Appendix - Department of Agriculture

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

[[Page 57]]

DEPARTMENT OF AGRICULTURE

OFFICE OF THE SECRETARY

Federal Funds

General and special funds:

Office of the Secretary

(including transfers of funds)

For necessary expenses of the Office of the Secretary of
Agriculture, and not to exceed $75,000 for employment under 5 U.S.C.
3109, [$15,436,000, of which, $12,600,000, to remain available until
expended, shall be available only for the development and implementation
of a common computing environment] $3,314,000: 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 the funds made available for the development and
implementation of a common computing environment shall only be available
upon approval of the Committees on Appropriations and Agriculture of the
House of Representatives and the Senate of a plan for the development
and implementation of a common computing environment:] 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] $629,000.

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, [$3,568,000] $3,778,000: 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] $2,312,000
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] $1,356,000.

Office of the Under Secretary for Marketing and Regulatory Programs

For necessary salaries and expenses of the Office of the 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] $635,000.

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] $560,000.

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] $589,000.

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] $711,000.

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] $605,000.

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] $570,000. (7 U.S.C. 2201-2202; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of the Secretary........... 23 3 3
00.02 Under/Assistant Secretaries....... 5 6 7
00.03 Service center implementation/
common computing environment.... 3 13
--------- --------- ----------
10.00 Total new obligations........... 31 22 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 2 2
22.00 New budget authority (gross)...... 31 24 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 32 26 14
23.95 Total new obligations............. -31 -22 -10
24.40 Unobligated balance available, end
of year......................... 2 2 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 31 24 12
41.00 Transferred to other accounts... -30
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 31 24 -18
55.00 Advance appropriation........... 30
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 31 24 12
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2 24 9
73.10 Total new obligations............. 31 22 10
73.20 Total outlays (gross)............. -9 -37 -18
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 24 9 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8 16 9
86.93 Outlays from discretionary
balances........................ 1 23 8
--------- --------- ----------
87.00 Total outlays (gross)........... 9 37 18
----------------------------------------------------------------------------

[[Page 58]]

Net budget authority and outlays:
89.00 Budget authority.................. 31 24 12
90.00 Outlays........................... 9 37 18
---------------------------------------------------------------------------

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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 6 6 6
12.1 Civilian personnel benefits....... 1 1 2
25.2 Other services.................... 4 14 2
41.0 Grants, subsidies, and
contributions................... 20
--------- --------- ----------
99.0 Subtotal, direct obligations.. 31 21 10
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 31 22 10
---------------------------------------------------------------------------

Personnel Summary

Fund for Rural America

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Rural development activities...... 40 30
00.02 Research, extension and education
grants.......................... 2 20 30
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 2 60 60
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 12
22.00 New budget authority (gross)...... 60 60
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12 60 60
23.95 Total new obligations............. -2 -60 -60
23.98 Unobligated balance expiring or
withdrawn....................... -10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation deferred.......... -60
Mandatory:

60.00 Appropriation................... 60 120 120
60.35 Appropriation deferred.......... -60 -60
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 60 120
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 60 60
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 28 20 60
73.10 Total new obligations............. 2 60 60
73.20 Total outlays (gross)............. -10 -20 -60
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 20 60 60
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -31
86.97 Outlays from new mandatory
authority....................... 9 63
86.98 Outlays from mandatory balances... 10 11 28
--------- --------- ----------
87.00 Total outlays (gross)........... 10 20 60
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 60 60
90.00 Outlays........................... 10 20 60
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-0012-0-1-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Guaranteed Business and Industry
Loans........................... 42
--------- --------- ----------
2159 Total loan guarantee levels..... 42
Guaranteed loan subsidy (in percent):
2320 Guaranteed Business and Industry
Loans........................... 3.11
--------- --------- ----------
2329 Weighted average subsidy rate... 3.11
Guaranteed loan subsidy budget authority:
2330 Guaranteed Business and Industry
Loans........................... 1
--------- --------- ----------
2339 Total subsidy budget authority.. 1
Guaranteed loan subsidy outlays:
2340 Guaranteed Business and Industry
Loans........................... 1
--------- --------- ----------
2349 Total subsidy outlays........... 1
---------------------------------------------------------------------------

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 1999
funds in 1999. However, these carryover funds are available for use in
2000. The Secretary allocated $40 million of the available $60 million
funding in 2000 to support outreach for socially disadvantaged
producers, water and waste grants and loans, farm labor housing grants,
and other ongoing rural development activities. Another $20 million was
provided for center grants for research focused on minority land and
community security, food entrepreneurship, manure and animal waste
management, site-specific resource management, and people in forest
communities. The 2000 appropria

[[Page 59]]

tions language blocks the use of the 2000 appropriation in 2000. The
2001 budget allows the use of the second year's availability of the 2000
funds, but disallows the expenditure of the authorized $60 million for
2001.

Trust Funds

Gifts and Bequests

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Gifts and bequests................ 1 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 new obligations (object
class 99.5)..................... 1 1 1
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... 1 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 1 1 1
73.20 Total outlays (gross)............. -1 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 1 1
----------------------------------------------------------------------------

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

The Secretary is authorized to accept and administer gifts and
bequests of real and personal property to facilitate the work of the
Department. Property and the proceeds thereof are used in accordance
with the terms of the gift or bequest (7 U.S.C. 2269).

EXECUTIVE OPERATIONS

Federal Funds

General and special funds:

Executive Operations

chief economist

For necessary expenses of the Chief Economist, including economic
analysis, risk assessment, cost-benefit analysis, 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, [$6,411,000] $8,612,000.

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] $12,610,000.

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, [$6,583,000] $6,765,000.
(7 U.S.C. 2201, 2202; 42 U.S.C. 2000d; Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Chief Economist................... 6 6 9
00.03 National Appeals Division......... 12 12 12
00.04 Budget and program analysis....... 6 7 7
09.01 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 25 26 29
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 25 26 29
23.95 Total new obligations............. -25 -26 -29
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 23 25 28
42.00 Transferred from other accounts. 1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 24 25 28
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 25 26 29
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 4 4 4
73.10 Total new obligations............. 25 26 29
73.20 Total outlays (gross)............. -24 -24 -28
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 4 4 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 22 23 26
86.93 Outlays from discretionary
balances........................ 2 3
--------- --------- ----------
87.00 Total outlays (gross)........... 24 24 28
----------------------------------------------------------------------------

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.................. 24 25 28
90.00 Outlays........................... 23 24 27
---------------------------------------------------------------------------

Executive Operations provides support for USDA policy officials and
selected Departmentwide services.

The Office of the Chief Economist advises the Secretary of
Agriculture on the economic implications of Department policies and
programs and proposed legislation. The Office serves as the single focal
point for the Nation's economic intelligence and analysis, risk
assessment, and cost-benefit analysis related to domestic and
international food and agriculture, 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

1999 actual 2000 est. 2001 est.
World Agricultural Supply and Demand
Estimates Reports issued............ 12 12 12
Weekly Weather and Crop Bulletin
issued.............................. 52 52 52

[[Page 60]]

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

1999 actual 2000 est. 2001 est.
Regional or National Training....... 3 1 3
Percent of Hearing Officer
determinations upheld on review..... 76.3 78.3 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)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 16 17 18
12.1 Civilian personnel benefits..... 4 4 6
21.0 Travel and transportation of
persons....................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 1 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 24 25 28
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 25 26 29
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 239 260 266
---------------------------------------------------------------------------

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 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, [$4,783,000] $6,465,000.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program.................... 4 5 6
09.01 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 6 7 8
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 6 7 8
23.95 Total new obligations............. -6 -7 -8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 5 6
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 discretionary)....... 2 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 6 7 8
----------------------------------------------------------------------------

Change in unpaid obligations:
72.95 Unpaid obligations, start of year:
From Federal sources:
Receivables and unpaid, unfilled
orders.......................... 1 1
73.10 Total new obligations............. 6 7 8
73.20 Total outlays (gross)............. -6 -7 -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 discretionary
authority....................... 6 7 8
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -2 -2
Against gross budget authority only:

88.95 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4 5 6
90.00 Outlays........................... 4 5 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

1999 actual 2000 est. 2001 est.
Percent of audits where corrective
action is proceeding as scheduled... 60% 70% 75%
Percent of material FMFIA internal
control deficiencies where
corrective action is proceeding as
scheduled........................... 70% 90% 90%
Decrease the percentage of
collectible delinquencies to the
total receivables .................. 1.5% 1.0% 1.0%
Issue management accountability
report by March 31, 2000............ Project PerformanceAccountabilit
y
planning report on report
issued
time

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 3 4 5
12.1 Civilian personnel benefits..... 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 4 5 6
99.0 Reimbursable obligations.......... 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 6 7 8
---------------------------------------------------------------------------

Personnel Summary

[[Page 61]]

Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 15 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, [$6,051,000]
$14,680,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of the Chief Information
Officer......................... 6 6 15
00.02 Year 2000 remediation............. 46 4
09.01 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 53 11 16
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 7 7
22.00 New budget authority (gross)...... 60 11 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 60 18 23
23.95 Total new obligations............. -53 -11 -16
24.40 Unobligated balance available, end
of year......................... 7 7 7
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 15
42.00 Transferred from other accounts. 53 4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 59 10 15
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 60 11 16
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 1 34
72.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 6 6 6
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 7 40 6
73.10 Total new obligations............. 53 11 16
73.20 Total outlays (gross)............. -20 -45 -16
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 34
74.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 6 6 6
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 40 6 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 17 11 16
86.93 Outlays from discretionary
balances........................ 3 34
--------- --------- ----------
87.00 Total outlays (gross)........... 20 45 16
----------------------------------------------------------------------------

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.................. 59 10 15
90.00 Outlays........................... 19 44 15
---------------------------------------------------------------------------

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 information security for long-range planning
guidance, implements measures to ensure that technology investments are
economical and effective, and implements standards and oversight 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 remediation activities. The
Year 2000 Program office provides oversight and guidance to ensure the
uninterrupted delivery of USDA programs and services. 2000 reflects a
transfer of $4.4 million of these funds to USDA for a total of $57
million.

Performance Measures for 1998-2000

1999 actual 2000 est. 2001 est.
Number of USDA agencies using CPIC in
the selection, evaluation, and control
of their IT investment portfolio....... 27 27 27
Number of agency IT management reviews
performed.............................. 2 6 6
Number of Service Center Oversight
Implementation Independent Validations
and Verifications conducted............ 9 3 3
Ensure all USDA agency critical
information systems are Year 2000
compliant and operational (%).......... 100 N.A. N.A.
Percent of agencies identifying critical
assets and assessing them for
vulnerability.......................... 10 26 30
Percent of agencies using information
system technology architecture......... 25 35 50

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 4 4 5
12.1 Civilian personnel benefits..... 1 1 1
25.2 Other services.................. 21 2 5
25.3 Purchases of goods and services
from Government accounts...... 2 2 3
26.0 Supplies and materials.......... 3
31.0 Equipment....................... 20 1
41.0 Grants, subsidies, and
contributions................. 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 52 10 14
99.0 Reimbursable obligations.......... 1 1 1
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 53 11 16
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 50 69 81
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 5 7 7
---------------------------------------------------------------------------

Common Computing Environment

For necessary expenses to acquire a Common Computing Environment for
the Natural Resources Conservation Service, and the Farm and Foreign
Agricultural Service and Rural Development Mission Areas, $75,000,000,
to remain available until expended, for the capital asset acquisition of
shared information technology systems, including services as authorized
by 7 U.S.C. 6915-16 and 40 U.S.C. 1421-28: Provided, That obligation of
these funds shall be consistent with the Department of Agriculture
Service Center Modernization Plan of the county-based Agencies, and
shall be with the concurrence of the Department's Chief Information
Officer.

[[Page 62]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3900-0-4-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 31.0)..................... 75
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 75
23.95 Total new obligations............. -75
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 75
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 75
73.20 Total outlays (gross)............. -63
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 12
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 63
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 75
90.00 Outlays........................... 63
---------------------------------------------------------------------------

The Department of Agriculture Reorganization Act of 1994 requires
the Secretary of Agriculture to procure and use computer systems in a
manner that enhances efficiency, productivity, and client services, and
that promotes computer information sharing among agencies of the
Department. In addition, the Clinger Cohen Act of 1996 requires USDA to
maximize the value of information technology acquisitions to improve the
efficiency and effectiveness of USDA programs. Congress has also
expressed a strong desire for and is considering additional legislation,
that would require these county-based agencies to make more services
available to the public electronically. Since its beginning in 1996, the
USDA Service Center modernization initiative has been working to
restructure county field offices, modernize and integrate business
approaches and replace the current stove-pipe and aging information
systems with a modern Common Computing Environment (CCE) that optimizes
information sharing, customer service, and staff efficiencies. The funds
requested under this account would fund essential capital investments
needed to achieve the goal of a fully operational CCE in 2002 as set
forth in the modernization plan. Economies of scale in the procurement
and management of information technology systems present compelling
arguments for coordinating information technology investments. Without
these investments, the Department's ability to provide timely and
efficient services will continue to erode and the costs of maintaining
the separate, aging systems will increase. Additional funds in the
individual agency budgets will support the reengineering of business
processes and data acquisition needed to maximize the benefits of this
technology.

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

09.01 Administration.................. 22 23 23
09.02 Communications.................. 5 5 5
09.03 Finance and management.......... 162 180 196
09.04 Information technology.......... 58 57 57
09.05 Executive secretariat........... 1 1 1
--------- --------- ----------
09.09 Subtotal, operating expenses.... 248 266 282
Purchase of equipment:

09.11 Administration.................. 1 1
09.12 Finance and management.......... 10 15 9
09.13 Information technology.......... 11 10 8
--------- --------- ----------
09.19 Subtotal, purchase of equipment. 22 25 18
--------- --------- ----------
10.00 Total new obligations........... 270 291 300
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 25 23 23
22.00 New budget authority (gross)...... 267 291 300
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 295 314 323
23.95 Total new obligations............. -270 -291 -300
24.40 Unobligated balance available, end
of year......................... 23 23 23
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 267 291 300
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 12 18 18
73.10 Total new obligations............. 270 291 300
73.20 Total outlays (gross)............. -263 -291 -300
73.45 Adjustments in unexpired accounts. -3
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 18 18 18
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 263 291 300
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -267 -291 -300
----------------------------------------------------------------------------

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

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, 1999. 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............. 86 101 107
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 5 4 4
--------- --------- ----------
11.9 Total personnel compensation.. 93 107 113
12.1 Civilian personnel benefits....... 17 20 21
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 5 5
23.2 Rental payments to others......... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 26 21 22
24.0 Printing and reproduction......... 2 2 2
25.2 Other services.................... 90 97 106
26.0 Supplies and materials............ 7 6 6
31.0 Equipment......................... 25 28 20
--------- --------- ----------
99.9 Total new obligations........... 270 291 300
---------------------------------------------------------------------------

[[Page 63]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
2001 Total compensable workyears: Full-
time equivalent employment...... 2,052 2,089 2,089
---------------------------------------------------------------------------

DEPARTMENTAL ADMINISTRATION

Federal Funds

General and special funds:

Departmental Administration

(including transfers of funds)

For Departmental Administration, [$34,738,000] $40,740,000, 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.08 Direct program.................... 32 35 41
09.01 Reimbursable program.............. 29 13 14
--------- --------- ----------
10.00 Total new obligations........... 61 48 55
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 36 48 55
23.95 Total new obligations............. -61 -48 -55
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 32 35 41
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 21 13 14
68.10 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... -8 -32
68.15 From Federal sources:
Adjustments to receivables and
unpaid, unfilled orders....... -9 32
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 4 13 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 36 48 55
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year -28 -6 28
72.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 40 32
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 12 26 28
73.10 Total new obligations............. 61 48 55
73.20 Total outlays (gross)............. -42 -46 -53
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. -6 28 30
74.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 32
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 26 28 30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 34 46 51
86.93 Outlays from discretionary
balances........................ 13 2
--------- --------- ----------
87.00 Total outlays (gross)........... 42 46 53
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -21 -13 -14
Against gross budget authority only:

88.95 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... 8 32
88.96 From Federal sources: Adjustment
to receivables and unpaid,
unfilled orders............... 9 -32
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 32 35 41
90.00 Outlays........................... 26 33 39
---------------------------------------------------------------------------

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 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.

DEPARTMENTAL ADMINISTRATION WORKLOAD INDICATORS

1999 actual 2000 est. 2001 est.
Subcontracting plans reviewed....... 46 40 40
Small businesses counseled.......... 6,800 6,800 6,800
Small business procurement
conferences conducted or sponsored
by USDA/OSDBU....................... 8 6 6
Number of outreach conferences
attended by OSDBU staff............. 18 15 15
Procurement assistance reviews
conducted........................... 0 1 1
Training conferences conducted...... 4 4 4

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 19 25 28
12.1 Civilian personnel benefits..... 4 5 6
23.3 Communications, utilities, and
miscellaneous charges......... 1 1
25.2 Other services.................. 3 1 3
25.3 Purchases of goods and services
from Government accounts...... 3 2 2
31.0 Equipment....................... 2 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 32 35 40
99.0 Reimbursable obligations.......... 29 13 14
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 61 48 55
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 312 374 392
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 62 77 75
---------------------------------------------------------------------------

[[Page 64]]

Hazardous [Waste] Materials 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)] 9601, et seq., and [section 6001 of] the Resource Conservation
and Recovery Act, 42 U.S.C. [6961] 9601, et seq., [$15,700,000]
$30,073,000, to remain available until expended: Provided, That
appropriations and funds available herein to the Department for
Hazardous [Waste] Materials 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 15 16 30
09.00 Reimbursable program.............. 1
--------- --------- ----------
10.00 Total new obligations........... 16 16 30
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 1 1
22.00 New budget authority (gross)...... 16 16 30
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 17 17 31
23.95 Total new obligations............. -16 -16 -30
24.40 Unobligated balance available, end
of year......................... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 16 16 30
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 17 16 30
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 21 18 19
73.10 Total new obligations............. 16 16 30
73.20 Total outlays (gross)............. -19 -15 -30
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 18 19 19
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 14 27
86.93 Outlays from discretionary
balances........................ 10 1 3
--------- --------- ----------
87.00 Total outlays (gross)........... 19 15 30
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 16 30
90.00 Outlays........................... 18 15 30
---------------------------------------------------------------------------

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

1999 actual 2000 est. 2001 est.
Number of sites assessed/
characterized on need for cleanup... 53 78 27
Number of removal and remediation
plans completed ¹........ 9 17 12
Number of removal and remedial
actions completed ²...... 42 61 22
Number of mine cleanups completed
³........................ 6 12 7
Number of cleanup/restoration
agreements with potentially
responsible parties (PRP's)
⁴........................ 7 10 10
Estimated value of cleanup/
restoration work performed by PRP's
($ millions) \4\.................... $34 $35 $35
Number of UST cleanups completed.... 6 N.A. N.A.

\1\ Until 1999, site assessment and cleanup planning were combined.
\2\ Includes response actions under CERCLA, RCRA corrective action, and
UST removals and cleanups.
\3\ New performance indicator for priority activities under the Clean
Water Initiative.
\4\ Prior to 1998, PRP and USDA cleanups were combined. The number of
agreements and estimated value of cleanup work performed by PRPs will vary
from year to year. Enforceable agreements are always executed when the PRP
agrees to perform cleanup work.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Direct obligations: Other services 14 15 29
99.0 Reimbursable obligations:
Subtotal, reimbursable
obligations..................... 1
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 16 16 30
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 4 6 6
---------------------------------------------------------------------------

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, improvement, and repair of Agriculture buildings,
[$140,364,000] $182,747,000, to remain available until expended:
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. (7 U.S.C. 2201, 2202, 2208; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Rental payments to GSA: Non-
recurring repairs............. 106 118 126
00.02 Building operations and
maintenance................... 24 32 31
00.04 Strategic space plan............ 7 1 26
09.02 Reimbursable program.............. 7 6 1
--------- --------- ----------
10.00 Total new obligations........... 144 157 184
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 11 7
22.00 New budget authority (gross)...... 141 150 184
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 152 157 184
23.95 Total new obligations............. -144 -157 -184
24.40 Unobligated balance available, end
of year......................... 7
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 137 140 183
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 4 10 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 141 150 184
----------------------------------------------------------------------------

[[Page 65]]

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 33 21 10
73.10 Total new obligations............. 144 157 184
73.20 Total outlays (gross)............. -157 -169 -184
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 21 10 10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 124 148 182
86.93 Outlays from discretionary
balances........................ 33 21 2
--------- --------- ----------
87.00 Total outlays (gross)........... 157 169 184
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -4 -10 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 137 140 183
90.00 Outlays........................... 153 159 183
---------------------------------------------------------------------------

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

1999 actual 2000 est. 2001 est.
Maintenance and Repairs:
Minor repairs (number)............ 389 350 350
Maintenance (thousands of hours).. 13 13 13
Service calls (thousands)......... 11 11 11

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 5 5 5
12.1 Civilian personnel benefits..... 1 1 1
23.1 Rental payments to GSA.......... 106 118 126
23.3 Communications, utilities, and
miscellaneous charges......... 5 5 5
25.2 Other services.................. 20 22 46
--------- --------- ----------
99.0 Subtotal, direct obligations.. 137 151 183
99.0 Reimbursable obligations.......... 7 6 1
--------- --------- ----------
99.9 Total new obligations........... 144 157 184
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 77 86 88
---------------------------------------------------------------------------

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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 3 3 10
09.00 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total new obligations........... 4 4 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 4 4 10
23.95 Total new obligations............. -4 -4 -10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3 3 10
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 2
68.10 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4 3 10
----------------------------------------------------------------------------

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

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

74.40 Obligated balance, end of year.. 2
74.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 2 2 2
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 4 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 3 10
86.93 Outlays from discretionary
balances........................ 5 2
--------- --------- ----------
87.00 Total outlays (gross)........... 6 6 10
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2
Against gross budget authority only:

88.95 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3 10
90.00 Outlays........................... 4 3 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.

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.

[[Page 66]]

GRANT OBLIGATIONS

1999 actual 2000 est. 2001 est.
Number of grants.................... 26 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 3 3 10
99.0 Reimbursable obligations:
Subtotal, reimbursable
obligations..................... 1 1
--------- --------- ----------
99.9 Total new obligations........... 4 4 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]
$9,031,000, 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 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 10 11
23.95 Total new obligations............. -9 -9 -10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 8 8 9
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 1 1 1
68.10 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... 1 1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 1 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 9 10 11
----------------------------------------------------------------------------

Change in unpaid obligations:
72.95 Unpaid obligations, start of year:
From Federal sources:
Receivables and unpaid, unfilled
orders.......................... 1
73.10 Total new obligations............. 9 9 10
73.20 Total outlays (gross)............. -9 -8 -11
74.95 Unpaid obligations, end of year:
From Federal sources:
Receivables and unpaid, unfilled
orders.......................... 1 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 9 10
86.93 Outlays from discretionary
balances........................ 1
--------- --------- ----------
87.00 Total outlays (gross)........... 9 8 11
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1 -1
Against gross budget authority only:

88.95 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... -1 -1
----------------------------------------------------------------------------

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

PERFORMANCE MEASURES

1999 actual 2000 est. 2001 est.
Random surveys of selected
communications initiatives reveal
that intended audience received the
material or information distributed. 90% 95% 98%

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.................. 1 1 1
--------- --------- ----------
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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 89 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] $70,214,000, 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 not to exceed $50,000 for employment under 5
U.S.C. 3109; and including not to exceed $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. (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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 65 65 70
09.01 Reimbursable program.............. 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 68 68 73
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 68 68 73

[[Page 67]]

23.95 Total new obligations............. -68 -68 -73
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 65 65 70
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 3 3 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 68 68 73
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 3 6 6
73.10 Total new obligations............. 68 68 73
73.20 Total outlays (gross)............. -65 -68 -73
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 6 6 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 62 62 67
86.93 Outlays from discretionary
balances........................ 3 6 6
--------- --------- ----------
87.00 Total outlays (gross)........... 65 68 73
----------------------------------------------------------------------------

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.................. 65 65 70
90.00 Outlays........................... 62 65 70
---------------------------------------------------------------------------

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........... 38 40 42
11.5 Other personnel compensation.. 4 4 4
--------- --------- ----------
11.9 Total personnel compensation 42 44 46
12.1 Civilian personnel benefits..... 12 12 13
21.0 Travel and transportation of
persons....................... 4 5 5
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...... 1 1 1
31.0 Equipment....................... 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 62 64 68
99.0 Reimbursable obligations.......... 3 3 3
99.5 Below reporting threshold......... 3 1 2
--------- --------- ----------
99.9 Total new obligations........... 68 68 73
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 701 753 760
---------------------------------------------------------------------------

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] $32,881,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 29 29 33
09.00 Reimbursable program.............. 1 2 2
--------- --------- ----------
10.00 Total new obligations........... 30 31 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 30 31 35
23.95 Total new obligations............. -30 -31 -35
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 29 29 33
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 30 31 35
----------------------------------------------------------------------------

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 31 35
73.20 Total outlays (gross)............. -30 -31 -35
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 29 29 33
86.93 Outlays from discretionary
balances........................ 2
--------- --------- ----------
87.00 Total outlays (gross)........... 30 31 35
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

Net budget authority and outlays:
89.00 Budget authority.................. 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................ 23 24 26
12.1 Civilian personnel benefits..... 5 5 6
23.3 Communications, utilities, and
miscellaneous charges......... 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 29 29 33
99.0 Reimbursable obligations.......... 1 2 2
--------- --------- ----------

[[Page 68]]

99.9 Total new obligations........... 30 31 35
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 333 343 363
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 6 7 7
---------------------------------------------------------------------------

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,
[$65,419,000] $55,424,000: Provided, [That $1,000,000 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 62 64 55
09.00 Reimbursable program.............. 3 4 4
--------- --------- ----------
10.00 Total new obligations........... 65 68 59
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 66 68 59
23.95 Total new obligations............. -65 -68 -59
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 66 65 55
41.00 Transferred to other accounts... -3 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 63 64 55
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 3 4 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 66 68 59
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 24 28 38
73.10 Total new obligations............. 65 68 59
73.20 Total outlays (gross)............. -61 -60 -60
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 28 38 35
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 45 60 52
86.93 Outlays from discretionary
balances........................ 16 8
--------- --------- ----------
87.00 Total outlays (gross)........... 61 60 60
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -3 -4 -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 63 64 55
90.00 Outlays........................... 58 56 56
---------------------------------------------------------------------------

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 2001 request includes funding for three new initiatives: an
initiative on structural change, coordination and concentration in food
and agriculture; an initiative on global research, statistics, and
outreach; and an initiative, concerning the economic incentives for
carbon sequestration and trace gas emissions control in agriculture. The
2000 appropriation included funds for certain evaluation activities of
the USDA Food and Nutrition Service, which are proposed to be funded
through that account in 2001.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 32 32 32
11.3 Other than full-time permanent 2 2 2
--------- --------- ----------
11.9 Total personnel compensation 34 34 34
12.1 Civilian personnel benefits..... 6 6 6
21.0 Travel and transportation of
persons....................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 4 2 2
25.3 Purchases of goods and services
from Government accounts...... 4 6 5
25.5 Research and development
contracts..................... 8 10 4
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1 1
41.0 Grants, subsidies, and
contributions................. 2 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 62 64 55
99.0 Reimbursable obligations.......... 3 4 4
--------- --------- ----------
99.9 Total new obligations........... 65 68 59
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 506 506 517
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 5 5 5
---------------------------------------------------------------------------

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 7
U.S.C. 1621-1627, Public Law 105-113, and other laws, [$99,405,000]
$100,615,000, of which up to [$16,490,000] $15,000,000 shall be
available until expended for the Census of Agriculture: Provided, That
this appropriation shall be available for em

[[Page 69]]

ployment 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Agricultural estimates.......... 76 79 82
00.02 Statistical research and service 4 4 4
00.03 Census of Agriculture........... 23 16 15
09.01 Reimbursable program.............. 10 10 10
--------- --------- ----------
10.00 Total new obligations........... 113 109 111
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 114 109 111
23.95 Total new obligations............. -113 -109 -111
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 104 99 101
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 10 10 10
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 114 109 111
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 9 13 11
73.10 Total new obligations............. 113 109 111
73.20 Total outlays (gross)............. -116 -110 -110
73.40 Adjustments in expired accounts
(net)........................... 7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 13 11 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 114 98 100
86.93 Outlays from discretionary
balances........................ 1 12 11
--------- --------- ----------
87.00 Total outlays (gross)........... 116 110 110
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

Net budget authority and outlays:
89.00 Budget authority.................. 104 99 101
90.00 Outlays........................... 106 100 100
---------------------------------------------------------------------------

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. In addition, the Census of Agriculture is conducted every
five years which provides comprehensive data on the Nation's
agricultural industry down to the county level.

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 2001 program includes
increases for development of NASS Computer Security Architecture,
implementation of a hog survey, expansion of the environmental
statistics program, and a reduction in lower priority programs.

Statistical research and service.--This activity is designed to
improve the statistical methods and related technologies by improving
sample survey designs and procedures and by testing new forecasting and
estimating techniques, such as the use of remote sensing and geographic
information systems.

Census of Agriculture.--The Census of Agriculture is conducted every
five years. In 2001, a decrease reflects removal of the Agricultural
Economics and Land Ownership Survey. An increase is requested to fund
cyclical activities associated with preparations for the 2002 Census of
Agriculture.

Miscellaneous funds received from local organizations, commodity
groups, and others are available for dissemination of reports and for
survey work conducted under cooperative agreements (7 U.S.C. 450b, 450h,
3318b).

PERFORMANCE MEASURES AND INDICATORS

Indicators
Performance Measures 1999 actual 2000 est. 2001 est.
Percentage of total national
agricultural production included in
the NASS program.................... 94 95 95
Percentage of reports issued that
meet scheduled release date and
contain no data errors.............. 96 99 99

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 50 52 54
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 52 54 56
12.1 Civilian personnel benefits..... 12 12 13
21.0 Travel and transportation of
persons....................... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 3 4 3
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 21 15 15
25.3 Purchases of goods and services
from Government accounts...... 7 6 6
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 3 3 3
--------- --------- ----------
99.0 Subtotal, direct obligations.. 103 99 101
99.0 Reimbursable obligations.......... 9 9 9
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 113 109 111
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 1,030 1,030 1,028
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 107 107 107
---------------------------------------------------------------------------

AGRICULTURAL RESEARCH SERVICE

Federal Funds

General and special funds:

Agricultural Research Service

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, [$834,322,000] $894,258,000: Provided,

[[Page 70]]

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]
$375,000, except for headhouses or greenhouses which shall each be
limited to [$1,000,000] $1,200,000, and except for 10 buildings to be
constructed or improved at a cost not to exceed [$500,000] $750,000
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] $375,000, 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 the foregoing limitations on purchase of land shall not
apply to the purchase of land at Corvallis, Oregon; Parlier, California
and Florence, South Carolina: 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 [2000] 2001, 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Research on soil, water and air
science....................... 82 89 110
00.02 Research on plant science....... 295 296 301
00.03 Research on animal science...... 119 133 141
00.04 Research on commodity conversion
and delivery.................. 156 172 184
00.05 Human nutrition research........ 67 72 89
00.06 Integration of agricultural
systems....................... 29 31 30
00.07 Repair and maintenance of
facilities.................... 18 18 18
00.08 Contingencies................... 1
00.09 Collaborative research program.. 2
00.10 Agricultural information and
library science............... 20 19 21
09.00 Reimbursable program.............. 48 60 60
--------- --------- ----------
10.00 Total new obligations........... 837 890 954
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 1
22.00 New budget authority (gross)...... 842 890 954
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 843 891 954
23.95 Total new obligations............. -837 -890 -954
23.98 Unobligated balance expiring or
withdrawn....................... -3
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 786 834 894
40.15 Appropriation (emergency)....... 23
40.35 Appropriation rescinded......... -22
40.76 Reduction pursuant to P.L. 106-
113........................... -4
42.00 Transferred from other accounts. 7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 794 830 894
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 48 60 60
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 842 890 954
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 205 234 241
73.10 Total new obligations............. 837 890 954
73.20 Total outlays (gross)............. -809 -885 -942
73.40 Adjustments in expired accounts
(net)........................... 1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 234 241 253
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 655 724 775
86.93 Outlays from discretionary
balances........................ 154 160 166
--------- --------- ----------
87.00 Total outlays (gross)........... 809 885 942
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -44 -55 -55
88.40 Non-Federal sources........... -4 -5 -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -48 -60 -60
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 794 830 894
90.00 Outlays........................... 761 825 882
---------------------------------------------------------------------------

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 2001, the Service proposes increased emphases for critical
research needs in agriculture, such as: Emerging and exotic diseases,
Invasive species, biobased products and new uses, the President's Food
Safety Initiative, Human Nutrition, Agricultural genomics and genetics,
Pest Management requirements of the Food Quality Protection Act,
Integrated sciences for ecological challenges, Air quality, Global
climate change, and Agricultural information and library services. 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, water, and air sciences.--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

[[Page 71]]

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.

