          -2
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          11          30          97
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..           8          24          78
---------------------------------------------------------------------------

    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.

                                

   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, [$71,500,000] $50,000,000; 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, [$295,000,000] $250,000,000; and loans made 
pursuant to section 306 of that Act, rural electric, [$700,000,000] 
$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, $16,667,000; 
cost of municipal rate loans, $25,842,000; cost of money rural 
telecommunications loans, $810,000] rural electric loans, $9,625,000, 
and the cost of telecommunication loans, $2,930,000: 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] $31,046,000, 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, 1999, as included in Public Law 105-277, section 
101(a).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Rural electrification and 
        telephone loans, negative 
        subsidies.......................           1
0102  Rural electrification and 
        telephone loans, downward 
        reestimates of subsidies........                     171
0103  Rural community facility, downward 
        reestimate of subsidies.........                      18
---------------------------------------------------------------------------

[[Page 147]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          36          44          13
00.05 Reestimate of the direct loan 
        subsidy.........................                      85
00.06 Interest on reestimates of direct 
        loan subsidy....................                       7
00.09 Administrative expenses subject to 
        limitation......................          30          30          31
                                           ---------   ---------  ----------
10.00   Total new obligations...........          66         166          44
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          66         165          44
23.95 Total new obligations.............         -66        -166         -44
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          66          73          44
      Permanent:

60.05   Appropriation (indefinite)......                      92
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          66         165          44
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         163         131         112
73.10 Total new obligations.............          66         166          44
73.20 Total outlays (gross).............         -92        -184         -82
73.40 Adjustments in expired accounts...          -6
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         131         112          74
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          36          34          32
86.93 Outlays from current balances.....          56          57          50
86.97 Outlays from new permanent 
        authority.......................                      92
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          92         184          82
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          66         165          44
90.00 Outlays...........................          92         184          82
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................          66         165          44
  Outlays...........................          92         183          82
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................
  Outlays...........................
                                    ------------------------------------
Total:
  Budget Authority..................          66         165          44
  Outlays...........................          92         183          82
                                    ====================================

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

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loans, electric............         125          72          50
1150  Direct loans, municipal rate 
        electric........................         500         295         250
1150  Direct loans, FFB electric........         300         700         300
1150  Direct loans, telecommunications..          75          75          50
1150  Direct loans, Treasury rate 
        telecommunications..............         288         300         300
1150  Direct loans, FFB 
        telecommunications..............          34         120         120
                                           ---------   ---------  ----------
1159    Total direct loan levels........       1,322       1,562       1,070
    Direct loan subsidy (in percent):
1320  Direct loans, electric............        7.46       13.04        0.90
1320  Direct loans, municipal rate 
        electric........................        4.22        8.76        3.67
1320  Direct loans, FFB electric........        0.92       -0.38       -1.18
1320  Direct loans, telecommunications..        3.92        9.79        1.12
1320  Direct loans, Treasury rate 
        telecommunications..............        0.02        0.27        0.79
1320  Direct loans, FFB 
        telecommunications..............       -0.07       -0.81       -0.46
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        2.74        2.54        0.79
    Direct loan subsidy budget authority:
1330  Direct loans, electric............           9           9           1
1330  Direct loans, municipal rate 
        electric........................          21          26           9
1330  Direct loans, FFB electric........           3
1330  Direct loans, telecommunications..           3           7           1
1330  Direct loans, Treasury rate 
        telecommmunications.............                       1           2
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..          36          43          13
    Direct loan subsidy outlays:
1340  Direct loans, electric............          10          15           8
1340  Direct loans, municipal rate 
        electric........................          41         113          28
1340  Direct loans, FFB electric........           2           3           2
1340  Direct loans, telecommunications..           9          16          13
1340  Direct loans, Treasury rate 
        telecommunications..............                       4
1340  Direct loans, FFB 
        telecommunications..............                       2
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........          62         153          51
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................          30          30          31
3590  Outlays...........................          30          30          31
---------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........          30          30          31
41.0  Grants, subsidies, and 
        contributions...................          36         136          13
                                           ---------   ---------  ----------
99.9    Total new obligations...........          66         166          44
---------------------------------------------------------------------------

                                

   Rural Electrification and Telecommunications Loans 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 12-1230-2-1-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................                                 400
                                           ---------   ---------  ----------
1159    Total direct loan levels........                                 400
    Direct loan subsidy (in percent):
1320  Direct Loan, Treas Electric.......                                0.08
---------------------------------------------------------------------------

    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 are 40 years old. RUS estimates that the Electric Pro

[[Page 148]]

gram will end 1999 with a backlog of electric loan applications in the 
amount of $1,450 million.

                                

   Rural Electrification and Telecommunications Direct Loan Financing 
                                 Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................       1,322       1,562       1,070
00.02   Interest on Treasury borrowing..         223         367         430
00.04   Miscellaneous obligations/
          recoverable costs.............          99          76
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....       1,644       2,005       1,500
      Non-operating program:

08.01   Negative subsidy paid to receipt 
          account.......................                       2           2
08.02   Downward reestimate paid to 
          receipt account...............                     132
08.03   Interest on downard reestimate 
          paid to receipt account.......                      39
                                           ---------   ---------  ----------
08.91   Subtotal, Non-operating program.                     173           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,644       2,178       1,502
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          26          26
22.00 New financing authority (gross)...       1,793       2,153       1,502
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          75
22.60 Redemption of debt................        -156
22.70 Balance of authority to borrow 
        withdrawn.......................         -69
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,669       2,179       1,502
23.95 Total new obligations.............      -1,644      -2,178      -1,502
24.40 Unobligated balance available, end 
        of year.........................          26
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..       1,293       1,549         951
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         532         623         589
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............         -32         -19         -38
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         500         604         551
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,793       2,153       1,502
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year       3,382       3,604       3,943
72.95   Receivables from program account         164         132         113
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       3,546       3,736       4,056
73.10 Total new obligations.............       1,644       2,178       1,502
73.20 Total financing disbursements 
        (gross).........................      -1,380      -1,858      -1,535
73.45 Adjustments in unexpired accounts.         -75
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..       3,604       3,943       3,949
74.95   Receivables from program account         132         113          75
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       3,736       4,056       4,024
87.00 Total financing disbursements 
        (gross).........................       1,380       1,858       1,535
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payment from program account..         -62        -154         -51
88.25     Interest on uninvested funds..         -43         -43         -49
          Non-Federal sources:
88.40       Repayment of principal......        -165         -85        -102
88.40       Interest received on loans..        -262        -341        -387
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -532        -623        -589
88.95 Change in receivables from program 
        accounts........................          32          19          38
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       1,293       1,549         951
90.00 Financing disbursements...........         848       1,235         946
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........       1,420       1,562       1,070
1112  Unobligated direct loan limitation         -98
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,322       1,562       1,070
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       4,306       5,106       6,569
1231  Disbursements: Direct loan 
        disbursements...................         942       1,549       1,217
1251  Repayments: Repayments and 
        prepayments.....................        -142         -86        -102
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       5,106       6,569       7,684
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         157            170            76            212
        Investments in US securities:
1106      Receivables, net..............           2
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       3,656          4,351         5,351          6,051
1405    Allowance for subsidy cost (-)..        -468           -433          -399           -519
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       3,188          3,918         4,952          5,532
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,347          4,088         5,028          5,744
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................
2103    Debt............................       3,208          3,963         4,916          5,660
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       3,208          3,963         4,916          5,660
    NET POSITION:
3100  Appropriated capital..............         139            125           112             84
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         139            125           112             84
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,347          4,088         5,028          5,744
--------------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          49            136           152            188
        Investments in US securities:
1106      Receivables, net..............
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         649            755         1,102          1,438
1405    Allowance for subsidy cost (-)..         -61            -63           -67            -90
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         588            692         1,035          1,348
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         637            828         1,187          1,536
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................
2103    Debt............................         582            770         1,134          1,493
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         582            770         1,134          1,493
    NET POSITION:
3100  Appropriated capital..............          55             58            53             43
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          55             58            53             43
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         637            828         1,187          1,536
-----------------------------------------------------------------------------------------------

[[Page 149]]



                                

   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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................                                 400
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 400
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                 399
23.95 Total new obligations.............                                -400
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..                                 399
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 400
73.20 Total financing disbursements 
        (gross).........................                                 -48
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                 352
87.00 Total financing disbursements 
        (gross).........................                                  48
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                                 399
90.00 Financing disbursements...........                                  48
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-2-3-271      1998 actual   1999 est.   2000 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:
1231  Disbursements: Direct loan 
        disbursements...................                                  48
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                                  48
---------------------------------------------------------------------------

    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   12-4208-2-3-271    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

        Investments in US securities:
1106      Receivables, net..............                                                       1
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                                                      48
1405    Allowance for subsidy cost (-)..                                                      -1
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....                                                      47
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                                      48
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................                                                       1
2103    Debt............................                                                      47
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                                      48
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                                      48
-----------------------------------------------------------------------------------------------

                                

    Rural Electrification and Telecommunications Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Interest expense on certificates 
        of beneficial ownership.........         418         490         490
00.02 Interest expense, FFB direct......       1,141         914         775
00.03 Other interest expense............         234          71           9
00.04 Public debt.......................                      20
00.05 Other.............................           6           7           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,799       1,502       1,278
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         359         274       1,025
22.00 New budget authority (gross)......       2,526       2,252       1,311
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          19
22.70 Balance of authority to borrow 
        withdrawn.......................        -831
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,073       2,526       2,336
23.95 Total new obligations.............      -1,799      -1,502      -1,278
24.40 Unobligated balance available, end 
        of year.........................         274       1,025       1,057
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.36   Unobligated balance rescinded...          -6          -4          -3
      Permanent:

62.00   Transferred from other accounts.          28          26          25
67.15   Authority to borrow (indefinite)         830
67.16   Authority to borrow (indefinite) 
          (12 U.S.C. 2281-96)...........         126
                                           ---------   ---------  ----------
67.90     Authority to borrow (total)...         956
        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).       2,953       3,515       4,411
68.47     Portion applied to debt 
            reduction...................      -1,405      -1,285      -3,122
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................       1,548       2,230       1,289
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,526       2,252       1,311
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       3,131       1,149         424
73.10 Total new obligations.............       1,799       1,502       1,278
73.20 Total outlays (gross).............      -3,195      -2,227      -1,289
73.40 Adjustments in expired accounts...        -567
73.45 Adjustments in unexpired accounts.         -19
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,149         424         413
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         984         804
86.98 Outlays from permanent balances...       2,211       1,423       1,289
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,195       2,227       1,289
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Loans repaid................      -1,574      -1,874      -2,950
88.40       Interest from loans.........      -1,371      -1,641      -1,461
88.40       Other.......................          -8
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -2,953      -3,515      -4,411
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................        -427      -1,263      -3,100
90.00 Outlays...........................         242      -1,288      -3,122
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      28,246      27,076      25,211
1231  Disbursements: Direct loan 
        disbursements...................          34          21           8
1251  Repayments: Repayments and 
        prepayments.....................      -1,574      -1,874      -2,950
1264  Write-offs for default: Other 
        adjustments, net................         370         -12          -7
                                           ---------   ---------  ----------

[[Page 150]]


1290    Outstanding, end of year........      27,076      25,211      22,262
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         642         618         598
2251  Repayments and prepayments........         -24         -20         -20
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         618         598         578
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         618         598         578
---------------------------------------------------------------------------

                          STATUS OF AGENCY DEBT

                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
Agency Debt Held by FFB:
  Outstanding FFB Direct, start of 
    year............................      13,448      12,594      11,623
  Outstanding Certificate of 
    Beneficial Ownership (CBO's), 
    start of year...................       4,599       4,599       4,599
  New agency borrowing, FFB Direct..         129
  Repayments and prepayments, FFB 
    Direct..........................        -983        -971      -1,422
                                    ------------------------------------
  Outstanding FFB Direct, end of 
    year............................      12,594      11,623      10,201
  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.
    The following tables reflect statistics on loans made through the 
liquidating account only. Since 1992 new electric and telephone loans 
have been made through a separate, program account.

                       ELECTRIC PROGRAM STATISTICS

                          [dollars in millions]

                                     1998 actual  1999 est.   2000 est.
Cumulative RUS financed direct loans      21,854      21,854      21,854
Cumulative FFB financed direct loans      27,148      27,148      27,148
Cumulative RUS funds advanced.......      21,830      21,831      21,832
Unadvanced RUS funds, end of year...          24          23          22
Cumulative RUS principal repaid.....      12,694      13,411      14,128
Cumulative RUS interest paid........      10,689      11,078      11,467
Cumulative loan guarantee 
commitments\1\......................       3,967       3,967       3,967
Number of borrowers.................         770         725         680

    \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]

                                     1998 actual  1999 est.   2000 est.
Cumulative RUS financed direct loans       6,061       6,061       6,061
Cumulative FFB financed direct loans         579         579         579
Cumulative RUS funds advanced.......       5,855       5,863       5,871
Unadvanced RUS funds, end of period.         206         198         190
Cumulative RUS principal repaid.....       3,120       3,360       3,600
Cumulative RUS interest paid........       2,536       2,656       2,776
Cumulative loan guarantee 
commitments \1\.....................           3           3           3
Number of borrowers.................         848         839         830

    \1\ Other lenders--privately financed direct loans, FFB.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4230-0-3-271    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
          ELECTRIC PROGRAM:
0111  Revenue...........................       1,902          1,812         1,118          1,062
0112  Expense...........................      -3,488           -147        -1,329         -1,263
                                        ------------ --------------  ------------  -------------
0119  Net loss (-), Electric program....      -1,586          1,665          -211           -201
          TELEPHONE PROGRAM:
0121  Revenue...........................          90            188           130            130
0122  Expense...........................        -364           -178           -91            -91
                                        ------------ --------------  ------------  -------------
0129  Net income or loss (-), Telephone 
        program.........................        -274             10            39             39
                                        ------------ --------------  ------------  -------------
0191  Total revenues....................       1,992          2,000         1,248          1,192
                                        ------------ --------------  ------------  -------------
0192  Total expenses....................      -3,852           -325        -1,420         -1,354
                                        ------------ --------------  ------------  -------------
0199  Net loss (-)......................      -1,860          1,675          -172           -162
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4230-0-3-271    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         208
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross (Electric)..      25,156         24,203        22,454         19,828
1602    Interest receivable.............          12             15            15             15
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -5,031         -3,087        -2,933         -2,786
1604    Direct loans and interest 
          receivable, net...............      20,137         21,131        19,536         17,057
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................      20,137         21,131        19,536         17,057
1901  Other Federal assets: Other assets       2,769          3,527           399
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      23,114         24,658        19,935         17,057
    LIABILITIES:
      Federal liabilities:

2103    Debt............................      22,338         21,198        19,950         16,896
2104    Resources payable to Treasury...                                                     264
2105    Other...........................           3            837             3              3
      Non-Federal liabilities:

2202    Interest payable................          26              9
2203    Debt............................       2,156            807            94             94
2204    Liabilities for loan guarantees.         177            142            99
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      24,700         22,993        20,146         17,257
    NET POSITION:
3300  Cumulative results of operations..      -1,586          1,665          -211           -200
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      -1,586          1,665          -211           -200
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      23,114         24,658        19,935         17,057
--------------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         458
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............         556            528           502            477
1206    Receivables, net................           1            662
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross (Telephone).       3,090          2,874         2,758          2,435

[[Page 151]]

1602    Interest receivable.............           7              6             5              5
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         214            126           119            113
1604    Direct loans and interest 
          receivable, net...............       3,311          3,006         2,882          2,553
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       3,311          3,006         2,882          2,553
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,326          4,196         3,384          3,030
    LIABILITIES:
      Federal liabilities:

2103    Debt............................       2,271          2,163         2,150          2,107
2104    Resources payable to Treasury...       2,322          2,019         1,188            877
2105    Other...........................           7              4             7              7
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       4,600          4,186         3,345          2,991
    NET POSITION:
3300  Cumulative results of operations..        -274             10            39             39
                                        ------------ --------------  ------------  -------------
3999    Total net position..............        -274             10            39             39
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,326          4,196         3,384          3,030
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................           6           7           4
33.0  Investments and loans.............                      20
43.0  Interest and dividends............       1,793       1,475       1,274
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,799       1,502       1,278
---------------------------------------------------------------------------

                                

                  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. During fiscal year [1999] 2000 and within the 
resources and authority available, gross obligations for the principal 
amount of direct loans shall be [$157,509,000] $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), 
[$4,174,000] $3,290,000, to be derived by transfer from the 
shareholder's equity as contained in the 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 the 
shareholder's equity as contained in the 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, 1999, as 
included in Public Law 105-277, section 101(a).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Rural telephone bank loans, 
        downward reestimates of 
        subsidies.......................                      12
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............           4           4           3
00.09 Administrative expenses subject to 
        limitation......................           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........           7           7           6
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
40.00 Appropriation.....................           7           7
42.00 Transferred from other accounts...                                   6
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........           7           7           6
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           8          11          13
73.10 Total new obligations.............           7           7           6
73.20 Total outlays (gross).............          -3          -5          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          11          13          15
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           3           3           3
86.93 Outlays from current balances.....                       2           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           3           5           4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           7           7           6
90.00 Outlays...........................           3           5           4
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................         168         158         175
                                           ---------   ---------  ----------
1159    Total direct loan levels........         168         158         175
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        2.12        2.65        1.88
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        2.12        2.65        1.88
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........           4           4           3
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..           4           4           3
    Direct loan subsidy outlays:
1340  Subsidy outlays...................                       2           1
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                       2           1
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................           3           3           3
3590  Outlays...........................           3           3           3
---------------------------------------------------------------------------

    In 2000, 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........           3           3           3
41.0  Grants, subsidies, and 
        contributions...................           4           4           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........           7           7           6
---------------------------------------------------------------------------

[[Page 152]]



                                

           Rural Telephone Bank Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................         168         158         175
00.03   Interest on Treasury borrowing..          14          13          14
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....         182         171         189
      Reestimate:

08.02   Downward reestimate.............                       9
08.03   Interest on downward reestimate.                       3
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimate............                      12
                                           ---------   ---------  ----------
10.00   Total new obligations...........         182         183         189
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...         182         183         189
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          29
22.70 Balance of authority to borrow 
        withdrawn.......................         -29
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         182         183         189
23.95 Total new obligations.............        -182        -183        -189
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..         166         132         131
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          22          49          55
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............           3           2           3
68.47   Portion applied to debt 
          reduction.....................          -9
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          16          51          58
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         182         183         189
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year         674         775         890
72.95   Receivables from program account           7          10          12
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         681         785         902
73.10 Total new obligations.............         182         183         189
73.20 Total financing disbursements 
        (gross).........................         -48         -65         -68
73.45 Adjustments in unexpired accounts.         -29
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..         775         890       1,009
74.95   Receivables from program account          10          12          15
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         785         902       1,024
87.00 Total financing disbursements 
        (gross).........................          48          65          68
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payment from 
            Program Account.............                      -2          -1
88.25     Interest on uninvested funds..          -4
          Non-Federal sources:
88.40       Principal received on loans.          -5          -6          -8
88.40       Interest received on loans..         -11         -38         -44
88.40       Sale of RTB Stock...........          -2          -3          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -22         -49         -55
88.95 Change in receivables from program 
        accounts........................          -3          -2          -3
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         157         132         131
90.00 Financing disbursements...........          24          16          13
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         175         158         175
1112  Unobligated direct loan limitation          -7
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         168         158         175
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         203         232         278
1231  Disbursements: Direct loan 
        disbursements...................          34          52          53
1251  Repayments: Repayments and 
        prepayments.....................          -5          -6          -8
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         232         278         323
---------------------------------------------------------------------------

