Appendix - Department of Agriculture

[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)

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

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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............... 20,000^c
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)

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)

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.

Object Classification (in millions of dollars)

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)

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)

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)

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

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

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.

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)

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)

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)

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)

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
----------------------------------------------------------------------------

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)

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

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

Program and Financing (in millions of dollars)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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
---------------------------------------------------------------------------

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

Wildlife Habitat Incentive Program

Program and Financing (in millions of dollars)

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

Wildlife Habitat Incentive Program

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

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

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)

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

Credit accounts:

Agricultural Resource Conservation Demonstration Guaranteed Loan
Financing Account

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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)

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)

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
---------------------------------------------------------------------------

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)

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.

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)

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)

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)

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]]

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.

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)

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)

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)

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)

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

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)

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)

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
---------------------------------------------------------------------------

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)

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)

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)

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)

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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

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)

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)

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)

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)

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
---------------------------------------------------------------------------

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)

[[Page 147]]

Program and Financing (in millions of dollars)

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)

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)

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
---------------------------------------------------------------------------

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)

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)

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)

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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
----------------------------------------------------------------------------

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)

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

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)

[[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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

[[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
----------------------------------------------------------------------------

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)

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)

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)

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).)