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........... 315 337 355
11.3 Other than full-time permanent 21 23 24
11.5 Other personnel compensation.. 15 15 15
--------- --------- ----------
11.9 Total personnel compensation 351 375 394
12.1 Civilian personnel benefits..... 81 88 92
21.0 Travel and transportation of
persons....................... 16 17 18
22.0 Transportation of things........ 2 2 2
23.2 Rental payments to others....... 1 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 31 31 35
24.0 Printing and reproduction....... 1 1 2
25.2 Other services.................. 3 9 12
25.3 Purchases of goods and services
from Government accounts...... 5 4 5
25.4 Operation and maintenance of
facilities.................... 26 27 30
25.5 Research and development
contracts..................... 119 125 141
25.7 Operation and maintenance of
equipment..................... 6 6 7
25.8 Subsistence and support of
persons....................... 1 1 1
26.0 Supplies and materials.......... 71 72 75
31.0 Equipment....................... 45 47 51
32.0 Land and structures............. 6 6 6
41.0 Grants, subsidies, and
contributions................. 24 17 21
--------- --------- ----------
99.0 Subtotal, direct obligations.. 789 830 894
99.0 Reimbursable obligations.......... 48 60 60
--------- --------- ----------
99.9 Total new obligations........... 837 890 954
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 7,301 7,518 7,518
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 138 138 138
---------------------------------------------------------------------------

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, [$52,500,000]
$39,300,000, to remain available until expended (7 U.S.C. 2209b):
Provided, That funds may be received from any State, other political
subdivision, organization, or individual for the purpose of establishing
any research facility of the Agricultural Research Service, as
authorized by law. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 73 65 59
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 102 86 73
22.00 New budget authority (gross)...... 56 53 39
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 158 139 112
23.95 Total new obligations............. -73 -65 -59
24.40 Unobligated balance available, end
of year......................... 86 73 53
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 56 53 39
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 68 72 72
73.10 Total new obligations............. 73 65 59
73.20 Total outlays (gross)............. -68 -65 -65
73.40 Adjustments in expired accounts
(net)........................... -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 72 72 66
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 6 5
86.93 Outlays from discretionary
balances........................ 65 59 60
--------- --------- ----------
87.00 Total outlays (gross)........... 68 65 65
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 56 53 39

[[Page 72]]

90.00 Outlays........................... 68 65 65
---------------------------------------------------------------------------

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 2001 request provides the continuing modernization of the Beltsville
Agricultural Research Center, Beltsville, MD; the modernizing of ARS and
APHIS facilities at the National Animal Disease Center (NADC) at Ames,
IA; ongoing upgrades to existing facilities at Plum Island; and Albany,
CA; and other high priority projects.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Other services.................... 53 25 22
32.0 Land and structures............... 19 40 37
41.0 Grants, subsidies, and
contributions................... 1
--------- --------- ----------
99.9 Total new obligations........... 73 65 59
---------------------------------------------------------------------------

Trust Funds

Miscellaneous Contributed Funds

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Science and education contributed
funds........................... 22 23 23
Appropriation:
05.01 Miscellaneous contributed funds... -22 -23 -23
--------- --------- ----------
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

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

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 12 14 13
22.00 New budget authority (gross)...... 22 23 23
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 34 37 36
23.95 Total new obligations............. -20 -23 -23
24.40 Unobligated balance available, end
of year......................... 14 13 13
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... 22 23 23
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 5 8 6
73.10 Total new obligations............. 20 23 23
73.20 Total outlays (gross)............. -18 -23 -23
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 8 6 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 6 7 7
86.98 Outlays from mandatory balances... 12 16 16
--------- --------- ----------
87.00 Total outlays (gross)........... 18 23 23
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 22 23 23
90.00 Outlays........................... 18 23 23
---------------------------------------------------------------------------

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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 5 5 5
12.1 Civilian personnel benefits....... 1 1 1
25.2 Other services.................... 10 13 13
26.0 Supplies and materials............ 3 3 3
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 20 23 23
---------------------------------------------------------------------------

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,
$89,541,000 as follows: payments for the water quality program,
$18,000,000; payments for the food safety program, $15,000,000; payments
for the national agriculture pesticide impact assessment program,
$4,541,000; payments for the Food Quality Protection Act risk mitigation
program for major food crop systems, $4,000,000; payments for crops
affected by the Food Quality Protection Act implementation, $1,000,000;
and payments for the methyl bromide transition program, $2,000,000, as
authorized under section 406 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7626).]
For the integrated research, education, and extension competitive
grants programs, including necessary administrative expenses,
$76,194,000: (1) for payments as authorized under section 406 of the
Agricultural Research, Extension and Education Reform Act of 1998 (7
U.S.C. 7626), for the small farms initiative, $4,000,000; for the water
quality program, $16,204,000; for the food safety program, $15,000,000;
for the national agriculture pesticide impact assessment program,
$4,640,000; for the Food Quality Protection Act risk mitigation program
for major food crop systems, $10,000,000; for the crops affected by FQPA
implementation, $3,000,000; for the methyl bromide transition program,
$5,000,000; for the invasive species program, $1,500,000; for the
biobased products program, $9,600,000; for the organic transition
program, $1,000,000; (2) payments for the international research,
extension, and teaching activities for grants under section 1459A of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3291), as amended, to remain available until expended,
$1,000,000; and (3) payments for anti-hunger and food security grants
program 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, $5,250,000.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.10 Small farms initiative.......... 4
00.20 Water quality................... 13 16
00.30 Food safety..................... 15 15
00.40 Pesticide impact assessment..... 5 5
00.50 Crops at risk................... 1 3

[[Page 73]]

00.60 Food Quality Protection Act risk
mitigation program............ 4 10
00.70 Methyl bromide transition
program....................... 2 5
00.80 Anti-hunger and food security
grants........................ 5
00.85 International science and
education grants.............. 1
00.86 Biobased products program....... 10
00.87 Invasive species................ 1
00.88 Organic transition-risk
assessment.................... 1
--------- --------- ----------
10.00 Total new obligations........... 40 76
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 40 76
23.95 Total new obligations............. -40 -76
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 40 76
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 38
73.10 Total new obligations............. 40 76
73.20 Total outlays (gross)............. -2 -17
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 38 97
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 4
86.93 Outlays from discretionary
balances........................ 14
--------- --------- ----------
87.00 Total outlays (gross)........... 2 17
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 40 76
90.00 Outlays........................... 2 17
---------------------------------------------------------------------------
Note.--2000 and 2001 estimates 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.

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

Small farms initiative.--In 2001, 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 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 program to address 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 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.

Anti-Hunger and Food Security grants program.--Funds are proposed to
establish an anti-hunger and food security program which will support
competitively-awarded projects. This program will provide funds to non-
profit entities for projects that reduce hunger, improve nutrition,
bolster community food security, and help families move from poverty to
self-sufficiency.

Invasive species program.--This program will support a new
competitive grant program that supports integrated research, extension,
and education activities in collaboration with representative
individuals, groups and agencies at a local level to address invasive
species issues on an ecoregional basis.

Biobased products program.--This funding will enable CSREES to work
with other agencies to increase economic opportunities for U.S. farmers
by developing and expanding markets through research, development, and
commercialization of new, economically competitive and environmentally
preferable products from biobased resources.

Organic transition program.--This program supports the development
and implementation of biologically based pest management practices that
mitigate the ecological, agronomic, and economic risks associated with
the transition from conventional to organic agricultural production
systems.

International science and education grants.--This program supports
the globalization of colleges and universities to strengthen U.S.
economic competitiveness and to promote international market development
for U.S. agriculture.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1
25.2 Other services.................... 1
25.3 Purchases of goods and services
from Government accounts........ 1 1
41.0 Grants, subsidies, and
contributions................... 38 73
--------- --------- ----------
99.9 Total new obligations........... 40 76
---------------------------------------------------------------------------

Personnel Summary

Initiative for Future Agriculture and Food Systems

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 120 120
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 120 120
23.95 Total new obligations............. -120 -120
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation deferred.......... -120
Mandatory:

60.00 Appropriation................... 120 240 240
60.35 Appropriation deferred.......... -120 -120
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 120 240
--------- --------- ----------

[[Page 74]]

70.00 Total new budget authority
(gross)....................... 120 120
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 114
73.10 Total new obligations............. 120 120
73.20 Total outlays (gross)............. -6 -48
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 114 186
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -6
86.97 Outlays from new mandatory
authority....................... 6 12
86.98 Outlays from mandatory balances... 42
--------- --------- ----------
87.00 Total outlays (gross)........... 6 48
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 120 120
90.00 Outlays........................... 6 48
---------------------------------------------------------------------------

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 1999 funds in 1999. However, these funds are
available in 2000. The 2000 appropriations language blocked the use of
2000 funds in 2000. The 2001 budget allows the use of the second year's
availability of the 2000 funds, but disallows the expenditure of the
authorized $120 million for 2001.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1503-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.3 Personnel compensation: Other than
full-time permanent............. 1 1
25.2 Other services.................... 1 1
41.0 Grants, subsidies, and
contributions................... 118 118
--------- --------- ----------
99.9 Total new obligations........... 120 120
---------------------------------------------------------------------------

Personnel Summary

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 to carry into effect the provisions of the Hatch
Act (7 U.S.C. 361a-i); $21,932,000 for grants for cooperative forestry
research (16 U.S.C. 582a-a7); $30,676,000 for payments to the 1890 land-
grant colleges, including Tuskegee University (7 U.S.C. 3222), of which
$1,000,000 shall be made available to West Virginia State College in
Institute, West Virginia, which for fiscal year [2000] 2001 and
thereafter shall be designated as an eligible institution under section
1445 of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222); [$63,238,000] $6,394,000 for special
grants for agricultural research (7 U.S.C. 450i(c)); [$13,721,000]
$18,369,000 for special grants for agricultural research on improved
pest control (7 U.S.C. 450i(c)); [$119,300,000] $150,000,000 for
competitive research grants (7 U.S.C. 450i(b)); $5,109,000 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);
$650,000 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; $500,000] $1,000,000 for the 1994 research program (7 U.S.C.
301 note), to remain available until expended; [$3,000,000] $5,000,000
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]
$6,000,000 for higher education challenge grants (7 U.S.C. 3152(b)(1));
[$1,000,000] $2,000,000 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] $3,500,000 for an education grants program
for Hispanic-serving Institutions (7 U.S.C. 3241); $500,000 for a
secondary agriculture education program and 2-year post-secondary
education (7 U.S.C. 3152(h)); $4,000,000 for aquaculture grants (7
U.S.C. 3322); [$8,000,000] $10,500,000 for sustainable agriculture
research and education (7 U.S.C. 5811); [$9,200,000] $9,500,000 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 for payments to the 1994
Institutions pursuant to section 534(a)(1) of Public Law 103-382; and
[$14,825,000] $4,288,000 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, [$485,698,000] $460,865,000.
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]
$7,100,000: Provided, That hereafter, any distribution of the adjusted
income from the Native American institutions endowment fund is
authorized to be used for facility renovation, repair, construction, and
maintenance, in addition to other authorized purposes. (Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 14 19 24
Receipts:
02.01 Federal payment, Native American
Institutions Endowment Fund..... 5 5 7
02.02 Earnings on investments........... 1 2
--------- --------- ----------
02.99 Total receipts.................. 5 6 9
--------- --------- ----------
04.00 Total: Balances and collections... 19 25 33
Appropriation:
05.01 Cooperative state research
activities...................... -1 -1
--------- --------- ----------
07.99 Total balance, end of year........ 19 24 32
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Payments under the Hatch Act.... 181 181 181
00.02 Cooperative forestry research... 22 22 22
00.03 Payments to 1890 colleges and
Tuskegee University........... 30 31 31
00.04 Special research grants......... 92 91 40
00.05 National research initiative
competitive grants............ 118 163 150
00.06 Animal health and disease
research...................... 5 5 5
00.07 Federal administration.......... 10 15 4
00.08 Higher education................ 20 25 28
00.09 Native American Institutions
Endowment Fund................ 6 6 8
09.00 Reimbursable program.............. 17 16 16
--------- --------- ----------
10.00 Total new obligations........... 501 555 485
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 63 66 15
22.00 New budget authority (gross)...... 504 504 485
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 567 570 500
23.95 Total new obligations............. -501 -555 -485

[[Page 75]]

24.40 Unobligated balance available, end
of year......................... 66 15 15
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 486 490 468
40.25 Appropriation (special fund,
indefinite)................... 1 1
40.76 Reduction pursuant to P.L. 106-
113........................... -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 486 487 469
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 17 16 16
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 503 503 485
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 373 428 497
73.10 Total new obligations............. 501 555 485
73.20 Total outlays (gross)............. -446 -486 -497
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 428 497 485
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 234 256 256
86.93 Outlays from discretionary
balances........................ 212 230 240
--------- --------- ----------
87.00 Total outlays (gross)........... 446 486 497
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -17 -16 -16
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 487 488 469
90.00 Outlays........................... 429 470 481
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
U.S. securities: Par value...... 14 18 23
92.02 Total investments, end of year:
U.S. securities: Par value...... 18 23 30
---------------------------------------------------------------------------
Note.--In 2000 and 2001 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. 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 2001 the proposed increase to $150
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 to continue the
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.--Increased funding is proposed for graduate
fellowships grants, competitive challenge grants, Hispanic-serving
institutions education grants program, and a multicultural scholars
program. Funding is also proposed for a Native American institutions
program. Proposed funding for these higher education programs would
support approximately 150 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

[[Page 76]]

sciences. Funding is also proposed for a capacity building program at
the 1890 institutions as part of the USDA initiative to strengthen these
institutions through a broadening of curricula, increased faculty
development and student research projects. Proposed funding would
support approximately 49 teaching and research grants.

Reimbursable program.--Funds support basic and applied agriculture
research and activities performed for other USDA, Federal, and non-
Federal agencies.

Native American Institutions Endowment Fund.--This program provides
for an endowment for the 1994 land-grant institutions (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.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 11 12 13
12.1 Civilian personnel benefits..... 2 2 2
21.0 Travel and transportation of
persons....................... 1 1 1
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 1 1 1
25.2 Other services.................. 2 3 1
25.3 Purchases of goods and services
from Government accounts...... 1 2 1
41.0 Grants, subsidies, and
contributions................. 465 517 449
--------- --------- ----------
99.0 Subtotal, direct obligations.. 484 539 469
99.0 Reimbursable obligations.......... 17 16 16
--------- --------- ----------
99.9 Total new obligations........... 501 555 485
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 187 202 207
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 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 4 3
23.95 Total new obligations............. -1 -3
24.40 Unobligated balance available, end
of year......................... 3
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 139 99 77
73.10 Total new obligations............. 1 3
73.20 Total outlays (gross)............. -41 -25 -33
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 99 77 44
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 41 25 33
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 41 25 33
---------------------------------------------------------------------------

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 2001.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1501-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1 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; payments
for extension work at the 1994 Institutions under the Smith-Lever Act (7
U.S.C. 343(b)(3)), [$3,060,000] $3,500,000; payments for the nutrition
and family education program for low-income areas under section 3[(a)]
(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, $4,000,000]
$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), $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 youth-at-risk programs under section 3(d) of
the Act, [$9,000,000] $10,000,000; for youth farm safety education and
certification extension grants, to be awarded competitively under
section 3(d) of the Act, $5,000,000; 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] $4,500,000; 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,
$26,843,000, of which $1,000,000 shall be made available to West
Virginia State College in Institute, West Virginia, which for fiscal
year [2000] 2001 and thereafter shall be designated as an eligible
institution under section 1444 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221); 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,
[$12,242,000] $5,933,000; in all, [$424,922,000] $428,236,000: 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, 2000.)

[[Page 77]]

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Smith-Lever Act, 3(b) and 3(c).. 276 276 276
00.02 Youth at risk................... 9 9 10
00.03 Water quality................... 10
00.04 Expanded food and nutrition
education program (EFNEP)..... 59 59 61
00.05 Pest management................. 11 11 12
00.06 Farm safety..................... 3 4
00.07 Pesticide impact assessment..... 3
00.08 Pesticide applicator training... 2
00.09 Indian reservation extension
agents........................ 2 2 5
00.11 Food safety..................... 7
00.12 Rural development............... 1 1 1
00.13 Payments to 1890 colleges and
Tuskegee University........... 26 27 27
00.15 Renewable resources extension
act........................... 3 3 3
00.16 Federal administration.......... 12 12 6
00.18 Rural health and safety
education..................... 3 3
00.19 1890 facilities (section 1447).. 7 14 12
00.21 Sustainable agriculture......... 3 3 4
00.22 1994 institutions activities.... 2 3 4
00.23 Youth farm safety pilot program. 5
09.00 Reimbursable program.............. 18 25 25
--------- --------- ----------
10.00 Total new obligations........... 455 452 453
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 4 2
22.00 New budget authority (gross)...... 455 449 453
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 459 451 453
23.95 Total new obligations............. -455 -452 -453
24.40 Unobligated balance available, end
of year......................... 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 437 425 428
40.76 Reduction pursuant to P.L. 106-
113........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 437 424 428
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 18 25 25
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 455 449 453
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 221 251 226
73.10 Total new obligations............. 455 452 453
73.20 Total outlays (gross)............. -425 -477 -446
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 251 226 233
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 265 279 281
86.93 Outlays from discretionary
balances........................ 160 197 164
--------- --------- ----------
87.00 Total outlays (gross)........... 425 477 446
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -18 -25 -25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 437 424 428
90.00 Outlays........................... 407 452 421
---------------------------------------------------------------------------
Note.--In 2000 and 2001 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 2001 increases have been requested for: the Expanded Food and
Nutrition Education Program, pest management, children, youth and
families at risk, a youth farm safety education and certification pilot
project, extension services on Indian reservations, sustainable
agriculture, pesticide applicator training, and 1994 (Native American)
institutions.

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
21.0 Travel and transportation of
persons....................... 1 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 1 1
24.0 Printing and reproduction....... 1 1
25.2 Other services.................. 2 1 1
25.3 Purchases of goods and services
from Government accounts...... 2 1
41.0 Grants, subsidies, and
contributions................. 419 411 411
--------- --------- ----------
99.0 Subtotal, direct obligations.. 437 427 428
99.0 Reimbursable obligations.......... 18 25 25
--------- --------- ----------
99.9 Total new obligations........... 455 452 453
---------------------------------------------------------------------------

[[Page 78]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 193 210 205
---------------------------------------------------------------------------

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, [$441,263,000] $512,044,000, 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 [2000] 2001, 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
[2000] 2001, $87,000,000 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, 2000.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 105 117 130
Receipts:
02.01 Agricultural quarantine inspection
fees............................ 172 188 215
--------- --------- ----------
04.00 Total: Balances and collections... 277 305 345
Appropriation:
05.01 Salaries and expenses............. -160 -175 -202
--------- --------- ----------
05.99 Subtotal appropriation............ -160 -175 -202
--------- --------- ----------
07.99 Total balance, end of year........ 117 130 143
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Pest and disease exclusion...... 264 288 352
00.02 Plant and animal health
monitoring.................... 74 79 88
00.03 Pest and disease management
programs...................... 90 91 104
00.04 Animal care..................... 10 11 16
00.05 Scientific and technical
services...................... 54 53 54
00.06 Contingencies................... 5 4 4
00.07 Emergency program funding....... 118 84
00.08 Invasive species................ 9
--------- --------- ----------
01.00 Total direct program............ 615 610 627
09.01 Reimbursable program.............. 64 64 75
--------- --------- ----------
10.00 Total new obligations........... 679 674 702
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 12 35 31
22.00 New budget authority (gross)...... 557 586 687
22.22 Unobligated balance transferred
from other accounts............. 146 84
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 715 705 718
23.95 Total new obligations............. -679 -674 -702
24.40 Unobligated balance available, end
of year......................... 35 31 16
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 338 354 425
40.20 Appropriation (special fund,
definite)..................... 88 87 87
40.76 Reduction pursuant to P.L. 106-
113........................... -3
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 425 438 512
Mandatory:

60.25 Appropriation (special fund,
indefinite)................... 72 88 115
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 60 60 60
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 557 586 687
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 68 98 75
73.10 Total new obligations............. 679 674 702
73.20 Total outlays (gross)............. -649 -697 -683
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 98 75 94
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 404 476 546
86.93 Outlays from discretionary
balances........................ 173 133 22
86.97 Outlays from new mandatory
authority....................... 71 88 115
86.98 Outlays from mandatory balances... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 649 697 683
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -10 -10 -10
88.40 Non-Federal sources........... -50 -50 -50
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -60 -60 -60
----------------------------------------------------------------------------

[[Page 79]]

Net budget authority and outlays:
89.00 Budget authority.................. 497 526 627
90.00 Outlays........................... 589 637 623
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 497 526 627
Outlays........................... 589 637 623
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. -11
Outlays........................... -11
------------------------------------
Total:
Budget Authority.................. 497 526 616
Outlays........................... 589 637 612
====================================

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........... 204 235 273
11.3 Other than full-time permanent 15 16 17
11.5 Other personnel compensation.. 34 36 41
--------- --------- ----------
11.9 Total personnel compensation 253 287 331
12.1 Civilian personnel benefits..... 61 71 80
13.0 Benefits for former personnel... 1
21.0 Travel and transportation of
persons....................... 20 20 22
22.0 Transportation of things........ 8 7 5
23.2 Rental payments to others....... 5 6 6
23.3 Communications, utilities, and
miscellaneous charges......... 13 15 14
24.0 Printing and reproduction....... 1 1 2
25.2 Other services.................. 104 102 83
26.0 Supplies and materials.......... 44 28 34
31.0 Equipment....................... 22 17 16
Grants, subsidies, and
contributions:
41.0 United States-Colombia
Commission to Prevent Foot-
and-Mouth Disease........... 1 2 2
41.0 Joint Screwworm eradication
programs.................... 19 5 5
41.0 Joint Commission on the
Mediterranean fruit fly..... 4 5 5
41.0 Other grants, subsidies, and
contributions............... 2 11 17
Insurance claims and
indemnities:
42.0 Brucellosis................... 4 2 2
42.0 Pseudorabies.................. 52 30
42.0 Other insurance claims and
indemnities................. 2 1 3
--------- --------- ----------
99.0 Subtotal, direct obligations.. 615 610 628
99.0 Reimbursable obligations.......... 64 64 74
--------- --------- ----------
99.9 Total new obligations........... 679 674 702
---------------------------------------------------------------------------

Personnel Summary

1001 Full-time equivalent employment. 3,499 5,825 5,953
1011 Exempt Full-time equivalent
employment.................... 2,025
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 696 715 834
---------------------------------------------------------------------------

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.................. -5
00.02 Biotechnology................... -6
--------- --------- ----------
01.00 Total direct program............ -11
09.01 Reimbursable program.............. 11
--------- --------- ----------
10.00 Total new obligations...........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -11
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 11
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -11
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -11

[[Page 80]]

90.00 Outlays........................... -11
---------------------------------------------------------------------------

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................ -6
12.1 Civilian personnel benefits..... -2
25.2 Other services.................. -1
26.0 Supplies and materials.......... -1
31.0 Equipment....................... -1
--------- --------- ----------
99.0 Subtotal, direct obligations.. -11
99.0 Reimbursable obligations.......... 11
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... -123
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 123
---------------------------------------------------------------------------

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, $5,200,000, to
remain available until expended. (Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1601-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 25.2)..................... 8 6 7
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 5 5 5
22.00 New budget authority (gross)...... 8 5 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13 10 10
23.95 Total new obligations............. -8 -6 -7
24.40 Unobligated balance available, end
of year......................... 5 5 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 8 5 5
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 17 15 14
73.10 Total new obligations............. 8 6 7
73.20 Total outlays (gross)............. -10 -7 -9
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 15 14 12
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 8 5 5
90.00 Outlays........................... 10 7 9
---------------------------------------------------------------------------

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 2001 budget proposes $5 million for this program, which consists
of $2 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.

Trust Funds

Miscellaneous Trust Funds

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.02 Miscellaneous contributed funds... 13 13 13
Appropriation:
05.01 Miscellaneous trust funds......... -13 -13 -13
--------- --------- ----------
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 12 11 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 5 6 6
22.00 New budget authority (gross)...... 13 13 13
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18 19 19
23.95 Total new obligations............. -12 -11 -11
24.40 Unobligated balance available, end
of year......................... 6 6 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... 13 13 13
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 12 11 11
73.20 Total outlays (gross)............. -13 -13 -13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 8 8 8
86.98 Outlays from mandatory balances... 5 5 5
--------- --------- ----------
87.00 Total outlays (gross)........... 13 13 13
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 13 13 13
90.00 Outlays........................... 13 13 13
---------------------------------------------------------------------------

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

[[Page 81]]

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............. 3 3 3
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 6 6 6
12.1 Civilian personnel benefits....... 1 1 1
21.0 Travel and transportation of
persons......................... 2 2 2
25.2 Other services.................... 2 1 1
26.0 Supplies and materials............ 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 12 11 11
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 101 101 101
---------------------------------------------------------------------------

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]

1999 actual 2000 est. 2001 est.
Appropriations:
Enacted/requested:
Budget authority................ 617 649 688
Outlays......................... 616 648 688
User Fee:
Budget authority................ -534
Outlays......................... -534
------------------------------------
Total:
Budget authority................ 617 649 154
Outlays......................... 616 648 154
====================================

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, [$649,411,000, of which no less than
$544,902,000 shall be available for Federal food inspection]
$687,904,000, 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 in
addition, the Secretary may transfer from other appropriations or funds
available to the agencies or corporations of the Department such sums as
may be necessary to address food safety emergencies, including outbreaks
of foodborne illness, recall of adulterated products in commerce, or
bioterrorist events; that these funds are available only in such
emergency situations, and that any unobligated balances of funds
transferred for such emergency purposes in excess of amounts needed
shall be returned to the providing account: 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 616 650 688
09.01 Reimbursable program.............. 93 99 80
--------- --------- ----------
10.00 Total new obligations........... 709 749 768
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 2
22.00 New budget authority (gross)...... 712 748 768
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 713 750 768
23.95 Total new obligations............. -709 -749 -768
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance available, end
of year......................... 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 617 649 688
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 95 99 80
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 712 748 768
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 33 53 53
73.10 Total new obligations............. 709 749 768
73.20 Total outlays (gross)............. -695 -748 -768
73.40 Adjustments in expired accounts
(net)........................... 6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 53 53 53
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 661 717 737
86.93 Outlays from discretionary
balances........................ 34 31 31
--------- --------- ----------
87.00 Total outlays (gross)........... 695 748 768
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -95 -99 -80
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 617 649 688
90.00 Outlays........................... 600 649 688
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 617 649 688
Outlays........................... 600 649 688
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. -534
Outlays........................... -534
------------------------------------
Total:
Budget Authority.................. 617 649 154
Outlays........................... 600 649 154
====================================

The primary objectives of the Food Safety and Inspection Service are
to ensure that meat, poultry, shell egg, 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 2001 budget proposes a $38 million increase for
inspection of meat, poultry, shell egg and egg products. This increase
will cover pay cost increases for Federal and

[[Page 82]]

State inspection programs, and initiatives for: redeployment and
enhanced capabilities of the inspection workforce; improved risk
assessment and collaborative programs with States; verification of
foreign and domestic inspection systems for HACCP compliance; and
expanded support of Codex Alimentarius.

The meat, poultry, shell egg and egg products inspection program of
the Food Safety and Inspection Service provides in-plant inspection of
all domestic plants preparing meat, poultry, shell eggs, 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 2001, the Administration is proposing a new user fee to offset
the cost of Federal meat, poultry, shell egg 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 through 2000
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 2001
Food Safety Initiative builds on this foundation and will increase
funding department-wide by $28 million over the 2000 level of $136
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

1999 actual 2000 est. 2001 est.
Federally inspected establishments:
Slaughter plants.................. 262 258 255
Processing plants................. 4,343 4,325 4,315
Combination slaughter and
processing plants............... 968 960 954
Talmadge-Aiken plants............. 254 248 245
Import establishments............. 129 125 120
Egg plants........................ 75 73 71
Federally inspected and passed
production (millions of pounds):
Meat slaughter.................... 53,114 53,000 53,000
Poultry slaughter................. 46,882 46,000 46,000
Egg products...................... 3,383 3,400 3,400
Product inspected and passed under
HACCP system: ^a...... 95,516 95,000 95,000
Import/export activity (millions of
pounds):
Meat and poultry imported......... 3,190 3,200 3,200
Meat and poultry exported......... 8,655 8,700 8,700
States and territories with
cooperative programs:
^b
Intrastate inspection............. 26 25 27
Talmadge-Aiken inspection......... 9 9 9
Number of slaughter and/or
processing plants (excludes
exempt plants).................. 2,370 2,370 2,420
Pounds inspected slaughter
(millions)...................... 552 552 600
Compliance activities:
Marketplace reviews ^c.. 5,600 30,000 30,000
Corrective action reviews......... 43,976 46,000 46,000
Corrective actions completed...... 941 1,200 1,400
Product Testing (samples analyzed):
Food chemistry.................... 12,251 8,000 5,000
Food microbiology................. 88,347 90,000 90,000
Chemical residues................. 55,285 40,000 40,000
Antibiotic residues............... 180,939 182,000 185,000
Pathology samples................. 3,997 4,000 4,000
Egg Products:
Food microbiology................. 1,928 2,000 2,000
Chemical residues................. 1,083 1,000 1,000
Consumer Education and public
outreach:
Meat and Poultry Hotline Calls
received........................ 110,805 115,000 115,000
Epidemiological Investigations:
Cooperative efforts with State and
public health offices........... 30 30 30
Illnesses reported and treated
^d.................... 7,392 8,000 8,000
Field Automation and Information
Management Project:
Number of computers to be provided
to federal field inspection
staff........................... 3,539 800 900
Number of computers to be provided
to state field inspection staff. 565 607 203
^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 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........... 348 363 377
11.3 Other than full-time permanent 16 23 23
11.5 Other personnel compensation.. 16 17 18
--------- --------- ----------
11.9 Total personnel compensation 380 403 418
12.1 Civilian personnel benefits..... 110 116 126
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 23 23 26
22.0 Transportation of things........ 2 3 3
23.2 Rental payments to others....... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 6 7 7
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 9 10 11
25.2 Other services.................. 4 4 9
25.3 Purchases of goods and services
from Government accounts...... 13 13 13
25.4 Operation and maintenance of
facilities.................... 2 2 2
25.8 Subsistence and support of
persons....................... 1 1
26.0 Supplies and materials.......... 9 10 10
31.0 Equipment....................... 8 8 9
41.0 Grants, subsidies, and
contributions................. 45 45 46
--------- --------- ----------
99.0 Subtotal, direct obligations.. 615 649 685
99.0 Reimbursable obligations.......... 92 97 81
99.5 Below reporting threshold......... 2 3 2
--------- --------- ----------
99.9 Total new obligations........... 709 749 768
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 9,325 9,649 9,547
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 231 231 171
---------------------------------------------------------------------------

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... -534
09.01 Reimbursable program.............. 534
--------- --------- ----------
10.00 Total new obligations...........
----------------------------------------------------------------------------

[[Page 83]]

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -534
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 534
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -534
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -534
90.00 Outlays........................... -534
---------------------------------------------------------------------------

Legislation will be proposed to charge fees for the cost of all
Federal inspection of meat, poultry, shell egg 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........... -314
11.3 Other than full-time permanent -19
11.5 Other personnel compensation.. -15
--------- --------- ----------
11.9 Total personnel compensation -348
12.1 Civilian personnel benefits..... -105
13.0 Benefits for former personnel... -1
21.0 Travel and transportation of
persons....................... -22
22.0 Transportation of things........ -3
23.2 Rental payments to others....... -2
23.3 Communications, utilities, and
miscellaneous charges......... -5
24.0 Printing and reproduction....... -1
25.1 Advisory and assistance services -9
25.2 Other services.................. -8
25.3 Purchases of goods and services
from Government accounts...... -11
25.4 Operation and maintenance of
facilities.................... -2
25.8 Subsistence and support of
persons....................... -1
26.0 Supplies and materials.......... -9
31.0 Equipment....................... -7
--------- --------- ----------
99.0 Subtotal, direct obligations.. -534
99.0 Reimbursable obligations.......... 534
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... -7,410
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 7,410
---------------------------------------------------------------------------

Trust Funds

Expenses and Refunds, Inspection and Grading of Farm Products

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352 1999 actual 2000 est. 2001 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............. 3 4 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 4 4 4
23.95 Total new obligations............. -3 -4 -4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... 4 4 4
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 3 4 4
73.20 Total outlays (gross)............. -4 -4 -4
----------------------------------------------------------------------------

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

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

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 1 2 2
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 2 3 3
12.1 Civilian personnel benefits....... 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 2 4 4
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 3 4 4
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 34 34 34
---------------------------------------------------------------------------

[[Page 84]]

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, [$26,448,000] $33,549,000: 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, 2000.)

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 6
00.04 Packers and stockyards program.... 16 15 19
--------- --------- ----------
10.00 Total new obligations........... 27 26 34
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 27 26 34
23.95 Total new obligations............. -27 -26 -34
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 27 26 34
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 4 4 4
73.10 Total new obligations............. 27 26 34
73.20 Total outlays (gross)............. -26 -26 -34
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 4 4 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 24 23 30
86.93 Outlays from discretionary
balances........................ 2 3 3
--------- --------- ----------
87.00 Total outlays (gross)........... 26 26 34
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 27 26 34
90.00 Outlays........................... 26 26 34
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 27 26 34
Outlays........................... 26 26 33
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. -19
Outlays........................... -19
------------------------------------
Total:
Budget Authority.................. 27 26 15
Outlays........................... 26 26 14
====================================

The Grain Inspection, Packers and Stockyards Administration (GIPSA)
establishes official United States standards for grain, promotes the
uniform application thereof by official inspection personnel, provides
for an official inspection system for grain, and regulates the weighing
and certification of the weight of grain shipped in interstate or
foreign commerce 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 2001, authorizing legislation will be submitted to permit,
subject to appropriations, the collection and use of fees to cover the
cost of standardization activities.

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

Authorizing legislation will be submitted that would establish a
license fee that, subject to appropriations, would allow the collection
and expenditure of funds for all costs associated with administering the
Packers and Stockyards Act.

MAIN WORKLOAD FACTORS

1999 actual 2000 est. 2001 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
Inspection techniques developed..... 28 2 2
On-site investigations.............. 5 7 8
Designations renewed................ 17 21 21
Registration certificates issued.... 78 81 81
Investigations...................... 1,218 1,800 1,800
Market agencies/dealers registered.. 6,434 6,350 6,300
Stockyards posted................... 1,287 1,285 1,280
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................................. 205 205 205

[[Page 85]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 16 16 19
12.1 Civilian personnel benefits....... 4 4 5
21.0 Travel and transportation of
persons......................... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 2 2 4
26.0 Supplies and materials............ 1
31.0 Equipment......................... 2 1 2
--------- --------- ----------
99.9 Total new obligations........... 27 26 34
---------------------------------------------------------------------------

Personnel Summary

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Standardization................... -4
00.04 Packers and stockyards program.... -19
00.05 Start-up costs.................... 4
09.01 Reimbursable program.............. 23
--------- --------- ----------
10.00 Total new obligations........... 4
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -19
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 23
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 4
73.20 Total outlays (gross)............. -4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -23
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -19
90.00 Outlays........................... -19
---------------------------------------------------------------------------

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)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ -10
12.1 Civilian personnel benefits..... -2
21.0 Travel and transportation of
persons....................... -2
23.3 Communications, utilities, and
miscellaneous charges......... -1
25.2 Other services.................. -2
26.0 Supplies and materials.......... -1
31.0 Equipment....................... -1
--------- --------- ----------
99.0 Subtotal, direct obligations.. -19
99.0 Reimbursable obligations.......... 23
--------- --------- ----------
99.9 Total new obligations........... 4
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352 1999 actual 2000 est. 2001 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 35 43 43
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 4 6 6
22.00 New budget authority (gross)...... 37 43 43
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 41 49 49
23.95 Total new obligations............. -35 -43 -43
24.40 Unobligated balance available, end
of year......................... 6 6 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 37 43 43
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2 2 2
73.10 Total new obligations............. 35 43 43
73.20 Total outlays (gross)............. -35 -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 mandatory
authority....................... 35 43 43
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -37 -43 -43
----------------------------------------------------------------------------

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

The Grain Inspection, Packers and Stockyards Administration (GIPSA)
provides a uniform system for the inspection and weighing of grain.
Services provided under this system are financed through a fee supported
revolving fund. This authority has been extended through September 2000.

[[Page 86]]

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
51 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).

1999 actual 2000 est. 2001 est.
Export grain inspected and/or
weighed (million metric tons):
By Federal personnel.............. 85.3 80.3 89.4
By delegated States............... 26.1 24.5 27.3
Quantity of grain inspected (all
official inspections) domestically
million metric tons................. 127.3 129.1 123.6
Number of inspections and
reinspections:
By Federal personnel.............. 126,753 125,000 127,000
By delegated state/official agency
licenses........................ 1,852,031 1,800,000 1,800,000
Number of appeals................... 3,103 3,000 3,000
Number of appeals carried to the
Board of Appeals and Review......... 373 300 300
Quantity of rice inspected (million
metric tons)........................ 3.5 3.5 3.5
Quantity of rice exports (million
metric tons)........................ 3.1 3.1 3.1

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.... 5 5 5
--------- --------- ----------
11.9 Total personnel compensation.. 23 28 28
12.1 Civilian personnel benefits....... 5 5 5
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 3 6 6
26.0 Supplies and materials............ 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 35 43 43
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
2001 Total compensable workyears: Full-
time equivalent employment...... 449 453 453
---------------------------------------------------------------------------

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, [$51,625,000] $66,572,000, 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,
7701.)

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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Market news service............. 22 22 29
00.02 Inspection and standardization.. 6 6 6
00.03 Market protection and promotion. 16 18 26
00.04 Wholesale market development.... 2 3 3
00.05 Transportation services......... 3 3 3
09.01 Reimbursable program.............. 45 64 64
--------- --------- ----------
10.00 Total new obligations........... 94 116 131
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 40 40 40
22.00 New budget authority (gross)...... 94 116 131
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 134 156 171
23.95 Total new obligations............. -94 -116 -131
24.40 Unobligated balance available, end
of year......................... 40 40 40
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 49 52 67
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 45 64 64
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 94 116 131
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year -27 -19 -15
73.10 Total new obligations............. 94 116 131
73.20 Total outlays (gross)............. -86 -112 -129
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -19 -15 -13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 86 110 123
86.93 Outlays from discretionary
balances........................ 6
--------- --------- ----------
87.00 Total outlays (gross)........... 86 112 129
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -45 -64 -64
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 49 52 67
90.00 Outlays........................... 42 48 65
---------------------------------------------------------------------------

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, decen

[[Page 87]]

tralization of processing, growth of interregional competition, vertical
integration, and contract farming.

In 2001, $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 2000. These funds will be
used to monitor microbiological pathogens and establish a baseline for
the level of these on fruits and vegetables. In addition $6 million is
included to implement to provision of the mandatory livestock price
reporting legislation enacted in 2000.

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.

The 2001 request includes almost $6 million to fund the mandatory
livestock reporting program enacted in 2000.