    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   12-4210-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         193            322           476            653
        Investments in US securities:
1106      Program Account...............           8             11            13             16
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         203            232           278            323
1402    Interest receivable.............          11             11            44             52
1405    Allowance for subsidy cost (-)..         -13            -17           -19            -18
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         201            226           303            357
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         402            559           792          1,026
    LIABILITIES:
2103  Federal liabilities: Debt.........         368            544           775          1,007
2201  Non-Federal liabilities: Accounts 
        payable.........................          32             11            13             16
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         400            555           788          1,023
    NET POSITION:
3100  Appropriated capital..............           2              4             4              3
                                        ------------ --------------  ------------  -------------
3999    Total net position..............           2              4             4              3
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         402            559           792          1,026
-----------------------------------------------------------------------------------------------

                                

                Rural Telephone Bank Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4231-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Dividends.........................          15          18          19
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          43.0).........................          15          18          19
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         282         396         557
22.00 New budget authority (gross)......         133         190         203
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           7
22.40 Capital transfer to general fund..         -11         -11         -10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         411         575         750
23.95 Total new obligations.............         -15         -18         -19
24.40 Unobligated balance available, end 
        of year.........................         396         557         731
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

41.00   Transferred to other accounts...                                  -6
      Permanent:

61.00   Transferred to other accounts...         -28         -26         -25
        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).         230         241         246
68.47     Portion applied to debt 
            reduction...................         -69         -25         -12
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................         161         216         234
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         133         190         203
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         201         175         151

[[Page 153]]

73.10 Total new obligations.............          15          18          19
73.20 Total outlays (gross).............         -34         -42         -42
73.45 Adjustments in unexpired accounts.          -7
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         175         151         128
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          15          18          19
86.98 Outlays from permanent balances...          19          24          23
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          34          42          42
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -29         -37         -46
          Non-Federal sources:
88.40       Loans repaid................        -113        -120        -120
88.40       Interest from loans.........         -87         -83         -79
88.40       Sales of stock..............          -1          -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -230        -241        -246
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         -97         -51         -43
90.00 Outlays...........................        -196        -199        -204
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4231-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,264       1,172       1,079
1231  Disbursements: Direct loan 
        disbursements...................          21          27          24
1251  Repayments: Repayments and 
        prepayments.....................        -113        -120        -120
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,172       1,079         983
---------------------------------------------------------------------------

    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 2000.

    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 2000, 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]

                                     1998 actual  1999 est.   2000 est.
Cumulative net loans................       2,592       2,580       2,570
Cumulative loan funds, advanced.....       2,432       2,452       2,470
Unadvanced loan funds, end of year..         160         128         100
Cumulative principal repaid.........       1,260       1,375       1,392
Cumulative interest paid............       2,087       2,177       2,277
Number of borrowers.................         569         558         551
                                    ====================================

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4231-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         120            130           143            148
0102  Expense...........................         -28            -25           -20            -19
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............          92            105           123            129
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4231-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         483            571           708            865
1206  Non-Federal assets: Receivables, 
        net.............................           4              3             3              3
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       1,264          1,172         1,079            983
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -8             -8            -8             -7
1604    Direct loans and interest 
          receivable, net...............       1,256          1,164         1,071            976
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       1,256          1,164         1,071            976
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,743          1,738         1,782          1,844
    LIABILITIES:
      Federal liabilities:

2103    Debt............................         334            265           240            228
      Non-Federal liabilities:

2207    Other...........................         853            945         1,040          1,139
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,187          1,210         1,280          1,367
    NET POSITION:
3100  Appropriated capital..............         556            528           502            477
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         556            528           502            477
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,743          1,738         1,782          1,844
-----------------------------------------------------------------------------------------------

                                

               Distance Learning and Telemedicine Program

    For the cost of direct loans and grants, as authorized by 7 U.S.C. 
950aaa et seq., [$12,680,000] $20,700,000, 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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............                                   1
00.02 Distance learning and telemedicine 
        grants..........................          21          13          20
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          21          13          21
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           9           1           1
22.00 New budget authority (gross)......          13          13          21
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          22          14          22
23.95 Total new obligations.............         -21         -13         -21
24.40 Unobligated balance available, end 
        of year.........................           1           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Appropriation:

40.00   Appropriation...................                                   1
40.00   Appropriation grant budget 
          authority.....................          13          13          20
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........          13          13          21
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          15          27          24
73.10 Total new obligations.............          21          13          21
73.20 Total outlays (gross).............          -9         -16         -22
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          27          24          22
----------------------------------------------------------------------------

[[Page 154]]



    Outlays (gross), detail:
86.90 Outlays from new current authority           1          10          16
86.93 Outlays from current balances.....           7           5           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           9          16          22
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          13          13          21
90.00 Outlays...........................           9          16          22
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................           5         150         200
                                           ---------   ---------  ----------
1159    Total direct loan levels........           5         150         200
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        0.02        0.12        0.35
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        0.02        0.12        0.35
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........                                   1
---------------------------------------------------------------------------

    The loan and grant program provides access to advanced 
telecommunications services for improved education and health care in 
rural areas throughout the country. The loans and grants help education 
and health care providers bring the most modern technology, level of 
care, and education to rural America so its citizens can compete 
regionally, nationally, and globally.

                                

  Distance Learning and Telemedicine Link Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................           5         150         200
00.02 Interest on Treasury borrowing....                       1           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........           5         151         206
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           5         151         206
23.95 Total new obligations.............          -5        -151        -206
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           5         145         185
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                      10          36
68.47   Portion applied to debt 
          reduction.....................                      -4         -15
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                       6          21
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           5         151         206
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       5         107
73.10 Total new obligations.............           5         151         206
73.20 Total financing disbursements 
        (gross).........................                     -47        -136
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           5         107         177
87.00 Total financing disbursements 
        (gross).........................                      47         136
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..                      -3         -11
          Non-Federal sources:
88.40       Repayment of principal......                      -4         -15
88.40       Interest received on loans..                      -3         -10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -10         -36
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           5         141         170
90.00 Financing disbursements...........                      37         100
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........           5         150         200
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           5         150         200
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........                                  44
1231  Disbursements: Direct loan 
        disbursements...................                      47         136
1251  Repayments: Repayments and 
        prepayments.....................                      -3         -14
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                      44         166
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

        Net value of assets related to 
            post-1991 direct loans 
            receivable:
1401      Direct loans receivable, gross                                       44            166
1402      Interest receivable...........                                        3             10
1405      Allowance for subsidy cost (-)                                       -3            -10
                                        ------------ --------------  ------------  -------------
1499        Net present value of assets 
              related to direct loans...                                       44            166
                                        ------------ --------------  ------------  -------------
1999        Total assets................                                       44            166
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................                                       44            166
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                       44            166
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                       44            166
-----------------------------------------------------------------------------------------------

                                

          Rural Development Insurance Fund Liquidating Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.02   Purchase of loans from investors           3           2           1
00.03   Redemption of public CBO debt...           1           1           1
                                           ---------   ---------  ----------
00.91     Total operating expenses......           4           3           2
      Capital investment:

01.01   Interest on FFB borrowings......         515         502         478
01.05   Interest on Treasury borrowings.          51         104          95
01.06   Loss settlement expense on 
          guaranteed loans..............           1          13          12
01.09   Undistributed charges...........           3
                                           ---------   ---------  ----------
01.91     Total capital investment......         570         619         585
                                           ---------   ---------  ----------
10.00   Total new obligations...........         573         622         586
----------------------------------------------------------------------------

[[Page 155]]



    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          40          17          17
22.00 New budget authority (gross)......         548         888         587
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
22.60 Redemption of debt................                    -265
22.70 Balance of authority to borrow 
        withdrawn.......................                      -1          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         590         639         603
23.95 Total new obligations.............        -573        -622        -586
24.40 Unobligated balance available, end 
        of year.........................          17          17          17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........                     432         210
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         598         531         482
68.47   Portion applied to debt 
          reduction.....................         -50         -75        -105
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         548         456         377
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         548         888         587
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         265         207         191
73.10 Total new obligations.............         573         622         586
73.20 Total outlays (gross).............        -629        -638        -586
73.45 Adjustments in unexpired accounts.          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         207         191         191
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         548         638         586
86.98 Outlays from permanent balances...          81
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         629         638         586
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -2
          Non-Federal sources:
88.40       Non-Federal sources.........        -326        -305        -280
88.40       Repayments of guaranteed 
              loans purchased from 
              investors.................         -25          -7          -2
88.40       Interest revenue............        -236        -214        -195
88.40       Interest income on 
              investment................          -8          -5          -5
88.40       Other revenue...............          -3
88.40       Undistributed...............           2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -598        -531        -482
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         -50         357         105
90.00 Outlays...........................          31         107         104
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       4,135       3,808       3,503
1231  Disbursements: Direct loan 
        disbursements...................           4           3
1251  Repayments: Repayments and 
        prepayments.....................        -326        -305        -280
1261  Adjustments: Capitalized interest.           1
      Write-offs for default:

1263    Direct loans....................          -4          -3          -3
1264    Other adjustments, net..........          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       3,808       3,503       3,219
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         375         227         138
2251  Repayments and prepayments........         -94         -57         -35
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................         -54         -32         -19
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         227         138          84
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         191         116          71
---------------------------------------------------------------------------

    The Rural Development Insurance Fund (RDIF) was established on 
October 1, 1972, pursuant to section 116 of the Rural Development Act of 
1972 (Public Law 92-419).

    The fund is used to insure or guarantee loans for water systems and 
waste disposal facilities, community facilities, and industrial 
development in rural areas. Communities unable to afford low interest 
loans for water and waste disposal facilities are also able to obtain 
water and waste disposal grants.

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, all cash flows to and from the Government 
resulting from direct loans obligated and loan guarantees committed 
prior to 1992. All new activity in this program is recorded in 
corresponding program accounts and financing accounts.

    In 1994, these loan programs were administered by the Rural 
Development Administration. Under reorganization of the Department of 
Agriculture, the water and waste direct and guaranteed loan programs are 
administered by the Rural Utilities Service, the community facility 
direct and guaranteed loan programs are adminsitered by the Rural 
Housing Service, and the business and industry direct and guaranteed 
loan programs are administered by the Rural Business-Cooperative 
Service.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4155-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         234            226           210            193
0102  Expense...........................        -618           -664          -732           -681
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............        -384           -438          -522           -488
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4155-0-3-452    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         304            223           209            210
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............          34             34            34             34
1206    Receivables, net................          61             56            54             45
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       4,135          3,808         3,503          3,219
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -1,584         -1,245        -1,130         -1,022
1604    Direct loans and interest 
          receivable, net...............       2,551          2,563         2,373          2,197
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       2,551          2,563         2,373          2,197
1901  Other Federal assets: Other assets          96             29            10              4
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,046          2,905         2,680          2,489
    LIABILITIES:
      Federal liabilities:

2103    Debt............................       4,801          4,753         4,412          4,306
2104    Resources payable to Treasury...          32              7
2105    Other...........................          19             17            15             13
      Non-Federal liabilities:

2201    Public..........................         149             98            80            119
2202    Interest payable................         107            104           109             70
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       5,109          4,980         4,616          4,508
    NET POSITION:
3300  Cumulative results of operations..      -2,065         -2,075        -1,937         -2,019
                                        ------------ --------------  ------------  -------------
3999    Total net position..............      -2,065         -2,075        -1,937         -2,019
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,043          2,905         2,680          2,489
-----------------------------------------------------------------------------------------------

[[Page 156]]



               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................           1          13          11
33.0  Investments and loans.............           3           2           1
43.0  Interest and dividends............         566         607         574
92.0  Undistributed.....................           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         573         622         586
---------------------------------------------------------------------------

                                

        Rural Communication Development Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        43.0)...........................           3           3           3
----------------------------------------------------------------------------

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

    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, start of year           1           1           1
73.10 Total new obligations.............           3           3           3
73.20 Total outlays (gross).............          -3          -3          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................           2           2           3
86.98 Outlays from permanent balances...           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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           9           8           7
1251  Repayments: Repayments and 
        prepayments.....................          -1          -1          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           8           7           7
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........           5           5           4
                                           ---------   ---------  ----------
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, 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    1997 actual    1998 actual     1999 est.      2000 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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           2              1             3              3
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............           9              8             7              7
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -3             -3            -3             -3
1604    Direct loans and interest 
          receivable, net...............           6              5             4              4
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................           6              5             4              4
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           8              6             7              7
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................           1              1             3              3
2103    Debt............................          25             24            23             23
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           1              1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          27             26            27             27
    NET POSITION:
3100  Appropriated capital..............          13             14            16             18
3300  Cumulative results of operations..         -32            -34           -36            -38
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         -19            -20           -20            -20
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           8              6             7              7
-----------------------------------------------------------------------------------------------

                                


 
                      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), [$136,203,000] $137,768,000: 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, 1999, as included in Public Law 105-277, section 
101(a).)

[[Page 157]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Market access...................          26          26          26
00.02   Market development..............          73          65          66
00.03   Market intelligence.............          23          23          23
00.04   Financial marketing assistance..           6           6           6
00.05   Long-term market and 
          infrastructure development....          15          16          17
09.00 Reimbursable program..............          74          64          64
                                           ---------   ---------  ----------
10.00   Total new obligations...........         217         200         202
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          30          19          19
22.00 New budget authority (gross)......         207         200         202
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         237         219         221
23.95 Total new obligations.............        -217        -200        -202
23.98 Unobligated balance expiring......           1
24.40 Unobligated balance available, end 
        of year.........................          19          19          19
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         132         136         138
42.00   Transferred from other accounts.          12
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         144         136         138
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          63          64          64
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         207         200         202
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          30          27          26
73.10 Total new obligations.............         217         200         202
73.20 Total outlays (gross).............        -220        -201        -198
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          27          26          30
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         118         115         115
86.93 Outlays from current balances.....          39          22          19
86.97 Outlays from new permanent 
        authority.......................          63          64          64
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         220         201         198
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -63         -64         -64
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         144         136         138
90.00 Outlays...........................         157         137         134
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         144         136         138
  Outlays...........................         157         137         134
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -28
  Outlays...........................                                 -28
                                    ------------------------------------
Total:
  Budget Authority..................         144         136         110
  Outlays...........................         157         137         106
                                    ====================================

    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 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 firms on a cost-sharing basis. The 
largest of FAS's promotional programs is 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.

    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

[[Page 158]]

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 2000, the Foreign Market Development Cooperation Program will not 
be funded as part of the FAS appropriation. Like the Market Acess 
Program, it will receive mandatory funding from CCC, administered by 
FAS.

    The 2000 Budget also proposes a new Quality Samples Program, through 
which samples of U.S. agricultural products will be provided to foreign 
importers to display the high quality of U.S. products.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          38          37          39
11.3      Other than full-time permanent           2           2           2
11.5      Other personnel compensation..           1           1           1
11.8      Special personal services 
            payments....................           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          43          42          44
12.1    Civilian personnel benefits.....          11          11          11
21.0    Travel and transportation of 
          persons.......................           5           5           5
22.0    Transportation of things........           1           1           1
23.2    Rental payments to others.......           9           9           9
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           2           2
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          69          61          61
26.0    Supplies and materials..........           2           1           1
31.0    Equipment.......................           1           3           3
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         143         136         138
99.0  Reimbursable obligations..........          74          64          64
                                           ---------   ---------  ----------
99.9    Total new obligations...........         217         200         202
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         780         766         751
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         134         134         134
---------------------------------------------------------------------------

                                

         Foreign Agricultural Service and General Sales Manager

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2900-2-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.02   Market development--Cooperator 
          program.......................                                 -28
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................                                 -28
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 -28
23.95 Total new obligations.............                                  28
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 -28
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 -28
73.20 Total outlays (gross).............                                  28
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                 -28
----------------------------------------------------------------------------

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

    In 2000, FAS will establish an account to manage unanticipated 
fluctuations in foreign currency exchange rates. Under this proposal, up 
to $2,000,000 in annual gains from favorable exchange rate movement will 
be transferred to a FAS account to be used solely for the purpose of 
offsetting future exchange rate losses.

                                

        Scientific Activities Overseas (Foreign Currency Program)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1404-0-1-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1           1
24.40 Unobligated balance available, end 
        of year.........................           1           1           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           4           3           2
73.20 Total outlays (gross).............          -1          -1          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           3           2           1
----------------------------------------------------------------------------

    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

[[Page 159]]

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, 1701-1704, 1721-1726a, 1727-1727e, 1731-1736g-3, 
and 1737), as follows: (1) $203,475,000 for Public Law 480 title I 
credit, including Food for Progress programs; (2) $16,249,000 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) $25,000,000 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, of which $1,035,000 may be transferred to and merged with 
the appropriation for ``Foreign Agricultural Service and General Sales 
Manager'' and $815,000 may be transferred to and merged with the 
appropriation for ``Farm Service Agency, Salaries and Expenses''.] 
(Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1999, as included in Public Law 
105-277, section 101(a).)

                                

        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, $12,000,000, to remain available until expended 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 available for the cost of title I agreements 
and for title I ocean freight differential may be used interchangeably 
between the two accounts (7 U.S.C. 1701b, 2209b).

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2271-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 P.L. 480 Grant--Title I: Ocean 
        freight differential (OFD)......          24         104          12
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          24         104          12
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          13          21          21
22.00 New budget authority (gross)......          18          16          12
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           5
22.22 Unobligated balance transferred 
        from other accounts.............          10          88
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          46         125          33
23.95 Total new obligations.............         -24        -104         -12
24.40 Unobligated balance available, end 
        of year.........................          21          21          21
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          18          16          12
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          43          46          33
73.10 Total new obligations.............          24         104          12
73.20 Total outlays (gross).............         -16        -117         -14
73.45 Adjustments in unexpired accounts.          -5
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          46          33          31
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4           9           7
86.93 Outlays from current balances.....          12         108           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          16         117          14
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          18          16          12
90.00 Outlays...........................          16         117          14
---------------------------------------------------------------------------

    This account funds the title I ocean freight differential program.