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

1999 actual 2000 est. 2001 est.
Percentage of reports released on
time................................ 90 93 93

COTTON AND TOBACCO USER FEE PROGRAM

1999 actual 2000 est. 2001 est.

Cotton classed (samples in millions) 14.5 16.8 16.8
Tobacco graded at auction markets
(million pounds).................... 1,417 1,848 1,848
Imported tobacco inspected at
markets and ports of entry (million
pounds)............................. 233 186 186

FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

1999 actual 2000 est. 2001 est.

States and Commonwealths with
cooperative agreements.............. 40 40 38
Percentage of noncomplying shell egg
lots that are reprocessed or
diverted............................ 100 100 100

STANDARDIZATION ACTIVITIES

1999 actual 2000 est. 2001 est.
International and U.S. standards in
effect, end of fiscal year.......... 538 533 521
Number of commodities covered....... 172 214 214

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 2001 request includes an increase
of over $6 million as part of the President's Food safety initiative to
initiate a scientifically-sound microbiological data program.

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

1999 actual 2000 est. 2001 est.
Pesticide Data Program:
Number of analyses performed...... 46,000 55,000 52,000
Percentage of sampling and
analysis goal................... 100 100 100
Pesticide Recordkeeping:
Number of State/Federal
Inspections conducted........... 4,704 4,600 4,600
Percentage of sampling goal
attained........................ 100 98 98
Seed Act:
Interstate investigations:
Completed....................... 381 500 500
Pending......................... 560 500 500
Seed samples tested............... 2,135 2,200 2,200
Percentage of cases submitted that
are completed................... 90 92 92
Plant Variety Protection Act:
Percentage of application
processing goal completed....... 100 100 100
Number of applications received... 430 400 400
Certificates of protection issued. 219 240 240
Research and promotion collections
(dollars in millions)............... 619 631 636
Percentage of board budgets and
marketing plans approved within time
frame goal.......................... 91 91 93
\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 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

1999 actual 2000 est. 2001 est.
Number of projects completed........ 7 8 8

TRANSPORTATION SERVICES ACTIVITIES

1999 actual 2000 est. 2001 est.
Number of projects completed........ 5 6 7

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 21 22 25
11.3 Other than full-time permanent 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 22 23 26
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 3
25.2 Other services.................. 13 15 23
25.3 Purchases of goods and services
from Government accounts...... 2 2 2
25.7 Operation and maintenance of
equipment..................... 1 1 2
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 49 52 67
99.0 Reimbursable obligations.......... 45 64 64
--------- --------- ----------

[[Page 88]]

99.9 Total new obligations........... 94 116 131
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 464 474 551
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 624 631 631
---------------------------------------------------------------------------

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] $1,500,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2501-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 1 1 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1 1 2
23.95 Total new obligations............. -1 -1 -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1 1 2
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1
86.93 Outlays from discretionary
balances........................ 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 1 1 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1 1 2
90.00 Outlays........................... 1 1 2
---------------------------------------------------------------------------

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. The 2001 budget requests an
increase of $0.3 million for this program.

Perishable Agricultural Commodities Act Fund

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352 1999 actual 2000 est. 2001 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 4
22.00 New budget authority (gross)...... 8 7 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14 13 11
23.95 Total new obligations............. -8 -9 -9
24.40 Unobligated balance available, end
of year......................... 6 4 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

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 5 4 4
73.10 Total new obligations............. 8 9 9
73.20 Total outlays (gross)............. -7 -9 -9
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 4 4 4
----------------------------------------------------------------------------

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

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

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

1999 actual 2000 est. 2001 est.
Percentage of informal reparation
complaints completed within time
frame goal.......................... 82 85 85

[[Page 89]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352 1999 actual 2000 est. 2001 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 [$12,443,000] $13,438,000 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, 2000.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 372 358 895
Receipts:
02.01 30% of customs duties, funds for
strengthening markets, income
and supply (section 32)......... 5,680 6,266 6,661
--------- --------- ----------
04.00 Total: Balances and collections... 6,052 6,624 7,556
Appropriation:
05.01 Funds for strengthening markets,
income, and supply (section 32). -5,702 -5,736 -5,576
06.10 Unobligated balance returned to
receipts........................ 7
06.20 Reduction pursuant to Public Law
106-51.......................... 8
--------- --------- ----------
07.99 Total balance, end of year........ 358 895 1,980
---------------------------------------------------------------------------

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..... 144 115 115
00.03 Disaster relief............... 7
00.04 Diversion payments............ 178
--------- --------- ----------
00.91 Subtotal, Commodity program
payments.................... 729 515 515
01.01 Administrative expenses........... 17 21 23
--------- --------- ----------
01.92 Total direct program............ 746 536 538
09.11 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 747 537 539
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 132 113 300
22.00 New budget authority (gross)...... 726 732 539
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 862 845 839
23.95 Total new obligations............. -747 -537 -539
23.98 Unobligated balance expiring or
withdrawn....................... -7
24.40 Unobligated balance available, end
of year......................... 113 300 300
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation...................
40.75 Reduction pursuant to P.L. 106-
51............................ -8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -8
Mandatory:

60.05 Appropriation (indefinite)...... 145
60.25 Appropriation (special fund,
indefinite)................... 5,702 5,736 5,576
61.00 Transferred to other accounts... -5,114 -5,005 -5,038
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 733 730 538
69.00 Offsetting collections (cash)..... 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 726 732 539
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 105 15 15
73.10 Total new obligations............. 747 537 539
73.20 Total outlays (gross)............. -833 -536 -538
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 15 15 15
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 596 408 410
86.98 Outlays from mandatory balances... 237 128 128
--------- --------- ----------
87.00 Total outlays (gross)........... 833 536 538
----------------------------------------------------------------------------

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.................. 725 731 538
90.00 Outlays........................... 833 535 537
---------------------------------------------------------------------------

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.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 9 10 11
12.1 Civilian personnel benefits..... 2 2 3
21.0 Travel and transportation of
persons....................... 1 1
22.0 Transportation of things........ 4 4 4
25.2 Other services.................. 16 9 9
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: Grants
of commodities to States...... 711 505 505
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 746 536 538
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 747 537 539
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 154 162 168

[[Page 90]]

Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 13 13 13
---------------------------------------------------------------------------

Trust Funds

Expenses and Refunds, Inspection and Grading of Farm Products

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Dairy products.................... 5 5 5
00.02 Fruits and vegetables............. 54 53 53
00.03 Meat grading...................... 22 22 22
00.04 Poultry products.................. 23 23 23
00.05 Miscellaneous agricultural
commodities..................... 8 7 7
--------- --------- ----------
10.00 Total new obligations........... 112 110 110
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 21 25 25
22.00 New budget authority (gross)...... 116 110 110
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 137 135 135
23.95 Total new obligations............. -112 -110 -110
24.40 Unobligated balance available, end
of year......................... 25 25 25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... 116 110 110
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year -16 -10 -10
73.10 Total new obligations............. 112 110 110
73.20 Total outlays (gross)............. -106 -110 -110
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -10 -10 -10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 100 104 104
86.98 Outlays from mandatory balances... 5 6 6
--------- --------- ----------
87.00 Total outlays (gross)........... 106 110 110
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 116 110 110
90.00 Outlays........................... 106 110 110
---------------------------------------------------------------------------

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

1999 actual 2000 est. 2001 est.
Weighted average cost per cwt. (1990
index).............................. $0.08 $0.08 $0.08

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 57 56 56
11.3 Other than full-time permanent.. 5 5 5
11.5 Other personnel compensation.... 9 9 9
--------- --------- ----------
11.9 Total personnel compensation.. 71 70 70
12.1 Civilian personnel benefits....... 17 17 17
13.0 Benefits for former personnel..... 1 1 1
21.0 Travel and transportation of
persons......................... 6 6 6
23.1 Rental payments to GSA............ 1 1 1
23.2 Rental payments to others......... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 2 2 2
24.0 Printing and reproduction......... 1 1 1
25.2 Other services.................... 6 6 6
25.3 Purchases of goods and services
from Government accounts........ 3 2 2
26.0 Supplies and materials............ 2 2 2
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 112 110 110
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1,612 1,575 1,492
---------------------------------------------------------------------------

Milk Market Orders Assessment Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Administration.................... 39 35 38
09.02 Marketing service................. 6 6 6
--------- --------- ----------
10.00 Total new obligations........... 45 41 44
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 28 19 19
22.00 New budget authority (gross)...... 36 41 42
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 64 60 61
23.95 Total new obligations............. -45 -41 -44
24.40 Unobligated balance available, end
of year......................... 19 19 17
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 36 41 42
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year -2 -19 -19
73.10 Total new obligations............. 45 41 44
73.20 Total outlays (gross)............. -62 -41 -42
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -19 -19 -17
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 36 41 42
86.98 Outlays from mandatory balances... 26
--------- --------- ----------
87.00 Total outlays (gross)........... 62 41 42
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -36 -41 -42
----------------------------------------------------------------------------

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

Memorandum (non-add) entries:
92.01 Total investments, start of year:
U.S. securities: Par value...... 6
---------------------------------------------------------------------------

[[Page 91]]

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. The
Secretary has reduced the number of milk marketing orders from 31 to 11,
consistent with the 1996 Farm Bill authorities.

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

1999 actual 2000 est. 2001 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 28 27 28
12.1 Civilian personnel benefits....... 6 5 6
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........... 1 1 1
25.2 Other services.................... 2 1 1
26.0 Supplies and materials............ 2 1 2
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 45 41 44
---------------------------------------------------------------------------

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] $67,700,000: 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 64 64 68
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 64 64 68
23.95 Total new obligations............. -64 -64 -68
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 64 64 68
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 21 31 31
73.10 Total new obligations............. 64 64 68
73.20 Total outlays (gross)............. -54 -64 -67
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 31 31 32
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 48 58 61
86.93 Outlays from discretionary
balances........................ 6 6 6
--------- --------- ----------
87.00 Total outlays (gross)........... 54 64 67
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 64 64 68
90.00 Outlays........................... 54 64 67
---------------------------------------------------------------------------

This appropriation finances the administrative and operating
expenses of the Risk Management Agency (RMA), which provides crop
insurance to farmers. The 2001 budget includes an additional $1 million
to support the President's Bioproducts Initiative. This funding will
allow RMA to begin the process of research, analysis, and the
development of biobased crop insurance policies, such as switch grass.

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 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............. 27 30 31
11.3 Other than full-time permanent.. 3 3 3
--------- --------- ----------
11.9 Total personnel compensation.. 30 33 34
12.1 Civilian personnel benefits....... 7 7 8
21.0 Travel and transportation of
persons......................... 2 2 2
23.2 Rental payments to others......... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 19 18 20
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 3 1 1
--------- --------- ----------
99.9 Total new obligations........... 64 64 68
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 528 568 568
---------------------------------------------------------------------------

[[Page 92]]

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,
2000.)

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, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.02 Delivery and other expenses....... 500 490 511
01.01 Indemnities....................... 1,988 2,417 2,461
--------- --------- ----------
10.00 Total new obligations........... 2,488 2,907 2,972
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1,449 1,124 600
22.00 New budget authority (gross)...... 2,172 1,553 2,972
22.21 Unobligated balance transferred to
other accounts.................. -9
22.22 Unobligated balance transferred
from other accounts............. 830
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,612 3,507 3,572
23.95 Total new obligations............. -2,488 -2,907 -2,972
24.40 Unobligated balance available, end
of year......................... 1,124 600 600
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 1,550 711 1,728
69.00 Offsetting collections (cash)..... 622 842 1,244
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,172 1,553 2,972
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 949 1,138 1,267
73.10 Total new obligations............. 2,488 2,907 2,972
73.20 Total outlays (gross)............. -2,299 -2,778 -3,228
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1,138 1,267 1,011
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1,209 1,520 1,938
86.98 Outlays from mandatory balances... 1,090 1,258 1,290
--------- --------- ----------
87.00 Total outlays (gross)........... 2,299 2,778 3,228
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -622 -842 -1,244
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,550 711 1,728
90.00 Outlays........................... 1,677 1,936 1,984
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 1,550 711 1,728
Outlays........................... 1,677 1,936 1,984
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 910
Outlays........................... 545
------------------------------------
Total:
Budget Authority.................. 1,550 711 2,638
Outlays........................... 1,677 1,936 2,529
====================================

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
2000 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 $60 per
crop per county. Commercial insurance companies deliver the product to
the producer in 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.

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 coverage on both 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

[[Page 93]]

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
(AGR) program, which is designed to insure a portion of a producers
gross revenue based on their Schedule F Farm and Income Tax reports.

RMA plans to roll out Round II of the Dairy Options Pilot Program
(DOPP) during 2000 which includes reaching producers in 61 counties in
32 states. RMA's partners in the program are registered commodities
brokers who are authorized by the Commodity Futures Trading Commission
to buy put options on behalf of DOPP participants on the Chicago
Mercantile Exchange and the New York Board of Trade.

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 1999, 196.2 million acres were insured, with an
estimated $2,322 million in total premium income, including $952 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 2001. Amounts in the 1999 column are as of September 30,
1999, and pertain to the 1999 crop year.

1999 2000 2001
crop year crop year crop year
estimate estimate estimate
Number of States.................... 50 50 50
Number of counties.................. 3,022 3,022 3,022
Insurance in force (millions)....... 30,826 28,754 30,841
Insured acreage (millions).......... 196 194 191
====================================
Producer premium (millions)\1\...... 1,370 1,357 1,370
Premium subsidy (millions)\1\....... 952 879 970
------------------------------------
Total premium (millions)\1\... 2,322 2,236 2,340
====================================
Indemnities (million)\1\............ 2,170 2,403 2,515
Loss ratio.......................... 0.93 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]

1999 2000 2001
fiscal year fiscal year fiscal year
actual estimate estimate
Premiums:
Producer premium.................. 811 960 1,368
Amount of subsidies............... 938 890 956
Additional coverage............. 637 642 657
Catastrophic coverage--
Reinsurance................... 301 248 299
------------------------------------
Total premiums................ 1,749 1,850 2,324
====================================
Indemnities......................... 1,988 2,417 2,461
Additional coverage............. 1,990 2,151 2,178
Catastrophic coverage--
Reinsurance................... 266 283
Noninsured Assistance Program... -2

For crop years 1948 through 1998, indemnities ($18,478 million)
exceeded premium income ($16,401 million) by $2,077 million; the loss
ratio for the period was 1.13.

The following table summarizes the insurance operations for 1999,
2000 and 2001:

NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

[In millions of dollars]

1999 2000 2001
crop year crop year crop year
est. est. est.
Premium less indemnities............ -1,177 -1,457 -1,093
Interest expense, net............... 2
Delivery expenses \1\............... -495 -486 -508
Other income or expense, net........ 9 23 -5
Research and development expenses... -4 -4 -4
Reinsurance underwriting gain (+) or
loss (-)............................ -325 -157 -163
------------------------------------
Net income or loss (-).............. -1,990 -2,081 -1,773
====================================
\1\ Figures reflect delivery expenses borne 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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 527 622 842 1,244
0102 Expense........................... -1,643 -2,488 -2,907 -2,972
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -1,116 -1,866 -2,065 -1,728
------------ -------------- ------------ -------------
0199 Total comprehensive income........ -1,116 -1,866 -2,065 -1,728
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4085-0-3-351 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 2,544 2,794 2,300 2,300
1206 Non-Federal assets: Receivables,
net............................. 760 827 850 850
1803 Other Federal assets: Property,
plant and equipment, net........ 1 1 1 1
------------ -------------- ------------ -------------
1999 Total assets.................... 3,305 3,622 3,151 3,151
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 9 12 1 1
2105 Other........................... 175 249 175 175
Non-Federal liabilities:

2201 Accounts payable................ 70 80 70 70
2207 Other........................... 1,749 1,797 1,750 1,750
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,003 2,138 1,996 1,996
NET POSITION:
3100 Appropriated capital.............. 680 864 534 534
3300 Cumulative results of operations.. 621 621 621 621
------------ -------------- ------------ -------------
3999 Total net position.............. 1,301 1,485 1,155 1,155
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3,304 3,623 3,151 3,151
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

42.0 Insurance claims and indemnities
(reinsured buyup)............. 1,990 2,417 2,461
42.0 Insurance claims and indemnities
(NAP Operations).............. -2
--------- --------- ----------
99.9 Total new obligations........... 2,488 2,907 2,972
---------------------------------------------------------------------------

Federal Crop Insurance Fund

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Delivery and other expenses....... 58

[[Page 94]]

00.03 Crop insurance reform............. 673
01.01 Indemnities....................... 179
--------- --------- ----------
10.00 Total new obligations........... 910
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 979
23.95 Total new obligations............. -910
24.40 Unobligated balance available, end
of year......................... 69
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 910
69.00 Offsetting collections (cash)..... 69
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 979
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 910
73.20 Total outlays (gross)............. -614
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 296
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 614
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -69
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 910
90.00 Outlays........................... 545
---------------------------------------------------------------------------

As part of a comprehensive package to strengthen the farm safety
net, the Administration is proposing crop insurance reform in 2001. The
proposal would continue, for the 2001 crop year, the crop insurance
premium discounts which were offered for the 1999 and 2000 crop years.
In addition, the proposal calls for the establishment of multi-year loss
coverage which would provide an insurance plan to protect producers in
cases of consecutive crop years' losses. The Administration's reform
proposal will also include provisions to provide risk management
education, conduct more research and development, conduct a pilot
program for insuring livestock, and remove the area-wide trigger
requirement for non-insured payment assistance.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-4-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Other services.................... 270
42.0 Insurance claims and indemnities
(reinsured buyup)............... 640
--------- --------- ----------
99.9 Total new obligations........... 910
---------------------------------------------------------------------------

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,
[$794,839,000] $828,385,000: Provided, That the Secretary is authorized
to use the services, facilities, and authorities (but not the funds) of
the Commodity Credit Corporation to make program payments for all
programs administered by the Agency: Provided further, That other funds
made available to the Agency for authorized activities may be advanced
to and merged with this account: Provided further, That these funds
shall be available for employment pursuant to the second sentence of
section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to
exceed $1,000,000 shall be available for employment under 5 U.S.C. 3109.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Farm programs................... 619 611 641
00.02 Conservation and environment.... 157 163 162
00.04 Commodity operations............ 21 21 25
--------- --------- ----------
03.00 Subtotal, direct program...... 797 795 828
Reimbursable program:
09.01 Farm loans.................... 210 210 265
09.02 Other programs................ 94 145 87
--------- --------- ----------
09.99 Subtotal, reimbursable program.. 304 355 352
--------- --------- ----------
10.00 Total new obligations........... 1,101 1,150 1,180
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,101 1,150 1,180
23.95 Total new obligations............. -1,101 -1,150 -1,180
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 797 795 828
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 304 355 352
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,101 1,150 1,180
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 108 135 189
73.10 Total new obligations............. 1,101 1,150 1,180
73.20 Total outlays (gross)............. -1,072 -1,085 -1,177
73.40 Adjustments in expired accounts
(net)........................... -2 -11 -3
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 135 189 189
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,003 1,068 1,095
86.93 Outlays from discretionary
balances........................ 69 17 82
--------- --------- ----------
87.00 Total outlays (gross)........... 1,072 1,085 1,177
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -277 -331 -328
88.40 Non-Federal sources........... -27 -24 -24
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -304 -355 -352
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 797 795 828
90.00 Outlays........................... 768 730 825
---------------------------------------------------------------------------

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 to

[[Page 95]]

bacco 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. Currently, the majority of FSA county office employees
are not Federal employees, although their salaries and benefits are
fully paid through Federal funds appropriated to this account. The
Administration is proposing legislation to make all FSA employees
Federal employees.

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 market loss assistance payments and
issuing checks; (k) certifying payment eligibility and monitoring
payment limitations; and (l) processing farm storage facility loans and
issuing checks.

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 or flooding 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 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.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 118 139 143
11.3 Other than full-time permanent 8 8 8
11.5 Other personnel compensation.. 3 5 6
--------- --------- ----------
11.9 Total personnel compensation 129 152 157
12.1 Civilian personnel benefits..... 28 34 35
21.0 Travel and transportation of
persons....................... 9 13 11
22.0 Transportation of things........ 2 3 2
23.2 Rental payments to others....... 8 9 10
23.3 Communications, utilities, and
miscellaneous charges......... 8 11 14
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 37 41 35
26.0 Supplies and materials.......... 8 8 6
31.0 Equipment....................... 11 4 3
41.0 Grants, subsidies, and
contributions................. 556 518 553
42.0 Insurance claims and indemnities 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 797 795 828
99.0 Reimbursable obligations.......... 304 355 352
--------- --------- ----------
99.9 Total new obligations........... 1,101 1,150 1,180
---------------------------------------------------------------------------

[[Page 96]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 2,445 2,644 2,560
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 3,264 3,257 3,341
---------------------------------------------------------------------------

State Mediation Grants

For grants pursuant to section 502(b) of the Agricultural Credit Act
of 1987, as amended (7 U.S.C. 5101-5106), [$3,000,000] $4,000,000.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0170-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 2 3 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2 3 4
23.95 Total new obligations............. -2 -3 -4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2 3 4
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1 1 2
73.10 Total new obligations............. 2 3 4
73.20 Total outlays (gross)............. -2 -3 -3
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1 2
86.93 Outlays from discretionary
balances........................ 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 2 3 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2 3 4
90.00 Outlays........................... 2 3 3
---------------------------------------------------------------------------

This grant program is authorized by Title V of the Agricultural
Credit Act of 1987, P.L. 100-233, as amended. Originally designed to
address agricultural credit disputes, the program was expanded by the
Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994 (P.L. 103-354) to include other agricultural
issues such as wetland determinations, conservation compliance, rural
water loan programs, grazing on National Forest System lands, and
pesticide use. Grants are made to States whose agricultural mediation
programs have been certified by the Farm Service Agency. A grant will
not exceed 70 percent of the total fiscal year funds that a qualifying
State requires to operate and administer its agricultural loan mediation
program. In no case will the total amount of a grant exceed $500,000
annually.

GRANT OBLIGATIONS

1999 actual 2000 est. 2001 est.
Number of States receiving grants... 22 21 22
Amount of grants (in millions of
dollars)............................ 2 3 4

Tree Assistance Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2701-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3
23.95 Total new obligations............. -2
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

50.05 Reappropriation (indefinite).... 3
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 13 8 2
73.10 Total new obligations............. 2
73.20 Total outlays (gross)............. -7 -6 -2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 8 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 7 6 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3
90.00 Outlays........................... 7 6 2
---------------------------------------------------------------------------

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, authorized 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 was also extended to
producers whose trees were 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. This funding was
available for obligation through September 30, 1999, with any
unobligated balance expiring.

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

During 1999, $2 million was obligated in Michigan, and the remaining
unobligated balance of $1 million expired.

Conservation Reserve Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3319-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Technical assistance.............. 21 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 21 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 21 1
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 22 1
23.95 Total new obligations............. -21 -1
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

[[Page 97]]

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 52 20
73.10 Total new obligations............. 21 1
73.20 Total outlays (gross)............. -52 -21
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 20
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 52 21
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 52 21
---------------------------------------------------------------------------

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 1999, 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 have been used for CRP technical assistance and were nearly
exhausted in 1999. Less than $1 million remained at year end. 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 1999, $21 million was
obligated for the technical assistance services of NRCS and FS and
outlays of $53 million in CRP appropriated funds were made 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 33 40 40
22.10 Resources available from
recoveries of prior year
obligations..................... 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 40 40 40
24.40 Unobligated balance available, end
of year......................... 40 40 40
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 43 25 17
73.20 Total outlays (gross)............. -11 -8 -8
73.45 Adjustments in unexpired accounts. -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 25 17 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 11 8 8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 11 8 8
---------------------------------------------------------------------------

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 1999,
there were $25 million in unliquidated obligations for ACP agreements.

Emergency Conservation Program

[For an additional amount for the ``Emergency Conservation Program''
for expenses resulting from natural disasters, $50,000,000, to remain
available until expended.] (Miscellaneous Appropriations, 2000, as
enacted by section 1000(a)(5) of the Consolidated Appropriations Act,
2000 (P.L. 106-113).)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3316-0-1-453 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 39 91 32
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 84 73 32
22.00 New budget authority (gross)...... 28 50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 112 123 32
23.95 Total new obligations............. -39 -91 -32
24.40 Unobligated balance available, end
of year......................... 73 32
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 28 50
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 26 25 48
73.10 Total new obligations............. 39 91 32
73.20 Total outlays (gross)............. -40 -68 -41
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 25 48 39
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 40 68 41
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 28 50
90.00 Outlays........................... 40 68 41
---------------------------------------------------------------------------

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 1999, pursuant to P.L. 106-31, enacted May 21, 1999, $28 million
in supplemental funding was provided to the Emergency Conservation
Program, to remain available until expended. Under the 1999 program,
cost-sharing and technical assistance were provided in 42 States as well
as the Virgin Islands to treat farmlands damaged by floods, hurricanes,
drought, ice storms, tornadoes, and other natural disasters. The 1999
program rehabilitated approximately 4,889,922 acres of farmland damaged
by these natural disasters.

No funding was provided in the 2000 Agriculture Appropriations Act
for this program. However, $50 million in supplemental funding was
provided by title I of the 2000 Consoli

[[Page 98]]

dated Appropriations Act, P.L. 106-113, enacted November 29, 1999. The
2001 budget proposes no funding.

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, [$559,422,000] $1,128,000,000, of which [$431,373,000]
$1,000,000,000 shall be for guaranteed loans; operating loans,
[$2,397,842,000] $3,177,868,000, of which [$1,697,842,000]
$2,000,000,000 shall be for unsubsidized guaranteed loans and
[$200,000,000] $477,868,000 shall be for subsidized guaranteed loans;
Indian tribe land acquisition loans as authorized by 25 U.S.C. 488,
[$1,028,000] $2,006,000; for emergency insured loans, [$25,000,000]
$150,064,000 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, [$7,243,000] $18,886,000,
of which [$2,416,000] $5,100,000, shall be for guaranteed loans;
operating loans, [$70,860,000] $129,534,000, of which [$23,940,000]
$27,400,000 shall be for unsubsidized guaranteed loans and [$17,620,000]
$38,994,000 shall be for subsidized guaranteed loans; Indian tribe land
acquisition loans as authorized by 25 U.S.C. 488, [$21,000] $323,000;
and for emergency insured loans, [$3,882,000] $36,811,000 to meet the
needs resulting from natural disasters.
In addition, for administrative expenses necessary to carry out the
direct and guaranteed loan programs, [$214,161,000] $269,454,000, of
which [$209,861,000] $265,315,000 shall be transferred to and merged
with the appropriation for ``Farm Service Agency, Salaries and
Expenses''.
Funds appropriated by this Act to the Agricultural Credit Insurance
Program Account for farm ownership and operating direct loans and
guaranteed loans may be transferred among these programs with [the prior
approval of] advance notice to the House and Senate Committees on
Appropriations.

Dairy Indemnity Program

(including transfers of funds)

For necessary expenses involved in making indemnity payments to
dairy farmers for milk or cows producing such milk and manufacturers of
dairy products who have been directed to remove their milk or dairy
products from commercial markets because it contained residues of
chemicals registered and approved for use by the Federal Government, and
in making indemnity payments for milk, or cows producing such milk, at a
fair market value to any dairy farmer who is directed to remove his milk
from commercial markets because of: (1) the presence of products of
nuclear radiation or fallout if such contamination is not due to the
fault of the farmer; or (2) residues of chemicals or toxic substances
not included under the first sentence of the Act of August 13, 1968 (7
U.S.C. 450j), if such chemicals or toxic substances were not used in a
manner contrary to applicable regulations or labeling instructions
provided at the time of use and the contamination is not due to the
fault of the farmer, $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, 2000.)

[Agricultural Credit Insurance Fund Program Account]

[For additional 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 to meet
the needs resulting from natural disasters, as follows: farm ownership
loans, $590,578,000, of which $568,627,000 shall be for guaranteed
loans; operating loans, $1,404,716,000, of which $302,158,000 shall be
for unsubsidized guaranteed loans and $702,558,000 shall be for
subsidized guaranteed loans; and for emergency loans, $547,000,000.]
[For the additional cost of direct and guaranteed loans to meet the
needs resulting from natural disasters, including the cost of modifying
loans as defined in section 502 of the Congressional Budget Act of 1974,
to remain available until expended, as follows: farm ownership loans,
$4,012,000, of which $3,184,000 shall be for guaranteed loans; operating
loans, $89,596,000, of which $4,260,000 shall be for unsubsidized
guaranteed loans and $61,895,000 shall be for subsidized guaranteed
loans; and for emergency loans, $84,949,000.] (Miscellaneous
Appropriations, 2000, as enacted by section 1000(a)(5) of the
Consolidated Appropriations Act, 2000 (P.L. 106-113).)

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............... 158 152 114
00.02 Guaranteed loan subsidy........... 73 116 72
00.05 Reestimates of direct loan subsidy 484
00.06 Interest on reestimates of direct
loan subsidy.................... 84
00.07 Reestimates of guaranteed loan
subsidy......................... 124
00.08 Interest on reestimates of
guaranteed loan subsidy......... 34
Administrative expenses:

00.09 Administrative expenses--
salaries and expenses......... 210 210 265
00.10 Administrative expenses--non-
recoverable costs............. 10 8 4
--------- --------- ----------
10.00 Total new obligations........... 451 1,212 455
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 15 14 14
22.00 New budget authority (gross)...... 451 1,212 455
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 466 1,226 469
23.95 Total new obligations............. -451 -1,212 -455
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance available, end
of year......................... 14 14 14
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 345 486 455
40.15 Appropriation (emergency)....... 106
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 451 486 455
Mandatory:

60.05 Appropriation (indefinite)...... 726
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 451 1,212 455
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 16 32 50
73.10 Total new obligations............. 451 1,212 455
73.20 Total outlays (gross)............. -433 -1,194 -479
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 32 50 26
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 417 455 439
86.93 Outlays from discretionary
balances........................ 16 13 40
86.97 Outlays from new mandatory
authority....................... 726
--------- --------- ----------
87.00 Total outlays (gross)........... 433 1,194 479
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 451 1,212 455
90.00 Outlays........................... 433 1,194 479
---------------------------------------------------------------------------

[[Page 99]]

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

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Farm ownership.................... 171 150 128
1150 Farm operating.................... 789 900 700
1150 Emergency disaster................ 276 572 150
1150 Indian tribe land acquisition..... 1 2
1150 Boll weevil eradication........... 100 100 100
--------- --------- ----------
1159 Total direct loan levels........ 1,336 1,723 1,080
Direct loan subsidy (in percent):
1320 Farm ownership.................... 14.97 3.77 10.77
1320 Farm operating.................... 6.83 5.86 9.02
1320 Emergency disaster................ 23.60 15.53 24.53
1320 Indian tribe land acquisition..... 15.25 2.04 16.10
1320 Boll weevil eradication........... 1.44 -4.38 -3.23
--------- --------- ----------
1329 Weighted average subsidy rate... 8.33 5.42 10.26
Direct loan subsidy budget authority:
1330 Farm ownership.................... 26 6 14
1330 Farm operating.................... 54 53 63
1330 Emergency disaster................ 65 89 37
1330 Boll weevil eradication........... 1
--------- --------- ----------
1339 Total subsidy budget authority.. 146 148 114
Direct loan subsidy outlays:
1340 Farm ownership.................... 24 7 13
1340 Farm operating.................... 52 55 63
1340 Emergency disaster................ 63 82 39
1340 Boll weevil eradication........... 1
--------- --------- ----------
1349 Total subsidy outlays........... 140 144 115
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 Farm ownership, unsubsidized...... 774 1,000 1,000
2150 Farm operating, unsubsidized...... 1,251 2,000 2,000
2150 Farm operating, subsidized........ 526 903 478
--------- --------- ----------
2159 Total loan guarantee levels..... 2,551 3,903 3,478
Guaranteed loan subsidy (in percent):
2320 Farm ownership, unsubsidized...... 1.59 0.56 0.51
2320 Farm operating, unsubsidized...... 1.16 1.41 1.37
2320 Farm operating, subsidized........ 8.74 8.81 8.16
--------- --------- ----------
2329 Weighted average subsidy rate... 2.70 1.57 2.06
Guaranteed loan subsidy budget authority:
2330 Farmer ownership, unsubsidized.... 12 6 5
2330 Farm operating, unsubsidized...... 15 28 27
2330 Farm operating, subsidized........ 46 80 39
--------- --------- ----------
2339 Total subsidy budget authority.. 73 114 71
Guaranteed loan subsidy outlays:
2340 Farmer ownership, unsubsidized.... 14 3 5
2340 Farm operating, unsubsidized...... 14 22 28
2340 Farm operating, subsidized........ 45 55 60
--------- --------- ----------
2349 Total subsidy outlays........... 73 80 93
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 220 219 269
3580 Outlays from balances.............
3590 Outlays........................... 220 219 269
---------------------------------------------------------------------------

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 1999 supplemental
appropriation, P.L. 106-31, for direct and guaranteed farm ownership,
direct and guaranteed operating, and emergency disaster loans. Funding
is available until September 30, 2000.

Additional funding was also provided by a 2000 supplemental
appropriation, P.L. 106-113, for direct and guaranteed farm ownership,
direct and guaranteed operating, and emergency disaster loans. Funding
is available until expended.

For 2001, 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 2000, an estimated $650 thousand will be paid to producers and
manufacturers who file claims under the program.