                                

                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, $787,000,000 for commodities supplied in connection 
with dispositions abroad pursuant to title II of said Act, of which up 
to 15 percent may be used 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 September 30, 2003. (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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Commodities supplied in connection 
        with dispositions abroad (Title 
        II).............................         861         837         837
00.02 Commodities supplied in connection 
        with dispositions abroad (Title 
        III)............................          25          25
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................         886         862         837
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          29          22          51
22.00 New budget authority (gross)......         867         862         787
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          11          29          15
22.22 Unobligated balance transferred 
        from other accounts.............           1           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         908         914         854
23.95 Total new obligations.............        -886        -862        -837
24.40 Unobligated balance available, end 
        of year.........................          22          51          17
----------------------------------------------------------------------------

[[Page 160]]



    New budget authority (gross), detail:
40.00 Appropriation.....................         867         862         787
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         594         691         709
73.10 Total new obligations.............         886         862         837
73.20 Total outlays (gross).............        -778        -815        -823
73.45 Adjustments in unexpired accounts.         -11         -29         -15
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         691         709         708
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         428         453         413
86.93 Outlays from current balances.....         350         362         410
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         778         815         823
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         867         862         787
90.00 Outlays...........................         778         815         823
---------------------------------------------------------------------------

    This account funds the non-credit components of Public Law 480, 
title II and title III.

                                

Credit accounts:

                     Public Law 480 Program Account

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of Public Law 83-480 title I credit agreements, including 
the cost of modifying credit arrangements under said Act, $114,062,000, 
to remain available until expended.
    In addition, for administrative expenses to carry out such 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 ``Salaries and Expenses'', Foreign Agricultural Service, and 
of which not to exceed $845,000 may be transferred to and merged with 
``Salaries and Expenses'', Farm Service Agency. (7 U.S.C. 1691, 1701-04, 
1731-36g-3, 2209b).

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         170         813         114
00.09 Administrative expenses...........           2           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........         172         815         116
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          63          78          78
22.00 New budget authority (gross)......         178         178         116
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          20
22.21 Unobligated balance transferred to 
        other accounts..................         -11          -1          -1
22.22 Unobligated balance transferred 
        from other accounts.............                     638
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         250         893         193
23.95 Total new obligations.............        -172        -815        -116
24.40 Unobligated balance available, end 
        of year.........................          78          78          78
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         178         178         116
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         118         111         109
73.10 Total new obligations.............         172         815         116
73.20 Total outlays (gross).............        -159        -817        -141
73.45 Adjustments in unexpired accounts.         -20
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         111         109          84
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          94         102          67
86.93 Outlays from current balances.....          65         715          74
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         159         817         141
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         178         178         116
90.00 Outlays...........................         159         817         141
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................         227         203         138
                                           ---------   ---------  ----------
1159    Total direct loan levels........         227         203         138
    Direct loan subsidy (in percent):
1320  Subsidy rate......................       77.83       86.79       82.46
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       77.83       86.79       82.46
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........         166         177         114
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..         166         177         114
    Direct loan subsidy outlays:
1340  Subsidy outlays...................         157         815         139
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         157         815         139
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................           2           2           2
3590  Outlays from new authority........           2           2           2
---------------------------------------------------------------------------

    Food Aid to Russia.--As part of a comprehensive package of U.S. 
assistance for Russia announced by the Secretary of Agriculture in 1998, 
$638 million and $88 million was transferred from CCC to the P.L. 480, 
Title I Program, and Title I Ocean Freight Differential, respectively, 
under provisions of the Secretary of Agriculture's Interchange Authority 
(7 U.S.C. 2257). The package of assistance announced for Russia includes 
a proposed concessional credit program USDA will carry out under the 
authority of Title I of the Agricultural Trade Development and 
Assistance Act of 1954 (P.L. 83-480) and a Food for Progress grant 
program funded under Title I.

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........           2           2           2
41.0  Grants, subsidies, and 
        contributions...................         170         813         114
                                           ---------   ---------  ----------
99.9    Total new obligations...........         172         815         116
---------------------------------------------------------------------------

                                

                P.L. 480 Direct Credit Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................         228         965         138
00.02 Interest on Treasury borrowing....          32          29          33
                                           ---------   ---------  ----------
10.00   Total new obligations...........         260         994         171
----------------------------------------------------------------------------

[[Page 161]]



    Budgetary resources available for obligation:
22.00 New financing authority (gross)...         260         994         171
23.95 Total new obligations.............        -260        -994        -171
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..          73         228          15
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         216         829         156
68.10   Change in receivables from 
          program account...............          17         -63
68.47   Portion applied to debt 
          reduction.....................         -46
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         187         766         156
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         260         994         171
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          36           2          44
72.95   Receivables from program account         114         131          68
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         150         133         112
73.10 Total new obligations.............         260         994         171
73.20 Total financing disbursements 
        (gross).........................        -249      -1,015        -201
73.40 Adjustments in expired accounts...         -28
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..           2          44          14
74.95   Receivables from program account         131          68          68
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         133         112          82
87.00 Total financing disbursements 
        (gross).........................         249       1,015         201
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.        -157        -815        -139
88.25     Interest on uninvested funds..          -9
          Non-Federal sources:
88.40       Interest received on loans..         -43          -7         -12
88.40       Principal received on loans.          -7          -7          -5
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -216        -829        -156
88.95 Change in receivables from program 
        accounts........................         -17          63
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          27         228          15
90.00 Financing disbursements...........          33         186          45
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         228         965         138
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         228         965         138
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,371       1,529       2,512
1231  Disbursements: Direct loan 
        disbursements...................         217         986         167
1251  Repayments: Repayments and 
        prepayments.....................          -7          -3          -5
1264  Write-offs for default: Other 
        adjustments, net................         -52
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,529       2,512       2,674
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          69             47           104            104
        Investments in US securities:
1106      Receivables, net..............         118            131            62             62
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       1,371          1,529         2,512          2,674
1402    Interest receivable.............          34             23             7              8
1405    Allowance for subsidy cost (-)..      -1,068         -1,224        -2,036         -2,175
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         337            328           483            507
1901  Other Federal assets: Other assets                         37
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         524            543           649            673
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           8              4             8              8
2103    Debt............................         404            417           539            560
2105    Other...........................         112            122           102            105
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         524            543           649            673
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         524            543           649            673
-----------------------------------------------------------------------------------------------

                                

                    Debt Reduction--Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payment to liquidating account....                      30          14
00.02 Interest on debt to Treasury......           2           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........           2          34          18
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           4          35          18
22.40 Capital transfer to general fund..          -2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2          35          18
23.95 Total new obligations.............          -2         -34         -18
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           4          16           2
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                      19          16
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4          35          18
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............           2          34          18
73.20 Total financing disbursements 
        (gross).........................          -2         -35         -18
87.00 Total financing disbursements 
        (gross).........................           2          35          18
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                     -17         -14
88.40     Non-Federal sources...........                      -2          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -19         -16
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           4          16           2
90.00 Financing disbursements...........           2          16           2
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
                                           ---------   ---------  ----------
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          63          63         203
1233  Disbursements: Purchase of loans 
        assets from a liquidating 
        account.........................                     142          80
1251  Repayments: Repayments and 
        prepayments.....................                      -2          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          63         203         281
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from

[[Page 162]]

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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          63             63           203            281
1405    Allowance for subsidy cost (-)..         -30            -25          -153           -232
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          33             38            50             49
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          33             38            50             49
    LIABILITIES:
2103  Federal liabilities: Debt.........          41             38            37             36
2203  Non-Federal liabilities: Debt.....                                       14             14
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          41             38            51             50
    NET POSITION:
3300  Cumulative results of operations..          -8
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          -8
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          33             38            51             50
-----------------------------------------------------------------------------------------------

                                

       P.L. 480 Title I Food for Progress Credits, Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2273-0-1-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           4           4
22.21 Unobligated balance transferred to 
        other accounts..................                      -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           4
24.40 Unobligated balance available, end 
        of year.........................           4
----------------------------------------------------------------------------

    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 million 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest to Treasury on borrowings          15          12          12
                                           ---------   ---------  ----------
10.00   Total obligations...............          15          12          12
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          38
22.00 New financing authority (gross)...          19          12          12
22.40 Capital transfer to general fund..         -42
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          15          12          12
23.95 Total new obligations.............         -15         -12         -12
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..                       5           5
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          19           7           7
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          19          12          12
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          15          12          12
73.20 Total financing disbursements 
        (gross).........................         -15         -12         -12
87.00 Total financing disbursements 
        (gross).........................          15          12          12
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..          -3
          Non-Federal sources:
88.40       Principal collections.......
88.40       Interest collections........         -16          -7          -7
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -19          -7          -7
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                       5           5
90.00 Financing disbursements...........          -3           5           5
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4078-0-3-351      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
                                           ---------   ---------  ----------
1150    Total direct loan obligations...
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          38
        Investments in US securities:
1106      Receivables, net..............          27
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         508            508           508            508
1402    Interest receivable.............                         11             7              7
1405    Allowance for subsidy cost (-)..        -321           -268          -268           -268
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         187            251           247            247
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         252            251           247            247
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................
2103    Debt............................         225            183           247            247
2105    Other...........................          27             28
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         252            211           247            247

[[Page 163]]

    NET POSITION:
3600  Other.............................                         40
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                         40
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         252            251           247            247
-----------------------------------------------------------------------------------------------

                                

  Expenses, Public Law 480, Foreign Assistance Programs, Agriculture, 
                           Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         136         523
22.00 New budget authority (gross)......         523          12          14
22.40 Capital transfer to general fund..        -136        -535         -14
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         523
24.40 Unobligated balance available, end 
        of year.........................         523
----------------------------------------------------------------------------

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

        Offsetting collections (cash):
68.00     Offsetting collections (cash).         523         473         473
68.00     Offsetting collections--
            Treasury Debt Restructuring 
            Program Account--Jordan.....                      12          14
68.27   Capital transfer to general fund                    -473        -473
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         523          12          14
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Federal sources.............
88.00       Federal sources--debt 
              reduction.................                     -12         -14
88.40     Principal and interest 
            collections.................        -523        -473        -473
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -523        -485        -487
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                    -473        -473
90.00 Outlays...........................        -523        -485        -487
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       9,446       9,146       8,777
      Repayments:

        Repayments and prepayments:
1251      Repayments and prepayments....        -300        -289        -295
1251      Repayments and prepayments--
            debt reduction..............                     -12         -14
1264  Write-offs for default: Other 
        adjustments, net--debt reduction                     -68         -54
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       9,146       8,777       8,414
---------------------------------------------------------------------------

                           Program Activities

                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
Ocean freight differential (title I)          24          16          12
Commodities supplied in connection 
with dispositions abroad (title II).         861         837         787
Commodities supplied in connection 
with dispositions abroad (title III)          25          25
                                    ------------------------------------
      Total program level...........         910         878         799
                                    ====================================

   RECONCILIATION OF PROGRAM LEVEL TO PROGRAM COSTS FUNDED BY P.L. 480

                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
               Title I

Commodity credits...................         228         966         138
Ocean freight differential and ocean 
transportation......................          24         104          12
                                    ------------------------------------
      Total program level, current 
        year........................         252       1,070         150
Prior year obligations financed.....         123         133         109
Obligations financed in succeeding 
years...............................        -133        -109         -77
Administrative costs................           2           2           2
                                    ------------------------------------
      Total program costs, funded 
        program level...............         244       1,096         184
                                    ====================================
              Title II

Commodity costs.....................         420         469         472
Ocean and inland transportation.....         441         368         315
                                    ------------------------------------
      Total program level, current 
        year........................         861         837         787
Prior year obligations financed.....         468         577         631
Current year obligations financed in 
succeeding years....................        -577        -631        -605
                                    ------------------------------------
      Total program costs, funded 
        program level...............         752         783         813
                                    ====================================
              Title III

Commodity costs.....................          11          19
Ocean and inland transportation.....          14           6
                                    ------------------------------------
      Total program level, current 
        year........................          25          25
Prior year obligations financed.....          23          23          16
Current year obligations financed in 
succeeding years....................         -23         -16          -6
                                    ------------------------------------
      Total program costs, funded 
        program level...............          25          32          10
                                    ====================================

    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; 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.

[[Page 164]]

    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]

                                     1998 actual  1999 est.   2000 est.
Item:
  Expenses of shipments (Title I):
    Commodity costs:
      Long-term credit..............         228         966         138
                                    ------------------------------------
          Total commodity costs.....         228         966         138
                                    ====================================
    Ocean freight and freight 
      differential (support of U.S. 
      Merchant Marine):
      Long-term credit..............          24         104          12
                                    ------------------------------------
          Total ocean freight and 
            freight differential....          24         104          12
                                    ------------------------------------
  Total expenses of shipments.......         252       1,070         150
                                    ====================================
Appropriation--Title I loan subsidy.         167         177         114
                                    ====================================
Appropriation--Ocean freight 
differential........................          35          16          12
                                    ====================================
Title I credit not subsidized 
through appropriation...............          50         877          24
                                    ====================================

    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 Budget proposes to 
authorize the transfer of up to 15 percent of Title II funds to Title 
III funds. This will allow for increased flexibility in the Title II and 
Title III programs.

    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]

                                     1998 actual  1999 est.   2000 est.
Item:
  Expenses of shipments:
    Commodity Credit Corporation 
      stocks and other costs in 
      connection with commodities 
      supplied......................         420         469         472
    Ocean transportation............         441         368         315
                                    ------------------------------------
      Total program costs...........         861         837         787
                                    ====================================
      Appropriation or estimate.....         861         837         787
                                    ====================================

    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]

                                     1998 actual  1999 est.   2000 est.
Item:
  Expenses of shipments:
    Commodity Credit Corporation 
      stocks and other costs in 
      connection with commodities 
      supplied......................          11          19
    Ocean transportation............          14           6
                                    ------------------------------------
      Total program costs...........          25          25
                                    ====================================
      Appropriation or estimate.....          25          25
                                    ====================================

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-2274-0-1-151    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         136            523
        Investments in US securities:
1106      Receivables, net..............
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

        Direct loans, gross:
1601      Direct loans, gross...........       9,464          9,146         8,857          8,482
1601      Direct loans, adjustment--Debt 
            Reduction...................         -18                          -80            -68
1601      Direct loans, debt forgiveness
1602    Interest receivable.............         125            116
1603    Allowance, loans receivable (-).      -5,447         -5,516        -5,417         -5,417
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       4,124          3,746         3,360          2,997
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,260          4,269         3,360          2,997
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          19
2104    Resources payable to Treasury...       4,259          4,269         3,440          3,145
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       4,278          4,269         3,440          3,145
    NET POSITION:
3300  Cumulative results of operations--
        Debt Reduction..................         -18                          -80           -148
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         -18                          -80           -148
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,260          4,269         3,360          2,997
-----------------------------------------------------------------------------------------------

[[Page 165]]



                                

                               Trust Funds

                     Miscellaneous Contributed Funds

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8232-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Receipts..........................           2           4           4
    Appropriation:
05.01 Appropriation.....................          -2          -4          -4
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8232-0-7-352      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............           3           3           3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5           4           5
22.00 New budget authority (gross)......           2           4           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7           8           9
23.95 Total new obligations.............          -3          -3          -3
24.40 Unobligated balance available, end 
        of year.........................           4           5           6
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................           2           4           4
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       2           2
73.10 Total new obligations.............           3           3           3
73.20 Total outlays (gross).............          -1          -1          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2           2           2
----------------------------------------------------------------------------

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

    Net budget authority and outlays:
89.00 Budget authority..................           2           4           4
90.00 Outlays...........................           3           1           1
---------------------------------------------------------------------------

    Miscellaneous funds are received from other Federal agencies, 
international organizations, and developing countries, for USDA 
development assistance and international research projects (22 U.S.C. 
2392).

                                


 
                       FOOD AND NUTRITION SERVICE

                              Federal Funds

General and special funds:

                       Food Program Administration

    For necessary administrative expenses of the domestic food programs 
funded under this Act, [$108,561,000] $119,841,000, 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 and of which [$2,000,000 shall be available 
for obligation only after promulgation of a final rule to curb vendor 
related fraud] not less than $8,000,000 shall be available to improve 
integrity in the Food Stamp and Child Nutrition programs: 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, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Food program administration.....         107         111         112
00.02   Program integrity initiative....                                   8
09.01 Reimbursable administrative 
        services provided to Federal 
        agencies........................           2           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         109         112         121
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         109         112         121
23.95 Total new obligations.............        -109        -112        -121
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         107         109         120
42.00   Transferred from other accounts.                       2
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         107         111         120
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         109         112         121
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           9          14          17
73.10 Total new obligations.............         109         112         121
73.20 Total outlays (gross).............        -104        -109        -123
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          14          17          14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          94          98         106
86.93 Outlays from current balances.....           8           9          17
86.97 Outlays from new permanent 
        authority.......................           2           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         104         109         123
----------------------------------------------------------------------------

    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..................         107         111         120
90.00 Outlays...........................         102         108         122
---------------------------------------------------------------------------

    Food program administration funds the Federal operating expenses of 
the Food and Nutrition Service.

    Funds are provided for an initiative to identify and address error 
in the Food Stamp and Child Nutrition programs. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          74          76          82
11.3      Other than full-time permanent           2           2           2
11.5      Other personnel compensation..           1           1           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          77          79          86
12.1    Civilian personnel benefits.....          15          15          17
21.0    Travel and transportation of 
          persons.......................           2           2           3
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.2    Other services..................           6           8           7
26.0    Supplies and materials..........           1           1           2
31.0    Equipment.......................           3           3           3
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         106         110         120
99.0  Reimbursable obligations..........           2           1           1
99.5  Below reporting threshold.........           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         109         112         121
---------------------------------------------------------------------------

[[Page 166]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       1,473       1,531       1,619
---------------------------------------------------------------------------

                                

                           Food Stamp Program

    For necessary expenses to carry out the Food Stamp Act (7 U.S.C. 
2011 et seq.), [$22,585,106,000] $22,477,444,000, 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; and of which up to $7,000,000 shall be for nutrition 
education for food stamp recipients and for technical assistance in 
reaching underserved food stamp eligible populations, such as the 
elderly and the working poor: Provided, That [none of the funds made 
available under this head shall be used for studies and evaluations: 
Provided further, That] funds provided herein shall be expended in 
accordance with section 16 of the Food Stamp Act: Provided further, That 
this appropriation shall be subject to any work registration or workfare 
requirements as may be required by law: Provided further, That 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.
    For necessary expenses to carry out the Food Stamp Act for the first 
quarter of the fiscal year 2001, $4,800,000,000, to remain available 
through January 31, 2001. (Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Properly issued benefits........      15,651      16,285      16,734
00.02   Estimated State erroneous 
          issuances.....................       1,233       1,309       1,326
00.03   State administration............       1,827       1,794       1,551
00.04   Employment and training program.         248         356         330
00.05   Other program costs.............          56          68          85
00.06   Puerto Rico.....................       1,204       1,236       1,268
00.07   Food distribution program on 
          Indian reservations 
          (Commodities in lieu of food 
          stamps).......................          54          54          54
00.08   Food distribution program on 
          Indian reservations 
          (Cooperator administrative 
          expense)......................          21          21          21
00.09   The emergency food assistance 
          program (commodities).........         100          90         100
00.10   Modified Food Stamp Program in 
          American Samoa................           5           5           5
00.11   Community food project..........           3           3           3
09.01 Reimbursable program..............         170         336         346
                                           ---------   ---------  ----------
10.00   Total new obligations...........      20,572      21,557      21,823
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                      87
22.00 New budget authority (gross)......      25,077      22,922      22,823
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      25,077      23,009      22,823
23.95 Total new obligations.............     -20,572     -21,557     -21,823
23.98 Unobligated balance expiring......      -4,417      -1,452      -1,000
24.40 Unobligated balance available, end 
        of year.........................          87
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................      25,140      22,586      22,477
41.00   Transferred to other accounts...        -233
                                           ---------   ---------  ----------
43.00     Appropriation (total).........      24,907      22,586      22,477
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         170         336         346
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      25,077      22,922      22,823
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         602         723         740
73.10 Total new obligations.............      20,572      21,557      21,823
73.20 Total outlays (gross).............     -20,311     -21,540     -21,843
73.40 Adjustments in expired accounts...        -140
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         723         740         720
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority      19,679      20,481      20,757
86.93 Outlays from current balances.....         462         723         740
86.97 Outlays from new permanent 
        authority.......................         170         336         346
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      20,311      21,540      21,843
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....        -170        -336        -346
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      24,907      22,586      22,477
90.00 Outlays...........................      20,141      21,204      21,497
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................      24,907      22,586      22,477
  Outlays...........................      20,141      21,204      21,497
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                  10
  Outlays...........................                                  10
                                    ------------------------------------
Total:
  Budget Authority..................      24,907      22,586      22,487
  Outlays...........................      20,141      21,204      21,507
                                    ====================================

    The Food Stamp Program is the primary source of nutrition assistance 
for low-income Americans.