The 2001 budget requests $450 thousand for this program.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 220 218 269
41.0 Grants, subsidies, and
contributions................... 231 994 186
--------- --------- ----------
99.9 Total new obligations........... 451 1,212 455
---------------------------------------------------------------------------

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.................... 1,393 1,723 1,080
00.02 Advances on behalf of borrowers. 3 3 3
00.04 Interest on Treasury borrowing.. 217 174 108
--------- --------- ----------
00.91 Subtotal, Operating program..... 1,613 1,900 1,191
Reestimates:

08.02 Downward reestimate of subsidy.. 163
08.04 Downward reestimate of subsidy--
interest...................... 56
--------- --------- ----------
08.91 Subtotal, reestimates........... 219
--------- --------- ----------
10.00 Total new obligations........... 1,613 2,119 1,191
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 208 95
22.00 New financing authority (gross)... 2,217 2,024 1,191
22.10 Resources available from
recoveries of prior year
obligations..................... 12
22.60 Portion applied to repay debt..... -723
22.70 Balance of authority to borrow
withdrawn....................... -7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,707 2,119 1,191
23.95 Total new obligations............. -1,613 -2,119 -1,191
24.40 Unobligated balance available, end
of year......................... 95
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 1,368 784 328
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 834 1,227 891
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. 15 13 -28
--------- --------- ----------

[[Page 100]]

68.90 Spending authority from
offsetting collections
(total discretionary)..... 849 1,240 863
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 2,217 2,024 1,191
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 70 178 271
72.95 Receivables from program account 9 24 37
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 79 202 308
73.10 Total new obligations............. 1,613 2,119 1,191
73.20 Total financing disbursements
(gross)......................... -1,477 -2,013 -1,425
73.45 Adjustments in unexpired accounts. -12
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 178 271 65
74.95 Receivables from program account 24 37 9
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 202 308 74
87.00 Total financing disbursements
(gross)......................... 1,477 2,013 1,425
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
program account............. -142 -363 -114
88.25 Interest on uninvested funds.. -76 -196 -62
Non-Federal sources:
88.40 Repayments of principal..... -503 -538 -565
88.40 Non-Federal sources......... -113 -130 -150
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -834 -1,227 -891
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -15 -13 28
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 1,368 784 328
90.00 Financing disbursements........... 643 786 534
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 872 1,797 1,080
1112 Unobligated direct loan limitation 74
1113 Unobligated limitation carried
forward......................... 53 -74
--------- --------- ----------
1150 Total direct loan obligations... 999 1,723 1,080
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,715 3,443 4,392
1231 Disbursements: Direct loan
disbursements................... 1,278 1,637 1,026
1251 Repayments: Repayments and
prepayments..................... -513 -654 -715
1263 Write-offs for default: Direct
loans........................... -37 -34 -44
--------- --------- ----------
1290 Outstanding, end of year........ 3,443 4,392 4,659
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:

1106 Federal assets: Receivables, net 278 275 351 363
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 2,715 3,004 3,821 3,952
1402 Interest receivable............. 42 40 44 45
1403 Accounts receivable from
foreclosed property........... 13 15 18 18
1405 Allowance for subsidy cost (-).. -697 -760 -966 -999
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 2,073 2,299 2,917 3,016
------------ -------------- ------------ -------------
1999 Total assets.................... 2,351 2,574 3,268 3,379
LIABILITIES:
2103 Federal liabilities: Debt......... 2,344 2,562 3,253 3,364
2207 Non-Federal liabilities: Other.... 9 12 15 15
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,353 2,574 3,268 3,379
NET POSITION:
3100 Appropriated capital..............
------------ -------------- ------------ -------------
3999 Total net position..............
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,353 2,574 3,268 3,379
-----------------------------------------------------------------------------------------------

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.................. 59 64 69
00.02 Interest assistance on
guaranteed loans.............. 125 100 167
00.04 Interest payments to Treasury... 5 7 8
00.05 Capital investments............. 6 8 9
--------- --------- ----------
00.91 Subtotal, Operating program..... 195 179 253
Reestimates:

08.02 Downward reestimate of subsidy.. 155
08.04 Downward reestimate of subsidy--
interest...................... 43
--------- --------- ----------
08.91 Subtotal, reestimates........... 198
--------- --------- ----------
10.00 Total new obligations........... 195 377 253
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 132 104
22.00 New financing authority (gross)... 141 273 253
22.10 Resources available from
recoveries of prior year
obligations..................... 25
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 298 377 253
23.95 Total new obligations............. -195 -377 -253
24.40 Unobligated balance available, end
of year......................... 104
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 30 94 143
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 111 179 110
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 141 273 253
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 184 261 180
73.10 Total new obligations............. 195 377 253
73.20 Total financing disbursements
(gross)......................... -93 -458 -92
73.45 Adjustments in unexpired accounts. -25
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 261 180 341
87.00 Total financing disbursements
(gross)......................... 93 458 92
----------------------------------------------------------------------------

[[Page 101]]

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -72 -116 -71
88.25 Interest on uninvested funds.. -20 -32 -20
88.40 Fees and premiums............. -19 -31 -19
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -111 -179 -110
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 30 94 143
90.00 Financing disbursements........... -19 279 -18
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 2,551 4,042 3,478
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 2,551 4,042 3,478
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 6,292 7,023 7,982
2231 Disbursements of new guaranteed
loans........................... 2,349 3,083 3,130
2251 Repayments and prepayments........ -1,558 -2,035 -2,314
2263 Adjustments: Terminations for
default that result in claim
payments........................ -60 -89 -92
--------- --------- ----------
2290 Outstanding, end of year........ 7,023 7,982 8,706
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 6,476 7,343 8,010
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 316 365 399 357
Investments in US securities:
1106 Receivables, net.............. 158
1206 Non-Federal assets: Receivables,
net............................. 1
------------ -------------- ------------ -------------
1999 Total assets.................... 316 524 399 357
LIABILITIES:
Non-Federal liabilities:

2201 Accounts payable................ 184 459 231 207
2203 Debt............................ 60 90 76 68
2204 Liabilities for loan guarantees. 73 -25 92 82
------------ -------------- ------------ -------------
2999 Total liabilities............... 317 524 399 357
------------ -------------- ------------ -------------
4999 Total liabilities and net position 317 524 399 357
-----------------------------------------------------------------------------------------------

Agricultural Credit Insurance Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Capital investment:

00.02 Repurchase of public
certificates of beneficial
ownership..................... 2
00.04 Purchase of guaranteed loans
from investors................ 1
00.08 Loan recoverable costs.......... 13 13 13
--------- --------- ----------
00.91 Total capital investment...... 16 13 13
Operating expenses:

01.07 Loss settlement expenses on
guaranteed loans.............. 5 5 4
01.08 Admininstrative expenses--
Department of Justice fees.... 1 1 1
01.09 Costs incident to acquisition of
property...................... 2 3 3
01.10 Undistributed charges........... 2 1 1
01.13 Interest assistance--guaranteed
loans......................... 1 1
01.17 Unclassified costs.............. 3 5 5
--------- --------- ----------
01.91 Total operating expenses...... 14 16 14
--------- --------- ----------
10.00 Total new obligations........... 30 29 27
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2
22.00 New budget authority (gross)...... 18 29 27
22.10 Resources available from
recoveries of prior year
obligations..................... 10
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30 29 27
23.95 Total new obligations............. -30 -29 -27
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 1,060 1,130 1,135
69.27 Capital transfer to general fund -1,042 -1,101 -1,108
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 18 29 27
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 72 61 61
73.10 Total new obligations............. 30 29 27
73.20 Total outlays (gross)............. -32 -29 -27
73.45 Adjustments in unexpired accounts. -10
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 61 61 61
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 18 29 27
86.98 Outlays from mandatory balances... 12
--------- --------- ----------
87.00 Total outlays (gross)........... 32 29 27
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Rent on acquired property... -2 -3 -3
88.40 Guaranteed ibsurance
purchased from holders--
principal................. -2 -1 -1
88.40 Interest on loans........... -340 -360 -350
88.40 Guaranteed loss recoveries.. -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................. -642 -690 -680
88.40 Judgments--principal........ -13 -12 -12
88.40 Shared appreciation
recapture................. -18 -13 -13
88.40 Sale of acquired property/
chattels.................. -45 -50 -70
88.40 Miscellaneous income........ -1 -1 -1
88.40 Undistributed receipts...... 6 3 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,060 -1,130 -1,135
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1,042 -1,101 -1,108
90.00 Outlays........................... -1,028 -1,101 -1,108
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6,699 5,817 4,850
1232 Disbursements: Purchase of loans
assets from the public.......... 1 2 2
1251 Repayments: Repayments and
prepayments..................... -640 -696 -686
1261 Adjustments: Capitalized interest. 32 30 48
Write-offs for default:

1263 Direct loans.................... -241 -250 -300
1264 Other adjustments, net\1\....... -34 -53 -49
--------- --------- ----------
1290 Outstanding, end of year........ 5,817 4,850 3,865
---------------------------------------------------------------------------
\1\ Amounts shown are based on payment of delinquent installments,
advances on behalf of borrowers, acquired property and chattels, loans
in kind, and judgments.

[[Page 102]]

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 776 594 389
2251 Repayments and prepayments........ -181 -200 -100
2263 Adjustments: Terminations for
default that result in claim
payments........................ -1 -5 -12
--------- --------- ----------
2290 Outstanding, end of year........ 594 389 277
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 535 350 217
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 440 386 377 534
0102 Expense........................... -309 856 125 -175
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 131 1,242 502 359
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4140-0-3-351 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 74 61 5 50
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 6,699 5,817 4,850 3,865
1602 Interest receivable............. 374 354 389 395
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -1,574 -904 -1,000 -1,000
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 5,499 5,267 4,239 3,260
1606 Foreclosed property............. 125 95 94 95
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 5,624 5,362 4,333 3,355
------------ -------------- ------------ -------------
1999 Total assets.................... 5,698 5,423 4,338 3,405
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 5,597 4,687 4,500 3,800
Non-Federal liabilities:

2201 Accounts payable................ 182 112 108 31
2202 Interest payable................ 1
2207 Other........................... 35 10 25 25
------------ -------------- ------------ -------------
2999 Total liabilities............... 5,814 4,809 4,633 3,857
NET POSITION:
3300 Cumulative results of operations.. -118 614 -295 -452
------------ -------------- ------------ -------------
3999 Total net position.............. -118 614 -295 -452
------------ -------------- ------------ -------------
4999 Total liabilities and net position 5,696 5,423 4,338 3,405
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Other services.................... 9 10 9
33.0 Investments and loans............. 20 18 17
43.0 Interest and dividends............ 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 30 29 27
---------------------------------------------------------------------------

COMMODITY CREDIT CORPORATION

Corporations

Public enterprise funds:

Commodity Credit Corporation Fund

reimbursement for net realized losses

For fiscal year [2000] 2001, such sums as may be necessary to
reimburse the Commodity Credit Corporation for net realized losses
sustained, but not previously reimbursed, 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 [2000] 2001, the Commodity Credit Corporation shall
not expend more than $5,000,000 for site investigation and cleanup
expenses, and operations and maintenance expenses to comply with the
requirement of section 107(g) of the Comprehensive Environmental
Response, Compensation, and Liability Act, as amended, 42 U.S.C.
9607(g), and section 6001 of the Resource Conservation and Recovery Act,
as amended, 42 U.S.C. 6961[: Provided, That expenses shall be for
operations and maintenance costs only and that other hazardous waste
management costs shall be paid for by the USDA Hazardous Waste
Management appropriation in this Act]. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2000.)

[crop loss assistance]

[For an additional amount for crop loss assistance authorized by
section 801 of Public Law 106-78, $186,000,000: Provided, That this
assistance shall be under the same terms and conditions as in section
801 of Public Law 106-78.]

[specialty crop assistance]

[For an additional amount for specialty crop assistance authorized
by section 803(c)(1) of Public Law 106-78, $2,800,000: Provided, That
the definition of eligible persons in section 803(c)(2) of Public Law
106-78 shall include producers who have suffered quality or quantity
losses due to natural disasters on crops harvested and placed in a
warehouse and not sold.]

[livestock assistance]

[For an additional amount for livestock assistance authorized by
section 805 of Public Law 106-78, $10,000,000: Provided, That the
Secretary of Agriculture may use this additional amount to provide
assistance to persons who raise livestock owned by other persons for
income losses sustained with respect to livestock during 1999 if the
Secretary finds that such losses are the result of natural disasters.]
(Miscellaneous Appropriations, 2000, as enacted by section 1000(a)(5) of
the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 39
Appropriation:
05.01 Commodity credit corporation fund. -39

[[Page 103]]

06.20 Reduction pursuant to Public Law
106-51.......................... 39
--------- --------- ----------
07.99 Total balance, end of year........ 39
---------------------------------------------------------------------------

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................ 1,427 1,072 633
00.02 Storage, transportation, and
other obligations not
included above.............. 164 207 180
00.03 Export enhancement program.... 1 579 478
00.04 Market access program......... 114 132 96
00.05 Dairy export incentive program 69 188 66
00.06 Section 416/Food for progress
ocean transportation........ 323 291 161
00.07 Foreign market development
cooperative................. 27 27
00.08 Quality samples program....... 3 3
00.09 Tobacco quota payments to
states/warehouse payment.... 331
Direct producer payments:
00.10 Feed grains................. 5,646 8,907 4,034
00.11 Wheat....................... 3,127 3,766 1,464
00.12 Rice........................ 811 1,027 447
00.13 Cotton...................... 1,543 2,187 1,145
00.14 Dairy--Marketing loss
assistance................ 200 123
00.15 Dairy option pilot program.. 1 9 9
00.16 Noninsured assistance
program................... 54 75 85
00.17 Oilseeds loan deficency..... 1,041 2,038 3,058
00.18 Oilseeds payments program... 463
00.19 Peanut marketing assistance
program................... 49
00.20 Marketing loan writeoffs.... 988 1,465 1,054
00.21 Crop disaster............... 1,913 1,342
00.22 Livestock assistance........ 269 188
00.23 Livestock indemnity......... 4 12
00.24 Disaster reserve assistance/
American indian livestock
feed...................... 13 7 2
00.25 Disaster reserve flood
compensation.............. 41
00.26 Conservation reserve program 1,435 1,574 1,690
00.27 Environmental quality
incentives program (EQIP). 133 137 156
00.28 Wetlands reserve program.... 113 165 46
00.30 Conservation farm option
program................... 46
00.31 Reimbursement agreement and
transfers to State and
Federal agencies............ 35 36 36
00.32 Biofuels program.............. 87
Interest:
00.33 Treasury.................... 630 789 596
00.34 Other....................... 23 22 18
00.35 EQIP technical assistance..... 33 33 38
00.36 EQIP educational assistance... 4 4 6
--------- --------- ----------
00.91 Total operating expenses.... 20,155 27,248 15,661
Capital investment:
Direct loans:
01.02 Purchase of ADP equipment... 11
--------- --------- ----------
01.92 Total support and related
programs.................... 20,166 27,248 15,661
Reimbursable program:

09.01 Commodity loans................. 8,358 9,399 9,057
09.02 Dairy recourse commodity loans.. 200
09.03 Commodities procured--PL 480
Titles II and III commodity
costs......................... 503 549 500
09.04 PL 480 ocean transportation..... 464 392 357
--------- --------- ----------
09.09 Subtotal, reimbursable programs. 9,325 10,340 10,114
--------- --------- ----------
10.00 Total new obligations........... 29,491 37,588 25,775
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 9,804 559 619
22.00 New budget authority (gross)...... 30,331 38,558 27,371
22.21 Unobligated balance transferred to
other accounts.................. -892 -914
22.22 Unobligated balance transferred
from other accounts............. 9 4
22.60 Portion applied to repay debt..... -9,202
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30,050 38,207 27,990
23.95 Total new obligations............. -29,491 -37,588 -25,775
24.40 Unobligated balance available, end
of year......................... 559 619 2,216
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 8,432 30,037 27,771
40.47 Portion applied to repay debt... -8,400 -30,037 -27,771
40.76 Reduction pursuant to P.L. 106-
113........................... -28
41.00 Transferred to other accounts... -32
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -28
Mandatory:

67.15 Authority to borrow (indefinite) 20,488 27,745 14,877
69.00 Offsetting collections (cash)..... 9,882 10,802 12,494
69.26 Offsetting collections
(unavailable balances).......... 39
69.75 Reduction pursuant to P.L. 104-208 -39
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 9,843 10,841 12,494
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 30,331 38,558 27,371
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,956 804 379
73.10 Total new obligations............. 29,491 37,588 25,775
73.20 Total outlays (gross)............. -29,182 -38,013 -27,830
73.40 Adjustments in expired accounts
(net)........................... -1,461
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 804 379 -1,676
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 20,291 27,597 9,078
86.98 Outlays from mandatory balances... 8,891 10,416 18,752
--------- --------- ----------
87.00 Total outlays (gross)........... 29,182 38,013 27,830
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

88.00 Sales to special
activities.............. -503 -549 -500
88.00 Interest revenue.......... -2
88.00 Advance from foreign
assistance programs
(P.L. 480).............. -1,116 -821 -857
Non-Federal sources (62
stat.1070): Support and
related programs:
Non-Federal sources:

88.40 Sales and other proceeds.. -241 -171 -235
88.40 Assessments............... -58
88.40 Interest revenue.......... -17 -32 -35
88.40 Other revenue............. -4
88.40 Loans repaid.............. -7,902 -9,191 -10,801
88.40 Export credit sales
program repayments...... -9 -10 -10
88.40 Interest revenue.......... -30 -28 -28
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -9,882 -10,802 -12,466
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 20,449 27,756 14,905
90.00 Outlays........................... 19,300 27,211 15,364
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 20,449 27,756 14,905
Outlays........................... 19,300 27,211 15,364
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. -50
Outlays........................... -4
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 710 3,917
Outlays........................... 710 3,615
------------------------------------
Total:
Budget Authority.................. 20,449 28,466 18,772
Outlays........................... 19,300 27,921 18,975
====================================

NOTES

Contingent liabilities, commitments, and other obligations do not
become charges against the statutory borrowing authority until they
result in borrowing from Treasury.
Excludes amounts for activities currently funded in the CCC Export
Guarantee Loan Programs account.

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
SHORT TERM CREDIT LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 384 375 366

[[Page 104]]

1251 Repayments: Repayments and
prepayments..................... -9 -9 -10
--------- --------- ----------
1290 Outstanding, end of year........ 375 366 356
----------------------------------------------------------------------------

COMMODITY LOANS
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 8,358 9,399 9,257
--------- --------- ----------
1150 Total direct loan obligations... 8,358 9,399 9,257
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,219 2,441 2,371
1231 Disbursements: Direct loan
disbursements................... 8,358 9,399 9,257
1251 Repayments: Repayments and
prepayments..................... -7,902 -9,191 -9,233
1264 Write-offs for default: Other
adjustments, net................ -234 -278 -326
--------- --------- ----------
1290 Outstanding, end of year........ 2,441 2,371 2,069
----------------------------------------------------------------------------

SALE OF INVENTORY ON CREDIT
TERMS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 30 30 30
--------- --------- ----------
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 2000 and 2001 budget estimates: (a) national
income will rise both in 2000 and 2001 from the present level; (b) 2000
crop production will decrease from 1999 crop levels for some
commodities; (c) generally, exports of agricultural commodities in 2001
are expected to be higher than 2000 levels; (d) yields for the 2000
crops are based on recent averages adjusted for trend; (e) acreage
allotments and marketing quotas will be in effect for the 2000 crops of
certain kinds of tobacco; and (f) poundage quotas will be in effect for
the 2000 crop of peanuts. Marketing loan rates for the 2000 crop are
assumed to equal rates for the 1999 crop.

It is difficult to accurately forecast requirements for the year
ending September 30, 2001, 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. CRP is USDA's largest conservation/environmental program. The
purpose of CRP, administered by FSA, is to cost-effectively assist farm
owners and operators in conserving and improving soil, water, air, and
wildlife resources by converting highly erodible and other
environmentally sensitive acreage normally devoted to the production of
agricultural commodities to a long-term resource-conserving cover. CRP
participants enroll contracts for periods from 10 to 15 years in
exchange for annual rental payments and cost-share and technical
assistance for installing approved conservation practices.

A general CRP signup was held (signup 18) October 26 through
December 11, 1998. Of the 7.1 million acres offered, a total of 5
million acres were approved for enrollment beginning in fiscal year
2000. The national average annual rental payment for this acreage is
estimated to be about $46 per acre. Technical assistance for this signup
was funded with unobligated and appropriated funds. Rental payments for
signup 18 begin in fiscal year 2001.

The general CRP signup, signup 20, will be held from January 18
through February 11, 2000. It is assumed for budgeting purposes that
approximately 1.8 million acres, of the 5 million acres offered, will be
accepted in the program beginning with the 2001 program year.
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 4.2 million
acres through 2002.

As part of the Administration's farm safety net proposal, the Budget
proposes to increase the CRP enrollment cap by almost $4 million acres
to 40 million. Also, the Administration will offer bonuses totaling up
to $100 million in FY 2000 and up to $125 million annually in FY 2001-
2002 to producers who enroll land in CRP through the continuous sign up.

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 20. 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:

2001 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................... 9,057 1,079
Dairy recourse loan program....... 200
Feed grain payments............... 4,545 4,545 4,545
Wheat payments.................... 1,464 1,569 1,464
Rice payments..................... 447 458 447
Cotton payments................... 1,145 1,145 1,145
Export enhancement program........ 478 478 478
Other support and related......... 5,371 3,614 5,145
Other items not distributed by
program:
Interest........................ 614 704 550
All other....................... 114 378 113
------------------------------------
Total, farm income, marketing
assistance loans, and price-
support programs............ 23,435 13,970 13,887
Conservation programs:
Conservation reserve program...... 1,690 1,690 1,836
Environmental quality incentives
program......................... 200 165 165
Wetlands reserve program.......... 53 132 132
Farmland protection program....... 4 4
Conservation farm option program.. 50 4 4
------------------------------------
Total, conservation programs.... 1,993 1,995 2,141
Total, Commodity Credit
Corporation............... 25,428 15,965 16,028

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

[[Page 105]]

agricultural commodities. Price support is provided to producers of
agricultural commodities through loans, purchases, payments, and other
means. This is done mainly under the Commodity Credit Corporation
Charter Act, as amended, the Agricultural Act of 1949 (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. For fiscal years 2001 through 2002, producers may
choose to receive fiscal year production flexibility contract payments
as two 50 percent payments or one 100 percent payment at any time during
the fiscal year. 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. Tobacco marketing assessments are authorized through crop year
1998.

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. The 2000 Act extended the price
support program through calendar year 2000 at the $9.90 per hundred-
weight support level. 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. However, the 2000 Act postponed the
start of the Dairy Recourse Loan Program until January 1, 2001. 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.

[[Page 106]]

Emergency Livestock Feed Assistance.--In calendar year (CY) 1998,
$200 million in CCC funds were made available for livestock feed
assistance for producers affected by disasters. An additional $70
million was authorized by the FY 1999 Emergency Supplemental Act (P.L.
106-31). The FY 2000 Act allows for not less than $200 million to be
provided to livestock producers.

Payment limitations.--The 1996 Act and the Food Security Act of
1985, as amended, limit the amount of production flexibility contract
payments during any fiscal year to $40,000 and the sum of marketing
assistance gains and loan deficiency payments during any crop year to
$75,000. This limitation has been raised to $150,000 for the 1999 crop
only.

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 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 and 2000 programs were limited to $174 million by
provisions of the FY 1999 and FY 2000 Agriculture Appropriation Acts,
but will return to the statutory level of $200 million in FY 2001 and
2002. As part of the Administration's farm safety net proposal, the
Budget provides an additional $125 million over authorized levels, for a
program total of $325 million. Beginning in FY 2001, comprehensive
nutrient management plans will be required of all EQIP participants with
livestock-or animal waste management-related contracts.

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 FY
2000 Appropriations Act provided $250,000 for the use in the state of
New Hampshire. In support of the farm safety net proposal, $65 million
is proposed for FY 2001.

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.
$50 million is provided for FY 2001 as part of the farm safety net.

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 have been incurred in fiscal years 1997-1999. The 1999 and
2000 Appropriations Acts precluded operations of the CFO in 1999 and
2000. In 2001, savings in the CFO are proposed to offset other
conservation program initiatives.

The primary objectives of the Wetlands Reserve Program (WRP) are to
restore and protect wetlands, improve wildlife habitat, and protect
mirgratory 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, 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.

Under current law, WRP is authorized to enroll 975,000 cumulative
acres. The FY 2000 Agriculture Appropriations Act allowed WRP to enroll
150,000 acres, leaving approximately 40,000 acres remaining under the
cap in FY 2001. As part of the Administration's farm safety net
proposal, the Budget proposes to enroll an additional 210,000 acres,
bringing total enrollment in FY 2001 to 250,000 acres.

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 during 1999 and 2000. 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 com

[[Page 107]]

modities, and products and related materials to supply the needs of
Federal agencies, foreign governments, and private and international
relief agencies, under section 5 (b) and (c) of the Commodity Credit
Corporation Charter Act, as amended.

Commodity exports.--The Corporation promotes the export of
agricultural commodities and products through sales for dollars or
foreign currency, payments, extension of credit, assumption of certain
risks, and conduct of other operations with respect to the exportation
of commodities. Such commodities and products may be those held in
private trade channels as well as those acquired by the Corporation.
These programs are carried out under the authority of the CCC Charter
Act and other specific legislation.

Foreign donations.--The Corporation may furnish commodities under
the authority of section 416(b) of the Agricultural Act of 1949 to carry
out programs of assistance in developing countries and friendly
countries and pay costs associated with making the commodities
available. The Corporation may also use its funds to furnish commodities
overseas under the authority of the Food for Progress Act of 1985;
however, not more than 500,000 metric tons of commodities may be
provided under this authority in each fiscal year, and not more than $30
million of the funds of the Corporation (exclusive of the costs of
commodities) may be used for each fiscal year. In addition, under the
Food for Progress Act of 1985, not to exceed $10 million of the
Corporation's funds or commodities may be used each fiscal year to
enhance the development of private sector agriculture in countries
receiving commodities under the Food for Progress Act of 1985. 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 only.

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

[In millions of dollars]

Item 1999 actual 2000 est. 2001 est.
Loans outstanding, gross, start of
year:
Commodity Credit Corporation...... 2,219 2,441 2,371
Additional loans made............. 8,357 9,398 9,257
Deduct:
Loans repaid...................... -7,902 -9,191 -9,233
Acquisition of loan collateral.... -203 -277 -326
Write-offs........................ -30
------------------------------------
Total loans outstanding,
gross, end of year.......... 2,441 2,371 2,069
====================================

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

AGRICULTURAL COMMODITIES

[In millions of dollars]

Item 1999 actual 2000 est. 2001 est.
On hand, start of year, gross....... 531 713 707
====================================
Acquisitions:
Forfeiture of loan collateral..... 203 277 325
Excess of collateral acquired over
loans canceled.................. 6 6 6
Purchases......................... 1,407 1,059 626
Carrying charges:
Charges to inventory.............. 14 7 1
Storage and handling (non-add).... (43) (48) (50)
Transportation (non-add).......... (5) (6) (4)
------------------------------------
Total acquisitions............ 1,630 1,349 958
====================================
Dispositions:
Domestic donations to:
Families........................ 17 67 46
Institutions.................... 11 65 47
------------------------------------
Total domestic donations...... 28 132 93
====================================
Export donations.................. 665 474 313
Sales and transfers:
Special programs: Title II,
Public Law 480................ 477 549 500
Title III, Public Law 480....... 26
Other sales..................... 236 177 233
Net loss or gain (-) on sales
and transfers................. 16 23 -11
------------------------------------
Total sales and transfers..... 755 749 722
====================================
Total dispositions............ 1,448 1,355 1,128
====================================
On hand, end of year, gross......... 713 707 538
Allowances for losses............... -186 -185 -140
------------------------------------
On hand, end of year, net........... 527 522 398
====================================

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 2000 est. 2001 est.
Loans made.......................... 8,358 9,399 9,257
Loans repaid........................ 7,902 9,191 9,233
Loan collateral forfeited........... 203 277 326
Loans outstanding, end of year...... 2,441 2,371 2,069
Acquisitions........................ 1,630 1,349 958
Cost of commodities sold............ 755 749 722
Cost of commodities donated......... 693 606 406
Inventory, end of year.............. 713 707 538
Investment in loans and inventory,
end of year......................... 3,154 3,078 2,607
Direct producer payments............ 16,101 22,366 12,815
Net expenditures.................... 19,223 26,067 15,963
Realized losses..................... 20,632 27,771 16,028

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 remain

[[Page 108]]

ing funds are expected to be exhausted during 2000, and the Budget
proposes to fund $35 million per year through 2002 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 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:

2001 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............ 159 224
(2) Commodities supplied in connection
with dispositions abroad (Title II).... 837 843
(3) Commodities supplied in connection
with dispositions abroad (Title III)... 0 3
------------- --------------

Total................................ 996 1,070
------------- --------------

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 2000 est. 2001 est.
Statutory borrowing authority....... 30,000 30,000 30,000
Deduct: Borrowings from Treasury.... 28,712 27,139 15,349
Net statutory borrowing authority
available........................... 1,288 2,861 14,651

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]
1999 actual
Realized losses, 1933 to 1999, inclusive 283,358
Reimbursements by the Treasury:
Reimbursements of realized losses:
Appropriations (60 times)............ 250,163
Note cancellations (6 times)......... 2,698
Less dividends paid to Treasury (4
times).............................. -138
------------- --------------

Total reimbursements for net
realized losses.................... 252,723
------------- --------------

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

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

Total................................. 253,321
------------- --------------

Realized deficit as of September 30,
1999, support and related programs..... 30,037
------------- --------------

Foreign Market Development Cooperator Program (FMDCP) and Quality
Samples Program. In FY 2000, funding for the FMSCP shifted from the
Foreign Agricultural Service annual appropriation to CCC funding.
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. The FY 2000 program level is $27.5 million.

[[Page 109]]

Beginning also in FY 2000, CCC is funding the Quality Samples Program at
an authorized annual level of $2.5 million. 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. products.

Commodity Certificates. Subtitle B of the 2000 Act allows for the
use of commodity certificates. In making in-kind payments, CCC may (a)
acquire and use commodities that have been pledged to the Commodity
Credit Corporation as collateral for loans made by the Corporation;''
(b) ``use other commodities owned by the Commodity Credit Corporation;''
and (c) ``redeem negotiable marketing certificates for cash under terms
and conditions established. Implementation regarding implementation of
commodity certificates is under consideration.

Farm Storage Facility Loan Program (FSFL). The FSFL program was
established by CCC in 1949 to offer low-cost financing to producers for
the construction or upgrade of on-farm storage facilities. USDA will
resume this program in FY 2000. Direct loans would finance about $1
billion worth of farm storage facilities from FY 2000 through 2002. The
cost to the U.S. government 2002 for the FSFL program would be estimated
using procedures stipulated by the Federal Credit Reform Act of 1990.

Ethanol Grain Program. As part of the Farm Safety Net proposal, the
FY 2001 President's Budget assumes that CCC will make payments under a
new Ethanol Grain Program to ethanol producers who increase their
purchase of surplus grain for conversion into fuel ethanol. The program,
which is authorized by Executive Order 13134, the Agricultural Act of
1949 as amended by the Food Security Act of 1985 (PL 99-198), and the
CCC Charter Act, will remove surplus grain from the market and encourage
ethanol production.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4336-0-3-999 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 1,078 1,022 845 1,125
0102 Expense........................... -10,396 -21,654 -28,616 -17,153
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -9,318 -20,632 -27,771 -16,028
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1101 Fund balances with Treasury..... -1,568 -1,410 -1,410 -1,410
Investments in US securities:
1106 Receivables, net.............. 49 151 26 26
1107 Advances and prepayments...... 56 4 33 33
Non-Federal assets:

1206 Receivables, net................ 44 38 35 35
1207 Advances and prepayments........ 5 11 5 5
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 2,632 2,846 2,766 2,455
1602 Interest receivable............. 209 232 210 197
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -180 -274 -180 -173
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 2,661 2,804 2,796 2,479
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 2,661 2,804 2,796 2,479
Other Federal assets:

1801 Cash and other monetary assets.. 77 77 77 77
1802 Inventories and related
properties.................... 345 355 336 207
1803 Property, plant and equipment,
net........................... 87 46 67 68
------------ -------------- ------------ -------------
1999 Total assets.................... 1,756 2,076 1,965 1,520
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 4 430 5 5
2102 Interest payable................ 160 510 350 192
2103 Debt............................ 16,692 28,712 27,139 15,349
2105 Other........................... 370 444 398 398
Non-Federal liabilities:

2201 Accounts payable................ 63 10 107 107
2206 Pension and other actuarial
liabilities................... 30
2207 Other........................... 2,426 2,537 2,537 2,537
------------ -------------- ------------ -------------
2999 Total liabilities............... 19,745 32,643 30,536 18,588
NET POSITION:
3300 Cumulative results of operations.. -17,990 -30,566 -28,571 -17,068
------------ -------------- ------------ -------------
3999 Total net position.............. -17,990 -30,566 -28,571 -17,068
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,755 2,077 1,965 1,520
-----------------------------------------------------------------------------------------------
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........ 328 297 165
Other services:
25.2 Other services................ 168 97 80
25.2 Other services: Storage and
handling.................... 43 48 50
26.0 Supplies and materials: Costs of
commodities sold or donated-PL
480........................... 1,427 1,071 633
31.0 ADP equipment................... 11
41.0 Grants, subsidies, and
contributions................. 17,537 24,924 14,119
43.0 Interest and dividends.......... 652 811 614
--------- --------- ----------
99.0 Subtotal, direct obligations.. 20,166 27,248 15,661
Reimbursable obligations:

22.0 Transportation of things:PL 480
ocean transportation.......... 464 392 357
26.0 Supplies and materials: Cost of
commodities sold or donated--
PL 480........................ 503 549 500
33.0 Investments and loans........... 8,358 9,399 9,257
--------- --------- ----------
99.0 Subtotal, reimbursable
obligations................. 9,325 10,340 10,114
--------- --------- ----------
99.9 Total new obligations........... 29,491 37,588 25,775
---------------------------------------------------------------------------

Commodity Credit Corporation Fund

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-2-3-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
Support and related programs:

Operating expenses:
Direct producer payments:
00.31 Conservation farm option
program................... -50
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -50
23.95 Total new obligations............. 50
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -50
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. -50
73.20 Total outlays (gross)............. 4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -50
90.00 Outlays........................... -4
---------------------------------------------------------------------------

[[Page 110]]

In 2001, the Budget proposes to cut the Conservation Farm Option by
$50 million to offset increases for other high priority conservation
initiatives.

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:
Direct producer payments:
00.23 Supplementary income
assistance payments....... 600 2,464
00.25 Dairy price support program. 150
00.26 Noninsured assistance
program (NAP)............. 110 110
00.27 Cooperative development..... 80
00.28 Environmental quality
incentives program (EQIP). 125
00.29 Wetlands reserve program.... 213
00.30 Farmland protection program. 65
00.31 Conservation farm option.... -50
00.32 Technical assistance-
Wetlands reserve program/
Conservation reserve
program................... 75
00.33 Conservation security
program................... 600
--------- --------- ----------
00.91 Total operating expenses.... 710 3,832
Capital investment:
01.02 Purchase of ADP equipment..... 35
--------- --------- ----------
01.92 Total support and related
programs.................... 710 3,867
--------- --------- ----------
10.00 Total new obligations........... 710 3,867
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 710 3,917
22.21 Unobligated balance transferred to
other accounts.................. -50
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 710 3,867
23.95 Total new obligations............. -710 -3,867
24.40 Unobligated balance available, end
of year.........................
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 710 3,917
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 710 3,867
73.20 Total outlays (gross)............. -710 -3,615
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 252
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 710 3,615
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 710 3,917
90.00 Outlays........................... 710 3,615
---------------------------------------------------------------------------

This schedule reflects the CCC portion of the Administration's
proposed Farm Safety Net reform. The proposal includes counter-cyclical
farm income support to provide additional payments through the expected
enactment of the next farm bill, which would provide producers 92
percent of their lost farm revenue relative to a rolling five-year
average. The proposal would also: extend the dairy price-support
program; provide financing to cooperatives for livestock processing and
other value-added facilities; and waive certain area triggers for crop
insurance provided under the Non-insured Assistance Program. (Additional
crop insurance reforms that are part of the Farm Safety Net proposal can
be found in the Crop Insurance schedules.)

The proposal includes a comprehensive conservation initiative. A new
Conservation Security Program would be funded at $600 million to provide
annual payments to farmers and ranchers who implement high-value
conservation practices such as comprehensive nutrient management, low-
impact grazing practices, windbreaks and grassed waterways. This program
would be administered by the Natural Resources Conservation Service. The
Environmental Quality Incentives Program would increase from its
authorized $200 million to $325 million per year, for farmers and
ranchers implementing conservation and livestock management practices.
The Conservation Reserve Program's cumulative enrollment cap would be
increased from its current 36.4 million acres to 40 million acres.
Bonuses totaling up to $100 million in FY 2000 and $125 million in FY
2001 and 2002 would be offered under current authority to producers who
enroll land in the CRP's continuous signup program for high-value
acreage such as filter strips and grass waterways. Annual enrollments
under the Wetlands Reserve Program would increase to 250,000 acres per
year and the current cumulative enrollment cap of 975,000 acres,
expected to be reached in FY 2001, would be eliminated.

In addition, funding for the Farmland Protection Program would be
provided at $65 million per year. This program, which is also part of
the President's Lands Legacy Initiative, provides matching funds to
purchase permanent easements on farmland threatened by urban and
suburban sprawl. The Wildlife Habitat Incentives Program would be funded
at $50 million annually, to provide cost-share assistance to farmers and
other landowners for habitat restoration. Both these programs have
exhausted their authorized funding.

Associated technical assistance would also be funded through this
proposal, including a $35 million increase in the cap on CCC-funded ADP
obligations for FY 2001 and 2002, to compensate for prior-year
appropriations reductions to the 7-year cap established by the 1996 Farm
Bill.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-4-3-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Other services.................... 248
31.0 ADP equipment..................... 35
41.0 Grants, subsidies, and
contributions................... 710 3,584
--------- --------- ----------
99.9 Total new obligations........... 710 3,867
---------------------------------------------------------------------------

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;
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 may be
transferred to and merged with the appropriation for ``Foreign
Agricultural Service and General Sales Manager'' and $589,000 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 158 320 323
00.07 Reestimates of guaranteed loan
subsidy......................... 343
00.08 Interest on reestimates of
guaranteed loan subsidy......... 181
00.09 Administrative expenses........... 4 4 4
--------- --------- ----------
10.00 Total new obligations........... 162 848 327
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 166 330 999

[[Page 111]]

22.00 New budget authority (gross)...... 326 1,517 327
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 492 1,847 1,326
23.95 Total new obligations............. -162 -848 -327
24.40 Unobligated balance available, end
of year......................... 330 999 999
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 4 4
Mandatory:

60.05 Appropriation (indefinite)...... 322 734 323
69.00 Offsetting collections (cash)..... 779
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 326 1,517 327
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 199 204 218
73.10 Total new obligations............. 162 848 327
73.20 Total outlays (gross)............. -157 -834 -327
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 204 218 218
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 4 4
86.97 Outlays from new mandatory
authority....................... 138 692 259
86.98 Outlays from mandatory balances... 15 138 64
--------- --------- ----------
87.00 Total outlays (gross)........... 157 834 327
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Offsetting collections
(cash) from: Downward
Reestimates................... -779
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 326 738 327
90.00 Outlays........................... 157 55 327
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 3,045 3,787 3,792
--------- --------- ----------
2159 Total loan guarantee levels..... 3,045 3,787 3,792
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 10.57 8.45 8.52
--------- --------- ----------
2329 Weighted average subsidy rate... 10.57 8.45 8.52
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 322 734 323
--------- --------- ----------
2339 Total subsidy budget authority.. 322 734 323
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 153 51 323
--------- --------- ----------
2349 Total subsidy outlays........... 153 51 323
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority--administrative
expenses........................ 4 4 4
3590 Outlays from new authority........ 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 determined
in large part by the risk premia assigned for each risk grade.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the credit
guarantees committed in 1992 and beyond (including modifications of
credit guarantees that resulted from obligations or commitments in any
year), as well as administrative expenses of this program. The subsidy
amounts are estimated on a present value basis; the administrative
expenses are estimated on a cash basis. The 2001 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 4 4 4
41.0 Grants, subsidies, and
contributions................... 158 844 323
--------- --------- ----------
99.9 Total new obligations........... 162 848 327
---------------------------------------------------------------------------

Commodity Credit Corporation Export Guarantee Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
New loans:

00.01 Default claims.................. 244 425 390
00.02 Interest on debt to Treasury.... 62 62 62
--------- --------- ----------
00.91 Subtotal, new loans............. 306 487 452
Reestimates:

08.02 Reestimates of guaranteed loan
subsidy....................... 596
08.04 Interest on reestimates of
guranteed loan subsidy........ 184
--------- --------- ----------
08.91 Subtotal, reestimates........... 780
--------- --------- ----------
10.00 Total new obligations........... 306 1,267 452
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1,548 1,539 463
22.00 New financing authority (gross)... 229 191 467

[[Page 112]]

22.10 Resources available from
recoveries of prior year
obligations..................... 68
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,845 1,730 930
23.95 Total new obligations............. -306 -1,267 -452
24.40 Unobligated balance available, end
of year......................... 1,539 463 478
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 229 191 467
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year -199 -204 -332
73.10 Total new obligations............. 306 1,267 452
73.20 Total financing disbursements
(gross)......................... -244 -1,395 -465
73.45 Adjustments in unexpired accounts. -68
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -204 -332 -345
87.00 Total financing disbursements
(gross)......................... 244 1,395 465
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -157 -55 -327
88.25 Interest on uninvested funds.. -36 -38
Non-Federal sources:
88.40 Loan origination fee........ -14 -28 -29
88.40 Principal collections....... -4 -7 -9
88.40 Interest collections........ -54 -65 -64
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -229 -191 -467
Against gross financing authority only:

88.95 Change in receivables from
program accounts..............
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 15 1,204 -2
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 3,045 3,787 3,792
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3,045 3,787 3,792
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 6,826 6,739 5,689
2231 Disbursements of new guaranteed
loans........................... 244 3,501 3,501
2251 Repayments and prepayments........ -83 -4,126 -3,701
2261 Adjustments: Terminations for
default that result in loans
receivable...................... -248 -425 -390
--------- --------- ----------
2290 Outstanding, end of year........ 6,739 5,689 5,099
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 6,065 5,575 4,581
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 96 336 754
2331 Disbursements for guaranteed
loan claims................... 248 425 390
2351 Repayments of loans receivable.. -8 -7 -9
--------- --------- ----------
2390 Outstanding, end of year...... 336 754 1,135
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4337-0-3-351 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1,548 1,539 463 478
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501 Defaulted guaranteed loans
receivable, gross............. 1,375 336 754 1,135
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 1,375 336 754 1,135
------------ -------------- ------------ -------------
1999 Total assets.................... 2,923 1,875 1,217 1,613
LIABILITIES:
2103 Federal liabilities: Debt......... 851 851 851 851
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 2,245 1,024 366 762
------------ -------------- ------------ -------------
2999 Total liabilities............... 3,096 1,875 1,217 1,613
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3,096 1,875 1,217 1,613
-----------------------------------------------------------------------------------------------

Commodity Credit Corporation Guaranteed Loans Liquidating Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 277 59
22.00 New budget authority (gross)...... 234 316 328
22.40 Capital transfer to general fund.. -451 -375 -328
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 60
24.40 Unobligated balance available, end
of year......................... 59
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 234 316 328
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of principal..... -83 -114 -158
88.40 Interest received on loans.. -151 -202 -170
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -234 -316 -328
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -234 -316 -328
---------------------------------------------------------------------------
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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 214
2251 Repayments and prepayments........ -214
--------- --------- ----------
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...... 4,292 4,210 4,096
2351 Repayments of loans receivable.. -82 -114 -158
--------- --------- ----------
2390 Outstanding, end of year...... 4,210 4,096 3,938
---------------------------------------------------------------------------

[[Page 113]]

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 277 277
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....................... 4,292 4,210 4,096 3,938
1701 Defaulted guaranteed loans,
adjustment--Debt Reduction..
1702 Interest receivable............. 25 167 167 167
1703 Allowance for estimated
uncollectible loans and
interest (-).................. -1,456 -3,054 -3,031 -3,019
------------ -------------- ------------ -------------
1799 Value of assets related to
loan guarantees............. 2,861 1,323 1,232 1,086
------------ -------------- ------------ -------------
1999 Total assets.................... 3,138 1,600 1,232 1,086
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 3,745 2,664 2,483 2,372
2207 Non-Federal liabilities: Other.... 24 25
------------ -------------- ------------ -------------
2999 Total liabilities............... 3,769 2,689 2,483 2,372
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3,769 2,689 2,483 2,372
-----------------------------------------------------------------------------------------------

Farm Storage Facility Loans Program Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 10 4
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 10 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 10 4
23.95 Total new obligations............. -10 -4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... 10 4
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 10 4
73.20 Total outlays (gross)............. -10 -4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 10 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10 4
90.00 Outlays........................... 10 4
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 350 150
--------- --------- ----------
1159 Total direct loan levels........ 350 150
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 2.85 2.85
--------- --------- ----------
1329 Weighted average subsidy rate... 2.85 2.85
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 10 4
--------- --------- ----------
1339 Total subsidy budget authority.. 10 4
Direct loan subsidy outlays:
1340 Subsidy outlays................... 10 4
--------- --------- ----------
1349 Total subsidy outlays........... 10 4
---------------------------------------------------------------------------

Farm Storage Facility Loan Program. The Farm Storage Facility Loan
(FSLA) program was established by CCC in 1949. The program was
authorized in 1948 by the CCC Charter Act. CCC stopped making new loans
under the FSLA program in 1982 based on studies that revealed that
producers had sufficient storage for their crops at that time. Recent
studies reflected that grain elevators currently have insufficient
capacity to allow farmers to store their grain off the farm at harvest
when prices are usually at their lowest. Due to this severe shortage of
available storage, low-cost financing for producers to build or upgrade
on-farm commodity storage and handling facilities is provided through
the FSLA program. The program is being implemented in 2000 by CCC under
Section 504(c) of the Federal Credit Reform Act of 1990. This program
will provide producers financing with five to ten-year repayment terms
and low interest rates. The program gives producers greater marketing
flexibility when farm storage is limited and/or transportation
difficulties cause storage problems, allows farmers to benefit from new
marketing and technological advances, and maximizes their returns
through identity-preserved marketing.

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 (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.

Farm Storage Facility Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 350 150
00.03 Interest to Treasury.............. 9 22
--------- --------- ----------
10.00 Total new obligations........... 359 172
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 7
22.00 New financing authority (gross)... 366 175
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 366 182
23.95 Total new obligations............. -359 -172
24.40 Unobligated balance available, end
of year......................... 7 10
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 356 171
Offsetting collections (cash):

69.00 Payments from program account... 10 4
69.00 Repayment of principal.......... 84
69.47 Portion applied to repay debt..... -84
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 10 4
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 366 175
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 359 172
73.20 Total financing disbursements
(gross)......................... -359 -172
87.00 Total financing disbursements
(gross)......................... 359 172
----------------------------------------------------------------------------

[[Page 114]]

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -10 -4
Non-Federal sources:
88.40 Principal collections....... -61
88.40 Interest collections........ -23
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -10 -88
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 356 87
90.00 Financing disbursements........... 349 84
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4158-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 350 150
--------- --------- ----------
1150 Total direct loan obligations... 350 150
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 350
1231 Disbursements: Direct loan
disbursements................... 350 150
1251 Repayments: Repayments and
prepayments..................... -84
--------- --------- ----------
1290 Outstanding, end of year........ 350 416
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4158-0-3-351 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 350 416
1402 Interest receivable............. 72 80
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 422 496
------------ -------------- ------------ -------------
1999 Total assets.................... 422 496
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 368 479
------------ -------------- ------------ -------------
2999 Total liabilities............... 368 479
-----------------------------------------------------------------------------------------------

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.

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,
[$661,243,000] $747,243,000, to remain available until expended (7
U.S.C. 2209b), of which not less than [$5,990,000] $5,990,000 is for
snow survey and water forecasting and not less than [$9,125,000]
$9,125,000 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
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
Administration, and Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Technical assistance.............. 546 581 654
00.02 Soil Surveys...................... 78 80 78
00.03 Snow Survey and Water Forecasting. 6 6 6
00.04 Plant Materials Centers........... 10 9 9
09.00 Reimbursable program.............. 156 156 278
--------- --------- ----------
10.00 Total new obligations........... 796 832 1,025
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 14 15
22.00 New budget authority (gross)...... 797 817 1,025
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 811 832 1,025
23.95 Total new obligations............. -796 -832 -1,025
24.40 Unobligated balance available, end
of year......................... 15
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 641 661 747
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 156 156 278
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 797 817 1,025
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 130 113 103
73.10 Total new obligations............. 796 832 1,025
73.20 Total outlays (gross)............. -813 -842 -1,017
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 113 103 111
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 697 738 935
86.93 Outlays from discretionary
balances........................ 116 104 81
--------- --------- ----------
87.00 Total outlays (gross)........... 813 842 1,017
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -142 -140 -262
88.40 Non-Federal sources........... -14 -16 -16
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -156 -156 -278
----------------------------------------------------------------------------

[[Page 115]]

Net budget authority and outlays:
89.00 Budget authority.................. 641 661 747
90.00 Outlays........................... 657 686 739
---------------------------------------------------------------------------

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.

This account includes $10 million in competitive partnership grants
as part of the Clean Water Action Plan, 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 to develop
watershed partnerships that include all stakeholders, to resolve
differences and produce and help implement strategic plans to restore
impaired watersheds. Watersheds would be selected through an inter-
agency review process; however local entities may receive a preference
in competing for funding if their States have prepared memoranda of
understanding (MOU) for coordinating with the Federal government. 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 related to the Clean Water
Action Plan.

In support of the Clean Water Action Plan's Animal Feeding
Operations (AFOs) Strategy, conservation technical assistance funding
targeted to AFOs will increase by $54 million over 2000 levels, for a
total of $110 million in 2001. These funds will help livestock producers
develop comprehensive nutrient management plans, a cornerstone of the
strategy.

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.''

Of this program's $15 million in additional climate change funds,
$12 million would expand soil carbon studies in support of the U.S.
Global Change Research Program. These projects would provide validated
soil carbon inventories and assess alternative soil management impacts
on soil carbon stocks at national, regional, and field levels. 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 would be used to carry out research pilot projects on AFO and
livestock management issues and cropland management.

As part of the Administration's bioproducts initiative, $5 million
is included to provide grants and technical assistance to farmers who
market or produce bioenergy or biobased products. These funds would
expand the economic opportunities available to farmers while promoting
environmentally-friendly technologies.

MAIN WORKLOAD FACTORS

1999 est. 2000 est. 2001 est.
Customers served.................... 2,481,000 2,292,000 2,857,000
Onsite technical assistance......... 630,000 581,400 636,800
Acres receiving conservation
technical assistance................ 42,068,000 38,872,000 48,447,000

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.

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 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

1999 actual 2000 est. 2001 est.
Acres mapped annually (millions).... 24 24 24
Soil surveys ready for publication
(number)............................ 32 32 32

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........... 347 361 402
11.3 Other than full-time permanent 12 13 14
11.5 Other personnel compensation.. 5 6 6
--------- --------- ----------
11.9 Total personnel compensation 364 380 422
12.1 Civilian personnel benefits..... 85 90 101
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 15 15 16
22.0 Transportation of things........ 3 3 3
23.2 Rental payments to others....... 11 11 12
23.3 Communications, utilities, and
miscellaneous charges......... 24 24 26
24.0 Printing and reproduction....... 4 4 4
25.2 Other services.................. 87 101 106
26.0 Supplies and materials.......... 14 15 16
31.0 Equipment....................... 31 32 36
41.0 Grants, subsidies, and
contributions................. 4
--------- --------- ----------
99.0 Subtotal, direct obligations.. 639 676 747
99.0 Reimbursable obligations.......... 156 154 278
99.5 Below reporting threshold......... 1 2
--------- --------- ----------
99.9 Total new obligations........... 796 832 1,025
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 7,549 7,592 7,993
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 2,651 2,493 4,293
---------------------------------------------------------------------------

[[Page 116]]

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: Provided, That this appropriation shall be
available for employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed
$110,000 shall be available for employment under 5 U.S.C. 3109. (7
U.S.C. 2201-02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 10 10 10
09.01 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total new obligations........... 10 11 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 10 11 11
23.95 Total new obligations............. -10 -11 -11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 10 10 10
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 10 11 11
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2 1 1
73.10 Total new obligations............. 10 11 11
73.20 Total outlays (gross)............. -11 -11 -11
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 10 10
86.93 Outlays from discretionary
balances........................ 2 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 11 11 11
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10 10 10
90.00 Outlays........................... 11 10 10
---------------------------------------------------------------------------

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 program funds by cost-sharing with
districts or States is strongly encouraged. Watershed plans are
developed that 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.

In 2001, $2 million is proposed to provide technical assistance to
communities for disaster mitigation planning.

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.................. 2 2 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 9 9 9
99.0 Reimbursable obligations.......... 1 1
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 10 11 11
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 113 110 105
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 9 13 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]
$8,000,000 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: 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: Provided further, That [of the funds
available for Emergency Watershed Protection activities, $8,000,000
shall be available for Mississippi, New Mexico, Ohio, and Wisconsin for
financial and technical assistance for pilot rehabilitation projects of
small, upstream dams built under the Watershed and Flood Prevention Act
(16 U.S.C. 1001 et seq., section 13 of the Act of December 22, 1994;
Public Law 78-534; 58 Stat. 905), and the pilot watershed program
authorized under the heading ``FLOOD PREVENTION'' of the Department of
Agriculture Appropriation Act, 1954 (Public Law 83-156; 67 Stat. 214)]
up to $4,170,000 is for the costs of loans, as authorized by the
Watershed Protection and Flood Prevention Act (16 U.S.C. 1006a), for
rehabilitation of small, upstream dams built under the Watershed
Protection and Flood Prevention Act (16 U.S.C. et seq.), section 13 of
the Act of December 22, 1944 (Public Law 78-534, 58 Stat. 905), and the
pilot watershed program authorized under the heading ``Flood
Prevention'' of the Department of Agriculture Appropriations Act, 1954
(Public Law 83-156, 67 Stat. 214): Provided further, 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 none of the costs for such rehabilitation activities (including any
technical assistance costs such as planning, design, and engineering
costs) shall be borne by the Department of Agriculture: Provided
further, That the Department may provide

[[Page 117]]

technical assistance for such rehabilitation projects to the extent that
the costs of such assistance shall be reimbursed by the borrower, and
such reimbursements shall be deposited into the accounts that incurred
such costs and shall be available until expended without further
appropriation. In addition, for expenses necessary to administer the
loans, such sums as may be necessary shall be transferred to and merged
with the appropriation for ``Rural Development, Salaries and Expenses''.
(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, 2000.)
[For an additional amount for ``Watershed and Flood Prevention
Operations'' to repair damages to the waterways and watersheds resulting
from natural disasters, $80,000,000, to remain available until
expended.] (Miscellaneous Appropriations, 2000, as enacted by section
1000(a)(5) of the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Watershed operations (P.L. 534). 15 8 8
00.02 Dam rehabilitation loans........ 4
00.03 Emergency watershed protection
operations.................... 153 152
00.04 Small watershed operations (P.L.
566).......................... 87 85 71
09.01 Reimbursable program.............. 19 25 25
--------- --------- ----------
10.00 Total new obligations........... 274 270 108
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 135 74
22.00 New budget authority (gross)...... 213 196 108
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 348 270 108
23.95 Total new obligations............. -274 -270 -108
24.40 Unobligated balance available, end
of year......................... 74
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 99 99 83
40.15 Appropriation (emergency)....... 95 80
40.76 Reduction pursuant to P.L. 106-
113........................... -8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 194 171 83
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 19 25 25
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 213 196 108
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 185 233 228
73.10 Total new obligations............. 274 270 108
73.20 Total outlays (gross)............. -227 -275 -222
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 233 228 114
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 125 124 81
86.93 Outlays from discretionary
balances........................ 102 150 141
--------- --------- ----------
87.00 Total outlays (gross)........... 227 275 222
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -8 -13 -11
88.40 Non-Federal sources........... -11 -12 -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -19 -25 -25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 194 171 83
90.00 Outlays........................... 208 250 197
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 60
--------- --------- ----------
1159 Total direct loan levels........ 60
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 6.95
--------- --------- ----------
1329 Weighted average subsidy rate... 6.95
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 4
--------- --------- ----------
1339 Total subsidy budget authority.. 4
Direct loan subsidy outlays:
1340 Subsidy outlays................... 1
--------- --------- ----------
1349 Total subsidy outlays........... 1
---------------------------------------------------------------------------

These programs provide for cooperative actions 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 can be used for either flood prevention
projects or flood damage rehabilitation efforts, depending upon the
needs and opportunities. $3 million is proposed to provide technical and
financial assistance to communities to implement disaster mitigation
plans.

Watershed operations authorized by Public Law 534.--The Department
cooperates with soil conservation districts and other local
organizations in planning and installing flood prevention improvements
in 11 watersheds authorized by the Flood Control Act of 1944. The
Federal Government shares the cost of improvements 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:

Emergency watershed protection operations.--This program authorizes
the Secretary of Agriculture to undertake such emergency measures for
runoff retardation and soil erosion prevention as may be needed to
safeguard life and property from floods and the products of erosion on
any watershed whenever natural elements or forces cause a sudden
impairment of that watershed. An emergency is considered to exist when a
watershed is suddenly impaired by flood, fire, wind, earthquake, or
other natural 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.

To improve the delivery and defensibility of the program, NRCS is
currently drafting a programmatic environmental impact statement (EIS)
to assess various program alternatives. Through the EIS public feedback
and information gathering process, NRCS ultimately will be able to make
the program more beneficial to communities and the environment.

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. Significant reforms were begun in 1997 to make
this program environmentally beneficial, with higher investment returns
to society.

[[Page 118]]

High priority P.L. 534 projects are 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
$800 million.

Included in the funding level is $4 million in subsidy budget
authority for a new $60 million loan program that will provide loans to
State, local, and tribal governments to rehabilitate aging PL-534 and
PL-566 watershed structures. Over the last 50 years, NRCS has
constructed more than 10,000 dams through these programs. Many of these
dams, which were built with a 50 year lifespan, have reached or nearly
reached their life expectancy, and as they age may pose a safety risk to
the communities that surround them. While NRCS bears no legal
responsibility for maintaining these structures, the Administration
wants to work with the communities to address this issue.

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 2001.

The following tabulation shows the status of Public Law 566
projects:

MAIN WORKLOAD FACTORS

1999 actual 2000 est. 2001 est.
Status of operational projects:
Projects receiving land treatment. 193 198 203
Structural projects............... 261 261 261
Land treatment and structural..... 62 62 62
------------------------------------
Subtotal active projects...... 516 521 526
Projects continuing post-
installation assistance......... 913 915 920
Inactive projects................. 18 18 18
Completed projects................ 36 38 40
Deauthorized projects............. 158 159 160
------------------------------------
Total operational projects.... 1,641 1,651 1,664
------------------------------------
New projects approved during year. 11 10 13
====================================

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 41 40 25
11.3 Other than full-time permanent 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 43 42 26
12.1 Civilian personnel benefits..... 10 9 6
21.0 Travel and transportation of
persons....................... 3 3 2
23.2 Rental payments to others....... 2 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 1
Other services:
25.2 Other services................ 8 8 4
25.2 Other services................ 79 79 23
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 4 4 2
32.0 Land and structures............. 34 26
41.0 Grants, subsidies, and
contributions................. 67 69 17
--------- --------- ----------
99.0 Subtotal, direct obligations.. 253 244 83
99.0 Reimbursable obligations.......... 18 25 25
Allocation Account:

11.1 Personnel compensation: Full-
time permanent................ 1
25.2 Other services.................. 1
--------- --------- ----------
99.0 Subtotal, allocation account.. 2
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 274 270 108
---------------------------------------------------------------------------

Personnel Summary

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), [$35,265,000] $36,265,000, 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Technical assistance.............. 35 35 36
09.01 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 36 36 37
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 1 1
22.00 New budget authority (gross)...... 36 36 37
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 37 37 38
23.95 Total new obligations............. -36 -36 -37
24.40 Unobligated balance available, end
of year......................... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 35 35 36
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 36 36 37
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 9 10 11
73.10 Total new obligations............. 36 36 37
73.20 Total outlays (gross)............. -35 -35 -37
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 10 11 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 33 33 33
86.93 Outlays from discretionary
balances........................ 4 1 3
--------- --------- ----------
87.00 Total outlays (gross)........... 35 35 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.................. 35 35 36
90.00 Outlays........................... 35 34 36
---------------------------------------------------------------------------

Under this program, the Department assists States, local units of
government, groups and individuals in developing

[[Page 119]]

area plans for resource conservation and development (RC and D).

Designated 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

1999 actual 2000 est. 2001 est.
Areas authorized at beginning of
year................................ 315 315 315
Areas authorized at end of year..... 315 315 315
Project plans adopted............... 3,100 3,100 3,100
Projects completed.................. 2,800 2,800 2,800

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 19 20 21
11.3 Other than full-time permanent 1
--------- --------- ----------
11.9 Total personnel compensation 20 20 21
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
25.2 Other services.................. 6 6 6
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 35 35 36
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 36 36 37
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 390 388 376
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 9 9 9
---------------------------------------------------------------------------

Great Plains Conservation Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2268-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2 3 3
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 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 11 9 6
73.20 Total outlays (gross)............. -2 -3 -3
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 9 6 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 2 3 3
----------------------------------------------------------------------------

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

1999 actual 2000 est. 2001 est.
Program participants:
Number of contracts serviced
during year..................... 3,970 2,294 1,600
Number of acres under contracts... 7,415,989 4,285,200 2,988,800

As of October 1, 1999, there were 2,294 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.] (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3336-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

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

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 5
22.00 New budget authority (gross)...... 16 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 16 11
23.95 Total new obligations............. -11 -11
24.40 Unobligated balance available, end
of year......................... 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 16 6
40.76 Reduction pursuant to P.L. 106-
113........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 16 5
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 12 18 16
73.10 Total new obligations............. 11 11
73.20 Total outlays (gross)............. -6 -12 -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 18 16 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2
86.93 Outlays from discretionary
balances........................ 4 9 9
--------- --------- ----------
87.00 Total outlays (gross)........... 6 12 7
----------------------------------------------------------------------------

[[Page 120]]

Net budget authority and outlays:
89.00 Budget authority.................. 16 6
90.00 Outlays........................... 6 12 7
---------------------------------------------------------------------------

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. Activities in this program are redundant
with, and more effectively served through, assistance provided by the
Forest Service.

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 1999, program provided funding for 82,172 acres of tree
planting, and 19,832 acres in timber stand improvements, and 4,505 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 1999 actual 2000 est. 2001 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 22 16 10
73.20 Total outlays (gross)............. -6 -6 -6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 16 10 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 6 6 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 6 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 2000. For 2001, 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

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:
86.93 Outlays from discretionary
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 1999 provided cost-share assistance to
landowners and others in the Colorado River Basin States to include:
Colorado, Utah and Wyoming. The program's 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.............. 2 3
00.04 Easement overhead costs........... 1
--------- --------- ----------
10.00 Total new obligations........... 3 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 6 3
23.95 Total new obligations............. -3 -3
24.40 Unobligated balance available, end
of year......................... 3
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 25 14 8
73.10 Total new obligations............. 3 3
73.20 Total outlays (gross)............. -14 -9 -8

[[Page 121]]

74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 14 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 14 9 8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 14 9 8
---------------------------------------------------------------------------

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.

Information displayed in this section represents unobligated
balances from the non-CCC account in which WRP was funded prior to the
1996 Farm Bill. All remaining unobligated balances are expected to be
obligated in 2000. For additional information on WRP, see the Commodity
Credit Corporation section.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1080-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 2 2
12.1 Civilian personnel benefits....... 1 1
--------- --------- ----------
99.9 Total new obligations........... 3 3
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1080-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 37 27
---------------------------------------------------------------------------

Wildlife Habitat Incentives Program

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 22 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 4 2
22.22 Unobligated balance transferred
from other accounts............. 20
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 24 2
23.95 Total new obligations............. -22 -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 22 33 26
73.10 Total new obligations............. 22 2
73.20 Total outlays (gross)............. -11 -9 -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 33 26 19
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 11 9 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 11 10 7
---------------------------------------------------------------------------

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 conservation initiative portion of the Budget's farm safety
net proposal includes $50 million in annual direct spending for WHIP.

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 are finalized in
consultation with the State Technical Committee.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3322-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 3
12.1 Civilian personnel benefits....... 1
41.0 Grants, subsidies, and
contributions................... 18 2
--------- --------- ----------
99.9 Total new obligations........... 22 2
---------------------------------------------------------------------------

Personnel Summary

Wildlife Habitat Incentives Program

(Legislative proposal, subject to PAYGO)

Legislation will be proposed to transfer $50 million annually from
the Commodity Credit Corporation to finance the program. This proposal
is not reflected in the database due to an error. However, 2001 outlays
would be $13 million, and 111 FTEs would be funded through this
increase.

Rural Clean Water Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3337-0-1-304 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 3 5 5
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 5 5
24.40 Unobligated balance available, end
of year......................... 5 5 5
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2 2 2
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 2 2 2
----------------------------------------------------------------------------

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

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

[[Page 122]]

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. The final payment is expected
to be made in 2000. Similar activities will be carried out through the
mandatory Environmental Quality Incentives Program.

Credit accounts:

Agricultural Resource Conservation Demonstration Guaranteed Loan
Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 interest assistance on guaranteed
loans........................... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 1 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 3 2 1
23.95 Total new obligations............. -1 -1 -1
24.40 Unobligated balance available, end
of year......................... 2 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 1 1 1
73.20 Total financing disbursements
(gross)......................... -1 -1 -1
87.00 Total financing disbursements
(gross)......................... 1 1 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 1 1 1
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351 1999 actual 2000 est. 2001 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
2251 Repayments and prepayments........
--------- --------- ----------
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.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4177-0-3-351 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 5 3 3 3
------------ -------------- ------------ -------------
1999 Total assets.................... 5 3 3 3
-----------------------------------------------------------------------------------------------

Watershed and Flood Prevention Operations Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan obligations........... 60
--------- --------- ----------
10.00 Total new obligations........... 60
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 61
23.95 Total new obligations............. -60
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 60
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 61
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 60
73.20 Total financing disbursements
(gross)......................... -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 53
87.00 Total financing disbursements
(gross)......................... 7
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Payments from program
account....................... -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 60
90.00 Financing disbursements........... 6
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4083-0-3-301 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 60
--------- --------- ----------
1150 Total direct loan obligations... 60
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........
1231 Disbursements: Direct loan
disbursements................... 7
--------- --------- ----------
1290 Outstanding, end of year........ 7
---------------------------------------------------------------------------

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.

[[Page 123]]

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4083-0-3-301 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 56
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 7
1405 Allowance for subsidy cost (-).. -56
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... -49
------------ -------------- ------------ -------------
1999 Total assets.................... 7
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 56
------------ -------------- ------------ -------------
2999 Total liabilities............... 56
------------ -------------- ------------ -------------
4999 Total liabilities and net position 56
-----------------------------------------------------------------------------------------------

Trust Funds

Miscellaneous Contributed Funds

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 2 3 4
Receipts:
02.01 Miscellaneous contributed funds... 5 1 1
--------- --------- ----------
04.00 Total: Balances and collections... 7 4 5
Appropriation:
05.01 Miscellaneous contributed funds,
Natural Resources Conservation
Service......................... -4
--------- --------- ----------
07.99 Total balance, end of year........ 3 4 5
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations (object
class 25.2)..................... 22 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 19 1
22.00 New budget authority (gross)...... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 23 1
23.95 Total new obligations............. -22 -1
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... 4
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1 21 18
73.10 Total new obligations............. 22 1
73.20 Total outlays (gross)............. -2 -4 -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 21 18 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 2 4 4
----------------------------------------------------------------------------

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

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 4 1 1
---------------------------------------------------------------------------

RURAL DEVELOPMENT

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, $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.]

[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, $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.]

[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, $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.]

Salaries and Expenses

For necessary expenses of administering Rural Development programs
authorized by the Rural Electrification Act of 1936; the Consolidated
Farm and Rural Development Act; title V of the Housing Act of 1949:
section 1323 of the Food Security Act of 1985; the Cooperative Marketing
Act of 1926; for activities related to marketing aspects of
cooperatives, including economic research findings, authorized by the
Agricultural Marketing Act of 1946; for activities with institutions
concerning the development and operation of agricultural cooperatives:
$130,371,000: 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 $1,000,000 may be
used for employment under 5 U.S.C. 3109: Provided further, That not more
than $10,000 may be expended to provide modest nonmonetary awards to
non-USDA employees: Provided further, That any balances available for
the Rural Utilities Service, Rural Housing Service, and the Rural
Business-Cooperative Service salaries and expenses accounts shall be
transferred to and merged with this account. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 117 120 130
09.01 Reimbursable program.............. 470 483 469
--------- --------- ----------
10.00 Total new obligations........... 587 603 599
----------------------------------------------------------------------------

[[Page 124]]

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 590 603 599
23.95 Total new obligations............. -587 -603 -599
23.98 Unobligated balance expiring or
withdrawn....................... -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 120 120 130
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 470 483 469
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 590 603 599
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 110 123 121
73.10 Total new obligations............. 587 603 599
73.20 Total outlays (gross)............. -580 -605 -599
73.40 Adjustments in expired accounts
(net)........................... 6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 123 121 121
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 494 507 503
86.93 Outlays from discretionary
balances........................ 86 98 96
--------- --------- ----------
87.00 Total outlays (gross)........... 580 605 599
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -470 -483 -469
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 120 120 130
90.00 Outlays........................... 109 122 130
---------------------------------------------------------------------------

In 2001, a new consolidated Salaries and Expenses account is being
established to administer all Rural Development programs, including the
Rural Utilities Service (RUS), the Rural Housing Service (RHS), and the
Rural Business-Cooperative Service (RBS). This change will result in a
more simplified and manageable administration of Salaries and Expenses
funds and activities for the Rural Development mission area. The
separate Salaries and Expenses accounts for RUS, RHS, and RBS will be
deleted and any obligated and unobligated balances available from prior
years will be transferred to and merged with the Rural Development
account.

The program functions of the Rural Development agencies will not be
affected by this administrative change. The three agencies, which were
all formed as a result of the Secretary's 1995 reorganization plan, will
continue to provide outreach and deliver their programs to rural
customers.

RUS provides grants, direct loans and loan guarantees to suppliers
of electric, telecommunications (for general purpose and for distance
learning/telemedicine), and water and wastewater services in rural
areas. Through the water and wastewater program, RUS also provides
technical assistance. The programs are administered in Washington, DC.
The Rural Development field office staff performs the services related
to the water and wastewater grant and loan programs. For the electric
and telecommunication loans, general field representatives visit
borrowers periodically and maintain liaisons between the borrowers and
headquarters.

RHS was formed from the Rural Housing section of the 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, the Dedicated Loan Origination and Servicing System (DLOS) was
implemented to centralize and streamline the servicing activities of the
agency. This innovation reduced the cost of operating the individual
housing loan programs.