    Some of these funds provide a grant to Puerto Rico in lieu of the 
food stamp program which gives the Commonwealth flexibility to continue 
a food assistance program tailored to the needs of its low income 
households.

    Funds in this account are also used to carry out the Emergency Food 
Assistance Act of 1983 and for food distribution and administrative 
expenses for native Americans under section 4(b) of the Food Stamp Act.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           4           4           4
21.0    Travel and transportation of 
          persons.......................           2           2           2
22.0    Transportation of things........           3           3           3
24.0    Printing and reproduction.......          16          19          16
25.1    Advisory and assistance services                                  10
25.2    Other services..................          30          40          48
26.0    Supplies and materials..........         176         146         156
41.0    Grants, subsidies, and 
          contributions.................      20,171      21,007      21,238
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..      20,402      21,221      21,477
99.0  Reimbursable obligations..........         170         336         346
                                           ---------   ---------  ----------
99.9    Total new obligations...........      20,572      21,557      21,823
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          56          56          56
---------------------------------------------------------------------------

[[Page 167]]



                                

                           Food Stamp Program

                (Legislative proposal, subject to PAYGO)

                Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3505-4-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Benefits........................                                  10
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  10
----------------------------------------------------------------------------

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

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

    Change in unpaid obligations:
73.10 Total new obligations.............                                  10
73.20 Total outlays (gross).............                                 -10
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  10
----------------------------------------------------------------------------

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

    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.

                                

                        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; 
[$9,176,897,000] $9,565,036,000, to remain available through September 
30, [2000] 2001, of which [$4,128,747,000] $4,635,768,000 is hereby 
appropriated and [$5,048,150,000] $4,929,268,000 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] of the 
funds made available under this heading, up to $13,000,000 shall be for 
school breakfast demonstration programs: Provided further, That up to 
[$4,300,000] $4,363,000 shall be available for independent verification 
of school food service claims[: Provided further, That none of the funds 
under this heading shall be available unless the value of bonus 
commodities provided under section 32 of the Act of August 24, 1935 (49 
Stat. 774, chapter 641; 7 U.S.C. 612c), and section 416 of the 
Agricultural Act of 1949 (7 U.S.C. 1431) is included in meeting the 
minimum commodity assistance requirement of section 6(g) of the National 
School Lunch Act (42 U.S.C. 1755(g))]. (Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropriations Act, 
1999, as included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      School lunch program:

00.01   Above 185% of poverty...........         298         311         324
00.02   130-185% of poverty.............         474         494         514
00.03   Below 130% of poverty...........       4,359       4,551       4,731
                                           ---------   ---------  ----------
00.91   Subtotal, school lunch program..       5,131       5,356       5,569
      School breakfast program:

01.01   Above 185% of poverty...........          75          79          83
01.02   130-185% of poverty.............         120         125         131
01.03   Below 130% of poverty...........       1,104       1,148       1,208
                                           ---------   ---------  ----------
01.91   Subtotal, school breakfast 
          program.......................       1,299       1,352       1,422
      Child and adult care feeding program:

02.01   Above 185% of poverty...........         198         202         220
02.02   130-185% of poverty.............          82          87          94
02.03   Below 130% of poverty...........       1,254       1,318       1,432
02.04   Audits..........................          25          23          24
                                           ---------   ---------  ----------
02.91   Subtotal, child and adult care 
          feeding program...............       1,559       1,630       1,770
      Other mandatory activities:

03.01   Summer food service program.....         252         289         315
03.02   Special milk program............          18          17          18
03.03   State administrative expenses...         110         115         120
03.04   Commodity procurement...........         336         315         398
                                           ---------   ---------  ----------
03.91   Subtotal, Other mandatory 
          activities....................         716         736         851
      Discretionary activities:

04.01   School meals initiative.........           9          10          10
04.02   Coordinated review..............           4           4           4
04.03   Nutrition studies and surveys...                                   3
04.04   Nutrition education and training           4                       2
04.05   Computer support and processing.           6           7           9
04.06   Demonstrations..................           4
04.07   Food safety education...........                       2           2
04.08   School breakfast demonstrations.                                  13
                                           ---------   ---------  ----------
04.91   Subtotal, discretionary 
          activities....................          27          23          43
      Activities with permanent appropriations:

05.01   Homeless children nutrition 
          program.......................           2           4
05.02   Food service management 
          institute and information 
          clearinghouse.................           2           3           3
                                           ---------   ---------  ----------
05.91   Subtotal, activities with 
          permanent appropriations......           4           7           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........       8,736       9,104       9,658
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         607          10          90
22.00 New budget authority (gross)......       8,007       9,184       9,568
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         141
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       8,755       9,194       9,658
23.95 Total new obligations.............      -8,736      -9,104      -9,658
23.98 Unobligated balance expiring......         -10
24.40 Unobligated balance available, end 
        of year.........................          10          90
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       2,617       4,129       4,636
42.00   Transferred from other accounts.         233
                                           ---------   ---------  ----------
43.00     Appropriation (total).........       2,850       4,129       4,636
      Permanent:

60.00   Appropriation...................           6           7           3
62.00   Transferred from other accounts.       5,151       5,048       4,929
                                           ---------   ---------  ----------
63.00     Appropriation (total).........       5,157       5,055       4,932
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       8,007       9,184       9,568
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,307       1,322       1,352
73.10 Total new obligations.............       8,736       9,104       9,658
73.20 Total outlays (gross).............      -8,565      -9,074      -9,574
73.40 Adjustments in expired accounts...         -15
73.45 Adjustments in unexpired accounts.        -141
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,322       1,352       1,434
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       2,100       2,697       3,292
86.93 Outlays from current balances.....       1,307       1,322       1,352
86.97 Outlays from new permanent 
        authority.......................       5,157       5,055       4,932
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       8,565       9,074       9,574
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       8,007       9,184       9,568
90.00 Outlays...........................       8,565       9,074       9,574
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................       8,007       9,184       9,568
  Outlays...........................       8,564       9,074       9,576

[[Page 168]]

Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                 -57
  Outlays...........................                                 -57
                                    ------------------------------------
Total:
  Budget Authority..................       8,007       9,184       9,511
  Outlays...........................       8,564       9,074       9,519
                                    ====================================

    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 discretionary funding for a school breakfast 
demonstration project.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           5           5           5
12.1  Civilian personnel benefits.......           1           1           1
21.0  Travel and transportation of 
        persons.........................           1           1           1
24.0  Printing and reproduction.........           2           3           2
25.2  Other services....................           4          12           9
26.0  Supplies and materials 
        (Commodities)...................         336         316         398
41.0  Grants, subsidies, and 
        contributions...................       8,387       8,766       9,242
                                           ---------   ---------  ----------
99.9    Total new obligations...........       8,736       9,104       9,658
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         109         130         130
---------------------------------------------------------------------------

                                

                        Child Nutrition Programs

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-4-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Commodity procurement.............                                 -57
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 26.0)...................                                 -57
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 -57
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 -57
73.20 Total outlays (gross).............                                  57
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                 -57
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 -57
90.00 Outlays...........................                                 -57
---------------------------------------------------------------------------

    The Administration is proposing to count the value of bonus 
commodities towards the statutory requirement that at least 12 percent 
of Federal school lunch support be in the form of commodities.

                                

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] $4,105,495,000, to remain 
available through September 30, [2000] 2001: Provided, That [none of the 
funds made available under this heading shall be used for studies and 
evaluations: Provided further, That of the total amount available, the 
Secretary shall obligate $10,000,000 for the farmers' market nutrition 
program within 45 days of the enactment of this Act, and an additional 
$5,000,000 for the farmers' market nutrition program from any funds not 
needed to maintain current caseload levels: 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 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 5 percent]. (Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3510-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............       4,047       4,079       4,205
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       3,924       3,924       4,105
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         123         155         100
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       4,047       4,079       4,205
23.95 Total new obligations.............      -4,047      -4,079      -4,205
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       3,924       3,924       4,105
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         289         310         283
73.10 Total new obligations.............       4,047       4,079       4,205
73.20 Total outlays (gross).............      -3,902      -3,951      -4,097
73.45 Adjustments in unexpired accounts.        -123        -155        -100
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         310         283         291
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       3,613       3,641       3,814
86.93 Outlays from current balances.....         289         310         283
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,902       3,951       4,097
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,924       3,924       4,105
90.00 Outlays...........................       3,902       3,951       4,097
---------------------------------------------------------------------------

    The Special Supplemental Nutrition Program (WIC) provides at-risk 
pregnant and post-partum women, infants, and children with nutrition 
assistance, nutrition education and counseling, and health and 
immunization referrals.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3510-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..                                   3

[[Page 169]]

41.0  Grants, subsidies, and 
        contributions...................       4,047       4,079       4,202
                                           ---------   ---------  ----------
99.9    Total new obligations...........       4,047       4,079       4,205
---------------------------------------------------------------------------

                                

                      Commodity Assistance Program

    For necessary expenses to carry out the commodity supplemental food 
program as authorized by section 4(a) of the Agriculture and Consumer 
Protection Act of 1973 (7 U.S.C. 612c note); the farmers' market 
nutrition program as authorized by section 17(m) of the Child Nutrition 
Act of 1966; and the Emergency Food Assistance Act of 1983, 
[$131,000,000] $155,215,000, to remain available through September 30, 
[2000] 2001: Provided, That none of these funds shall be available to 
reimburse the Commodity Credit Corporation for commodities donated to 
the program. (Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999, as 
included in Public Law 105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3507-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Commodity supplemental food program:

00.01   Commodity procurement...........          69          77          72
00.02   Administrative costs............          20          19          18
                                           ---------   ---------  ----------
01.92   Subtotal, commodity supplemental 
          food program..................          89          96          90
      The emergency food assistance program:

02.01   Administrative costs............          45          45          45
02.02   Commodity procurement...........           2
                                           ---------   ---------  ----------
02.92   Subtotal, the emergency food 
          assistance program............          47          45          45
03.01 Farmers' market nutrition program.                                  20
                                           ---------   ---------  ----------
10.00   Total new obligations...........         136         141         155
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1          10
22.00 New budget authority (gross)......         141         131         155
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         146         141         155
23.95 Total new obligations.............        -136        -141        -155
24.40 Unobligated balance available, end 
        of year.........................          10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         141         131         155
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          17          18          17
73.10 Total new obligations.............         136         141         155
73.20 Total outlays (gross).............        -123        -142        -151
73.40 Adjustments in expired accounts...          -8
73.45 Adjustments in unexpired accounts.          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          18          17          23
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         113         114         134
86.93 Outlays from current balances.....          10          28          17
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         123         142         151
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         141         131         155
90.00 Outlays...........................         125         142         151
---------------------------------------------------------------------------

    The Commodity Assistance Program includes the Commodity Supplemental 
Food Program (CSFP), the Emergency Food Assistance Program and the WIC 
Farmers' Market Program.

    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 Emergency Food Assistance Program provides cash to support State 
administrative activities and maintain the storage and distribution 
pipeline for USDA and privately donated commodities.

    The Farmers' Market Nutrition Program (previously funded under the 
Special Supplemental Nutrition Program for Women, Infants and Children) 
provides cash to support 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
26.0  Supplies and materials 
        (commodities)...................          70          77          72
41.0  Grants, subsidies, and 
        contributions...................          66          64          83
                                           ---------   ---------  ----------
99.9    Total new obligations...........         136         141         155
---------------------------------------------------------------------------

                                

              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),]; special 
assistance for the nuclear affected islands as authorized by section 
103(h)(2) of the Compacts of Free Association Act of 1985, as amended; 
and section 311 of the Older Americans Act of 1965 [(42 U.S.C. 3030a), 
$141,081,000] $151,081,000, to remain available through September 30, 
[2000] 2001. (7 U.S.C. 612c note; 42 U.S.C. 3030a; 48 U.S.C. 1903 
(h)(2); Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 1999; as included in Public Law 
105-277, section 101(a).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3503-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Nutrition program for the elderly.         141         140         150
00.02 Pacific island assistance.........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         142         141         151
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         141         141         151
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         142         141         151
23.95 Total new obligations.............        -142        -141        -151
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         141         141         151
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          35          33          32
73.10 Total new obligations.............         142         141         151
73.20 Total outlays (gross).............        -141        -142        -148
73.40 Adjustments in expired accounts...          -2
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          33          32          35
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         109         109         116
86.93 Outlays from current balances.....          32          33          32
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         141         142         148
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         141         141         151
90.00 Outlays...........................         139         142         148
---------------------------------------------------------------------------

    Food Donations Programs include the Nutrition Program for the 
Elderly (NPE) and disaster assistance for the Pacific islands. The NPE 
provides cash and commodities for per-meal reimbursement for elderly 
persons served in senior citizens' centers and similar settings. 
Assistance is also provided to residents of Nuclear Affected Islands and 
funds are made available for non-presidentially declared disasters.

[[Page 170]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3503-0-1-605      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
26.0  Supplies and materials (grants of 
        commodities to States)..........           4           5           5
41.0  Grants, subsidies, and 
        contributions...................         138         136         146
                                           ---------   ---------  ----------
99.9    Total new obligations...........         142         141         151
---------------------------------------------------------------------------

                                


 
                             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, [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'', $1,298,570,000] 
$1,357,178,000, 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 $3,000,000 of funds provided herein may be used to 
construct or reconstruct facilities of the Forest Service: Provided 
further, That no more than $150,000 shall be used on any single project, 
exclusive of planning and design costs: Provided further, That any 
unobligated balances remaining in this appropriation in the road 
maintenance extended budget line item at the end of fiscal year 1998 may 
be transferred to and made a part of the ``Reconstruction and 
Construction'' appropriation, road maintenance and decommissioning 
extended budget line item] Provided, That unobligated balances available 
at the start of fiscal year 2000 may be used for priority needs without 
the need for additional reprogramming.
    For necessary expenses in fiscal year 2001 for those forests or 
regions that have implemented innovative practices in fiscal year 2000 
to improve customer service, enhance coordination, and reduce overhead, 
$15,000,000, to remain available until expended.(Department of the 
Interior and Related Agencies Appropriations Act, 1999, as included in 
Public Law 105-277, section 101(e).)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          68          74          77
    Receipts:
02.01 Fees, operation and maintenance of 
        recreational facilities.........           6           3           4
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          74          77          81
07.99 Total balance, end of year........          74          77          81
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   National forest system..........       1,356       1,354       1,413
00.04   Flood supplemental..............           2
00.05   Disaster relief.................          17
09.01 Reimbursable program..............          63          61          63
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,438       1,415       1,476
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         136         114          61
22.00 New budget authority (gross)......       1,370       1,361       1,420
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          47
22.22 Unobligated balance transferred 
        from other accounts.............           1           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,554       1,476       1,482
23.95 Total new obligations.............      -1,438      -1,415      -1,476
24.40 Unobligated balance available, end 
        of year.........................         114          61           6
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       1,296       1,299       1,357
40.15   Appropriation (emergency).......          10
42.00   Transferred from other accounts.           1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........       1,307       1,299       1,357
      Permanent:

62.00   Transferred from other accounts.                       1
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          63          61          63
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,370       1,361       1,420
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         222         122         172
73.10 Total new obligations.............       1,438       1,415       1,476
73.20 Total outlays (gross).............      -1,530      -1,365      -1,348
73.40 Adjustments in expired accounts...          39
73.45 Adjustments in unexpired accounts.         -47
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         122         172         300
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,245       1,182       1,153
86.93 Outlays from current balances.....         222         122         132
86.97 Outlays from new permanent 
        authority.......................          63          61          63
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,530       1,365       1,348
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -55         -42         -44
88.40     Non-Federal sources...........          -8         -19         -19
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -63         -61         -63
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,307       1,300       1,357
90.00 Outlays...........................       1,467       1,304       1,285
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................       1,307       1,300       1,357
  Outlays...........................       1,467       1,304       1,285
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -20
  Outlays...........................                                 -20
                                    ------------------------------------
Total:
  Budget Authority..................       1,307       1,300       1,337
  Outlays...........................       1,467       1,304       1,265
                                    ====================================

    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, infrastruc

[[Page 171]]

ture 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.
                                     1998 actual  1999 est.   2000 est.
Soil and water resource improvements 
(thousand acres)....................          38          20          40
Inland fish stream habitat restored 
or enhanced (miles).................         911       1,301       1,580
Terrestrial wildlife habitat 
restored or enhanced (thousand 
acres)..............................         167         185         224
Terrestrial threatened and 
endangered species habitat restored 
or enhanced (thousand acres)........         202         114         133
Rangeland improvements (thousand 
acres)..............................          24          30          52
Hazardous fuel reduction (thousand 
acres)..............................       1,456       1,380       1,627

    The 2000 Budget includes an emphasis on sustainable forestry. The 
proportion of timber productions resulting from a stewardship purpose 
rather than a commodity purpose continues to rise, more than doubling 
since 1994. Supporting these goals, the Administration is proposing a 
new $15 million pilot Forest health stewardship program that will better 
enable the use of underutilized and small diameter woody material to 
achieve sustainable forest management and watershed health and 
restoration. In addition, FS continues to advance in measuring forest 
integrity and evaluating sustainable forestry, such as through the 
Montreal criteria and indicators.