RBS includes programs from the former Rural Development
Administration, rural development programs form the former Rural
Electrification Administration, and the Agricultural Cooperative
Service. This agency delivers loan and grant programs, as well as
technical assistance, to cooperatives and rural businesses.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 68 65 76
11.3 Other than full-time permanent 3 1 2
11.5 Other personnel compensation.. 1 1
--------- --------- ----------
11.9 Total personnel compensation 71 67 79
12.1 Civilian personnel benefits..... 15 15 17
21.0 Travel and transportation of
persons....................... 4 3 3
23.2 Rental payments to others....... 4 7 5
23.3 Communications, utilities, and
miscellaneous charges......... 5 8 6
25.2 Other services.................. 11 7 10
25.3 Purchases of goods and services
from Government accounts...... 4 8 6
25.7 Operation and maintenance of
equipment..................... 1 2 2
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 2 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 117 120 130
99.0 Reimbursable obligations.......... 470 483 469
--------- --------- ----------
99.9 Total new obligations........... 587 603 599
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 1,424 1,555 1,575
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 5,529 5,345 5,445
---------------------------------------------------------------------------

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 ), [$718,837,000]
$762,542,000, to remain available until expended, of which [$23,150,000]
$53,225,000 shall be for rural community programs described in section
381E(d)(1) of such Act; of which [$631,088,000] $647,618,000 shall be
for the rural utilities programs described in [section] sections
381E(d)(2), 306C(a)(2), and 306D of such Act; and of which [$64,599,000]
$61,699,000 shall be for the rural business and cooperative development
programs described in [section] sections, 381E(d)(3) and 310B(f) of such
Act[;]: Provided, that of the total amount appropriated in this account,
$24,000,000 shall be for loans and grants to benefit Federally
Recognized Native American Tribes: Provided further, That of the amount
appropriated for rural community programs, $6,000,000 shall be available
for a Rural Community Development Initiative: Provided further, That
such funds shall be used solely to develop the capacity and ability of
private, nonprofit community-based housing and community development
organizations, and low-income rural communities to undertake projects to
improve housing, community facilities, community and economic
development projects in rural areas: Provided further, That such funds
shall be made available to qualified private and public (including
tribal) intermediary organizations proposing to carry out a program of
technical assistance: Provided further, That such intermediary
organizations shall provide matching funds from other sources in an
amount not less than funds provided: Provided further, That of the
amount appropriated for rural community programs not to exceed
$5,000,000 shall be for hazardous weather early warning

[[Page 125]]

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; $5,000,000 shall be for Rural partnership
technical assistance grants; $2,000,000 shall be for grants to
Mississippi Delta Region Counties; and not to exceed $2,000,000 may be
for loans to firms that market and process bio-based products: 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 Colonias along the United States/Mexico borders,
including grants pursuant to section 306C of such Act; [not to exceed
$12,000,000 shall be for water and waste disposal systems to benefit
Federally Recognized Native American Tribes, including grants pursuant
to section 306C of such Act: Provided further, That the Federally
Recognized Native American Tribe is not eligible for any other rural
utilities programs set aside under the Rural Community Advancement
Program;] 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 [with up to], of which one percent [available]
may be transferred to and merged with ``Rural Development, Salaries and
expenses'' to administer the program [and up to one percent available to
improve interagency coordination]; 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 $7,300,000 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
[$45,245,000] $42,574,650 shall be available through June 30, [2000]
2001, for authorized empowerment zones and enterprise communities [and
communities designated by the Secretary of Agriculture as Rural Economic
Area Partnership Zones]; of which [$34,704,000] $30,000,000 shall be for
the rural utilities programs described in section 381E(d)(2) of such
Act; and of which [$8,435,000] $9,113,400 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, 2000.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
0102 Rural business and industry,
negative subsidies and downward
reestimates..................... 4
0104 Rural water and waste disposal,
downward reestimates of
subsidies....................... 18
0105 Rural community facility, downward
reestimates of subsidies........ 18
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 141 87 172
00.02 Guaranteed loan subsidy........... 13 28 10
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.......................... 570 529 503
00.12 Solid waste management grants..... 3 3 5
00.13 Community facility grants......... 7 13 24
00.14 Rural business enterprise grants.. 37 40 41
00.15 Rural opportunity grants.......... 4 8
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 862 704 763
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 13 5
22.00 New budget authority (gross)...... 844 699 763
22.10 Resources available from
recoveries of prior year
obligations..................... 10
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 867 704 763
23.95 Total new obligations............. -862 -704 -763
24.40 Unobligated balance available, end
of year......................... 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 753 724 763
40.76 Reduction pursuant to P.L. 106-
113........................... -25
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 753 699 763
Mandatory:

60.05 Appropriation (indefinite)
reestimates................... 91
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 844 699 763
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,687 1,851 1,841
73.10 Total new obligations............. 862 704 763
73.20 Total outlays (gross)............. -680 -714 -658
73.40 Adjustments in expired accounts
(net)........................... -9
73.45 Adjustments in unexpired accounts. -10
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1,851 1,841 1,946
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 45 54 45
86.93 Outlays from discretionary
balances........................ 544 660 613
86.97 Outlays from new mandatory
authority....................... 91
--------- --------- ----------
87.00 Total outlays (gross)........... 680 714 658
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 844 699 763
90.00 Outlays........................... 679 714 658
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct water and waste disposal
loan levels..................... 721 679 1,032
1150 Direct community facility loan
levels.......................... 163 185 250
1150 Direct business and industry loan
levels.......................... 26 50 50
--------- --------- ----------
1159 Total direct loan levels........ 910 914 1,332
Direct loan subsidy (in percent):
1320 Direct water and waste disposal
loans subsidy rate.............. 16.52 7.10 13.59
1320 Direct community facility loans
subsidy rate.................... 13.74 6.06 11.69
1320 Direct business and industry loans
subsidy rate.................... -14.64 -14.16 5.82
--------- --------- ----------
1329 Weighted average subsidy rate... 19.34 8.32 12.91
Direct loan subsidy budget authority:
1330 Direct water and waste disposal
loans subsidy budget authority.. 157 73 140
1330 Direct community facility loans
subsidy budget authority........ 23 10 29
1330 Direct business and industry
subsidy budget authority........ -4 -7 3
--------- --------- ----------
1339 Total subsidy budget authority.. 176 76 172
Direct loan subsidy outlays:
1340 Direct water and waste disposal
loans subsidy outlays........... 116 129 94
1340 Direct community facility loans
subsidy outlays................. 18 23 16
--------- --------- ----------
1349 Total subsidy outlays........... 134 152 110
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 Water and waste disposal loan
guarantee levels................ 6 75 75
2150 Community facility loan guarantee
levels.......................... 107 210 210
2150 Business and industry loan
guarantee levels................ 1,180 869 1,250
--------- --------- ----------
2159 Total loan guarantee levels..... 1,293 1,154 1,535
Guaranteed loan subsidy (in percent):
2320 Guaranteed water and waste
disposal loan subsidy rate...... -1.08 -0.83 -1.50
2320 Guranteed community facility loan
subsidy rate.................... -0.54 -0.54 -0.54
2320 Guaranteed business and industry
loan subsidy rate............... 1.02 3.11 0.81
--------- --------- ----------
2329 Weighted average subsidy rate... 4.95 2.08 0.52
Guaranteed loan subsidy budget authority:
2330 Guaranteed water and waste loans
subsidy budget authority........ -1 -1
2330 Guaranteed community facility
loans subsidy budget authority.. -1 -1 -1
2330 Guaranteed business and industry
loans subsidy budget authority.. 65 26 10
--------- --------- ----------
2339 Total subsidy budget authority.. 64 24 8

[[Page 126]]

Guaranteed loan subsidy outlays:
2340 Guaranteed community facility loan
subsidy outlays.................
2340 Guranteed business and industry
loan subsidy outlays............ 64 27 10
--------- --------- ----------
2349 Total subsidy outlays........... 64 27 10
---------------------------------------------------------------------------

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 2001 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. Funds
for Native American Communities are provided as part of the whole amount
appropriated for these streams as part of the Native Americans
Initiative. The funds are allocated to all three funding streams.

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 proposed 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

(Farmers Home Administration)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2001-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 14 6
73.20 Total outlays (gross)............. -3
73.40 Adjustments in expired accounts
(net)........................... -5 -6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 3
----------------------------------------------------------------------------

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

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.

[[Page 127]]

Rural Housing Assistance Grants

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, [$45,000,000] $39,000,000, to remain
available until expended: Provided, That of the total amount
appropriated, [$1,200,000] $2,000,000 shall be available through June
30, [2000] 2001, for authorized empowerment zones and enterprise
communities [and communities designated by the Secretary of Agriculture
as Rural Economic Area Partnership Zones]. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)
[For the additional cost of grants and contracts for domestic farm
labor and very low-income housing repair made available by the Rural
Housing Service, as authorized by 42 U.S.C. 1474 and 1486, to meet the
needs resulting from natural disasters, $14,500,000, to remain available
until expended.] (Miscellaneous Appropriations, 2000, as enacted by
section 1000(a)(5) of the Consolidated Appropriations Act, 2000 (P.L.
106-113).)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1953-0-1-604 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Domestic farm labor grants........ 13 14
00.02 Domestic farm labor natural
disaster grants................. 3
00.03 Very low-income housing repair
grants.......................... 20 26 30
00.04 Very low-income housing repair
natural disaster grants......... 1 12
00.05 Supervisory and technical
assistance grants............... 2 1
00.07 Rural housing preservation grants. 7 6 8
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 42 63 39
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2 4 1
22.00 New budget authority (gross)...... 42 60 39
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 46 63 40
23.95 Total new obligations............. -42 -63 -39
24.40 Unobligated balance available, end
of year......................... 4 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 42 60 39
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 57 41 37
73.10 Total new obligations............. 42 63 39
73.20 Total outlays (gross)............. -57 -67 -53
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 41 37 24
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 21 37 29
86.93 Outlays from discretionary
balances........................ 36 29 24
--------- --------- ----------
87.00 Total outlays (gross)........... 57 67 53
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 42 60 39
90.00 Outlays........................... 57 67 53
---------------------------------------------------------------------------

The rural housing for domestic farm labor grant program is
authorized under section 516 of the Housing Act of 1949, as amended.
This program is being requested in the Farm labor program account.

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.

Farm Labor Program Account

For the cost of direct loans, grants, and contracts, as authorized
by 42 U.S.C. 1484 and 1486, $30,777,000, to remain available until
expended for direct farm labor housing loans and domestic farm labor
housing grants and contracts. In addition, for grants to assist low-
income migrant and seasonal farmworkers, as authorized by 42 U.S.C.
5177a, $5,000,000, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 16
00.02 Farm labor housing grants......... 15
00.03 Migrant farmworkers grants........ 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 36
23.95 Total new obligations............. -36
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 36
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 36
73.20 Total outlays (gross)............. -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 29
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 36
90.00 Outlays........................... 7
---------------------------------------------------------------------------

[[Page 128]]

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

----------------------------------------------------------------------------
Identification code 12-1954-0-1-604 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 30
--------- --------- ----------
1159 Total direct loan levels........ 30
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 52.59
--------- --------- ----------
1329 Weighted average subsidy rate... 52.59
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 16
--------- --------- ----------
1339 Total subsidy budget authority.. 16
Direct loan subsidy outlays:
1340 Subsidy outlays................... 3
--------- --------- ----------
1349 Total subsidy outlays........... 3
---------------------------------------------------------------------------

This new account is being requested to consolidate three farm labor
programs into one account. This consolidation will provide more
flexibility for distributing rural farm labor housing assistance and
allows the total assistance being provided specifically to farm laborers
to be identified in one place. The account consists of direct farm labor
housing loans, domestic farm labor housing grants, and low-income
migrant and seasonal farm-worker grants.

The direct farm labor loan program is authorized under section 514
and the rural housing for domestic farm labor grant program is
authorized under section 516 of the Housing Act of 1949, as amended. The
loans, grants, and contracts are made to public and private nonprofit
organizations for low-rent housing and related facilities for domestic
farm labor. Grants assistance may not exceed 90 percent of the cost of a
project. Loans and grants 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 low-income migrant and seasonal farmworkers grants are made to
public agencies or private organizations with tax exempt status under
section 501(c)(3) of the Internal Revenue Code of 1986, that have
experience in providing services to low-income migrants and seasonal
farmworkers. The types of assistance to be provided is determined by the
Secretary of Agriculture. In FY 1999 $20 million in grants were made to
assist low-income migrant and seasonal farmworkers in California and
Florida.

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, [$640,000,000]
$680,000,000; and, in addition, such sums as may be necessary, as
authorized by section 521(c) of the Act, to liquidate debt incurred
prior to fiscal year 1992 to carry out the rental assistance program
under section 521(a)(2) of the Act: Provided, That of this amount, not
more than $5,900,000 shall be available for debt forgiveness or payments
for eligible households as authorized by section 502(c)(5)(D) of the
Act, and not to exceed $10,000 per project for advances to nonprofit
organizations or public agencies to cover direct costs (other than
purchase price) incurred in purchasing projects pursuant to section
502(c)(5)(C) of the Act: Provided further, That agreements entered into
or renewed during fiscal year [2000] 2001 shall be funded for a 5-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, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0137-0-1-604 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 583 640 680
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 583 640 680
23.95 Total new obligations............. -583 -640 -680
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 583 640 680
40.05 Appropriation (indefinite)...... 67 62 60
40.47 Portion applied to repay debt... -67 -62 -60
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 583 640 680
----------------------------------------------------------------------------

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

Obligated balance, start of
year:
72.40 Obligated balance,
appropriation, start of year 1,742 1,837 1,941
72.40 Obligated balance, authority
to borrow, start of year.... 811 745 683
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 2,553 2,582 2,624
73.10 Total new obligations............. 583 640 680
73.20 Total outlays (gross)............. -555 -597 -631
Unpaid obligations, end of year:

Obligated balance, end of year:
74.40 Obligated balance,
appropriation, end of year.. 1,837 1,941 2,050
74.40 Obligated balance, authority
to borrow, end of year...... 745 683 622
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 2,582 2,624 2,672
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 21 22 24
86.93 Outlays from discretionary
balances........................ 534 575 607
--------- --------- ----------
87.00 Total outlays (gross)........... 555 597 631
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 583 640 680
90.00 Outlays........................... 555 597 631
---------------------------------------------------------------------------

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.

Rural Housing Voucher Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2002-0-1-604 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 3 2 2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 2 2 2
----------------------------------------------------------------------------

[[Page 129]]

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), [$28,000,000] $40,000,000, to
remain available until expended (7 U.S.C. 2209b)[: Provided, That of the
total amount appropriated,] of which $1,000,000 shall be available
through June 30, [2000] 2001, for authorized empowerment zones and
enterprise communities [and communities designated by the Secretary of
Agriculture as Rural Economic Area Partnership Zones]. (Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2006-0-1-604 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 26 29 40
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1
22.00 New budget authority (gross)...... 25 28 40
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 27 29 40
23.95 Total new obligations............. -26 -29 -40
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 26 28 40
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 34 39 42
73.10 Total new obligations............. 26 29 40
73.20 Total outlays (gross)............. -20 -26 -32
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 39 42 51
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 6 8
86.93 Outlays from discretionary
balances........................ 17 20 24
--------- --------- ----------
87.00 Total outlays (gross)........... 20 26 32
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25 28 40
90.00 Outlays........................... 20 26 32
---------------------------------------------------------------------------

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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2 1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1 1
----------------------------------------------------------------------------

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

This assistance was authorized by section 7 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2106). Grants are made to
public bodies to organize, train, and equip local firefighting forces,
including those of Indian tribes or other Native American groups, to
prevent, control, and suppress fires threatening human lives, crops,
livestock, farmsteads or other improvements, pastures, orchards,
wildlife, rangeland, woodland, and other resources in rural areas.

In 1997, funding for the Rural Community Fire Protection grant
program was appropriated to the Rural Housing Assistance Program and
transferred to this account for administration. In 1998, funding for
these grants was appropriated to this account. Beginning in 1999,
funding for this program is requested by the Forest Service.

Credit accounts:

Rural Community Facility Direct Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 163 185 250
00.02 Interest on Treasury borrowing.. 52 56 70
--------- --------- ----------
00.91 Subtotal, Operating program..... 215 241 320
Reestimates:

08.02 Downward reestimate paid to
receipt account............... 12
08.04 Interest on downward reestimate
paid to receipt account....... 2
--------- --------- ----------
08.91 Subtotal, Reestimates........... 14
--------- --------- ----------
10.00 Total new obligations........... 229 241 320
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 11 11
22.00 New financing authority (gross)... 226 230 320
22.10 Resources available from
recoveries of prior year
obligations..................... 27
22.70 Balance of authority to borrow
withdrawn....................... -24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 240 241 320
23.95 Total new obligations............. -229 -241 -320
24.40 Unobligated balance available, end
of year......................... 11
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 167 124 176
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 90 120 131
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. 1 -14 13
68.47 Portion applied to repay debt. -32
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 59 106 144
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 226 230 320
----------------------------------------------------------------------------

[[Page 130]]

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

72.40 Obligated balance, start of year 339 306 281
72.95 Receivables from program account 39 40 26
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 378 346 307
73.10 Total new obligations............. 229 241 320
73.20 Total financing disbursements
(gross)......................... -233 -280 -249
73.45 Adjustments in unexpired accounts. -27
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 306 281 340
74.95 Receivables from program account 40 26 39
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 346 307 379
87.00 Total financing disbursements
(gross)......................... 233 280 249
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -18 -23 -16
88.25 Interest on uninvested funds.. -14 -26 -33
Non-Federal sources:
88.40 Repayment of principal...... -27 -22 -25
88.40 Interest received on loans.. -32 -49 -57
88.40 Other....................... 1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -90 -120 -131
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -1 14 -13
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 135 124 176
90.00 Financing disbursements........... 143 160 118
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4225-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 162 167 250
1131 Direct loan obligations exempt
from limitation................. 1 18
--------- --------- ----------
1150 Total direct loan obligations... 163 185 250
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 606 747 951
1231 Disbursements: Direct loan
disbursements................... 168 226 178
1251 Repayments: Repayments and
prepayments..................... -27 -22 -25
--------- --------- ----------
1290 Outstanding, end of year........ 747 951 1,104
---------------------------------------------------------------------------

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 12-4225-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 82 31 160 160
Investments in US securities:
1106 Receivables, net.............. 39 40 26 39
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 606 747 951 1,104
1402 Interest receivable............. 26 9 9 9
1405 Allowance for subsidy cost (-).. -128 -82 -211 -211
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 504 674 749 902
------------ -------------- ------------ -------------
1999 Total assets.................... 625 745 935 1,101
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 606 704 908 1,061
2203 Non-Federal liabilities: Liability
for deposit funds............... 1 1 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 607 705 909 1,062
NET POSITION:
3100 Appropriated capital.............. 18 40 26 39
------------ -------------- ------------ -------------
3999 Total net position.............. 18 40 26 39
------------ -------------- ------------ -------------
4999 Total liabilities and net position 625 745 935 1,101
-----------------------------------------------------------------------------------------------

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 1
08.02 Downward reestimate paid to
receipt account................. 4
--------- --------- ----------
10.00 Total new obligations........... 5 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 7 3 3
22.00 New financing authority (gross)... 1 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 8 4 4
23.95 Total new obligations............. -5 -1 -1
24.40 Unobligated balance available, end
of year......................... 3 3 3
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 1 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 5 1 1
73.20 Total financing disbursements
(gross)......................... -4 -1 -1
87.00 Total financing disbursements
(gross)......................... 4 1 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1 -1 -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 4
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4228-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 210 210 210
2112 Uncommitted loan guarantee
limitation...................... -104
2131 Guaranteed loan commitments exempt
from limitation................. 1
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 107 210 210
2199 Guaranteed amount of guaranteed
loan commitments................ 107 168 168
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 155 194 313
2231 Disbursements of new guaranteed
loans........................... 59 131 165
2251 Repayments and prepayments........ -20 -12 -18
--------- --------- ----------
2290 Outstanding, end of year........ 194 313 460
----------------------------------------------------------------------------

[[Page 131]]

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 158 279 396
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from guaranteed loans committed in 1992 and beyond. The
amounts in this account are a means of financing and are not included in
the budget totals. Loans made prior to 1992 are recorded in the Rural
Development Insurance Fund Liquidating Account.

This account finances loan guarantee commitments for essential
community facilities in rural areas.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4228-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 7 4 7 7
------------ -------------- ------------ -------------
1999 Total assets.................... 7 4 7 7
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 7 4 7 7
------------ -------------- ------------ -------------
2999 Total liabilities............... 7 4 7 7
------------ -------------- ------------ -------------
4999 Total liabilities and net position 7 4 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:
[$4,300,000,000] $5,000,000,000 for loans to section 502 borrowers, as
determined by the Secretary, of which [$3,200,000,000] $3,700,000,000
shall be for unsubsidized guaranteed loans; [$32,396,000] $40,000,000
for section 504 housing repair loans; [$100,000,000] $200,000,000 for
section 538 guaranteed multi-family housing loans; [$25,001,000 for
section 514 farm labor housing; $114,321,000] $120,000,000 for section
515 rental housing; [$5,152,000] $5,000,000 for section 524 site loans;
[$7,503,000] $15,000,000 for credit sales of acquired property, of which
up to [$1,250,000] $5,000,000 may be for multi-family credit sales; and
[$5,000,000] $5,009,000 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, [$113,350,000] $253,180,000
of which [$19,520,000] $44,400,000 shall be for unsubsidized guaranteed
loans; section 504 housing repair loans, [$9,900,000] $14,176,000;
section 538 multi-family housing guaranteed loans, [$480,000; section
514 farm labor housing, $11,308,000] $3,040,000; section 515 rental
housing, [$45,363,000 section 524 site loans, $4,000;] $59,124,000;
multi-family credit sales of acquired property, [$874,000, of which up
to $494,250 may be for multi-family credit sales] $2,452,000; and
section 523 self-help housing land development loans, [$281,000]
$279,000: Provided, That of the total amount appropriated in this
paragraph, [$11,180,000] $13,832,000 shall be available through June 30,
[2000] 2001, for authorized empowerment zones and enterprise communities
[and communities designated by the Secretary of Agriculture as Rural
Economic Area Partnership Zones].
In addition, for administrative expenses necessary to carry out the
direct and guaranteed loan programs, [$375,879,000] $409,233,000, which
shall be transferred to and merged with the appropriation for ``Rural
[Housing Service] Development, Salaries and Expenses'': [Provided, That
of this amount the Secretary of Agriculture may transfer up to
$7,000,000 to the appropriation for ``Outreach for Socially
Disadvantaged Farmers'']. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2000.)
[For additional gross obligations for the principal amount of direct
loans as authorized by title V of the Housing Act of 1949, to be
available from funds in the rural housing insurance fund to meet the
needs resulting from natural disasters, as follows: $50,000,000 for
loans to section 502 borrowers, as determined by the Secretary;
$15,000,000 for section 504 housing repair loans; and $5,000,000 for
section 514 farm labor housing.]
[For the additional cost of direct loans to meet the needs resulting
from natural disasters, including the cost of modifying loans, as
defined in section 502 of the Congressional Budget Act of 1974, to
remain available until expended, as follows: section 502 loans,
$4,265,000; section 504 loans, $4,584,000; and section 514 farm labor
housing, $2,250,000.] (Miscellaneous Appropriations, 2000, as enacted by
section 1000(a)(5) of the Consolidated Appropriations Act, 2000 (P.L.
106-113).)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371 1999 actual 2000 est. 2001 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............... 192 174 285
00.02 Guaranteed loan subsidy........... 5 20 47
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........... 361 376 409
--------- --------- ----------
10.00 Total new obligations........... 796 570 741
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1
22.00 New budget authority (gross)...... 798 568 741
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 798 569 741
23.95 Total new obligations............. -796 -570 -741
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 560 568 741
Mandatory:

60.05 Appropriation (indefinite)...... 238
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 798 568 741
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 200 187 165
73.10 Total new obligations............. 796 570 741
73.20 Total outlays (gross)............. -804 -592 -719
73.40 Adjustments in expired accounts
(net)........................... -6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 187 165 187
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 459 488 623
86.93 Outlays from discretionary
balances........................ 106 104 96
86.97 Outlays from new mandatory
authority....................... 238
--------- --------- ----------
87.00 Total outlays (gross)........... 804 592 719
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 798 568 741
90.00 Outlays........................... 804 592 719
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 797 568 741
Outlays........................... 803 592 719
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. -40
Outlays........................... -40
------------------------------------
Total:
Budget Authority.................. 797 568 701
Outlays........................... 803 592 679
====================================

[[Page 132]]

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

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct 502 Single family housing.. 967 1,161 1,300
1150 Direct 515 Multi-family housing... 114 114 120
1150 Direct 504 Housing repair......... 25 48 40
1150 Direct 514 Farm labor housing..... 20 30
1150 Direct 524 Site development....... 3 5 5
1150 Single family credit sales........ 17 6 10
1150 Multi-family credit sales......... 4 1 5
1150 Direct 523 Self-help housing...... 5 5
--------- --------- ----------
1159 Total direct loan levels........ 1,150 1,371 1,485
Direct loan subsidy (in percent):
1320 Direct 502 Single family housing.. 11.82 8.53 16.06
1320 Direct 515 Multi-family housing... 48.25 39.68 49.27
1320 Direct 504 Housing repair......... 35.23 30.56 35.44
1320 Direct 514 Farm labor housing..... 52.03 45.23 0.00
1320 Direct 524 Site development....... 0.33 0.08 -0.12
1320 Single family credit sales........ 9.02 6.08 -3.23
1320 Multi-family credit sales......... 48.31 39.54 49.03
1320 Direct 523 Self-help housing...... 5.64 5.61 5.57
--------- --------- ----------
1329 Weighted average subsidy rate... 23.80 12.68 19.15
Direct loan subsidy budget authority:
1330 Direct 502 Single family housing.. 192 98 209
1330 Direct 515 Multi-family housing... 72 45 59
1330 Direct 504Housing repair.......... 15 14
1330 Direct 514 Farm labor housing..... 10 14
1330 Single family credit sales........ -1
1330 Multi-family credit sales......... 3 1 2
1330 Direct 523 Self-help housing......
--------- --------- ----------
1339 Total subsidy budget authority.. 276 173 284
Direct loan subsidy outlays:
1340 Direct 502 Single family housing.. 211 103 174
1340 Direct 515 Multi-family housing... 86 67 63
1340 Direct 504 Housing repair......... 8 14 14
1340 Direct 514 Farm labor housing..... 6 11 9
1340 Single family credit sales........ 1
1340 Multi-family credit sales......... 2 2
1340 Direct 523 Self-help housing......
--------- --------- ----------
1349 Total subsidy outlays........... 314 195 262
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 Guaranteed 502 Single family
housing--unsubsidized........... 2,977 3,200 3,700
2150 Guaranteed 538 Multi-family
housing......................... 75 100 200
--------- --------- ----------
2159 Total loan guarantee levels..... 3,052 3,300 3,900
Guaranteed loan subsidy (in percent):
2320 Guaranteed 502 Single family
housing--unsubsidized........... 0.09 0.61 1.20
2320 Guaranteed 538 Multi-family
housing......................... 3.10 0.48 1.52
--------- --------- ----------
2329 Weighted average subsidy rate... 4.14 0.61 1.22
Guaranteed loan subsidy budget authority:
2330 Guaranteed 502 Single family
housing--unsubsidized........... 125 20 44
2330 Guaranteed 538 Multi-family
housing......................... 2 3
--------- --------- ----------
2339 Total subsidy budget authority.. 127 20 47
Guaranteed loan subsidy outlays:
2340 Guaranteed 502 Single family
housing--unsubsidized........... 125 20 44
2340 Guaranteed 538 Multi-family
housing......................... 2 3
--------- --------- ----------
2349 Total subsidy outlays........... 127 20 47
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 361 376 409
3590 Outlays........................... 361 376 409
---------------------------------------------------------------------------

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 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.'' The Budget requests the section 514 domestic farm
labor housing loans be funded under the new Farm Labor Program Account
in order to provide flexibility between these loans and the farm labor
housing grants.

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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 361 377 409
41.0 Grants, subsidies, and
contributions................... 435 193 332
--------- --------- ----------
99.9 Total new obligations........... 796 570 741
---------------------------------------------------------------------------

Rural Housing Insurance Fund Program Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... -40
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -40
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -40
23.95 Total new obligations............. 40
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -40
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. -40
73.20 Total outlays (gross)............. 40
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -40
----------------------------------------------------------------------------

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

[[Page 133]]

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

----------------------------------------------------------------------------
Identification code 12-2081-2-1-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Single family housing--
unsubsidized....................
2150 Multi-family housing..............
--------- --------- ----------
2159 Total loan guarantee levels.....
Guaranteed loan subsidy (in percent):
2320 Single family housing--
unsubsidized.................... -1.00
2320 Multi-family housing.............. -4.38
--------- --------- ----------
2329 Weighted average subsidy rate... -1.04
Guaranteed loan subsidy budget authority:
2330 Single family housing--
unsubsidized.................... -37
2330 Multi-family housing.............. -3
--------- --------- ----------
2339 Total subsidy budget authority.. -40
Guaranteed loan subsidy outlays:
2340 Single family housing--
unsubsidized.................... -37
2340 Multi-family housing.............. -3
--------- --------- ----------
2349 Total subsidy outlays........... -40
---------------------------------------------------------------------------

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.

Proposed legislation would also establish for section 502 guaranteed
single family housing loans a guarantee fee of 2 percent which lowers
the subsidy rate of the program and allows the administration to provide
more loans at less cost to the taxpayer.

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.................... 1,169 1,371 1,515
00.02 Advances on behalf of borrowers. 72 85 94
00.03 Collateral acquired by default.. 1 5 6
00.04 Interest on Treasury borrowing.. 555 611 668
00.06 Other expenses.................. 9 10 11
--------- --------- ----------
00.91 Subtotal, Operating program..... 1,806 2,082 2,294
Reestimates:

08.02 Downward subsidy reestimate paid
to receipt account............ 25
08.04 Interest on downward reestimate
paid to receipt account....... 9
--------- --------- ----------
08.91 Subtotal, Reestimates........... 34
--------- --------- ----------
10.00 Total new obligations........... 1,840 2,082 2,294
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 58 101
22.00 New financing authority (gross)... 1,860 1,981 2,294
22.10 Resources available from
recoveries of prior year
obligations..................... 47
22.70 Balance of authority to borrow
withdrawn....................... -24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,942 2,082 2,294
23.95 Total new obligations............. -1,840 -2,082 -2,294
24.40 Unobligated balance available, end
of year......................... 101
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 1,066 1,227 1,356
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1,173 1,158 1,351
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. -12 -22 34
68.47 Portion applied to repay debt. -367 -383 -447
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 794 753 938
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,860 1,980 2,294
----------------------------------------------------------------------------

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

Obligated balance, start of
year:
72.40 Obligated balance with
Treasury, start of year..... 180 196 203
72.40 Obligated balance, authority
to borrow, start of year.... 300 327 380
72.95 Receivables from program account 196 184 162
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 676 707 745
73.10 Total new obligations............. 1,840 2,082 2,294
73.20 Total financing disbursements
(gross)......................... -1,762 -2,043 -2,227
73.45 Adjustments in unexpired accounts. -47
Unpaid obligations, end of year:

Obligated balance, end of year:
74.40 Obligated balance with
Treasury, end of year....... 196 203 213
74.40 Obligated balance, authority
to borrow, end of year...... 327 380 403
74.95 Receivables from program account 184 162 196
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 707 745 812
87.00 Total financing disbursements
(gross)......................... 1,762 2,043 2,227
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: payments from
program account............. -315 -196 -266
88.25 Interest on uninvested funds.. -75 -79 -86
Non-Federal sources:
88.40 Non-Federal sources:
Repayments of principal... -367 -431 -503
88.40 Interest received on loans.. -378 -414 -455
88.40 Undistributed receipts...... -2
88.40 Proceeds on sale of acquired
property.................. -21 -20 -21
88.40 Recaptured income........... -10 -12 -14
88.40 Appraisal fees.............. -4 -4 -4
88.40 Miscellaneous collections... -1 -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,173 -1,158 -1,351
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 12 22 -34
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 699 845 909
90.00 Financing disbursements........... 590 885 876
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 1,167 1,360 1,515
1112 Unobligated direct loan limitation -13
1113 Unobligated limitation carried
forward......................... 11 11
1131 Direct loan obligations exempt
from limitation................. 4
--------- --------- ----------
1150 Total direct loan obligations... 1,169 1,371 1,515
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 9,411 10,180 11,173
1231 Disbursements: Direct loan
disbursements................... 1,137 1,332 1,448
1251 Repayments: Repayments and
prepayments..................... -373 -431 -503
1261 Adjustments: Capitalized interest. 31 34 37
Write-offs for default:

1263 Direct loans.................... -26 -27 -30
1264 Other adjustments, net.......... 85 94
--------- --------- ----------
1290 Outstanding, end of year........ 10,180 11,173 12,219
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from 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.

[[Page 134]]

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 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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 180 196 203 213
Investments in US securities:
1106 Receivables, net.............. 312 184 162 196
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 9,411 10,180 11,173 12,219
1402 Interest receivable............. 42 40 44 48
1404 Foreclosed property............. 15 12 18 27
1405 Allowance for subsidy cost (-).. -2,497 -2,584 -2,703 -2,883
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 6,971 7,648 8,532 9,411
------------ -------------- ------------ -------------
1999 Total assets.................... 7,463 8,028 8,897 9,820
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 33
2103 Debt............................ 7,197 7,802 8,694 9,581
2104 Liability for subsidy related to
undisbursed loans............. 196 184 162 196
2105 Other........................... 5 5 5
2207 Non-Federal liabilities: Other.... 37 37 36 38
------------ -------------- ------------ -------------
2999 Total liabilities............... 7,463 8,028 8,897 9,820
------------ -------------- ------------ -------------
4999 Total liabilities and net position 7,463 8,028 8,897 9,820
-----------------------------------------------------------------------------------------------

Rural Housing Insurance Fund Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 36 56 71
00.02 Interest assistance paid to
lenders......................... 1 1
--------- --------- ----------
10.00 Total new obligations........... 36 57 72
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 80 210 216
22.00 New financing authority (gross)... 166 63 97
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 246 273 313
23.95 Total new obligations............. -36 -57 -72
24.40 Unobligated balance available, end
of year......................... 210 216 241
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 166 63 97
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 36 57 72
73.20 Total financing disbursements
(gross)......................... -36 -57 -72
87.00 Total financing disbursements
(gross)......................... 36 57 72
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -127 -20 -47
88.25 Interest on uninvested funds.. -9 -13 -14
88.40 Non-Federal sources: guarantee
fees........................ -30 -30 -36
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -166 -63 -97
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -130 -6 -25
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 3,075 3,300 3,900
2112 Uncommitted loan guarantee
limitation...................... -23
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3,052 3,300 3,900
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 7,206 9,772 12,059
2231 Disbursements of new guaranteed
loans........................... 3,085 2,966 3,497
2251 Repayments and prepayments........ -480 -617 -757
2263 Adjustments: Terminations for
default that result in claim
payments........................ -40 -62 -79
--------- --------- ----------
2290 Outstanding, end of year........ 9,772 12,059 14,720
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 8,812 11,211 13,568
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 80 210 216 241
------------ -------------- ------------ -------------
1999 Total assets.................... 80 210 216 241
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 80 210 216 241
------------ -------------- ------------ -------------
2999 Total liabilities............... 80 210 216 241
------------ -------------- ------------ -------------
4999 Total liabilities and net position 80 210 216 241
-----------------------------------------------------------------------------------------------

[[Page 135]]

Rural Housing Insurance Fund Guaranteed Loan Financing Account

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-2-3-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... -15
23.95 Total new obligations.............
24.40 Unobligated balance available, end
of year......................... -15
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ -15
87.00 Total financing disbursements
(gross).........................
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... 40
88.25 Interest on uninvested funds.. 1
88.40 Non-Federal sources: guarantee
fees........................ -26
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ 15
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 15
---------------------------------------------------------------------------

This account reflects for section 538 multi-family housing loans the
decrease in the subsidy as a result of eliminating the requirement that
a certain percentage of guaranteed loans be subsidized through an
interest rate buydown. Also, reflected is the decrease in the subsidy
for section 502 guaranteed single family housing loans as a result of
increase to the guarantee fee from one percent to one percent.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4216-2-3-371 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ -15
------------ -------------- ------------ -------------
1999 Total assets.................... -15
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. -15
------------ -------------- ------------ -------------
2999 Total liabilities............... -15
------------ -------------- ------------ -------------
4999 Total liabilities and net position -15
-----------------------------------------------------------------------------------------------

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. 96 88 96
00.04 Purchases of certificates of
beneficial ownership.......... 1 7
00.05 Collateral acquired by default.. 2 3 3
00.06 Judgments....................... 1 1
00.07 Unclassified recoverable costs.. 13
--------- --------- ----------
00.91 Total capital investment...... 111 99 100
Operating expenses:

01.02 Interest on certificates of
beneficial ownership.......... 1 1
01.03 Interest on FFB borrowings...... 857 566 450
01.06 Interest credits on loans sold
to investors.................. 2 2 1
01.07 Other costs incident to loans... 4 3 3
--------- --------- ----------
01.91 Total operating expenses...... 865 572 454
--------- --------- ----------
10.00 Total new obligations........... 976 671 554
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 976 671 553
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.60 Portion applied to repay debt..... -8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 976 671 553
23.95 Total new obligations............. -976 -671 -554
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... 1,171 200
60.47 Portion applied to repay debt... -195
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 976 200
69.00 Offsetting collections (cash)..... 2,172 2,056 1,927
69.27 Capital transfer to general fund.. -989
69.47 Portion applied to repay debt..... -2,172 -1,585 -385
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 471 553
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 976 671 553
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated fund balance with
treasury, end of year........... 583 483 382
73.10 Total new obligations............. 976 671 554
73.20 Total outlays (gross)............. -1,068 -771 -587
73.45 Adjustments in unexpired accounts. -8
74.40 Unpaid obligations, end of year:
Obligated fund balance with
Treasury, end of year........... 483 382 349
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 933 534 415
86.98 Outlays from mandatory balances... 135 237 172
--------- --------- ----------
87.00 Total outlays (gross)........... 1,068 771 587
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of loans and
advances.................. -1,182 -1,116 -1,054
88.40 Proceeds from sale of
acquired property......... -32 -38 -40
88.40 Payments on judgments....... -2 -3 -3
88.40 Interest payments from
borrowers................. -843 -778 -716
88.40 Recapture of subsidies...... -116 -120 -113
88.40 Fees and other revenue...... -5 -1 -1
88.40 Undistributed receipts...... 8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2,172 -2,056 -1,927
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1,196 -1,385 -1,374
90.00 Outlays........................... -1,104 -1,285 -1,340
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 19,704 18,373 17,246
1251 Repayments: Repayments and
prepayments..................... -1,182 -1,116 -1,054
1261 Adjustments: Capitalized interest. 66 56 52
Write-offs for default:

1263 Direct loans.................... -69 -65 -61
1264 Other adjustments, net.......... -146 -2 11
--------- --------- ----------
1290 Outstanding, end of year........ 18,373 17,246 16,194
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 27 23 21

[[Page 136]]

2251 Repayments and prepayments........ -3 -3 -2
--------- --------- ----------
2290 Outstanding, end of year........ 23 21 18
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 21 19 16
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 1,275 991 908 831
0102 Expense........................... -1,515 -958 -672 -552
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -240 33 236 279
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4141-0-3-371 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 583 483 382 349
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 19,704 18,373 17,246 16,194
1602 Interest receivable............. 279 391 374 348
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -7,517 -6,349 -5,962 -5,597
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 12,466 12,415 11,658 10,945
1606 Foreclosed property............. 43 52 54 51
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 12,509 12,467 11,712 10,996
1901 Other Federal assets: Other assets 21 23 21 21
------------ -------------- ------------ -------------
1999 Total assets.................... 13,113 12,973 12,115 11,366
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 1 1 1 1
2102 Interest payable................ 525 398 297 264
2103 Debt............................ 9,500 7,125 5,540 5,155
2104 Resources payable to Treasury... 2,978 5,343 6,179 5,848
2105 Liabilities for loan guarantees. 4 3 2 2
Non-Federal liabilities:

2202 Interest payable................ 1 1 1 1
2203 Debt............................ 10 9 2 2
2207 Other........................... 93 93 93 93
------------ -------------- ------------ -------------
2999 Total liabilities............... 13,112 12,973 12,115 11,366
------------ -------------- ------------ -------------
4999 Total liabilities and net position 13,112 12,973 12,115 11,366
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Other services.................... 4 3 3
33.0 Investments and loans............. 111 99 100
41.0 Grants, subsidies, and
contributions................... 2 2 1
43.0 Interest and dividends............ 859 567 450
--------- --------- ----------
99.9 Total new obligations........... 976 671 554
---------------------------------------------------------------------------

RURAL BUSINESS-COOPERATIVE SERVICE

Federal Funds

General and special funds:

[Rural Empowerment Zones]

[For grants for the rural empowerment zone and enterprise
communities programs, as designated by the Secretary of Agriculture,
$15,000,000 to the Secretary of Agriculture for grants for designated
empowerment zones in rural areas and for grants for designated rural
enterprise communities, to remain available until expended.]
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0402-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 30
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 15
22.00 New budget authority (gross)...... 15 15
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 15 30
23.95 Total new obligations............. -30
24.40 Unobligated balance available, end
of year......................... 15
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 15 15
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 24
73.10 Total new obligations............. 30
73.20 Total outlays (gross)............. -6 -12
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 24 12
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 6 12
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 15
90.00 Outlays........................... 6 12
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 15 15
Outlays........................... 6 12
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 15
Outlays...........................
------------------------------------
Total:
Budget Authority.................. 15 15 15
Outlays........................... 6 12
====================================

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. The first two years of the authorized ten-year
for EZ/EC's designated as part of the second round of this initiative
was provided through the FY 1999 and 2000 appropriation acts.
Legislation will be proposed to provide the outyear follow-on funding
for the five new rural empowerment zones, and 20 new entereprise
communities 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.

[[Page 137]]

The flexible grant funding is 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 was a multi-year effort
based on a comprehensive development plan involving community 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 of dollars 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 is built on the successes of the initial
round.

Rural Empowerment Zones

(Proposed legislation, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0402-4-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
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:
Mandatory:

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 and 20
rural enterprise communities that are entities designated under section
1391(g) of the Internal Revenue Code of 1986, to continue a second round
of the empowerment zone program in rural areas. 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 2001
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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 2 1
73.20 Total outlays (gross)............. -1
73.40 Adjustments in expired accounts
(net)........................... -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1
----------------------------------------------------------------------------

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

Beginning in 1995, programs and services formerly provided by the
Rural Development Administration are included in other Department
accounts.

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), [$6,000,000, of which $1,500,000] $11,500,000, of which
$2,000,000 shall be available for cooperative agreements for the
appropriate technology transfer for rural areas program, and $2,000,000
shall be available for cooperative research agreements: Provided, That
[at least 25 percent] not to exceed $1,500,000 of the total amount
appropriated shall be made available to cooperatives or associations of
cooperatives that assist small, minority producers: Provided further,
that $1,500,000 of the total amount appropriated shall be for grants to
cooperatives that process and market bio-based products, of which
$1,000,000 is for a pilot program for Rural Utilities Service electric
borrowers to demonstrate the efficiency of bio-mass fuel generation.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1900-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rural cooperative development
grants.......................... 2 3 8
00.02 Appropriate technology transfer
for rural areas................. 1 2 2
00.03 Cooperative research agreements... 1 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3 6 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3 6 12
23.95 Total new obligations............. -3 -6 -12
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3 6 12
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 4 3 4
73.10 Total new obligations............. 3 6 12
73.20 Total outlays (gross)............. -3 -6 -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 3 4 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 3 4
86.93 Outlays from discretionary
balances........................ 2 3 3
--------- --------- ----------
87.00 Total outlays (gross)........... 3 6 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 6 12
90.00 Outlays........................... 3 6 7
---------------------------------------------------------------------------

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

[[Page 138]]

Act of 1985. The program provides information and technical assistance
to agricultural producers to adopt sustainable agricultural practices
that are environmentally friendly and lower production costs.

Funds are requested for cooperative research agreements to help the
Rural Development mission area maintain a predictable level of research
on agricultural and non-agricultural cooperative issues. Also, $2
million is requested for grants for cooperatives that process and market
bio-based products. Of this amount, $1 million is for a pilot program
through the Rural Utilities Service to demonstrate the efficiency of
bio-mass fuel generation.

Rural Economic Development Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3105-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 11 4 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 17 7 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...... 20 10 7
23.95 Total new obligations............. -11 -4 -4
24.40 Unobligated balance available, end
of year......................... 7 4 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 2 3 3
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 14 14 8
72.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 3 3 3
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 17 17 11
73.10 Total new obligations............. 11 4 4
73.20 Total outlays (gross)............. -11 -10 -7
73.45 Adjustments in unexpired accounts. -1
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 14 8 5
74.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 3 3 3
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 17 11 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1
86.98 Outlays from mandatory balances... 11 9 7
--------- --------- ----------
87.00 Total outlays (gross)........... 11 10 7
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2 -3 -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 11 7 4
---------------------------------------------------------------------------

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.

National Sheep Industry Improvement Center Revolving Fund

For National Sheep Industry Improvement Center Revolving Fund
authorized under section 375 of the Consolidated Farm and Rural
Development Act, as amended (7 U.S.C. 2008j), $5,000,000, to remain
available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1906-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 10 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 20 20 10
22.00 New budget authority (gross)...... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 20 20 15
23.95 Total new obligations............. -10 -5
24.40 Unobligated balance available, end
of year......................... 20 10 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 10 5
73.20 Total outlays (gross)............. -10 -5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5
86.98 Outlays from mandatory balances... 10
--------- --------- ----------
87.00 Total outlays (gross)........... 10 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5
90.00 Outlays........................... 10 5
---------------------------------------------------------------------------

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. In 2000, $10 million was granted to an
intermediary to provide assistance to the sheep and lamb industry. An
additional $5 million in discretionary funds are requested in 2001 to
help the domestic lamb industry adjust to foreign competition, as part
of the President's initiative supporting the domestic lamb industry.

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.................... 26 50 50
00.02 Interest on Treasury borrowings. 3 4 6
00.03 Default claims.................. 6 10
--------- --------- ----------
00.91 Subtotal, Operating program..... 29 60 66
Reestimates:

08.01 Negative subsidy paid to receipt
account....................... 4 7
08.02 Downward reestimate paid to
receipt account............... 2
--------- --------- ----------
08.91 Subtotal, Reestimates........... 6 7
--------- --------- ----------

[[Page 139]]

10.00 Total new obligations........... 35 67 66
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1
22.00 New financing authority (gross)... 35 66 66
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.70 Balance of authority to borrow
withdrawn....................... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 36 67 66
23.95 Total new obligations............. -35 -67 -66
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 32 58 50
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 3 8 14
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. 2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 3 8 16
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 35 66 66
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 15 21 40
73.10 Total new obligations............. 35 67 66
73.20 Total financing disbursements
(gross)......................... -27 -48 -66
73.40 Adjustments in expired accounts
(net)........................... -2
73.45 Adjustments in unexpired accounts. -2
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 21 40 38
74.95 Receivables from program account 2
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 21 40 40
87.00 Total financing disbursements
(gross)......................... 27 48 66
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -1
Non-Federal sources:
88.40 Repayments of principal..... -1 -2 -4
88.40 Interest received on loans.. -1 -6 -10
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3 -8 -14
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 32 58 50
90.00 Financing disbursements........... 23 40 52
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 50 50 50
1112 Unobligated direct loan limitation -24
--------- --------- ----------
1150 Total direct loan obligations... 26 50 50
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 19 38 61
1231 Disbursements: Direct loan
disbursements................... 20 31 51
1251 Repayments: Repayments and
prepayments..................... -1 -2 -4
1263 Write-offs for default: Direct
loans........................... -6 -10
--------- --------- ----------
1290 Outstanding, end of year........ 38 61 98
---------------------------------------------------------------------------

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. The subsidy cost of these programs is funded through the Rural
Community Advancement Program. 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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 2 5 5 5
Investments in US securities:
1107 Advances and prepayments...... 7
1206 Non-Federal assets: Receivables,
net............................. 1
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 19 38 61 98
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 19 38 61 98
------------ -------------- ------------ -------------
1999 Total assets.................... 21 51 66 103
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 2 3 4 5
2104 Resources payable to Treasury... 19 48 57 93
------------ -------------- ------------ -------------
2999 Total liabilities............... 21 51 61 98
------------ -------------- ------------ -------------
4999 Total liabilities and net position 21 51 61 98
-----------------------------------------------------------------------------------------------

Rural Business and Industry Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 28 33 35
--------- --------- ----------
10.00 Total new obligations........... 28 33 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 54 107 127
22.00 New financing authority (gross)... 80 54 35
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 134 161 162
23.95 Total new obligations............. -28 -33 -35
24.40 Unobligated balance available, end
of year......................... 107 127 127
----------------------------------------------------------------------------

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

Discretionary:
68.00 Offsetting collections (cash). 85 54 35
68.47 Portion applied to repay debt. -5
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 80 54 35
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 28 33 35
73.20 Total financing disbursements
(gross)......................... -28 -33 -35
87.00 Total financing disbursements
(gross)......................... 28 33 35
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -64 -29 -10
88.25 Interest on uninvested funds.. -5 -5 -6
Non-Federal sources:
88.40 Interest and principal on
purchased loans from
secondary market.......... -3 -3
88.40 Guarantee fees.............. -16 -17 -16
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -85 -54 -35
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -5

[[Page 140]]

90.00 Financing disbursements........... -57 -21
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 1,000 850 1,250
2112 Uncommitted loan guarantee
limitation...................... 262
2131 Guaranteed loan commitments exempt
from limitation................. 19 19
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 1,281 869 1,250
2199 Guaranteed amount of guaranteed
loan commitments................ 866 791 791
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1,876 2,763 3,719
2231 Disbursements of new guaranteed
loans........................... 1,027 1,134 1,059
2251 Repayments and prepayments........ -107 -145 -188
2263 Adjustments: Terminations for
default that result in claim
payments........................ -33 -33 -33
--------- --------- ----------
2290 Outstanding, end of year........ 2,763 3,719 4,557
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,228 2,807 3,434
---------------------------------------------------------------------------

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. The subsidy cost of this program is funded through
the Rural Community Advancement Program. Loans made prior to 1992 are
recorded in the Rural Development Insurance Fund Liquidating Account.

This account finances loan guarantee commitments for industrial
development in rural areas.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4227-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 54 103 86 86
------------ -------------- ------------ -------------
1999 Total assets.................... 54 103 86 86
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 54 103 86 86
------------ -------------- ------------ -------------
2999 Total liabilities............... 54 103 86 86
------------ -------------- ------------ -------------
4999 Total liabilities and net position 54 103 86 86
-----------------------------------------------------------------------------------------------

Rural Development Loan Fund Program Account

(including transfers of funds)

For the cost of direct loans, [$16,615,000] $32,834,000, as
authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a)), of
which, $2,036,000 shall be for Federally Recognized Native American
Tribes: and $4,072,000 shall be for the Mississippi Delta Region
Counties (as defined by P.L. 100-460) 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 [$38,256,000] $64,495,000: Provided
further, That of the total amount appropriated, [$3,216,000] $5,091,000
shall be available through June 30, [2000] 2001, for the cost of direct
loans for authorized empowerment zones and enterprise communities [and
communities designated by the Secretary of Agriculture as Rural Economic
Area Partnership Zones].
In addition, for administrative expenses to carry out the direct
loan programs, [$3,337,000] $3,640,000 shall be transferred to and
merged with the appropriation for ``Rural [Business-Cooperative Service]
Development, Salaries and Expenses''. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2000.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452 1999 actual 2000 est. 2001 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 33
00.05 Reestimates of direct loan subsidy 1
00.09 Administrative expense............ 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 21 20 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 21 20 36
23.95 Total new obligations............. -21 -20 -36
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 20 20 36
Mandatory:

60.05 Appropriation (indefinite)...... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 21 20 36
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 61 55 50
73.10 Total new obligations............. 21 20 36
73.20 Total outlays (gross)............. -27 -25 -25
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 55 50 61
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 4 5
86.93 Outlays from discretionary
balances........................ 22 21 20
86.97 Outlays from new mandatory
authority....................... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 27 25 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 21 20 36
90.00 Outlays........................... 27 25 25
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Intermediary Relending Loans...... 33 38 64
--------- --------- ----------
1159 Total direct loan levels........ 33 38 64
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 50.35 43.43 50.91
--------- --------- ----------
1329 Weighted average subsidy rate... 50.35 43.43 50.91
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 17 17 33
--------- --------- ----------
1339 Total subsidy budget authority.. 17 17 33
Direct loan subsidy outlays:
1340 Subsidy outlays................... 24 22 21
--------- --------- ----------
1349 Total subsidy outlays........... 24 22 21
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 3 3 3

[[Page 141]]

3590 Outlays from new 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.

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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 3 3 3
41.0 Grants, subsidies, and
contributions................... 18 17 33
--------- --------- ----------
99.9 Total new obligations........... 21 20 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.................... 33 38 64
00.03 Interest on Treasury borrowing.. 9 11 17
--------- --------- ----------
00.91 Subtotal, Operating program..... 42 49 81
Non-operating program:

08.02 Downward subsidy reestimates
paid to the receipt account... 7
08.04 Interest on downward reestimate
paid to receipt account....... 1
--------- --------- ----------
08.91 Subtotal, Non-operating program. 8
--------- --------- ----------
10.00 Total new obligations........... 50 49 81
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 51 49 80
22.60 Portion applied to repay debt..... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 52 49 80
23.95 Total new obligations............. -50 -49 -81
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 24 21 35
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 34 33 34
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. -6 -5 11
68.47 Portion applied to repay debt. -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 27 28 45
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 51 49 80
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 57 52 51
72.95 Receivables from program account 61 55 50
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 118 107 101
73.10 Total new obligations............. 50 49 81
73.20 Total financing disbursements
(gross)......................... -62 -55 -61
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 52 51 60
74.95 Receivables from program account 55 50 61
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 107 101 121
87.00 Total financing disbursements
(gross)......................... 62 55 61
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -24 -22 -21
88.25 Interest on uninvested funds.. -2 -2 -2
Non-Federal sources:
88.40 Non-Federal sources--
repayment of principal.... -6 -6 -7
88.40 Non-Federal sources--
interest on loans......... -2 -3 -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -34 -33 -34
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 6 5 -11
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 23 21 35
90.00 Financing disbursements........... 28 22 27
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 33 38 64
--------- --------- ----------
1150 Total direct loan obligations... 33 38 64
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 209 249 285
1231 Disbursements: Direct loan
disbursements................... 44 42 41
1251 Repayments: Repayments and
prepayments..................... -4 -6 -8
--------- --------- ----------
1290 Outstanding, end of year........ 249 285 318
---------------------------------------------------------------------------

This account finances loans to intermediary borrowers, who in turn
relend the funds to small rural businesses, community development
corporations, or other organizations for the purpose of improving
economic opportunities in rural areas. Through the use of local
intermediaries, this program 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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 24 20 22 22
Investments in US securities:
1106 Receivables, net.............. 61 55 50 69
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 209 248 285 289
1402 Interest receivable............. 1 1 3 3
1405 Allowance for subsidy cost (-).. -106 -118 -135 -138
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 104 131 153 154
------------ -------------- ------------ -------------
1999 Total assets.................... 189 206 225 245
LIABILITIES:
Federal liabilities:

2104 Resources payable to Treasury... 128 151 175 180
2105 Other........................... 61 55 50 65
------------ -------------- ------------ -------------
2999 Total liabilities............... 189 206 225 245
------------ -------------- ------------ -------------
4999 Total liabilities and net position 189 206 225 245
-----------------------------------------------------------------------------------------------

[[Page 142]]

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
22.00 New budget authority (gross)...... 1
22.40 Capital transfer to general fund.. -1 -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 -1
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 4 4 4
69.27 Capital transfer to general fund -3 -4 -4
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 1
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1 1
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -4 -4 -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -3 -4 -4
90.00 Outlays........................... -3 -4 -4
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 77 72 68
1231 Disbursements: Direct loan
disbursements................... 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........ 72 68 64
---------------------------------------------------------------------------

\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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 1 1 1 1
0102 Expense........................... 6 5 4 4
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 7 6 5 5
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4233-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 3 2 2 2
1206 Non-Federal assets: Receivables,
net............................. 1 1 1 1
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 77 73 70 65
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -31 -25 -20 -16
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 46 48 50 49
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 46 48 50 49
------------ -------------- ------------ -------------
1999 Total assets.................... 50 51 53 52
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 50 51 52 52
------------ -------------- ------------ -------------
2999 Total liabilities............... 50 51 52 52
------------ -------------- ------------ -------------
4999 Total liabilities and net position 50 51 52 52
-----------------------------------------------------------------------------------------------

Rural Economic Development Loans Program Account

(including rescission 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,
[$3,453,000] $3,911,000.
Of the funds derived from interest on the cushion of credit payments
in fiscal year [2000] 2001, as authorized by section 313 of the Rural
Electrification Act of 1936, [$3,453,000] $3,911,000 shall not be
obligated and [$3,453,000] $3,911,000 are rescinded. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

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 3 4
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 4 3 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 4 3 4
23.95 Total new obligations............. -4 -3 -4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 3 4
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 6 4 3
73.10 Total new obligations............. 4 3 4
73.20 Total outlays (gross)............. -6 -4 -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 4 3 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1
86.93 Outlays from discretionary
balances........................ 5 4 3
--------- --------- ----------
87.00 Total outlays (gross)........... 6 4 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4 3 4
90.00 Outlays........................... 6 4 4
---------------------------------------------------------------------------

[[Page 143]]

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

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 15 15 15
--------- --------- ----------
1159 Total direct loan levels........ 15 15 15
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 25.22 23.02 26.07
--------- --------- ----------
1329 Weighted average subsidy rate... 25.22 23.02 26.07
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 4 3 4
--------- --------- ----------
1339 Total subsidy budget authority.. 4 3 4
Direct loan subsidy outlays:
1340 Subsidy outlays................... 6 4 4
--------- --------- ----------
1349 Total subsidy outlays........... 6 4 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. Program costs
are derived from interest earnings on borrowers' ``cushion of credit''
loan prepayments.

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.................... 15 15 15
00.03 Interest expense................ 4 6 7
--------- --------- ----------
00.91 Subtotal, Operating program..... 19 21 22
08.04 Interest on downward re-estimate.. 2 1
--------- --------- ----------
10.00 Total new obligations........... 21 22 22
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 9 10 9
22.00 New financing authority (gross)... 22 20 21
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.70 Balance of authority to borrow
withdrawn....................... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 32 30 30
23.95 Total new obligations............. -21 -22 -22
24.40 Unobligated balance available, end
of year......................... 10 9 9
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 13 12 12
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 15 15 16
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. -2
68.47 Portion applied to repay debt. -4 -7 -7
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 9 8 9
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 22 20 21
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 20 11 10
72.95 Receivables from program account 6 4 4
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 26 15 14
73.10 Total new obligations............. 21 22 22
73.20 Total financing disbursements
(gross)......................... -30 -21 -21
73.45 Adjustments in unexpired accounts. -3
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 11 10 11
74.95 Receivables from program account 4 4 4
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 15 14 15
87.00 Total financing disbursements
(gross)......................... 30 21 21
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal Funds: Program Account -6 -4 -4
88.25 Interest on uninvested funds.. -1 -1 -1
88.40 Non-Federal sources: Repayment
of Principal................ -8 -10 -11
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -15 -15 -16
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 9 5 5
90.00 Financing disbursements........... 14 6 5
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 15 15 15
--------- --------- ----------
1150 Total direct loan obligations... 15 15 15
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 50 66 72
1231 Disbursements: Direct loan
disbursements................... 23 16 15
1251 Repayments: Repayments and
prepayments..................... -7 -10 -10
--------- --------- ----------
1290 Outstanding, end of year........ 66 72 77
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4176-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 9 8 8 8
Investments in US securities:
1106 Program Account............... 6 4 5 5
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 50 66 72 75
1405 Allowance for subsidy cost (-).. -11 -12 -4 -4
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 39 54 68 71
------------ -------------- ------------ -------------
1999 Total assets.................... 54 66 81 84
LIABILITIES:
Federal liabilities:

2104 Resources payable to Treasury... 49 62 76 76
2105 Other........................... 6 4 5 8
------------ -------------- ------------ -------------
2999 Total liabilities............... 55 66 81 84
------------ -------------- ------------ -------------
4999 Total liabilities and net position 55 66 81 84
-----------------------------------------------------------------------------------------------

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 1

[[Page 144]]

22.00 New budget authority (gross)...... 1 1
22.40 Capital transfer to general fund.. -7 -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 1 1
23.95 Total new obligations.............
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 1 1 1
69.27 Capital transfer to general fund -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.20 Total outlays (gross)............. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
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
90.00 Outlays........................... -1 -2 -2
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3104-0-1-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 3 2 1
1251 Repayments: Repayments and
prepayments..................... -1 -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 2 1
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1 1 1
1601 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Direct loans, gross............. 2 2 1 2
------------ -------------- ------------ -------------
1999 Total assets.................... 3 3 1 3
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 3 3 1 3
------------ -------------- ------------ -------------
2999 Total liabilities............... 3 3 1 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3 3 1 3
-----------------------------------------------------------------------------------------------

Public enterprise funds:

Alternative Agricultural Research and Commercialization Corporation
Revolving Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Administrative expense............ 1 1
00.02 Program activity.................. 5
--------- --------- ----------
10.00 Total new obligations........... 6 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2 1
22.00 New budget authority (gross)...... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7 1
23.95 Total new obligations............. -6 -1
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1 2
73.10 Total new obligations............. 6 1
73.20 Total outlays (gross)............. -5 -3
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4
86.93 Outlays from discretionary
balances........................ 1 3
--------- --------- ----------
87.00 Total outlays (gross)........... 5 3
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1
----------------------------------------------------------------------------

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

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. No funds were appropriated in 2000 and
no funding is requested in 2001.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4144-0-3-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1
41.0 Grants, subsidies, and
contributions................... 5
--------- --------- ----------
99.9 Total new obligations........... 6 1
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4144-0-3-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 6 6
---------------------------------------------------------------------------

[[Page 145]]

RURAL UTILITIES SERVICE

Federal Funds

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.................... 721 679 1,032
00.03 Interest on Treasury borrowing.. 206 229 284
00.04 Restoration of prior
cancellation.................. 5
--------- --------- ----------
00.91 Subtotal, Operating program..... 932 908 1,316
Reestimates:

08.02 Downward reestimate paid to
receipt account............... 16
08.04 Interest on downward reestimate. 2
--------- --------- ----------
08.91 Subtotal reestimates............ 18
--------- --------- ----------
10.00 Total new obligations........... 950 908 1,316
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 14 10
22.00 New financing authority (gross)... 934 898 1,316
22.10 Resources available from
recoveries of prior year
obligations..................... 54
22.70 Balance of authority to borrow
withdrawn....................... -42
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 960 908 1,316
23.95 Total new obligations............. -950 -908 -1,316
24.40 Unobligated balance available, end
of year......................... 10
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 620 385 788
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 381 450 481
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. 37 63 47
68.47 Portion applied to repay debt. -104
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 314 513 528
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 934 898 1,316
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 1,662 1,679 1,459
72.95 Receivables from program account 225 262 325
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 1,887 1,941 1,784
73.10 Total new obligations............. 950 908 1,316
73.20 Total financing disbursements
(gross)......................... -842 -1,064 -1,145
73.45 Adjustments in unexpired accounts. -54
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 1,679 1,459 1,583
74.95 Receivables from program account 262 325 372
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 1,941 1,784 1,955
87.00 Total financing disbursements
(gross)......................... 842 1,064 1,145
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -116 -129 -94
88.25 Interest on uninvested funds.. -41 -64 -83
Non-Federal sources:
88.40 Repayment of principal...... -83 -49 -59
88.40 Interest received on loans.. -141 -208 -245
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -381 -450 -481
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -37 -63 -47
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 516 385 788
90.00 Financing disbursements........... 461 614 664
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 707 679 1,032
1131 Direct loan obligations exempt
from limitation................. 14
--------- --------- ----------
1150 Total direct loan obligations... 721 679 1,032
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,810 3,345 4,131
1231 Disbursements: Direct loan
disbursements................... 619 835 862
1251 Repayments: Repayments and
prepayments..................... -84 -49 -59
--------- --------- ----------
1290 Outstanding, end of year........ 3,345 4,131 4,934
---------------------------------------------------------------------------

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. The subsidy cost of these loans is provided through the Rural
Community Advancement Program. Loans made prior to 1992 are recorded in
the Rural Development Insurance Fund Liquidating Account.

The water and waste disposal program makes loans and grants to
finance water and waste disposal facilities in rural areas.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4226-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 200 126 126 126
Investments in US securities:
1106 Receivables, net.............. 225 262 262 262
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 2,807 3,345 4,131 4,934
1402 Interest receivable............. 36 42 48 54
1405 Allowance for subsidy cost (-).. -430 -588 -899 -1,368
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 2,413 2,799 3,280 3,620
------------ -------------- ------------ -------------
1999 Total assets.................... 2,838 3,187 3,668 4,008
LIABILITIES:
2103 Federal liabilities: Debt......... 2,760 2,917 3,335 3,628
2203 Non-Federal liabilities: Debt..... 1 8 8 8
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,761 2,925 3,343 3,636
NET POSITION:
3100 Appropriated capital.............. 77 262 325 372
------------ -------------- ------------ -------------
3999 Total net position.............. 77 262 325 372
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,838 3,187 3,668 4,008
-----------------------------------------------------------------------------------------------

Rural Water and Waste Disposal Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1 1
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...... 1 1
23.95 Total new obligations.............
----------------------------------------------------------------------------

[[Page 146]]

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 1 1
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1
73.10 Total new obligations.............
73.20 Total financing disbursements
(gross)......................... -1 -1
73.45 Adjustments in unexpired accounts. -1
87.00 Total financing disbursements
(gross)......................... 1 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.40 Offsetting collections (cash)
from: Fees.................... -1 -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4218-0-3-452 1999 actual 2000 est. 2001 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...................... -69
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 6 75 75
2199 Guaranteed amount of guaranteed
loan commitments................ 60 60
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 1 20 87
2231 Disbursements of new guaranteed
loans........................... 20 69 44
2251 Repayments and prepayments........ -1 -2 -3
--------- --------- ----------
2290 Outstanding, end of year........ 20 87 128
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 13 78 110
---------------------------------------------------------------------------

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, [$121,500,000] $50,000,000; 5
percent rural telecommunications loans, $75,000,000; cost of money rural
telecommunications loans, $300,000,000; municipal rate rural electric
loans, [$295,000,000] $300,000,000; and loans made pursuant to section
306 of that Act, rural electric, [$1,700,000,000] $1,200,000,000 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, $1,935,000; cost
of municipal rate loans, $10,827,000; cost of money rural
telecommunications loans, $2,370,000] rural electric loans, $25,870,000,
and the cost of telecommunication loans; $7,770,000: 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, [$31,046,000], $34,716,000, which
shall be transferred to and merged with the appropriation for ``Rural
[Utilities Service] Development, Salaries and Expenses''. (Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
0101 Rural electrification and
telephone loans, negative
subsidies....................... 5 8
0102 Rural electrification and
telephone loans, downward
reestimates of subsidies........ 167
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 43 15 34
00.05 Reestimate of the direct loan
subsidy......................... 94
00.06 Interest on reestimates of direct
loan subsidy.................... 6
00.09 Administrative expenses subject to
limitation...................... 30 31 35
--------- --------- ----------
10.00 Total new obligations........... 174 46 68
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 174 46 68
23.95 Total new obligations............. -174 -46 -68
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 73 46 68
Mandatory:

60.05 Appropriation (indefinite)...... 101
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 174 46 68
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 132 118 76
73.10 Total new obligations............. 174 46 68
73.20 Total outlays (gross)............. -183 -88 -74
73.40 Adjustments in expired accounts
(net)........................... -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 118 76 71
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 40 33 39
86.93 Outlays from discretionary
balances........................ 42 55 35
86.97 Outlays from new mandatory
authority....................... 101
--------- --------- ----------
87.00 Total outlays (gross)........... 183 88 74
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 174 46 68
90.00 Outlays........................... 184 88 74
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loans, hardship electric... 72 122 50
1150 Direct loans, municipal electric.. 295 294 300
1150 Direct loans, FFB electric........ 1,050 1,700 800
1150 Direct loans, hardship telephone.. 75 75 75
1150 Direct loans, Treasury telephone.. 217 300 300
1150 Direct loans, FFB telephone....... 55 120 120
--------- --------- ----------
1159 Total direct loan levels........ 1,763 2,610 1,645
Direct loan subsidy (in percent):
1320 Direct loans, hardship electric... 13.04 0.90 9.96

[[Page 147]]

1320 Direct loans, municipal electric.. 8.76 3.67 6.95
1320 Direct loans, FFB electric........ -0.38 -1.18 -3.09
1320 Direct loans, hardship telephone.. 9.79 1.12 10.36
1320 Direct loans, Treasury telephone.. 0.27 0.79 -1.00
1320 Direct loans, FFB telephone....... -0.81 -0.46 -2.04
--------- --------- ----------
1329 Weighted average subsidy rate... 7.88 -0.23 0.24
Direct loan subsidy budget authority:
1330 Direct loans, hardship electric... 11 1 5
1330 Direct loans, municipal electric.. 113 11 21
1330 Direct loans, FFB electric........ -3 -20 -25
1330 Direct loans, hardship telephone.. 10 1 8
1330 Direct loans, Treasury telephone.. 6 2 -3
1330 Direct loans, FFB telephone....... 2 -1 -2
--------- --------- ----------
1339 Total subsidy budget authority.. 139 -6 4
Direct loan subsidy outlays:
1340 Direct loans, hardship electric... 11 12 5
1340 Direct loans, municipal electric.. 123 27 20
1340 Direct loans, FFB electric........ 2 3 1
1340 Direct loans, hardship telephone.. 10 14 13
1340 Direct loans, Treasury telephone.. 5
1340 Direct loans, FFB telephone....... 2
--------- --------- ----------
1349 Total subsidy outlays........... 153 57 39
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
2150 Guaranteed loans, electric........ 150 500 400
--------- --------- ----------
2159 Total loan guarantee levels..... 150 500 400
Guaranteed loan subsidy (in percent):
2320 Guaranteed loans, electric........ 0.00 0.01 0.01
--------- --------- ----------
2329 Weighted average subsidy rate... 0.00 0.01 0.01
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 30 31 35
3590 Outlays........................... 30 31 35
---------------------------------------------------------------------------

The Rural Utilities Service conducts the rural electrification and
the rural telecommunications loan programs. The rural electrification
loan program is financed through RUS direct and guaranteed 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 30 31 35
41.0 Grants, subsidies, and
contributions................... 144 15 34
--------- --------- ----------
99.9 Total new obligations........... 174 46 68
---------------------------------------------------------------------------

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.................... 1,763 2,610 1,645
00.02 Interest on Treasury borrowing.. 371 459 553
--------- --------- ----------
00.91 Subtotal, Operating program..... 2,134 3,069 2,198
Non-operating program:

08.01 Negative subsidy paid to receipt
account....................... 4 21 30
08.02 Downward reestimate paid to
receipt account............... 133
08.04 Interest on downward reestimate
paid to receipt account....... 35
--------- --------- ----------
08.91 Subtotal, Non-operating program. 172 21 30
--------- --------- ----------
10.00 Total new obligations........... 2,306 3,090 2,228
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 25 29
22.00 New financing authority (gross)... 2,307 3,061 2,228
22.10 Resources available from
recoveries of prior year
obligations..................... 146
22.70 Balance of authority to borrow
withdrawn....................... -143
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,335 3,090 2,228
23.95 Total new obligations............. -2,306 -3,090 -2,228
24.40 Unobligated balance available, end
of year......................... 29
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 1,892 2,414 1,444
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 831 689 789
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. -9 -42 -5
68.47 Portion applied to repay debt. -407
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 414 648 784
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 2,307 3,061 2,228
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 3,607 4,164 5,136
72.95 Receivables from program account 127 118 76
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 3,734 4,282 5,213
73.10 Total new obligations............. 2,306 3,090 2,228
73.20 Total financing disbursements
(gross)......................... -1,612 -2,160 -2,144
73.45 Adjustments in unexpired accounts. -146
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 4,164 5,136 5,226
74.95 Receivables from program account 118 76 71
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 4,282 5,213 5,296
87.00 Total financing disbursements
(gross)......................... 1,612 2,160 2,144
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payment from program account.. -153 -57 -39
88.25 Interest on uninvested funds.. -44 -57 -68
Non-Federal sources:
88.40 Repayment of principal...... -328 -142 -170
88.40 Interest received on loans.. -297 -433 -512
88.40 Miscellaneous Income........ -9
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -831 -689 -789
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 9 42 5
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 1,485 2,414 1,444
90.00 Financing disbursements........... 781 1,470 1,355
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 1,911 2,610 1,645
1112 Unobligated direct loan limitation -148
--------- --------- ----------
1150 Total direct loan obligations... 1,763 2,610 1,645
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 5,189 5,949 7,496
1231 Disbursements: Direct loan
disbursements................... 1,093 1,689 1,582
1251 Repayments: Repayments and
prepayments..................... -328 -142 -170

[[Page 148]]

1262 Adjustments: Discount on loan
asset sales to the public or
discounted...................... -5
--------- --------- ----------
1290 Outstanding, end of year........ 5,949 7,496 8,908
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 170 10 15 166
Investments in US securities:
1106 Receivables, net.............. 78
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 4,351 5,007 6,136 7,170
1405 Allowance for subsidy cost (-).. -433 -473 -520 -546
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 3,918 4,534 5,616 6,624
------------ -------------- ------------ -------------
1999 Total assets.................... 4,088 4,622 5,631 6,790
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 9
2103 Debt............................ 3,963 4,535 5,553 6,713
------------ -------------- ------------ -------------
2999 Total liabilities............... 3,963 4,543 5,553 6,713
NET POSITION:
3100 Appropriated capital.............. 125 79 78 77
------------ -------------- ------------ -------------
3999 Total net position.............. 125 79 78 77
------------ -------------- ------------ -------------
4999 Total liabilities and net position 4,088 4,622 5,631 6,790
--------------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 136 1 10 42
Investments in US securities:
1106 Receivables, net.............. 43
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 755 941 1,360 1,737
1405 Allowance for subsidy cost (-).. -63 -50 -96 -98
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 692 891 1,264 1,639
------------ -------------- ------------ -------------
1999 Total assets.................... 828 935 1,274 1,681
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 3
2103 Debt............................ 770 877 1,229 1,642
------------ -------------- ------------ -------------
2999 Total liabilities............... 770 881 1,229 1,642
NET POSITION:
3100 Appropriated capital.............. 58 54 45 39
------------ -------------- ------------ -------------
3999 Total net position.............. 58 54 45 39
------------ -------------- ------------ -------------
4999 Total liabilities and net position 828 935 1,274 1,681
-----------------------------------------------------------------------------------------------

Rural Electrification and Telecommunications Guaranteed Loans Financing
Account

(Legislative proposal, not subject to PAYGO)

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4209-0-3-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 150 500 400
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 150 500 400
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 16 147
2231 Disbursements of new guaranteed
loans........................... 16 133 176
2251 Repayments and prepayments........ -2 -3
--------- --------- ----------
2290 Outstanding, end of year........ 16 147 320
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 16 147 320
---------------------------------------------------------------------------

This account finances loan guarantee commitments.