    To support management reforms, an advance appropriation of $15 
million will be available to reward those forest that adopt approved 
restructuring or streamlining management practices (efficiency-
enhancing, cost-savings or customer service-producing) by the end of 
2000. FS will publish a list of different management practices at the 
beginning of 2000 and management units will be evaluated for those that 
achieve these goals by the end of the year. In addition, regional 
offices will shift staff positions to the forests and ranger districts 
as part of a continuing FS effort to dedicate personnel to the field 
level.

    In addition, FS will develop standardized bidding procedures, 
inventories and price schedules for specialty products for companies 
seeking to obtain high value and often rare specialty products from 
Federal lands. Revenues derived from the new collections can be spent by 
the FS; however, it is assumed that FS will evaluate the collection 
levels in the first year before commencing spending. Additional revenues 
would also be available for expenditure from the adoption of concession 
reforms, such as those in Parks Service's Vision 2020.

    To simplify budgeting and accounting, the authority to charge 
overhead and indirect expenses to permanent programs and trust funds 
would be eliminated, resulting in reduced outlays from these funds. 
Legislation is included to allow the use of NFS unobligated balances 
without reprogramming to make up for the reduced KV transfers. KV funds 
collected from open timber sales are available for hazardous fuels 
reductions and prescribed burns, regardless of the geographic source of 
the funds, with funding emphasis placed on targeting fire-dependent 
ecosystems, fire risk reduction and community support. This will ensure 
the most effective use of the funds and greatest impact on the 
environment and human safety.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         550         511         547
11.3      Other than full-time permanent          63          58          62
11.5      Other personnel compensation..          21          20          21
11.8      Special personal services 
            payments....................           7
                                           ---------   ---------  ----------
11.9        Total personnel compensation         641         589         630
12.1    Civilian personnel benefits.....         139         128         137
13.0    Benefits for former personnel...          27          25          27
21.0    Travel and transportation of 
          persons.......................          72          67          67
22.0    Transportation of things........           9           8           9
23.1    Rental payments to GSA..........          33          33          33
23.2    Rental payments to others.......          21          20          20
23.3    Communications, utilities, and 
          miscellaneous charges.........          64          59          61
24.0    Printing and reproduction.......           5           5           5
25.2    Other services..................         211         278         278
26.0    Supplies and materials..........          68          63          65
31.0    Equipment.......................          49          45          47
32.0    Land and structures.............           3           3           3
41.0    Grants, subsidies, and 
          contributions.................          26          25          25
42.0    Insurance claims and indemnities           9           8           8
44.0    Refunds.........................          -4          -4          -4
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       1,373       1,352       1,411
99.0  Reimbursable obligations..........          63          61          63
      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 new obligations...........       1,438       1,415       1,476
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......      17,821      17,013      18,184
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         508         486         486
    Allocation account:
3001  Total compensable workyears: Full-
        time equivalent employment......          11           8           6
---------------------------------------------------------------------------

                                

                         National Forest System

              (Legislative proposal, not subject to PAYGO)

    Contingent upon the enactment of authorizing legislation, the 
Secretary shall implement a pilot program to charge a fee to recover the 
federal direct costs (excluding environmental analysis costs) for timber 
sales preparation and harvest administration for green timber from 
National Forest System lands, and such fee shall be deposited as an 
offsetting collection to this appropriation, to remain available until 
expended for the purpose of such sales preparations: Provided, That upon 
enactment of such authorizing legislation, the amount appropriated above 
from the General Fund shall be reduced by $20,000,000: Provided further, 
That such fee will be assessed when the purpose of the timber sale offer 
is for timber commodity purposes, rather than stewardship purposes: 
Provided further, That the Forest Service Chief may waive the timber 
sales and harvest preparation fee if the outcome of the timber sale 
would be compromised or if small businesses would be unable to compete.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-2-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Timber sales preparation fee pilot                                 -20
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.3)...................                                 -20
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................                                 -20
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                                  20
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 -20
73.20 Total outlays (gross).............                                  20
----------------------------------------------------------------------------

[[Page 172]]



    Outlays (gross), detail:
86.90 Outlays from new current authority                                 -20
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                 -20
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 -20
90.00 Outlays...........................                                 -40
---------------------------------------------------------------------------

    The budget includes a variety of legislative proposals, including a 
pilot proposal for timber purchasers to bear a portion of the direct 
costs for timber sales preparation, not including the costs of NEPA. The 
proposal also makes exceptions for those cases where: (1) the purpose of 
the sale is for stewardship or personal use, not commodity extraction 
alone, and (2) when charging preparation costs would make the sale 
uneconomical or adversely affect small businesses. These timber sale 
preparation charges are largely an extension of existing charges, such 
as the charges for scaling.

                                

[Reconstruction and Construction] Public Asset Protection and Management

    For necessary expenses of the Forest Service, not otherwise provided 
for, [$297,352,000] $295,000,000, to remain available until expended for 
construction, reconstruction, maintenance and acquisition of buildings 
and other facilities, and for construction, reconstruction, repair and 
maintenance of forest roads and trails by the Forest Service as 
authorized by 16 U.S.C. 532-538 and 23 U.S.C. 101 and 205: Provided, 
That up to $15,000,000 of the funds provided herein for road maintenance 
shall be available for the decommissioning of roads, including 
unauthorized roads not part of the transportation system, which are no 
longer needed[: Provided further, That no funds shall be expended to 
decommission any system road until notice and an opportunity for public 
comment has been provided: Provided further, That the Forest Service may 
make an advance of up to $200,000 from the funds provided under this 
heading in this Act and up to $800,000 provided under this heading in 
Public Law 105-83 to the City of Colorado Springs, Colorado, for the 
design and reconstruction of the Pikes Peak Summit House in accordance 
with terms and conditions agreed to]. (Department of the Interior and 
Related Agencies Appropriations Act, 1999, as included in Public Law 
105-277, section 101(e).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Reconstruction and construction.         170         336         334
00.03   Flood supplemental..............          30
09.01 Reimbursable program..............           4           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         204         340         338
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         137         112          73
22.00 New budget authority (gross)......         170         301         299
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         316         413         372
23.95 Total new obligations.............        -204        -340        -338
24.40 Unobligated balance available, end 
        of year.........................         112          73          34
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         166         297         295
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           4           4           4
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         170         301         299
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          82          81         111
73.10 Total new obligations.............         204         340         338
73.20 Total outlays (gross).............        -196        -310        -286
73.45 Adjustments in unexpired accounts.          -9
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          81         111         163
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         110         226         224
86.93 Outlays from current balances.....          82          80          58
86.97 Outlays from new permanent 
        authority.......................           4           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         196         310         286
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -2          -2          -2
88.40     Non-Federal sources...........          -2          -2          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -4          -4          -4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         166         297         295
90.00 Outlays...........................         192         306         282
---------------------------------------------------------------------------

    Funding for Public Asset Protection and Management is proposed as 
part of the second year of the Administration's facilities restoration 
initiative. This program emphasizes the Administration's commitment to 
the long-term stewardship of Federal lands and facilities.

    Facilities.--Provides for reconstruction, rehabilitation, upgrade, 
construction, maintenance, 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. Certain facility maintenance and 
reconstruction costs will be covered through the Working Capital Fund in 
FY 2000.

    Roads and trails.--Provides for road reconstruction, construction, 
maintenance, and decommissioning, and for trail reconstruction and 
construction. For road maintenance and improvements, criteria to 
allocate funds will especially reflect the goal of water quality 
protection and improvement. 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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          48          78          79
11.3      Other than full-time permanent           5           8           9
11.5      Other personnel compensation..           2           3           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation          55          89          91
12.1    Civilian personnel benefits.....          12          20          21
13.0    Benefits for former personnel...           3           4           5
21.0    Travel and transportation of 
          persons.......................           5           8           8
22.0    Transportation of things........           1           1           1
23.1    Rental payments to GSA..........           4           4           4
23.2    Rental payments to others.......           2           3           3

[[Page 173]]

23.3    Communications, utilities, and 
          miscellaneous charges.........           3           5           5
24.0    Printing and reproduction.......                       1           1
25.2    Other services..................          75         138         133
26.0    Supplies and materials..........           9          16          16
31.0    Equipment.......................           8           8           8
32.0    Land and structures.............          21          37          36
41.0    Grants, subsidies, and 
          contributions.................           1           2           2
42.0    Insurance claims and indemnities           1           1           1
44.0    Refunds.........................                      -1          -1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         200         336         334
99.0  Reimbursable obligations..........           4           4           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........         204         340         338
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,197       2,431       2,493
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          17          17          17
---------------------------------------------------------------------------

                                

                      Forest and Rangeland Research

    For necessary expenses of forest and rangeland research as 
authorized by law, [$197,444,000] $234,644,000, 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, 1999, as included in Public Law 105-277, 
section 101(e).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.06 Forest and rangeland research.....         185         197         234
09.01 Reimbursable program..............          12          16          17
                                           ---------   ---------  ----------
10.00   Total new obligations...........         197         213         251
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          17          20          21
22.00 New budget authority (gross)......         200         215         252
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         217         235         273
23.95 Total new obligations.............        -197        -213        -251
24.40 Unobligated balance available, end 
        of year.........................          20          21          22
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         188         198         235
42.00   Transferred from other accounts.                       1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         188         199         235
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          12          16          17
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         200         215         252
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          58          56          58
73.10 Total new obligations.............         197         213         251
73.20 Total outlays (gross).............        -199        -211        -242
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          56          58          67
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         129         140         167
86.93 Outlays from current balances.....          58          56          59
86.97 Outlays from new permanent 
        authority.......................          12          16          17
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         199         211         242
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -4          -4          -5
88.40     Non-Federal sources...........          -8         -12         -12
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -12         -16         -17
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         188         199         235
90.00 Outlays...........................         186         195         225
---------------------------------------------------------------------------

    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- 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 six Forest and Range Experiment Station headquarters and their 
laboratories, the Forest Products Laboratory, and the International 
Institute of Tropical Forestry.

    Additional funding in this budget would emphasize priority wildlife 
habitat research; however, because these projects affect other agencies 
in addition to the FS, FS Research is enhancing existing coordination 
mechanisms to ensure that no overlapping and redundant work occurs. 
Funds are also included for the Integrated Science for Ecosystem 
Challenges effort, particularly in areas such as invasive species and 
inventory and monitoring, including rapid assessments to evaluate 
ecological integrity, and global climate change research for biomass 
energy uses, carbon cycle and assessment work. Finally, funds have been 
added for linear programming research, to develop an improved analytical 
tool to support forest planning goals to maximize net public benefits in 
a more objective fashion.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          91          93         103
11.3      Other than full-time permanent           8           8           9
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation         100         102         113
12.1    Civilian personnel benefits.....          22          23          25
13.0    Benefits for former personnel...                                   1
21.0    Travel and transportation of 
          persons.......................           8          10          13
22.0    Transportation of things........           1           1           2
23.1    Rental payments to GSA..........           2           2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           5           6           8
24.0    Printing and reproduction.......           1           1           1
25.5    Research and development 
          contracts.....................          27          29          38
26.0    Supplies and materials..........           7           8          11
31.0    Equipment.......................           7           9          12
41.0    Grants, subsidies, and 
          contributions.................           5           6           8
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         185         197         234
99.0  Reimbursable obligations..........          12          16          17
                                           ---------   ---------  ----------
99.9    Total new obligations...........         197         213         251
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,284       2,325       2,575

[[Page 174]]

    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          84          83          87
---------------------------------------------------------------------------

                                

                       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, [$170,722,000, to remain 
available until expended, as authorized by law], $252,422,000, to remain 
available until expended, of which $62,000,000, is derived from the Land 
and Water Conservation Fund: Provided, That $10,000,000 for the costs of 
direct loans may be transferred to the USDA's Rural Business-Cooperative 
Service to carry out an intermediate relending program with State and 
local governments, non-profit corporations, Indian tribes and 
cooperatives to enable businesses, private non-profit organizations, and 
land trusts to support land acquisition and land uses that enhance smart 
growth and community green space goals, as authorized under the 
Development Loan Fund: Provided further, That such costs, including the 
cost of modifying such loans, shall be defined as 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 $50,000,000: Provided further, That the loan levels 
provided in this Act shall be considered estimates, not limitation. (42 
U.S.C. 9812; Department of the Interior and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(e).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.05   Forest health management........          50          47          51
00.06   Cooperative fire protection.....          18          20          29
00.07   Cooperative forestry............         104          81         131
00.08   Smart growth partnership........                                  10
09.01 Reimbursable program..............           6           5           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........         178         153         228
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          21          59          82
22.00 New budget authority (gross)......         215         176         259
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         236         235         341
23.95 Total new obligations.............        -178        -153        -228
24.40 Unobligated balance available, end 
        of year.........................          59          82         113
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         209         171         190
40.20   Appropriation (special fund, 
          definite).....................                                  62
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         209         171         252
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           6           5           7
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         215         176         259
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         142         160         128
73.10 Total new obligations.............         178         153         228
73.20 Total outlays (gross).............        -159        -185        -244
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         160         128         112
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         120         128         192
86.93 Outlays from current balances.....          35          52          43
86.97 Outlays from new permanent 
        authority.......................           6           5           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         159         185         244
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -6          -5          -7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         209         171         252
90.00 Outlays...........................         153         180         237
---------------------------------------------------------------------------
Distribution of budget authority by 
    account:
  State and private forestry............         209         171         252
----------------------------------------------------------------------------

Distribution of outlays by account:
  State and private forestry............         150         180         237
  Emergency pest suppression fund.......           3
---------------------------------------------------------------------------

    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 in wildland/urban 
interface areas by volunteer fire departments. Fire Management will be 
used to encourage greater community participation in reducing fire risk 
in the Wildland/Urban Interface, through competitive grants to partially 
support community planning and disaster prevention and hazard mitigation 
assistance. Community implementation of fire hazard mitigation projects 
will save Federal wildfire suppression costs. Insurance company 
participation may provide a subsequent reduction in insurance premiums 
for participating communities.

    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 increases for the Urban and Community Forestry, Forest 
Legacy Program and the new Smart Growth Partnership loan programs are 
proposed as part of the President's Lands Legacy Initiative to be 
derived from the Land and Water Conservation Fund. These funds along 
with increases in other accounts highlight the Administration's 
commitment to making new tools available, and working with states, 
tribes, local governments and private partners to protect great places; 
to conserve open space for recreation and wildlife habitat; and to 
preserve forest, farmlands, and coastal areas.

    The Smart Growth Partnership is a new USDA direct loan program to 
use subsidized loans for smart growth land acquisition and management. 
Through partnerships with state, local, and tribal governments, the 
program would allow communities to protect open spaces to help limit 
sprawl, enhance water quality protections, reduce greenhouse emissions 
and increase greenspace. The program is administered by Forest Service, 
with a contract to the Rural Business Service to run the loan program. 
The Forest Service appropriation will be administered within the 
Intermediate Relending Program, and displayed as a separate cohort.

[[Page 175]]

    New funding in the Economic Action Programs will be targeted to 
support new agreements for rural development cooperation in forest 
resource dependent locations.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          29          29          35
11.3      Other than full-time permanent           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          31          31          37
12.1    Civilian personnel benefits.....           6           6           7
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................           5           4           6
23.1    Rental payments to GSA..........           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................          30          22          31
26.0    Supplies and materials..........           3           2           3
31.0    Equipment.......................           2           1           2
41.0    Grants, subsidies, and 
          contributions.................          97          79         131
44.0    Refunds.........................          -6
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         171         148         220
99.0  Reimbursable obligations..........           6           5           7
25.2  Allocation Account: Other services           1                       1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         178         153         228
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         640         656         794
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......           5           5           5
---------------------------------------------------------------------------

                                

        Management of National Forest Lands for Subsistence Uses

                 subsistence management, forest service

    [For necessary expenses of the Forest Service to manage federal 
lands in Alaska for subsistence uses under the provisions of Title VIII 
of the Alaska National Interest Lands Conservation Act (Public Law 96-
487 et seq.) except in areas described in section 339(a)(1)(A) and (B) 
of this Act, $3,000,000 to become available on September 30, 1999, and 
remain available until expended: Provided, That if prior to October 1, 
1999, the Secretary of the Interior determines that the Alaska State 
Legislature has approved a bill or resolution to amend the Constitution 
of the State of Alaska that, if approved by the electorate, would enable 
the implementation of state laws of general applicability which are 
consistent with, and which provide for the definition, preference and 
participation specified in sections 803, 804, and 805 of the Alaska 
National Interest Lands Conservation Act, the Secretary of Agriculture 
shall make a $3,000,000 grant to the State of Alaska for the purpose of 
assisting that State in fulfilling its responsibilities under sections 
803, 804, and 805 of that Act.] (Department of the Interior and Related 
Agencies Appropriations Act, 1999, as included in Public Law 105-277, 
section 101(e).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................                                   3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                                   3
22.00 New budget authority (gross)......                       3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                       3           3
23.95 Total new obligations.............                                  -3
24.40 Unobligated balance available, end 
        of year.........................                       3
----------------------------------------------------------------------------

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

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

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

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

    Funding under this program primarily supports fisheries and wildlife 
habitat management activities in the areas of population assessment, 
forecasting, harvest regulations, and law enforcement to ensure that the 
subsistence needs of qualified rural Alaskans are met under the Alaska 
National Interest Lands Conservation Act (Public Law 96-487).

                                

                        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 and water, [$560,176,000] $560,176,000, 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] 
$90,000,000, to remain available until expended: Provided, That the 
entire amount is designated by Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) 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, 1999, as included in 
Public Law 105-277, section 101(e).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Fire management...................         580         673         569
09.01 Reimbursable program..............          27          26          26
                                           ---------   ---------  ----------
10.00   Total new obligations...........         607         699         595
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         128         135          23
22.00 New budget authority (gross)......         614         587         587
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         742         722         610
23.95 Total new obligations.............        -607        -699        -595
24.40 Unobligated balance available, end 
        of year.........................         135          23          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         585         561         561
40.15   Appropriation (emergency).......           2         102          90
40.60   Contingent emergency 
          appropriation not available 
          for obligations...............                    -102         -90
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         587         561         561
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          27          26          26
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         614         587         587
----------------------------------------------------------------------------

[[Page 176]]



    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          99         103         191
73.10 Total new obligations.............         607         699         595
73.20 Total outlays (gross).............        -603        -611        -582
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         103         191         204
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         477         482         477
86.93 Outlays from current balances.....          99         103          79
86.97 Outlays from new permanent 
        authority.......................          27          26          26
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         603         611         582
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -19         -18         -18
88.40     Non-Federal sources...........          -8          -8          -8
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -27         -26         -26
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         587         561         561
90.00 Outlays...........................         577         585         556
---------------------------------------------------------------------------

    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 $90 million in contingent 
funding for 2000 to be utilized for emergency wildland fire activities, 
if needed, beyond the amount requested in this budget.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          98          94          97
11.3      Other than full-time permanent          20          19          20
11.5      Other personnel compensation..          49          47          48
                                           ---------   ---------  ----------
11.9        Total personnel compensation         167         160         165
12.1    Civilian personnel benefits.....          35          33          35
13.0    Benefits for former personnel...           5           5           5
21.0    Travel and transportation of 
          persons.......................          43          52          40
22.0    Transportation of things........           5           7           5
23.1    Rental payments to GSA..........           5           5           5
23.2    Rental payments to others.......           7           8           6
23.3    Communications, utilities, and 
          miscellaneous charges.........          33          40          30
24.0    Printing and reproduction.......           1           2           1
25.2    Other services..................         197         261         201
26.0    Supplies and materials..........          59          72          55
31.0    Equipment.......................          22          26          20
32.0    Land and structures.............           1           1           1
41.0    Grants, subsidies, and 
          contributions.................           1           1
42.0    Insurance claims and indemnities           1           2           1
44.0    Refunds.........................          -2          -2          -1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         580         673         569
99.0  Reimbursable obligations..........          27          26          26
                                           ---------   ---------  ----------
99.9    Total new obligations...........         607         699         595
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       5,711       5,467       5,648
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          16          15          15
---------------------------------------------------------------------------

                                

           Payments to States--Northern Spotted Owl Guarantee

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1117-0-1-806      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................         130         125         120
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         130         125         120
23.95 Total new obligations.............        -130        -125        -120
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........         130         125         120
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............         130         125         120
73.20 Total outlays (gross).............        -130        -125        -120
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         130         125         120
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         130         125         120
90.00 Outlays...........................         130         125         120
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         130         125         120
  Outlays...........................         130         125         120
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                  27
  Outlays...........................                                  27
                                    ------------------------------------
Total:
  Budget Authority..................         130         125         147

[[Page 177]]

  Outlays...........................         130         125         147
                                    ====================================

    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 2000, 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................                                  27
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........                                  27
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  27
73.20 Total outlays (gross).............                                 -27
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                                  27
----------------------------------------------------------------------------

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

    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 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............          20          20          13
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          53          33          13
23.95 Total new obligations.............         -20         -20         -13
24.40 Unobligated balance available, end 
        of year.........................          33          13
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          20          20          13
73.20 Total outlays (gross).............         -20         -20         -13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          20          20          13
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          20          20          13
---------------------------------------------------------------------------

    Public Law 104-134 established this appropriation, for the period 
1996 through 1999, to provide assistance to employ former timber workers 
in Wrangell and Sitka and for related community development projects in 
Sitka, Wrangell, Ketchican, and selected organized boroughs in Southeast 
Alaska. Distribution to the unorganized boroughs was based on the 
proportion of 1995 timber receipts from each borough.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1108-0-1-451      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................          28          20          13
44.0  Refunds...........................          -8
                                           ---------   ---------  ----------
99.9    Total new obligations...........          20          20          13
---------------------------------------------------------------------------

                                

                          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, 1999, as included in Public Law 105-277, section 
101(e).)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           2           2           2
    Receipts:
02.01 Cooperative range improvements....           3           3           3
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           5           5           5
    Appropriation:
05.01 Range betterment fund.............          -3          -3          -3
07.99 Total balance, end of year........           2           2           2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............           4           3           4
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           2           1           1
22.00 New budget authority (gross)......           3           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           5           4           4
23.95 Total new obligations.............          -4          -3          -4
24.40 Unobligated balance available, end 
        of year.........................           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.25 Appropriation (special fund, 
        indefinite).....................           3           3           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           1           1
73.10 Total new obligations.............           4           3           4
73.20 Total outlays (gross).............          -4          -3          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           3           3           3
86.93 Outlays from current balances.....           1                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           4           3           4
----------------------------------------------------------------------------

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

[[Page 178]]

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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           1           1           1
25.2  Other services....................           2           1           2
26.0  Supplies and materials............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           4           3           4
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          35          36          37
---------------------------------------------------------------------------

                                

                        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, [$117,918,000] $118,000,000, 
to be derived from the Land and Water Conservation Fund, to remain 
available until expended: Provided, That subject to valid existing 
rights, all Federally owned lands and interests in lands within the New 
World Mining District comprising approximately 26,223 acres, more or 
less, which are described in a Federal Register notice dated August 19, 
1997 (62 F.R. 44136-44137), are hereby withdrawn from all forms of 
entry, appropriation, and disposal under the public land laws, and from 
location, entry and patent under the mining laws, and from disposition 
under all mineral and geothermal leasing laws.

         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. (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, 1999, as included in Public Law 
105-277, section 101(e).)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-300      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           1
    Receipts:
02.01 National forest lands under 
        special acts....................           1           1           1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           2           1           1
    Appropriation:
05.01 Land acquisition accounts.........          -2          -1          -1
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-300      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations.................         103         170         135
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          19         139          88
22.00 New budget authority (gross)......         223         119         119
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         242         258         207
23.95 Total new obligations.............        -103        -170        -135
24.40 Unobligated balance available, end 
        of year.........................         139          88          72
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Appropriation (special fund, definite):

40.20   Appropriation (LWCF)............         220         118         118
40.20   Appropriation (Special Act))....           2           1           1
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........         223         119         119
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          10           9          36
73.10 Total new obligations.............         103         170         135
73.20 Total outlays (gross).............        -104        -143        -142
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           9          36          29
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          94         115          99
86.93 Outlays from current balances.....          10          29          43
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         104         143         142
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         223         119         119
90.00 Outlays...........................         104         143         142
---------------------------------------------------------------------------
Distribution of budget authority by 
    account:
  Land Acquisition..................         182         118         118
  Acquisition of Lands for National 
    Forest, Special Acts............           1           1           1
------------------------------------------------------------------------
Distribution of outlays by account:
  Land Acquisition..................         103         142         141
  Acquisition of Lands for National 
    Forest, Special Acts............           1           1           1
  Acquisition of Lands To Complete 
    Land Exchanges..................           1
------------------------------------------------------------------------

    This appropriation consolidates three land acquisition authorities 
for acquisition of lands, waters, or interest therein, as authorized by 
law.

    Land and water conservation fund.--Recreation lands and interests 
are acquired within areas of the National Forest System, wilderness, 
wildlife and fisheries habitat management areas, and endangered species 
and other areas for public outdoor recreation purposes.

    Funding for land acquisition is proposed as part of the President's 
Lands Legacy Initiative. These funds along with increases in other 
accounts highlight the Administration's commitment to making new tools 
available, and working with states, tribes, local governments and 
private partners to protect great places; to conserve open space for 
recreation and wildlife habitat; and to preserve forest, farmlands, and 
coastal areas.

    FS will develop broader land acquisition strategic plans coordinated 
with State and Private Forestry, other Federal agencies and the States. 
With this strategic plan, it will be easier to fulfill the purposes of 
GPRA in evaluating progress toward goals and measuring success.

    The $67 million New World Mine acquisition did not permanently 
reserve mineral rights from private development, thereby potentially 
putting the Yellowstone environmental complex at risk from further 
minings. Language is proposed that would permanently remove mining 
opportunities from these vulnerable lands.

    Acquisition of lands for national forests (Special Acts).--On the 
basis of various public laws and agreements with

[[Page 179]]

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.

    The Forest Service will study alternatives to land exchanges, 
including increased authority for land sales and acquisition in order to 
more efficiently acquire additional high priority wetlands, riparian 
areas, threatened and endangered species habitat, areas of high 
biological diversity, wildlife corridors and other high value 
conservation areas. The analysis will focus on developing the sideboards 
or restrictions needed to avoid potential land sale abuses and to ensure 
environmental benefits and government value can be maximized. If this 
analysis leads to the conclusion that additional authority would be 
useful and the authority can incorporate adequate safeguards and 
guidelines, the Administration will submit proposed legislation to 
Congress.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-300      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           5           5           5
12.1  Civilian personnel benefits.......           1           1           1
25.2  Other services....................           3           2           2
32.0  Land and structures...............          94         162         127
                                           ---------   ---------  ----------
99.9    Total new obligations...........         103         170         135
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9923-0-2-300      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         101         104         108
---------------------------------------------------------------------------

                                

                 Forest Service Permanent Appropriations

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............         285         340         351
    Receipts:
02.01 National forests fund, Agriculture          47
02.02 Payments to states................         105         118         123
02.04 Timber roads, purchaser elections.           4           2           6
02.05 Road and trails for States, 
        National Forest Fund............          25          27          26
02.06 Timber salvage sales..............         123         137         144
02.07 Deposits, brush disposal..........          23          23          26
02.08 Recreational fee demonstration 
        program.........................          19          24          25
02.09 Rents and charges for quarters....           5           6           6
02.10 National Grasslands...............           5           6           6
02.11 Miscellaneous special funds, 
        Forest Service..................           1           1           1
02.12 National forests fund, Interior...          10          10          10
02.13 Timber sales pipeline restoration 
        fund............................          21           4           6
                                           ---------   ---------  ----------
02.99   Total receipts..................         388         358         379
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         673         698         730
    Appropriation:
05.01 Forest Service permanent 
        appropriations..................        -333        -347        -360
05.02 Forest Service permanent 
        appropriations, legislative 
        proposal not subject to PAYGO...                                  57
05.03 Forest Service permanent 
        appropriations, legislative 
        proposal subject to PAYGO.......                                  17
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............        -333        -347        -286
07.99 Total balance, end of year........         340         351         444
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payments to States, National 
        forest fund.....................         103         118         112
00.02 Payment to Minnesota..............           1           1           1
00.03 Payments to counties, National 
        grasslands......................           6           6           6
00.04 Recreation fee collection costs...           1           2           5
00.05 Recreation demonstration pilot 
        project.........................          16          20          24
00.06 Timber purchaser roads constructed 
        by Forest Service...............           2           6           6
00.07 Timber salvage sales..............         155         141         137
00.08 Roads and trails for States.......          30          26          28
00.09 Expenses, brush disposal..........          19          25          23
00.10 Restoration of forest lands and 
        improvements....................          11          28           6
00.11 Operation and maintenance of 
        quarters........................           7           6           6
00.12 Miscellaneous special funds.......           1           1           1
00.13 Pipeline restoration fund.........                       5           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........         352         385         357
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         265         291         280
22.00 New budget authority (gross)......         358         374         365
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          10
22.22 Unobligated balance transferred 
        from other accounts.............          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         643         665         645
23.95 Total new obligations.............        -352        -385        -357
24.40 Unobligated balance available, end 
        of year.........................         291         280         288
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.25 Appropriation (special fund, 
        indefinite).....................         333         347         360
62.00 Transferred from other accounts...          25          27           5
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........         358         374         365
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          56          64          82
73.10 Total new obligations.............         352         385         357
73.20 Total outlays (gross).............        -334        -367        -357
73.45 Adjustments in unexpired accounts.         -10
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          64          82          82
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....                      28           6
86.97 Outlays from new permanent 
        authority.......................         303         250         244
86.98 Outlays from permanent balances...          31          89         107
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         334         367         357
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         358         374         365
90.00 Outlays...........................         334         367         357
---------------------------------------------------------------------------
Distribution of budget authority by 
    account:
  Payments to States, National Forest 
    Fund................................         103         118         123
  Payment to Minnesota..................           1
  Payments to counties, National 
    Grasslands..........................           6           6           6
  Recreation fee collection costs.......          19          24          25
  Roads and trails for States...........          25          27          26
  Timber salvage sales..................         123         137         144
  Expenses, brush disposal..............          23          23          26
  Timber roads, Purchaser election......           4
  Timber sales pipeline restoration fund          21           4           6
  Restoration of forestlands and 
    improvements........................          36
  Operation and maintenance of quarters.           5           6           6
----------------------------------------------------------------------------

Distribution of outlays by account:
  Payments to States, National Forest 
    Fund................................         103         118         112
  Payment to Minnesota..................           1           1           1
  Payments to counties, National 
    Grasslands..........................           6           6           6
  Recreation fee collection costs.......           1           1           2
  Recreation fee demonstration program..          12          19          22
  Roads and trails for States...........          11          26          28
  Timber salvage sales..................         148         135         144
  Expenses, brush disposal..............          15          23          26
  Timber roads, Purchaser election......           6           2           6
  Restoration of forestlands and 
    Improvements........................          25           1           1
  Operation and maintenance of quarters.           4           5           6
---------------------------------------------------------------------------

[[Page 180]]



                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         358         374         365
  Outlays...........................         334         367         357
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -57
  Outlays...........................                                 -57
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                 -17
  Outlays...........................                                 -17
                                    ------------------------------------
Total:
      Budget Authority..............         358         374         291
      Outlays.......................         334         367         283
                                    ====================================

    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 2002 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.

    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 2000, 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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1
  Personnel compensation: Full-time 
    permanent...........................         111         118         105
12.1
  Civilian personnel benefits...........          29          32          28
41.0  Grants, subsidies, and 
        contributions...................         212         235         224
                                           ---------   ---------  ----------
99.9    Total new obligations...........         352         385         357
---------------------------------------------------------------------------

[[Page 181]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       3,050       3,291       2,911
---------------------------------------------------------------------------

                                

                 Miscellaneous Permanent Appropriations

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-2-2-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.07 Timber salvage sales..............                                 -27
00.09 Expenses, brush disposal..........                                  -7
00.12 Miscellaneous special funds.......                                 -23
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 32.0)...................                                 -57
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
40.25 Appropriation (special fund, 
        indefinite).....................                                 -57
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 -57
73.20 Total outlays (gross).............                                  57
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                 -57
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 -57
90.00 Outlays...........................                                 -57
---------------------------------------------------------------------------

    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 2001, and would authorize the direct 
expenditure of all recreation fees collected by the Forest Service and 
Department of Interior agencies.

                                

                 Miscellaneous Permanent Appropriations

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-4-2-999      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................                                 -17
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
60.25 Appropriation (special fund, 
        indefinite).....................                                 -17
----------------------------------------------------------------------------

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

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

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

    An authorization for the Forest Service is proposed for the agency 
to collect and retain fees reflect market value for the making of motion 
pictures, television productions, sound tracks or similar project in 
national forests. Such fees would be collected as offsetting 
collections, to remain available until expended, and without further 
appropriation, for the purpose of enhancing national forest recreational 
opportunities for national forest users and increasing watershed and 
habitat conservation and restoration.

    Timber bids are proposed as available only through a sealed bid 
auction procedures, rather than open bids as is now the case in some 
places. The intention is to better ensure the government's collection of 
fair market value for the timber asset sold. The authority for open bids 
would be maintained subject to exceptions determined by the FS Chief.

    It is also proposed that USDA collect fair market value for certain 
land uses and rights-of-way (e.g., oil and gas pipelines, power lines) 
and commercial services on national forest system lands.

                                

Intragovernmental funds:

                          Working Capital Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Operating expenses................         112         107          73
09.02 Capital investment................          45          43          58
                                           ---------   ---------  ----------
10.00   Total new obligations...........         157         150         131
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         114         106          99
22.00 New budget authority (gross)......         146         143         134
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         263         249         233
23.95 Total new obligations.............        -157        -150        -131
24.40 Unobligated balance available, end 
        of year.........................         106          99         102
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         146         143         134
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          69          52          59
73.10 Total new obligations.............         157         150         131
73.20 Total outlays (gross).............        -171        -143        -134
73.45 Adjustments in unexpired accounts.          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          52          59          56
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          25
86.97 Outlays from new permanent 
        authority.......................         146         143         134
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         171         143         134
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -146        -143        -134
----------------------------------------------------------------------------

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

    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:

[[Page 182]]

    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.

    Facilities.--Maintenance will be included in activities covered by 
the Working Capital Fund in 2000. Funds would be deducted from forests 
based upon facilities needs. If those maintenance needs decrease because 
a forest (or research station) has reduced its overhead expenses, 
required deductions from the WCF would decrease, but the budget 
allotment from a Region would not. Some WCF existing balances may be 
used as an upfront in investment on facilities maintenance.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
13.0  Benefits for former personnel.....           1           1           1
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.2  Rental payments to others.........           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................          17          17          17
26.0  Supplies and materials............          26          25          20
31.0  Equipment.........................         110         104          90
                                           ---------   ---------  ----------
99.9    Total new obligations...........         157         150         131
---------------------------------------------------------------------------
    Note.--Personnel totals are included with personnel totals of all 
other Forest Service programs.

                                

  

                               Trust Funds

                       Forest Service Trust Funds

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............                                   2
    Receipts:
02.01 Forest Service Cooperative fund...         168         185         178
02.02 Transfers from general fund of 
        amounts equal to certain customs 
        duties..........................          30          30          30
                                           ---------   ---------  ----------
02.99   Total receipts..................         198         215         208
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         198         215         210
    Appropriation:
05.01 Forest Service trust funds........        -198        -213        -210
07.99 Total balance, end of year........                       2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............         229         248         241
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         307         286         251
22.00 New budget authority (gross)......         198         213         210
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         515         499         461
23.95 Total new obligations.............        -229        -248        -241
24.40 Unobligated balance available, end 
        of year.........................         286         251         220
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................         198         213         210
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          50          61          98
73.10 Total new obligations.............         229         248         241
73.20 Total outlays (gross).............        -208        -211        -208
73.45 Adjustments in unexpired accounts.         -10
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          61          98         131
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         158         148         208
86.98 Outlays from permanent balances...          50          62
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         208         211         208
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         198         213         210
90.00 Outlays...........................         208         211         208
---------------------------------------------------------------------------
Distribution of budget authority by 
    account:
  Reforestation trust fund..............          30          30          30
  Cooperative Work trust fund...........         168         185         178
----------------------------------------------------------------------------

Distribution of outlays by account:
  Reforestation trust fund..............          30          30          30
  Cooperative Work trust fund...........         178         181         178
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         198         213         210
  Outlays...........................         208         210         208
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -34
  Outlays...........................                                 -34
                                    ------------------------------------
Total:
  Budget Authority..................         198         213         176
  Outlays...........................         208         210         174
                                    ====================================

                                                            

[[Page 183]]



    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          66          88          63
11.3    Other than full-time permanent..          10          13          10
11.5    Other personnel compensation....           4           6           4
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          80         107          77
12.1  Civilian personnel benefits.......          28          38          28
13.0  Benefits for former personnel.....           4           5           4
21.0  Travel and transportation of 
        persons.........................           4           3           4
22.0  Transportation of things..........           1           1           1
23.1  Rental payments to GSA............           4           4           4
23.2  Rental payments to others.........           2           1           2
23.3  Communications, utilities, and 
        miscellaneous charges...........           3           3           4
25.2  Other services....................          74          62          85
26.0  Supplies and materials............          19          15          21
31.0  Equipment.........................           5           4           5
32.0  Land and structures...............           3           3           4
41.0  Grants, subsidies, and 
        contributions...................           1           1           1
44.0  Refunds...........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         229         248         241
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       2,318       3,047       2,248
---------------------------------------------------------------------------

                                

                       Forest Service Trust Funds

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9974-2-7-302      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 32.0).....................                                 -34
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 -34
23.95 Total new obligations.............                                  34
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 -34
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 -34
73.20 Total outlays (gross).............                                  34
----------------------------------------------------------------------------

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

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

    To simplify budgeting and accounting, the authority to charge 
overhead and indirect expenses to permanent programs and trust funds 
would be eliminated, resulting in reduced outlays from these funds.

                                

         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 [177] 110 
passenger motor vehicles of which [22] 15 will be used primarily for law 
enforcement purposes and of which [176] 109 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] three for replacement only, and acquisition of 
sufficient aircraft from excess sources to maintain the operable fleet 
at 213 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 abolish any region, to move or close any regional office 
for National Forest System administration of the Forest Service, 
Department of Agriculture without the consent of the House and Senate 
Committees on Appropriations.]
    Any appropriations or funds available to the Forest Service may be 
transferred to the Wildland Fire Management appropriation for forest 
firefighting, emergency rehabilitation of burned-over or damaged lands 
or waters under its jurisdiction, and fire preparedness due to severe 
burning conditions.
    Funds appropriated to the Forest Service shall be available for 
assistance to or through the Agency for International Development and 
the Foreign Agricultural Service in connection with forest and rangeland 
research, technical information, and assistance in foreign countries, 
and shall be available to support forestry and related natural resource 
activities outside the United States and its territories and 
possessions, including technical assistance, education and training, and 
cooperation with United States and international organizations.
    [None of the funds made available to the Forest Service under this 
Act shall be subject to transfer under the provisions of section 702(b) 
of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 2257) or 
7 U.S.C. 147b unless the proposed transfer is approved in advance by the 
House and Senate Committees on Appropriations in compliance with the 
reprogramming procedures contained in House Report 105-163.]
    [None of the funds available to the Forest Service may be 
reprogrammed without the advance approval of the House and Senate 
Committees on Appropriations in accordance with the procedures contained 
in House Report 105-163.]
    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

[[Page 184]]

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] $2,500 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 $400,000 shall be available for administrative expenses: 
Provided further, That the Foundation shall obtain, by the end of the 
period of Federal financial assistance, 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 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 $2,650,000 
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, 
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 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.
    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 Landmark: 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.]
    The Forest Service shall fund overhead, national commitments, 
indirect expenses, and any other category for use of funds which are 
expended at any units, that are not directly related to the 
accomplishment of specific work on-the-ground (referred to as ``indirect 
expenditures''), from funds available to the Forest Service, unless 
otherwise prohibited by law: [Provided, That not later than 90 days 
after the date of the enactment of this Act, the Forest Service shall 
provide, to the Committees on Appropriations of the House of 
Representatives and Senate, proposed definitions, which are consistent 
with Federal Accounting Standards Advisory Board standards, to be used 
with the fiscal year 2000 budget, for indirect expenditures: Provided 
further, That the Forest Service shall implement and adhere to the 
definitions on a nationwide basis without flexibility for modification 
by any organizational level except the Washington Office, and when 
changed by the Washington Office, such changes in definition shall be 
reported in budget requests submitted by the Forest Service: Provided 
further, That the Forest Service shall provide in the fiscal year 2000 
budget justification, planned indirect expenditures in accordance with 
the definitions, summarized and displayed to the Regional, Station, 
Area, and detached unit office level. The justification shall display 
the estimated source and amount of indirect expenditures, by expanded 
budget line item, of funds in the agency's annual budget justification. 
The display shall include appropriated funds and the Knutson-Vandenberg, 
Brush Disposal, Cooperative Work-Other, and Salvage Sale funds. Changes 
between estimated and actual indirect expenditures shall be reported in 
subsequent budget justifications:] Provided further, That during fiscal 
year 2000 the Secretary shall limit total annual overhead and indirect 
obliga

[[Page 185]]

tions from the Brush Disposal, Cooperative Work-Other, Knutson-
Vandenberg, Reforestation, Salvage Sale, and Roads and Trails funds to 
[20] zero percent of the total obligations from each fund: Provided 
further, That [not later than 90 days after the date of the enactment of 
this Act, the Forest Service shall provide a plan which addresses how 
the agency will fully integrate all indirect expenditure information 
into the agency's general ledger system.] amounts deposited in the 
Knutson-Vandenberg, Cooperative Work-Other and Brush Disposal Funds from 
open timber sales may hereafter be used by the Secretary of Agriculture, 
without regard to the State in which the amounts were derived, to reduce 
hazardous fuels build-ups, including in the wildland-community interface 
where there is an abnormally high risk of fire and where ecological 
integrity has been compromised by fire suppression efforts. The projects 
shall emphasize reducing risks to human safety and public health and 
property and enhancing ecological functions, long-term forest 
productivity and biological integrity.
    Contingent upon the enactment of authorizing legislation, the 
Secretary shall implement a pilot program to charge a fee to recover the 
federal direct costs (excluding environmental analysis costs) for timber 
sales preparation and harvest administration for salvage timber from 
National Forest System lands, and such fee shall be deposited as an 
offsetting collection to this appropriation for the purpose of such 
sales preparations: Provided That upon enactment of such authorizing 
legislation, funds made available for obligation from the Salvage Fund 
shall be reduced by $9,000,000: Provided further, That Salvage Fund 
collection plans shall be reduced to reflect the resulting decreased 
expense requirements: Provided further, That such fee will be assessed 
when the purpose of the timber sale offer is for timber commodity 
purposes, rather than stewardship purposes: Provided further, That the 
Forest Service Chief may waive the timber sales and harvest preparation 
fee if the outcome of the timber sale would be compromised or if small 
businesses would be unable to compete:
    Contingent upon the enactment of authorizing legislation, the 
Secretary shall implement concession reforms to generate market returns 
from concessions, and such fee shall be deposited as an offsetting 
collection to the Forest Service Permanent Appropriations and shall 
become available October 1, 2000 and remain available until expended, 
for the purpose of ensuring enhanced recreational opportunities for 
National Forest users:
    Contingent upon the enactment of authorizing legislation, The 
Secretary shall charge a fee for collections of specialty forest 
products commensurate with the market value of these products, and such 
fee shall be deposited as an offsetting collection to the Forest Service 
Permanent Appropriation and shall become available October 1, 2000 and 
remain available until expended, for the purpose of ensuring enhanced 
recreational opportunities for National Forest users and for increased 
watershed and habitat conservation and restoration. (Department of the 
Interior and Related Agencies Appropriations Act, 1999, as included in 
Public Law 105-277, section 101(e).)

                                


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  12-181100  National grasslands........          18          18          17
  12-222100  National forest fund.......          80         110          96
  12-270130  Agriculture credit 
    insurance, downward reestimates of 
    subsidies...........................         172
  12-270210  Rural electrification and 
    telephone loans, negative subsidies.           1
  12-270230  Rural electrification and 
    telephone loans, downward 
    reestimates of subsidies............                     171
  12-270330  Rural water and waste 
    disposal, downward restimates of 
    subsidies...........................                      18
  12-270530  Rural community facility, 
    downward reestimates of subsidies...                      18
  12-270630  Rural housing insurance, 
    downward reestimates of subsidies...                      34
  12-270710  Rural business and 
    industry, negative subsidies........           1
  12-270730  Rural business and 
    industry, downward reestimates of 
    subsidies...........................                       2
  12-271030  Rural development loans, 
    downward reestimates of subsidies...                       8
  12-271130  Rural telephone bank loans, 
    downward reestimates of subsidies...                      12
  12-271330  Economic development loans, 
    downward reestimates of subsidies...                       2
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................         272         393         113
---------------------------------------------------------------------------

                                

                   Other Consolidated Receipt Accounts

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
  12-977210  Miscellaneous contributed 
    funds...............................           1
---------------------------------------------------------------------------

                                


 
                      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 [1999] 2000 under this Act shall be available for the purchase, in 
addition to those specifically provided for, of not to exceed [440] 365 
passenger motor vehicles, of which [437] 361 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 and 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, 
integrated systems acquisition project, and up to $2,000,000 for costs 
associated with collocating regional offices; 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, PEducation, and Extension Service; and 
funds for the competitive research grants (7 U.S.C. 450i(b)), shall 
remain available until expended. Up to $2,000,000 of the appropriation 
for the Foreign Agricultural Service shall remain available until 
expended solely for the purpose of offsetting fluctuations in 
international currency exchange rates, subject to documentation by the 
Foreign Agricultural Service.
    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

[[Page 186]]

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 
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. 711. None of the funds in this Act shall be available to pay 
indirect costs [on research grants awarded competitively] charged 
against agricultural research, education, or extension grant awards 
issued by the Cooperative State Research, Education, and Extension 
Service that exceed [14] 19 percent of total Federal funds provided 
under each award: Provided, That notwithstanding section 1462 of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3310), funds provided by this Act for grants awarded 
competitively by the Cooperative State Research, Education, and 
Extension Service shall be available to pay full allowable indirect 
costs for each grant awarded under the Small Business Innovation 
Development Act of 1982, Public Law 97-219 (15 U.S.C. 638).
    Sec. 712. Notwithstanding any other provisions of this Act, all loan 
levels provided in this Act shall be considered estimates, not 
limitations.
    Sec. 713. Appropriations for the Rural Housing Insurance Fund 
Program Account for the cost of direct and guaranteed loans made 
available in fiscal years 1994, 1995, 1996, 1997, 1998, and 1999 shall 
remain available until expended to cover obligations made in each of 
those fiscal years respectively.
    Sec. [713] 714. Appropriations to the Department of Agriculture for 
the cost of direct and guaranteed loans made available in fiscal year 
[1999] 2000 shall remain available until expended to cover obligations 
made in fiscal year [1999] 2000 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; the Rural Housing Insurance Fund Program Account; and the rural 
economic development loans program account.
    Sec. [714] 715. Such sums as may be necessary for fiscal year [1999] 
2000 pay raises for programs funded by this Act shall be absorbed within 
the levels appropriated by this Act.
    Sec. [715] 716. Notwithstanding the Federal Grant and Cooperative 
Agreement Act, marketing services of the Agricultural Marketing Service; 
Grain Inspection, Packers and Stockyards Administration; [and] the 
Animal and Plant Health Inspection Service, and the food safety 
activities of the Food Safety and Inspection Service may use cooperative 
agreements to reflect a relationship between the Agricultural Marketing 
Service, the Grain Inspection, Packers and Stockyards Administration 
[or], the Animal and Plant Health Inspection Service, or the Food Safety 
and 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, or to carry out educational 
programs or special studies to improve the safety of the Nation's food 
supply.
    Sec. [716] 717. Notwithstanding the Federal Grant and Cooperative 
Agreement Act, the Natural Resources Conservation Service may enter into 
contracts, grants, or cooperative agreements with a State agency or 
subdivision, or a public or private organization, for the acquisition of 
goods or services, including personal services, to carry out natural 
resources conservation activities: Provided, That Commodity Credit 
Corporation funds obligated for such purposes shall not exceed the level 
obligated by the Commodity Credit Corporation for such purposes in 
fiscal year 1998.
    [Sec. 717. 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 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. 718. Hereafter, none of the funds made available in this Act 
may be used to provide assistance to, or to pay the salaries of 
personnel to 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. 719. Of the funds made available by this Act, not more than 
$1,800,000 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: Provided, That interagency funding is authorized to 
carry out the purposes of the National Drought Policy Commission.]
    Sec. [720] 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. 721. 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. 722. 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. 723. 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: Provided, That notwithstanding any 
other provision of law, none of the funds appropriated or otherwise made 
available by this Act may be transferred to the Office of the Chief 
Information Officer without the prior approval of the Committee on 
Appropriations of both Houses of Congress.]
    [Sec. 724. (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 1999, 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 
Committee on Appropriations 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 1999, 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 
Committee on Appropriations of both Houses of Congress are notified 
fifteen days in advance of such reprogramming of funds.]
    Sec. [725] 719. None of the funds appropriated or otherwise made 
available by this Act or any other Act may be used to pay the salaries 
and expenses of personnel to carry out the Fund for Rural America 
Program, authorized by section 793 of Public Law 104-127[, with the 
exception of funds made available under that section on January 1, 1997] 
in excess of $60,000,000.
    [Sec. 726. 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 environmental quality incentives program 
authorized by sections 334-341 of Public Law 104-127 in excess of 
$174,000,000.]

[[Page 187]]

    [Sec. 727. None of the funds appropriated or otherwise available to 
the Department of Agriculture 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. 728. The Federal facility located in Stuttgart, Arkansas, and 
known as the ``United States National Rice Germplasm Evaluation and 
Enhancement Center'', shall be known and designated as the ``Dale 
Bumpers National Rice Research Center'': Provided, That any reference in 
law, map, regulation, document, paper, or other record of the United 
States to such federal facility shall be deemed to be a reference to the 
``Dale Bumpers National Rice Research Center''.]
    [Sec. 729. Notwithstanding any other provision of law, the Secretary 
of Agriculture, subject to the reprogramming requirements established by 
this Act, may transfer up to $26,000,000 in discretionary funds made 
available by this Act among programs of the Department, not otherwise 
appropriated for a specific purpose or a specific location, for 
distribution to or for the benefit of the Lower Mississippi Delta 
Region, as defined in Public Law 100-460, prior to normal state or 
regional allocation of funds: Provided, That any funds made available 
through Chapter Four of Subtitle D of Title XII of the Food Security Act 
of 1985 (16 U.S.C. 3839aa et seq.) may be included in any amount 
reprogrammed under this section if such funds are used for a purpose 
authorized by such Chapter: Provided further, That any funds made 
available from ongoing programs of the Department of Agriculture used 
for the benefit of the Lower Mississippi Delta Region shall be counted 
toward the level cited in this section.]
    [Sec. 730. None of the funds appropriated or otherwise made 
available by this Act shall be used to pay the salaries and expenses of 
personnel to enroll in excess of 120,000 acres in the fiscal year 1999 
wetlands reserve program as authorized by 16 U.S.C. 3837.]
    [Sec. 731. None of the funds appropriated or otherwise made 
available by this Act shall be used to pay the salaries and expenses of 
personnel to carry out the emergency food assistance program authorized 
by section 27(a) of the Food Stamp Act if such program exceeds 
$90,000,000.]
    Sec. [732] 720. None of the funds appropriated or otherwise made 
available by this or any other Act shall be used to pay the salaries and 
expenses of personnel to carry out the [provisions of] program 
authorized by section 401 of Public Law 105-185 in excess of 
$120,000,000.
    [Sec. 733. Notwithstanding any other provision of law, the City of 
Big Spring, Texas shall be eligible to participate in rural housing 
programs administered by the Rural Housing Service.]
    [Sec. 734. Notwithstanding any other provision of law, the 
Municipality of Carolina, Puerto Rico shall be eligible for grants and 
loans administered by the Rural Utilities Service.]
    Sec. [735] 721. Notwithstanding section 381A of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009), the definitions of rural 
areas for certain business programs administered by the Rural Business-
Cooperative Service and the community facilities programs administered 
by the Rural Housing Service shall be those provided for in statute and 
regulations prior to the enactment of Public Law 104-127.
    [Sec. 736. None of the funds appropriated or otherwise made 
available by this Act shall be used to carry out any commodity purchase 
program that would prohibit eligibility or participation by farmer-owned 
cooperatives.]
    [Sec. 737. Section 512(d)(4)(D)(iii) of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 360b(d)(4)(D)(iii)) is amended by inserting 
before the semicolon the following: ``, except that for purposes of this 
clause, antibacterial ingredient or animal drug does not include the 
ionophore or arsenical classes of animal drugs''.]
    [Sec. 738. (a) None of the funds appropriated or otherwise made 
available to the Secretary by this Act, any other Act, or any other 
source may be used to issue the final rule to implement the amendments 
to Federal milk marketing orders required by subsection (a)(1) of 
section 143 of the Agricultural Market Transition Act (7 U.S.C. 7253), 
other than during the period of February 1, 1999, through April 4, 1999, 
and only if the actual implementation of the amendments as part of 
Federal milk marketing orders takes effect on October 1, 1999, 
notwithstanding the penalties that would otherwise be imposed under 
subsection (c) of such section.
    (b) None of such funds may be used to designate the State of 
California as a separate Federal milk marketing order under subsection 
(a)(2) of such section, other than during the period beginning on the 
date of the issuance of the final rule referred to in subsection (a) 
through September 30, 1999.
    (c) For purposes of this section, a rule shall be considered to be a 
final rule when the rule is submitted to Congress as required by chapter 
8 of title 5, United States Code, to permit congressional review of 
agency rulemaking and before the Secretary of Agriculture conducts the 
producer referendum required under section 8c(19) of the Agricultural 
Adjustment Act (7 U.S.C. 608c(19)), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937.]
    [Sec. 739. Whenever the Secretary of Agriculture announces the basic 
formula price for milk for purposes of Federal milk marketing orders 
issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 
608c), reenacted with amendments by the Agricultural Marketing Agreement 
Act of 1937, the Secretary shall include in the announcement an 
estimate, stated on a per hundredweight basis, of the costs incurred by 
milk producers, including transportation and marketing costs, to produce 
milk in the different regions of the United States.]
    [Sec. 740. None of the funds appropriated or otherwise made 
available by this Act shall be used to pay the salaries and expenses of 
personnel to carry out a conservation farm option program, as authorized 
by section 335 of Public Law 104-127.]
    [Sec. 741. Waiver of Statute of Limitations. (a) To the extent 
permitted by the Constitution, any civil action to obtain relief with 
respect to the discrimination alleged in an eligible complaint, if 
commenced not later than 2 years after the date of the enactment of this 
Act, shall not be barred by any statute of limitations.
    (b) The complainant may, in lieu of filing a civil action, seek a 
determination on the merits of the eligible complaint by the Department 
of Agriculture if such complaint was filed not later than 2 years after 
the date of enactment of this Act. The Department of Agriculture shall--
        (1) provide the complainant an opportunity for a hearing on the 
    record before making that determination;
        (2) award the complainant such relief as would be afforded under 
    the applicable statute from which the eligible complaint arose 
    notwithstanding any statute of limitations; and
        (3) to the maximum extent practicable within 180 days after the 
    date a determination of an eligible complaint is sought under this 
    subsection conduct an investigation, issue a written determination 
    and propose a resolution in accordance with this subsection.
    (c) Notwithstanding subsections (a) and (b), if an eligible claim is 
denied administratively, the claimant shall have at least 180 days to 
commence a cause of action in a Federal court of competent jurisdiction 
seeking a review of such denial.
    (d) The United States Court of Federal Claims and the United States 
District Court shall have exclusive original jurisdiction over--
        (1) any cause of action arising out of a complaint with respect 
    to which this section waives the statute of limitations; and
        (2) any civil action for judicial review of a determination in 
    an administrative proceeding in the Department of Agriculture under 
    this section.
    (e) As used in this section, the term ``eligible complaint'' means a 
nonemployment related complaint that was filed with the Department of 
Agriculture before July 1, 1997 and alleges discrimination at any time 
during the period beginning on January 1, 1981 and ending December 31, 
1996--
        (1) in violation of the Equal Credit Opportunity Act (15 U.S.C. 
    1691 et seq.) in administering--
                (A) a farm ownership, farm operating, or emergency loan 
            funded from the Agricultural Credit Insurance Program 
            Account; or
                (B) a housing program established under title V of the 
            Housing Act of 1949; or
        (2) in the administration of a commodity program or a disaster 
    assistance program.
    (f) This section shall apply in fiscal year 1999 and thereafter.
    (g) The standard of review for judicial review of an agency action 
with respect to an eligible complaint is de novo review. Chapter 5 of 
title 5 of the United States Code shall apply with respect to an agency 
action under this section with respect to an eligible complaint, without 
regard to section 554(a)(1) of that title.]
    [Sec. 742. In any claim brought under the Rehabilitation Act of 1973 
and filed with the Secretary of Agriculture after January 1994 resulting 
in a finding that a farmer was subjected to discrimination under any 
farm loan program or activity conducted by the United States Department 
of Agriculture in violation of section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794), the Secretary of Agri

[[Page 188]]

culture shall be liable for compensatory damages. Such liability shall 
apply to any administrative action brought before the date of enactment 
of this Act, but only if the action is brought within the applicable 
statute of limitations and the complainant sought or seeks compensatory 
damages while the action is pending.]
    [Sec. 743. Public Law 102-237, Title X, Section 1013(a) and (b) (7 
U.S.C. 426 note) is amended by striking ``, to the extent practicable,'' 
in each instance in which it appears.]
    [Sec. 744. Funds made available for conservation operations by this 
or any other Act, including prior-year balances, shall be available for 
financial assistance and technical assistance for the purpose of 
constructing the Franklin County Lake Project, Mississippi, in the 
amounts earmarked in appropriations report language.]
    [Sec. 745. Section 306D of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926d) is amended by inserting ``25 percent 
in'' in lieu of ``equal'' in subsection (b), and by inserting 
``$20,000,000'' in lieu of ``$15,000,000'' in subsection (d).]
    [Sec. 746. None of the funds made available to the Food and Drug 
Administration by this Act shall be used to close or relocate, or to 
plan to close or relocate, the Food and Drug Administration Division of 
Drug Analysis in St. Louis, Missouri.]
    [Sec. 747. None of the funds made available by this Act or any other 
Act for any fiscal year may be used to carry out section 302(h) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1622(h)) unless the 
Secretary of Agriculture inspects and certifies agricultural processing 
equipment, and imposes a fee for the inspection and certification, in a 
manner that is similar to the inspection and certification of 
agricultural products under that section, as determined by the 
Secretary: Provided, That this provision shall not affect the authority 
of the Secretary to carry out the Federal Meat Inspection Act (21 U.S.C. 
601 et seq.), the Poultry Products Inspection Act (21 U.S.C. 451 et 
seq.), or the Egg Products Inspection Act (21 U.S.C. 1031 et seq.).]
    [Sec. 748. Notwithstanding the provisions of section 508(b)(5)(A) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)(A)), for the 1999 
reinsurance and subsequent reinsurance years, no producer shall pay more 
than $50 per crop per county as an administrative fee for catastrophic 
risk protection under section 508(b)(5)(A) of the Act.]
    Sec. 749. That notwithstanding section 4703(d)(1) of title 5, United 
States Code, the personnel management demonstration project established 
in the Department of Agriculture, as described at 55 FR 9062 and amended 
at 61 FR 9507 and 61 FR 49178, shall be continued indefinitely and 
become effective upon enactment of this Act.
    [Sec. 750. Strike the last sentence under the heading of Title IV--
International Programs, Foreign Agricultural Service of Public Law 100-
202 (101 STAT. 1329 et seq.) and insert in lieu thereof the following: 
``On or after August 1, 1998 such individuals employed by contract to 
perform such services shall not, by virtue of such employment, be 
considered to be employees of the United States Government for purposes 
of any law administered by the Office of Personnel Management. Such 
individuals may be considered employees within the meaning of the 
Federal Employee Compensation Act, 5 U.S.C. 8101 et seq.''.]
    [Sec. 751. Section 1237D(c)(1) of subchapter C of the Food Security 
Act of 1985 is amended by inserting after ``perpetual'' the following 
``or 30-year''.]
    [Sec. 752. Section 1237(b)(2) of subchapter C of the Food Security 
Act of 1985 is amended by adding the following:
                ``(C) For purposes of subparagraph (A), to the maximum 
            extent practicable should be interpreted to mean that 
            acceptance of wetlands reserve program bids may be in 
            proportion to landowner interest expressed in program 
            options.''.]
    [Sec. 753. (a) Section 3(d)(3) of the Forest and Rangeland Renewable 
Resources Research Act of 1978 (16 U.S.C. 1642(d)(3)) (as amended by 
section 253(b) of the Agricultural Research, Extension, and Education 
Reform Act of 1998) is amended by striking ``The Secretary'' and 
inserting ``At the request of the Governor of the State of Maine, New 
Hampshire, New York, or Vermont, the Secretary''.
    (b) Section 7(e)(2) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4606(e)(2)) (as amended by section 605(f)(3) 
of the Agricultural Research, Extension, and Education Reform Act of 
1998) is amended by striking ``$0.0075'' each place it appears and 
inserting ``$0.01''.
    (c)(1) Section 793(c)(2)(B) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 2204f(c)(2)(B)) is amended--
        (A) in clause (iii), by striking ``or'' at the end;
        (B) in clause (iv), by striking the period at the end and 
    inserting ``; or''; and
        (C) by adding at the end the following:
    ``(v) a State agricultural experiment station.''.
    (2) Section 401(d) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7621(d)) is amended--
        (A) in paragraph (3), by striking ``or'' at the end;
        (B) in paragraph (4), by striking the period at the end and 
    inserting ``; or''; and
        (C) by adding at the end the following:
        ``(5) a State agricultural experiment station.''.
    (d) Section 3(d) of the Hatch Act of 1887 (7 U.S.C. 361c(d)) is 
amended--
        (1) in paragraph (1), by striking ``No'' and inserting ``Except 
    as provided in paragraph (4), no''; and
        (2) by adding at the end the following:
        ``(4) Territories.--In lieu of the matching funds requirement of 
    paragraph (1), the Commonwealth of Puerto Rico, the Virgin Islands, 
    and Guam shall be subject to the same matching funds requirements as 
    those applicable to an eligible institution under section 1449 of 
    the National Agricultural Research, Extension, and Teaching Policy 
    Act of 1977 (7 U.S.C. 3222d).''.
    (e) Section 3(e) of the Smith-Lever Act (7 U.S.C. 343(e)) is 
amended--
        (1) in paragraph (1), by inserting ``paragraph (4) and'' after 
    ``provided in''; and
        (2) by adding at the end the following:
        ``(4) Territories.--In lieu of the matching funds requirement of 
    paragraph (1), the Commonwealth of Puerto Rico, the Virgin Islands, 
    and Guam shall be subject to the same matching funds requirements as 
    those applicable to an eligible institution under section 1449 of 
    the National Agricultural Research, Extension, and Teaching Policy 
    Act of 1977 (7 U.S.C. 3222d).''.
    (f) The amendments made by this section shall take effect on the 
date of enactment of the Agricultural Research, Extension, and Education 
Reform Act of 1998.]
    [Sec. 754. None of the funds appropriated by this Act or any other 
Act shall be used to pay the salaries and expenses of personnel who 
prepare or submit appropriations language as part of the President's 
Budget submission to the Congress of the United States for programs 
under the jurisdiction of the Appropriations Subcommittees on 
Agriculture, Rural Development, and Related Agencies that assumes 
revenues or reflects a reduction from the previous year due to user fees 
proposals that have not been enacted into law prior to the submission of 
the Budget unless such Budget submission identifies which additional 
spending reductions should occur in the event the users fees proposals 
are not enacted prior to the date of the convening of a committee of 
conference for the fiscal year 2000 appropriations Act.]
    [Sec. 755. (a) Section 203(h) of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1622(h)) is amended by adding at the end the following: 
``Shell eggs packed under the voluntary grading program of the 
Department of Agriculture shall not have been shipped for sale previous 
to being packed under the program, as determined under a regulation 
promulgated by the Secretary.''.
    (b) Not later than 90 days after the date of enactment of this Act, 
the Secretary of Agriculture, and the Secretary of Health and Human 
Services, shall submit a joint status report to the Committees on 
Appropriations of the House of Representatives and the Senate that 
describes actions taken by the Secretary of Agriculture and the 
Secretary of Health and Human Services--
        (1) to enhance the safety of shell eggs and egg products;
        (2) to prohibit the grading, under the voluntary grading program 
    of the Department of Agriculture, of shell eggs previously shipped 
    for sale; and
        (3) to assess the feasibility and desirability of applying to 
    all shell eggs the prohibition on repackaging to enhance food 
    safety, consumer information, and consumer awareness.]
    [Sec. 756. Expenses for computer-related activities of the 
Department of Agriculture funded through the Commodity Credit 
Corporation pursuant to section 161(b)(1)(A) of Public Law 104-127 in 
fiscal year 1999 shall not exceed $65,000,000: Provided, That section 
4(g) of the Commodity Credit Corporation Charter Act is amended by 
striking $193,000,000 and inserting $188,000,000.]
    [Sec. 757. (a) The Secretary of Agriculture may use funds for tree 
assistance made available under Public Law 105-174, to carry out a tree 
assistance program to owners of trees that were lost or destroyed as a 
result of a disaster or emergency that was declared

[[Page 189]]

by the President or the Secretary of Agriculture during the period 
beginning May 1, 1998, and ending August 1, 1998, regardless of whether 
the damage resulted in loss or destruction after August 1, 1998.
    (b) Subject to subsection (c), the Secretary shall carry out the 
program, to the maximum extent practicable, in accordance with the terms 
and conditions of the tree assistance program established under part 783 
of title 7, Code of Federal Regulations.
    (c) A person shall be presumed eligible for assistance under the 
program if the person demonstrates to the Secretary that trees owned by 
the person were lost or destroyed by May 31, 1999, as a direct result of 
fire blight infestation that was caused by a disaster or emergency 
described in subsection (a).]
    [Sec. 758. None of the funds appropriated or otherwise made 
available by this Act shall be used to establish an Office of Community 
Food Security or any similar office within the United States Department 
of Agriculture without the prior approval of the Committee on 
Appropriations of both Houses of Congress.]
    [Sec. 759. Notwithstanding any other provision of law, the city of 
Vineland, New Jersey, shall be eligible for programs administered by the 
Rural Housing Service and the Rural Business-Cooperative Service.]
    [Sec. 760. (a)(1) For purpose of this section, the term 
``Commission'' means the Commodity Futures Trading Commission.
    (2) For purposes of this section, the term ``qualifying hybrid 
instrument or swap agreement'' means a hybrid instrument or swap 
agreement that--
        (A) was entered into before the start of the restraint period or 
    is entered into during the restraint period; and
        (B) is exempt under part 34 or part 35 of title 17, Code of 
    Federal Regulations (as in effect on January 1, 1998), qualifies for 
    the safe harbor contained in the Policy Statement of the Commission 
    regarding swap agreements published in the Federal Register on July 
    21, 1989 (54 Fed. Reg. 30694), or qualifies for the exclusion set 
    forth in the Statutory Interpretation of the Commission concerning 
    certain hybrid instruments published in the Federal Register on 
    April 11, 1990 (55 Fed. Reg. 13582).
    (3) For purposes of this section, the term ``restraint period'' 
means the period--
        (A) beginning on the date of the enactment of this Act; and
        (B) ending on March 30, 1999, or the first date on which 
    legislation is enacted that authorizes appropriations for the 
    Commission for a fiscal year after fiscal year 2000, whichever 
    occurs first.
    (b) During the restraint period, the Commission may not propose or 
issue any rule or regulation, or issue any interpretation or policy 
statement, that restricts or regulates activity in a qualifying hybrid 
instrument or swap agreement.
    (c) Notwithstanding subsection (b), during the restraint period, the 
Commission may--
        (1) act on a petition for exemptive relief under section 4(c) of 
    the Commodity Exchange Act (7 U.S.C. 6(c));
        (2) enter such cease and desist orders and take such enforcement 
    action, including the imposition of sanctions, as the Commission 
    considers necessary to enforce any provision of the Commodity 
    Exchange Act (7 U.S.C. 1 et seq.) or title 17, Code of Federal 
    Regulations, in connection with a qualifying hybrid instrument or 
    swap agreement, to the extent such provision is otherwise applicable 
    to that qualifying hybrid instrument or swap agreement or a 
    transaction involving that qualifying hybrid instrument or swap 
    agreement;
        (3) take such action as the Commission considers appropriate 
    with regard to agricultural trade options; and
        (4) take such action as the Commission considers appropriate to 
    respond to a market emergency.
    (d)(1) The legal status of contracts involving a qualifying hybrid 
instrument or swap agreement shall not differ from the legal status 
afforded such contracts during the period--
        (A) beginning on--
                (i) in the case of swap agreements, July 21, 1989, which 
            was the date on which the Commission adopted a Policy 
            Statement regarding swap agreements (54 Fed. Reg. 30694); 
            and
                (ii) in the case of hybrid instruments, April 11, 1990, 
            which was the date that the Statutory Interpretation of the 
            Commission concerning hybrid instruments was published in 
            the Federal Register; and
        (B) ending on January 1, 1998.
    (2) Neither the comment letter of the Commission submitted on 
February 26, 1998, to the Securities and Exchange Commission regarding 
the proposal known as ``Broker-Dealer Lite'', nor the Concept Release of 
the Commission regarding over-the-counter derivatives published in the 
Federal Register on May 12, 1998 (63 Fed. Reg. 26114), shall alter or 
affect the legal status of a qualifying hybrid instrument or swap 
agreement under the Commodity Exchange Act (7 U.S.C. 1 et seq.).
    (e) Nothing in this section shall be construed as reflecting or 
implying a determination that a qualifying hybrid instrument or swap 
agreement, or a transaction involving a qualifying hybrid instrument or 
swap agreement, is subject to the Commodity Exchange Act (7 U.S.C. 1 et 
seq.).]
    [Sec. 761. None of the funds appropriated or otherwise made 
available by this or any other Act may be used to carry out provision of 
section 612 of Public Law 105-185.]
    [Sec. 762. Section 136 of the Agricultural Market Transition Act (7 
U.S.C. 7236) is amended by striking ``1.25 cents'' each place it appears 
in subsections (a) and (b) and inserting ``3 cents''.]
    [Sec. 763. In implementing section 1124 of subtitle C of title XI of 
this Act, the Secretary of Agriculture shall:
    (a) provide $18,000,000 to the states for distribution of emergency 
aid to individuals with family incomes below the federal poverty level 
who have been adversely affected utilizing Federal Emergency Management 
Agency guidelines;
    (b) transfer to the Secretary of Commerce for obligation and 
expenditure (1) $15,000,000 for programs pursuant to title IX of Public 
Law 91-304, as amended, of which six percent may be available for 
administrative costs; (2) $5,000,000 for the Trade Adjustment Assistance 
program as provided by the Trade Act of 1974, as amended; and (3) 
$7,000,000 for disaster research and prevention pursuant to section 
402(d) of Public Law 94-265; and
    (c) transfer to the Administrator of the Small Business 
Administration for obligation and expenditure, $5,000,000 for the cost 
of direct loans authorized by section 7(b) of the Small Business Act, as 
amended, for eligible small businesses.]
    [Sec. 764. (a) Section 604 of the Clean Air Act is amended by 
inserting at the end the following:
    ``(h) Methyl Bromide.--Notwithstanding subsection (d) and section 
604(b), the Administrator shall not terminate production of methyl 
bromide prior to January 1, 2005. The Administrator shall promulgate 
rules for reductions in, and terminate the production, importation, and 
consumption of, methyl bromide under a schedule that is in accordance 
with, but not more stringent than, the phaseout schedule of the Montreal 
Protocol Treaty as in effect on the date of the enactment of this 
subsection.''.
    (b) Section 604(d) of the Clean Air Act is amended by inserting at 
the end the following:
        ``(5) Sanitation and food protection.--To the extent consistent 
    with the Montreal Protocol's quarantine and preshipment provisions, 
    the Administrator shall exempt the production, importation, and 
    consumption of methyl bromide to fumigate commodities entering or 
    leaving the United States or any State (or political subdivision 
    thereof) for purposes of compliance with Animal and Plant Health 
    Inspection Service requirements or with any international, Federal, 
    State, or local sanitation or food protection standard.
        ``(6) Critical uses.--To the extent consistent with the Montreal 
    Protocol, the Administrator, after notice and the opportunity for 
    public comment, and after consultation with other departments or 
    instrumentalities of the Federal Government having regulatory 
    authority related to methyl bromide, including the Secretary of 
    Agriculture, may exempt the production, importation, and consumption 
    of methyl bromide for critical uses.''.
    (c) Section 604(e) of the Clean Air Act is amended by inserting at 
the end the following:
        ``(3) Methyl bromide.--Notwithstanding the phaseout and 
    termination of production of methyl bromide pursuant to section 
    604(h), the Administrator may, consistent with the Montreal 
    Protocol, authorize the production of limited quantities of methyl 
    bromide, solely for use in developing countries that are Parties to 
    the Copenhagen Amendments to the Montreal Protocol.''.]
    [Sec. 765. Notwithstanding any other provision of law, permanent 
employees of county committees employed on or after October 1, 1998, 
pursuant to 8(b) of the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(b)) shall be considered as having Federal Civil Service 
status only for the purpose of applying for the United States Department 
of Agriculture Civil Service vacancies.]
    [Sec. 766. For grants for the rural empowerment zone and enterprise 
communities programs, an additional $15,000,000 is hereby appropriated, 
to remain available until expended, of which $10,000,000,

[[Page 190]]

is for grants for entities designated under section 1391(g) of the 
Internal Revenue Code of 1986 for the Secretary of Agriculture to carry 
out a second round of the empowerment zone program in rural areas; and 
of which $5,000,000 is for grants for rural enterprise communities for 
the Secretary of Agriculture to designate not more than 20 additional 
rural enterprise communities provided that such communities meet the 
designation and eligibility requirements of part I of subchapter U of 
chapter 1 of the Internal Revenue Code of 1986: Provided, That the 
designation of rural enterprise communities pursuant to this section 
shall be solely for the purpose of this section and not for tax 
treatment under the Internal Revenue Code: Provided further, That these 
funds are in addition to any other funds made available for empowerment 
zones and enterprise communities.] (Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations Act, 1999, 
as included in Public Law 105-277, section 101(a).)