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......... 466 762 437
00.02 Interest expense, FFB direct...... 854 811 771
00.03 Other interest expense............ 251 9 9
00.05 Other............................. 9 7 7
--------- --------- ----------
10.00 Total new obligations........... 1,580 1,589 1,224
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,568 1,589 1,224
22.10 Resources available from
recoveries of prior year
obligations..................... 24
22.70 Balance of authority to borrow
withdrawn....................... -12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,580 1,589 1,224
23.95 Total new obligations............. -1,580 -1,589 -1,224
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescinded... -4
Mandatory:

60.36 Unobligated balance rescinded... -4 -3
62.00 Transferred from other accounts. 26 25 24
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 22 22 24
67.15 Authority to borrow (indefinite) 500
67.16 Authority to borrow (indefinite)
(12 U.S.C. 2281-96)........... 5
--------- --------- ----------
67.90 Authority to borrow (total
mandatory).................. 505
69.00 Offsetting collections (cash)..... 2,788 4,411 3,138
69.10 From Federal sources: Change in
receivables and unpaid, unfilled
orders.......................... -1,008
69.47 Portion applied to repay debt..... -739 -2,844 -1,934
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 1,041 1,567 1,204
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,568 1,589 1,224
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 96 517 591

[[Page 149]]

72.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 1,053 45 45
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 1,149 562 636
73.10 Total new obligations............. 1,580 1,589 1,224
73.20 Total outlays (gross)............. -2,143 -1,516 -1,370
73.45 Adjustments in unexpired accounts. -24
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 517 591 445
74.95 From Federal sources:
Receivables and unpaid,
unfilled orders............... 45 45 45
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 562 636 490
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 994 954 782
86.98 Outlays from mandatory balances... 1,149 562 588
--------- --------- ----------
87.00 Total outlays (gross)........... 2,143 1,516 1,370
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Loans repaid................ -1,432 -1,751 -1,663
88.40 Interest from loans......... -1,428 -1,553 -1,475
88.40 Other....................... 72 -1,107
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2,788 -4,411 -3,138
Against gross budget authority only:

88.95 From Federal sources: Change in
receivables and unpaid,
unfilled orders............... 1,008
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -212 -2,822 -1,914
90.00 Outlays........................... -645 -2,895 -1,768
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 27,076 25,867 24,837
1231 Disbursements: Direct loan
disbursements................... 19 8 19
1251 Repayments: Repayments and
prepayments..................... -1,432 -1,031 -1,204
1264 Write-offs for default: Other
adjustments, net................ 204 -7 -4
--------- --------- ----------
1290 Outstanding, end of year........ 25,867 24,837 23,648
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 561 409 389
2251 Repayments and prepayments........ -45 -20 -20
2263 Adjustments: Terminations for
default that result in claim
payments........................ -107
--------- --------- ----------
2290 Outstanding, end of year........ 409 389 369
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 409 389 369
---------------------------------------------------------------------------

STATUS OF AGENCY DEBT

[In millions of dollars]

1999 actual 2000 est. 2001 est.
Agency Debt Held by FFB:
Outstanding FFB Direct, start of
year............................ 12,594 12,130 10,575
Outstanding Certificate of
Beneficial Ownership (CBO's),
start of year................... 4,599 4,599 4,327
Repayments and prepayments, FFB
Direct.......................... -464 -1,555 -402
------------------------------------
Outstanding FFB Direct, end of
year............................ 12,130 10,575 10,173
Outstanding CBO's, end of year.... 4,599 4,327 4,270
====================================

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]

1999 actual 2000 est. 2001 est.
Cumulative RUS financed direct loans 21,857 21,857 21,857
Cumulative FFB financed direct loans 27,136 27,136 27,136
Cumulative RUS funds advanced....... 21,831 21,832 21,833
Unadvanced RUS funds, end of year... 22 21 20
Cumulative RUS principal repaid..... 13,446 14,271 15,234
Cumulative RUS interest paid........ 11,041 12,283 13,463
Cumulative loan guarantee
commitments\1\...................... 3,967 3,967 3,967
Number of borrowers................. 807 728 635

\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]

1999 actual 2000 est. 2001 est.
Cumulative RUS financed direct loans 6,053 6,053 6,053
Cumulative FFB financed direct loans 579 579 579
Cumulative RUS funds advanced....... 5,869 5,876 5,894
Unadvanced RUS funds, end of period. 186 179 161
Cumulative RUS principal repaid..... 3,325 3,531 3,772
Cumulative RUS interest paid........ 2,646 2,957 3,252
Cumulative loan guarantee
commitments \1\..................... 3 3 3
Number of borrowers................. 800 735 675

\1\ Other lenders--privately financed direct loans, FFB.

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4230-0-3-271 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ELECTRIC PROGRAM:
0111 Revenue........................... 1,812 1,352 2,504 1,327
0112 Expense........................... -147 -596 -545 -317
------------ -------------- ------------ -------------
0115 Net income or loss (-)............ 1,665 756 1,959 1,010
TELEPHONE PROGRAM:
0121 Revenue........................... 188 159 155 147
0122 Expense........................... -178 -246 -477 -367
------------ -------------- ------------ -------------
0125 Net income or loss (-)............ 10 -87 -322 -220
------------ -------------- ------------ -------------
0191 Total revenues.................... 2,000 1,511 2,659 1,474
------------ -------------- ------------ -------------
0192 Total expenses.................... -325 -842 -1,022 -684
------------ -------------- ------------ -------------
0195 Total income or loss (-).......... 1,675 669 1,637 790
------------ -------------- ------------ -------------
0199 Net loss (-)...................... 1,675 669 1,637 790
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1601 Direct loans, gross (Electric).. 24,203 23,214 22,279 21,212
1602 Interest receivable............. 15 19 19 19
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -3,087 -2,439 -2,340 -2,228
------------ -------------- ------------ -------------

[[Page 150]]

1604 Direct loans and interest
receivable, net............. 21,131 20,794 19,958 19,003
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 21,131 20,794 19,958 19,003
1901 Other Federal assets: Other assets 3,527
------------ -------------- ------------ -------------
1999 Total assets.................... 24,658 21,041 20,205 19,250
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 659 632 603
2103 Debt............................ 21,198 20,853 19,935 18,863
2104 Resources payable to Treasury... -608 -497 -344
2105 Other........................... 837 3
Non-Federal liabilities:

2202 Interest payable................ 9 11 11 11
2203 Debt............................ 807
2204 Liabilities for loan guarantees. 142 18 18 17
2207 Other........................... 105 106 100
------------ -------------- ------------ -------------
2999 Total liabilities............... 22,993 21,041 20,205 19,250
NET POSITION:
3300 Cumulative results of operations.. 1,665
------------ -------------- ------------ -------------
3999 Total net position.............. 1,665
------------ -------------- ------------ -------------
4999 Total liabilities and net position 24,658 21,041 20,205 19,250
--------------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 189 189 189
Non-Federal assets:

1201 Investments in non-Federal
securities, net............... 528 502 527 551
1206 Receivables, net................ 662 660 780 359
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross (Telephone). 2,874 2,653 2,558 2,436
1602 Interest receivable............. 6 6 6 6
1603 Allowance for estimated
uncollectible loans and
interest (-).................. 126 -32 -30 -29
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 3,006 2,627 2,534 2,413
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 3,006 2,627 2,534 2,413
------------ -------------- ------------ -------------
1999 Total assets.................... 4,196 3,978 4,030 3,512
LIABILITIES:
Federal liabilities:

2103 Debt............................ 2,163 2,061 1,947 1,815
2104 Resources payable to Treasury... 2,019 1,903 2,073 1,687
2105 Other........................... 4 4
------------ -------------- ------------ -------------
2999 Total liabilities............... 4,186 3,968 4,020 3,502
NET POSITION:
3300 Cumulative results of operations.. 10 10 10 10
------------ -------------- ------------ -------------
3999 Total net position.............. 10 10 10 10
------------ -------------- ------------ -------------
4999 Total liabilities and net position 4,196 3,978 4,030 3,512
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Other services.................... 9 7 7
33.0 Investments and loans............. 251 9 9
43.0 Interest and dividends............ 1,320 1,573 1,208
--------- --------- ----------
99.9 Total new obligations........... 1,580 1,589 1,224
---------------------------------------------------------------------------

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 [2000] 2001 and within the
resources and authority available, gross obligations for the principal
amount of direct loans shall be $175,000,000.
For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, including the cost of modifying loans, of direct loans
authorized by the Rural Electrification Act of 1936 (7 U.S.C. 935),
[$3,290,000] $2,590,000, to be derived by transfer from the
shareholders' equity as contained in the unobligated balances in the
Rural Telephone Bank Liquidating Account.
In addition, for administrative expenses, including audits,
necessary to carry out the loan programs, $3,000,000, to be derived by
transfer from the shareholders' 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] Development, Salaries and Expenses''. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
0101 Rural telephone bank loans,
downward reestimate of subsidies 12 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 3 3 3
00.05 Reestimates on direct loan subsidy 1
00.09 Administrative expenses subject to
limitation...................... 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 6 7 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 8 7 6
23.95 Total new obligations............. -6 -7 -6
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 7 6
42.00 Transferred from other accounts. 6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 7 6 6
Mandatory:

60.05 Appropriation (indefinite)...... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 8 7 6
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 10 12 14
73.10 Total new obligations............. 6 7 6
73.20 Total outlays (gross)............. -4 -6 -5
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 12 14 15
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 3 3
86.93 Outlays from discretionary
balances........................ 1 2 2
86.98 Outlays from mandatory balances... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 4 6 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 8 7 6
90.00 Outlays........................... 4 6 5
---------------------------------------------------------------------------

[[Page 151]]

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

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 114 175 175
--------- --------- ----------
1159 Total direct loan levels........ 114 175 175
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 2.65 1.88 1.48
--------- --------- ----------
1329 Weighted average subsidy rate... 2.65 1.88 1.48
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 3 4 3
--------- --------- ----------
1339 Total subsidy budget authority.. 3 4 3
Direct loan subsidy outlays:
1340 Subsidy outlays................... 1 3 2
--------- --------- ----------
1349 Total subsidy outlays........... 1 3 2
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 3 3 3
3590 Outlays........................... 3 3 3
---------------------------------------------------------------------------

In 2001, 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)

Rural Telephone Bank Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 114 175 175
00.03 Interest on Treasury borrowing.. 16 19 27
--------- --------- ----------
00.91 Subtotal, Operating program..... 130 194 202
Reestimate:

08.02 Downward reestimate............. 9 1
08.04 Interest on downward reestimate. 3
--------- --------- ----------
08.91 Subtotal, reestimate............ 12 1
--------- --------- ----------
10.00 Total new obligations........... 142 195 202
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 143 195 202
22.10 Resources available from
recoveries of prior year
obligations..................... 31
22.70 Balance of authority to borrow
withdrawn....................... -32
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 142 195 202
23.95 Total new obligations............. -142 -195 -202
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 123 153 151
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 28 40 50
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. 2 2 1
68.47 Portion applied to repay debt. -9
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 21 42 51
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 143 195 202
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 775 818 875
72.95 Receivables from program account 10 12 14
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 786 830 889
73.10 Total new obligations............. 142 195 202
73.20 Total financing disbursements
(gross)......................... -66 -137 -172
73.45 Adjustments in unexpired accounts. -31
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 818 875 903
74.95 Receivables from program account 12 14 15
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 830 889 918
87.00 Total financing disbursements
(gross)......................... 66 137 172
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Payment from
Program Account............. -1 -3 -2
88.25 Interest on uninvested funds.. -4 -3 -4
Non-Federal sources:
88.40 Principal received on loans. -8 -10 -11
88.40 Interest received on loans.. -13 -19 -26
88.40 Sale of RTB Stock........... -2 -5 -7
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -28 -40 -50
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -2 -2 -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 113 153 151
90.00 Financing disbursements........... 39 97 122
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 158 175 175
1112 Unobligated direct loan limitation -44
--------- --------- ----------
1150 Total direct loan obligations... 114 175 175
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 197 246 353
1231 Disbursements: Direct loan
disbursements................... 58 117 145
1251 Repayments: Repayments and
prepayments..................... -8 -10 -11
--------- --------- ----------
1290 Outstanding, end of year........ 246 353 487
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4210-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 322 423 600 702
Investments in US securities:
1106 Program Account............... 11 12 14 15
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 232 246 353 487
1402 Interest receivable............. 11 13 19 26
1405 Allowance for subsidy cost (-).. -17 -19 -17 -15
------------ -------------- ------------ -------------

[[Page 152]]

1499 Net present value of assets
related to direct loans..... 226 240 355 498
------------ -------------- ------------ -------------
1999 Total assets.................... 559 675 969 1,215
LIABILITIES:
2103 Federal liabilities: Debt......... 544 659 952 1,197
2201 Non-Federal liabilities: Accounts
payable......................... 11 12 14 15
------------ -------------- ------------ -------------
2999 Total liabilities............... 555 671 966 1,212
NET POSITION:
3100 Appropriated capital.............. 4 4 3 3
------------ -------------- ------------ -------------
3999 Total net position.............. 4 4 3 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position 559 675 969 1,215
-----------------------------------------------------------------------------------------------

Rural Telephone Bank Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Dividends......................... 14 15 16
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 14 15 16
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 396 508 609
22.00 New budget authority (gross)...... 129 126 176
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.40 Capital transfer to general fund.. -11 -10 -9
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 522 624 776
23.95 Total new obligations............. -14 -15 -16
24.40 Unobligated balance available, end
of year......................... 508 609 760
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

41.00 Transferred to other accounts... -6
Mandatory:

61.00 Transferred to other accounts... -26 -25 -24
69.00 Offsetting collections (cash)..... 318 233 226
69.47 Portion applied to repay debt..... -163 -82 -20
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 155 151 206
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 129 126 176
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 175 149 134
73.10 Total new obligations............. 14 15 16
73.20 Total outlays (gross)............. -32 -30 -29
73.45 Adjustments in unexpired accounts. -8
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 149 134 121
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 14 15 16
86.98 Outlays from mandatory balances... 18 15 13
--------- --------- ----------
87.00 Total outlays (gross)........... 32 30 29
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -36 -41 -47
Non-Federal sources:
88.40 Loans repaid................ -203 -125 -119
88.40 Interest from loans......... -78 -66 -59
88.40 Sales of stock.............. -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -318 -233 -226
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -189 -107 -50
90.00 Outlays........................... -286 -203 -197
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4231-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,172 986 876
1231 Disbursements: Direct loan
disbursements................... 17 15 13
1251 Repayments: Repayments and
prepayments..................... -203 -125 -119
--------- --------- ----------
1290 Outstanding, end of year........ 986 876 770
---------------------------------------------------------------------------

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 2001.

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 2001, 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]

1999 actual 2000 est. 2001 est.
Cumulative net loans................ 2,584 2,583 2,583
Cumulative loan funds, advanced..... 2,449 2,464 2,477
Unadvanced loan funds, end of year.. 134 119 106
Cumulative principal repaid......... 1,463 1,588 1,707
Cumulative interest paid............ 2,165 2,231 2,290
Number of borrowers................. 398 390 385
====================================

Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4231-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 130 126 119 118
0102 Expense........................... -25 -11 -5 -1
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ 105 115 114 117
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4231-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 571 657 743 887
1206 Non-Federal assets: Receivables,
net............................. 3 3 3 3
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 1,172 986 876 770
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -8 -7 -6 -5
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 1,164 979 870 765
------------ -------------- ------------ -------------

[[Page 153]]

1699 Value of assets related to
direct loans................ 1,164 979 870 765
------------ -------------- ------------ -------------
1999 Total assets.................... 1,738 1,639 1,616 1,655
LIABILITIES:
2103 Federal liabilities: Debt......... 265 102 20
2207 Non-Federal liabilities: Other.... 945 1,035 1,119 1,202
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,210 1,137 1,139 1,202
NET POSITION:
3100 Appropriated capital.............. 528 502 477 453
------------ -------------- ------------ -------------
3999 Total net position.............. 528 502 477 453
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,738 1,639 1,616 1,655
-----------------------------------------------------------------------------------------------

Distance Learning and Telemedicine Program

For the cost of direct loans and grants, as authorized by 7 U.S.C.
950aaa et seq., [$20,700,000] $25,000,000, to remain available until
expended, to be available for loans and grants for telemedicine and
distance learning services in rural areas; in addition, for the cost of
direct loans and grants, for a pilot program to finance broadband
transmission and local dial-up Internet service $2,000,000, to remain
available until expended: Provided, That the definition of ``rural
area'' contained in section 203(b) of the Rural Electrification Act (7
U.S.C. 924(b)) shall be applicable in carrying out this pilot program:
Provided further, 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 1
00.02 Distance learning and telemedicine
grants.......................... 13 21 27
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 13 21 27
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1 1
22.00 New budget authority (gross)...... 13 21 27
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14 21 27
23.95 Total new obligations............. -13 -21 -27
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation grant budget
authority..................... 13 21 27
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 27 30 36
73.10 Total new obligations............. 13 21 27
73.20 Total outlays (gross)............. -9 -15 -18
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 30 36 46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1
86.93 Outlays from discretionary
balances........................ 9 14 17
--------- --------- ----------
87.00 Total outlays (gross)........... 9 15 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 13 21 27
90.00 Outlays........................... 9 15 18
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 55 200 400
--------- --------- ----------
1159 Total direct loan levels........ 55 200 400
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 0.12 0.35 -0.61
--------- --------- ----------
1329 Weighted average subsidy rate... 0.12 0.35 -0.61
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 1 -2
--------- --------- ----------
1339 Total subsidy budget authority.. 1 -2
---------------------------------------------------------------------------

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. Additionally, the budget proposes
a pilot program for grants and loans to finance installation of
broadband transmission capacity (i.e. the necessary fiber optic cable
capacity needed in order to provide any enhanced services such as the
Internet or high speed modems) to and through rural communities, and to
provide local dial-up Internet service to under-served rural areas.

Distance Learning and Telemedicine Link Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 55 200 400
00.02 Interest on Treasury borrowing.. 4 17
--------- --------- ----------
00.91 Subtotal, operating program..... 55 204 417
08.01 Negative subsidy.................. 2
--------- --------- ----------
10.00 Total new obligations........... 55 204 419
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 55 204 418
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...... 55 204 418
23.95 Total new obligations............. -55 -204 -419
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 55 188 370
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 15 49
68.10 From Federal sources: Change
in receivables and unpaid,
unfilled orders............. 1 -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 15 48
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 55 204 418
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 5 58 161
72.95 Receivables from program account 1
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 5 58 161
73.10 Total new obligations............. 55 204 419
73.20 Total financing disbursements
(gross)......................... -1 -101 -233
73.45 Adjustments in unexpired accounts. -1
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. 58 161 347
74.95 Receivables from program account 1
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 58 161 347
87.00 Total financing disbursements
(gross)......................... 1 101 233
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -1 -5

[[Page 154]]

Non-Federal sources:
88.40 Repayment of principal...... -8 -26
88.40 Interest received on loans.. -6 -18
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -15 -49
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -1 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 55 188 370
90.00 Financing disbursements........... 1 86 184
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 55 200 400
--------- --------- ----------
1150 Total direct loan obligations... 55 200 400
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1 94
1231 Disbursements: Direct loan
disbursements................... 1 101 232
1251 Repayments: Repayments and
prepayments..................... -8 -26
--------- --------- ----------
1290 Outstanding, end of year........ 1 94 300
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4146-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:

1106 Federal assets: Receivables, net 1
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 1 93 299
1402 Interest receivable............. 6 18
1405 Allowance for subsidy cost (-).. -5 -18
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 1 94 299
------------ -------------- ------------ -------------
1999 Total assets.................... 1 94 299
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 1 93 299
------------ -------------- ------------ -------------
2999 Total liabilities............... 1 93 299
NET POSITION:
------------ -------------- ------------ -------------
3999 Total net position.............. 1
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 93 299
-----------------------------------------------------------------------------------------------

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 1 1
00.03 Redemption of public certificate
of beneficial ownership debt.. 1 1
--------- --------- ----------
00.91 Total operating expenses...... 1 2 1
Capital investment:

01.01 Interest on FFB borrowings...... 502 478 429
01.05 Interest on Treasury borrowings. 163 95 67
01.06 Loss settlement expense on
guaranteed loans.............. -2 5 6
01.08 Other expenses.................. 2
01.09 Undistribted charges............ 2
--------- --------- ----------
01.91 Total capital investment...... 667 578 502
--------- --------- ----------
10.00 Total new obligations........... 668 580 503
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 18
22.00 New budget authority (gross)...... 650 588 503
22.70 Balance of authority to borrow
withdrawn....................... -8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 668 580 503
23.95 Total new obligations............. -668 -580 -503
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... 449 210 1,304
60.47 Portion applied to repay debt... -801
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 449 210 503
69.00 Offsetting collections (cash)..... 541 483 439
69.47 Portion applied to repay debt..... -340 -105 -439
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 201 378
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 650 588 503
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 188 229 229
73.10 Total new obligations............. 668 580 503
73.20 Total outlays (gross)............. -627 -580 -329
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 229 229 403
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 627 580 329
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Non-Federal sources......... -339 -278 -255
88.40 Repayments of guaranteed
loans purchased from
investors................. -3 -6 -2
88.40 Interest revenue............ -202 -194 -177
88.40 Interest Income on
Investment................ -5 -5
88.40 Undistributed............... 3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -541 -483 -439
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 109 105 64
90.00 Outlays........................... 86 97 -110
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 3,808 3,470 3,189
1231 Disbursements: Direct loan
disbursements................... 2
1251 Repayments: Repayments and
prepayments..................... -339 -278 -255
1261 Adjustments: Capitalized interest. 1
1263 Write-offs for default: Direct
loans........................... -2 -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 3,470 3,189 2,931
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

2263 Terminations for default that
result in claim payments...... -1 -18 -11
2264 Other adjustments, net.......... -57
--------- --------- ----------

[[Page 155]]

2290 Outstanding, end of year........ 131 80 49
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 116 71 43
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 226 205 193 193
0102 Expense........................... -664 -277 -681 -681
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -438 -72 -488 -488
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

1201 Investments in non-Federal
securities, net............... 34 34 34 34
1206 Receivables, net................ 56 53 45 45
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 3,808 3,470 3,189 2,931
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -1,245 -1,058 -1,022 -1,022
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 2,563 2,412 2,167 1,909
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 2,563 2,412 2,167 1,909
1901 Other Federal assets: Other assets 29 23 4 4
------------ -------------- ------------ -------------
1999 Total assets.................... 2,905 2,751 2,460 2,202
LIABILITIES:
Federal liabilities:

2103 Debt............................ 4,753 4,412 4,306 4,306
2104 Resources payable to Treasury... 7 3
2105 Other........................... 17 7 13 13
Non-Federal liabilities:

2201 Public.......................... 98 56 119 119
2202 Interest payable................ 104 189 70 70
------------ -------------- ------------ -------------
2999 Total liabilities............... 4,980 4,667 4,508 4,508
NET POSITION:
3300 Cumulative results of operations.. -2,075 -1,916 -2,048 -2,306
------------ -------------- ------------ -------------
3999 Total net position.............. -2,075 -1,916 -2,048 -2,306
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,904 2,751 2,460 2,202
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.2 Other services.................... 5 6
33.0 Investments and loans............. 1 1
43.0 Interest and dividends............ 666 574 496
92.0 Undistributed..................... 2
--------- --------- ----------
99.9 Total new obligations........... 668 580 503
---------------------------------------------------------------------------

Rural Communication Development Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new 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:
Mandatory:

60.05 Appropriation (indefinite)...... 2 2 2
69.00 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 mandatory
authority....................... 2 3 3
86.98 Outlays from mandatory balances... 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 8 7 6
1251 Repayments: Repayments and
prepayments..................... -1 -1 -1
--------- --------- ----------
1290 Outstanding, end of year........ 7 6 6
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 5 4 4
--------- --------- ----------
2290 Outstanding, end of year........ 4 4 4
----------------------------------------------------------------------------

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

The Rural Communication Development Fund was established pursuant to
the Secretary's Memorandum No. 1988,

[[Page 156]]

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 1 3 1 1
0102 Expense........................... -3 -6 -3 -3
------------ -------------- ------------ -------------
0105 Net income or loss (-)............ -2 -3 -2 -2
-----------------------------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4142-0-3-452 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1 1 3 3
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601 Direct loans, gross............. 8 8 7 7
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -3 -2 -3 -3
------------ -------------- ------------ -------------
1604 Direct loans and interest
receivable, net............. 5 6 4 4
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 5 6 4 4
------------ -------------- ------------ -------------
1999 Total assets.................... 6 7 7 7
LIABILITIES:
Federal liabilities:

2102 Interest payable................ 1 1 3 3
2103 Debt............................ 24 25 23 23
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1 -16 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 26 10 27 27
NET POSITION:
3100 Appropriated capital.............. 14 18 18
3300 Cumulative results of operations.. -34 -3 -38 -38
------------ -------------- ------------ -------------
3999 Total net position.............. -20 -3 -20 -20
------------ -------------- ------------ -------------
4999 Total liabilities and net position 6 7 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), [$109,203,000] $113,587,000: 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. 1737) and the
foreign assistance programs of the United States Agency for
International Development.
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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Market access................... 26 26 27
00.02 Market development.............. 60 32 34
00.03 Market intelligence............. 23 23 24
00.04 Financial marketing assistance.. 9 9 9
00.05 Long-term market and
infrastructure development.... 18 19 20
09.00 Reimbursable program.............. 69 60 58
--------- --------- ----------
10.00 Total new obligations........... 205 169 172
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 15 24 24
22.00 New budget authority (gross)...... 212 169 172
22.22 Unobligated balance transferred
from other accounts............. 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 229 193 196
23.95 Total new obligations............. -205 -169 -172
24.40 Unobligated balance available, end
of year......................... 24 24 24
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 136 109 114
42.00 Transferred from other accounts. 11
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 147 109 114
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 65 60 58
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 212 169 172
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 34 45 50
73.10 Total new obligations............. 205 169 172
73.20 Total outlays (gross)............. -194 -164 -171
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 45 50 51
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 176 164 166
86.93 Outlays from discretionary
balances........................ 18 5
--------- --------- ----------
87.00 Total outlays (gross)........... 194 164 171
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -65 -60 -58
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 147 109 114
90.00 Outlays........................... 131 104 113
---------------------------------------------------------------------------

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

[[Page 157]]

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 Foreign 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 63 posts
located throughout the world covering some 130 countries. Reporting
includes information and/or data on foreign government policies,
analysis of supply and demand conditions, commercial trade relationships
and market opportunities. Advanced computer and telecommunications
technology is used to improve and speed the flow of information between
the posts and Washington. FAS analyzes agricultural information
essential to the assessment of foreign supply and demand conditions in
order to provide estimates of the current situation and to forecast the
export potential for specific U.S. agricultural commodities.

Financial Marketing Assistance: FAS administers a number of price/
credit and risk assistance programs designed to develop overseas markets
and expand the levels of U.S. agricultural commodities. These programs
include CCC Export Credit Guarantee Programs, export subsidy programs,
including the Export Enhancement Program and Dairy Export Incentive
Program, and food assistance activities such as Public Law 480, Food for
Progress and the Section 416(b) program. These programs are designed to
help developing nations make the transition from concessional financing
to cash purchases, give U.S. producers the ability to counter export
subsidies of foreign competitors and allow U.S. exporters to compete
with sales terms offered by foreign competitors.

Long-term Market and Infrastructure Development: FAS helps USDA and
other federal agencies, U.S. universities and others enhance the global
competitiveness of U.S. agriculture and helps increase income and food
availability in developing nations by mobilizing expertise for
agriculturally led economic growth. Through the administration of a
number of collaborative programs, FAS works to enhance U.S.
agriculture's competitiveness by providing linkages to world resources
and international organizations and building a spirit of cooperation.
These linkages produce new technologies that are vital to improving the
agricultural demand base and producing new and alternative products.
Direct program activities include the administration of the Cochran
Fellowship Program and management of USDA's bilateral exchange and
cooperative research programs with foreign governments and institutions.
Another activity is the Emerging Markets Program under which technical
assistance and related activities are carried out in emerging markets
aimed at enhancing their food and rural business systems and expanding
U.S. agricultural exports. At the request of the Agency for
International Development, international organizations and foreign
governments, technical assistance and training in agriculture and rural
development are provided on a reimbursable or advance of funds basis.

In 2000 and 2001, the Foreign market development cooperator program
and the Quality samples program will receive mandatory funding from CCC,
administered by FAS.

The new Quality samples program will provide samples of U.S.
agricultural products 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........... 41 45 47
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 46 50 52
12.1 Civilian personnel benefits..... 12 14 15
21.0 Travel and transportation of
persons....................... 4 4 4
22.0 Transportation of things........ 1 1 1
23.2 Rental payments to others....... 7 7 7
23.3 Communications, utilities, and
miscellaneous charges......... 4 4 4
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 58 26 28
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 1
--------- --------- ----------
99.0 Subtotal, direct obligations.. 136 109 114
99.0 Reimbursable obligations.......... 69 60 58
--------- --------- ----------
99.9 Total new obligations........... 205 169 172
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 730 760 780
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 193 193 193
---------------------------------------------------------------------------

Foreign Agricultural Service and General Sales Manager

(Legislative proposal, not subject to PAYGO)

In 2001, 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.

[[Page 158]]

Scientific Activities Overseas (Foreign Currency Program)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1404-0-1-352 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1 1 1
----------------------------------------------------------------------------

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

As authorized by the Agricultural Trade Development and Assistance
Act of 1954 (Public Law 480), as amended, USDA uses foreign currencies
to support research on problems of mutual interest to the United States
and participating foreign countries. After 1991 no new foreign currency
programs have been or are proposed to be initiated.

FOREIGN ASSISTANCE PROGRAMS

The funds and facilities of the Commodity Credit Corporation may, by
law, be used in carrying out programs to encourage the export of
agricultural commodities.

Included in this category are the following activities carried out
under the Agricultural Trade Development and Assistance Act of 1954,
Public Law 480, 83rd Congress, as amended (P.L. 480): Financing sales of
agricultural commodities to developing countries for dollars on credit
terms, or for local currencies (including for local currencies on credit
terms) for use under sec. 104 (title I); for dispositions abroad (titles
II and III); and for furnishing commodities to carry out the Food for
Progress Act of 1985, as amended. Agreements may provide for commodities
to be made available on a multi-year basis.

[Public Law 480 Program and Grant Accounts]

[(including transfers of funds)]

[For expenses during the current fiscal year, not otherwise
recoverable, and unrecovered prior years' costs, including interest
thereon, under the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1691, 1701-1704, 1721-1726a, 1727-1727e, 1731-1736g-3,
and 1737), as follows: (1) $155,000,000 for Public Law 480 title I
credit, including Food for Progress programs; (2) $21,000,000 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; and (3) $800,000,000 is hereby appropriated
for commodities supplied in connection with dispositions abroad pursuant
to title II 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, $127,813,000.
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, 2000.)

Public Law 480 Title I Ocean Freight Differential Grants

For expense 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, $20,322,000, to remain available until expended, for
ocean freight differential costs for the shipment of agricultural
commodities under title I of said Act: 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 P.L. 480 Grant--Title I: Ocean
freight differential (OFD)...... 38 114 20
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 38 114 20
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 21 93
22.00 New budget authority (gross)...... 16 21 20
22.10 Resources available from
recoveries of prior year
obligations..................... 4
22.22 Unobligated balance transferred
from other accounts............. 88
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 129 114 20
23.95 Total new obligations............. -38 -114 -20
24.40 Unobligated balance available, end
of year......................... 93
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 16 21 20
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 46 38 46
73.10 Total new obligations............. 38 114 20
73.20 Total outlays (gross)............. -41 -105 -34
73.45 Adjustments in unexpired accounts. -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 38 46 33
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 16 12 11
86.93 Outlays from discretionary
balances........................ 25 93 23
--------- --------- ----------
87.00 Total outlays (gross)........... 41 105 34
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 21 20
90.00 Outlays........................... 41 105 34
---------------------------------------------------------------------------

This account funds the title I ocean freight differential program.

Public Law 480 Grants--Titles II and III

For expense 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, $837,000,000, to remain available until expended, for
commodities supplied in connection with dispositions abroad under title
II of said Act, of which up to 15 percent may be used for commodities
supplied in connection with dispositions abroad under title III of said
Act. (7 U.S.C. 1691, 1721-26a. 1727-27e, 1731-36g-3, 1737, 2209b)

[[Page 159]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2278-0-1-151 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Commodities supplied in connection
with dispositions abroad (Title
II)............................. 949 962 837
00.02 Commodities supplied in connection
with dispositions abroad (Title
III)............................ 28 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 977 967 837
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 23 128
22.00 New budget authority (gross)...... 1,011 800 837
22.10 Resources available from
recoveries of prior year
obligations..................... 71
22.22 Unobligated balance transferred
from other accounts............. 1 39
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,106 967 837
23.95 Total new obligations............. -977 -967 -837
24.40 Unobligated balance available, end
of year......................... 128
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,011 800 837
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 691 671 607
73.10 Total new obligations............. 977 967 837
73.20 Total outlays (gross)............. -926 -1,031 -863
73.45 Adjustments in unexpired accounts. -71
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 671 607 581
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 503 420 439
86.93 Outlays from discretionary
balances........................ 423 611 424
--------- --------- ----------
87.00 Total outlays (gross)........... 926 1,031 863
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,011 800 837
90.00 Outlays........................... 926 1,031 863
---------------------------------------------------------------------------

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 agreements under the Agricultural Trade Development and
Assistance Act of 1954, as amended, and the Food For Progress Act of
1985, as amended, including the cost of modifying credit arrangements
under said Acts, $114,186,000, to remain available until expended.
In addition, for administrative expenses to carry out the credit
program of title I, Public Law 83-480, and the Food for Progress Act of
1985, as amended, to the extent funds appropriated for Public Law 83-480
are utilized, $1,850,000, of which not to exceed $1,035,000 may be
transferred to and merged with ``Salaries and expenses'', Foreign
Agricultural Service, and of which not to exceed $815,000 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 credit subsidy............. 119 202 114
00.02 Direct credit subsidy: Russia food
assistance...................... 149 480
00.05 Reestimates of direct credit
subsidy......................... 20
00.06 Interest on reestimates of direct
credit subsidy.................. 3
00.09 Administrative expenses........... 2 2 2
00.10 Monitor expenses: Russia food
assistance...................... 1 2
--------- --------- ----------
10.00 Total new obligations........... 271 709 116
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 58 603
22.00 New budget authority (gross)...... 178 145 116
22.21 Unobligated balance transferred to
other accounts.................. -1 -39
22.22 Unobligated balance transferred
from other accounts............. 638
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 873 709 116
23.95 Total new obligations............. -271 -709 -116
24.40 Unobligated balance available, end
of year......................... 603
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 178 130 116
40.76 Reduction pursuant to P.L. 106-
113........................... -8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 178 122 116
Mandatory:

60.05 Appropriation (indefinite)...... 23
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 178 145 116
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 131 72 90
73.10 Total new obligations............. 271 709 116
73.20 Total outlays (gross)............. -329 -691 -142
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 72 90 64
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new current authority 121 70 67
86.93 Outlays from current balances..... 208 598 75
86.97 Outlays from new mandatory
authority....................... 23
--------- --------- ----------
87.00 Total outlays (gross)........... 329 691 142
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 178 145 116
90.00 Outlays........................... 329 691 142
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct credit levels.............. 203 145 160
1150 Direct credit levels: Russia food
assistance...................... 760
--------- --------- ----------
1159 Total direct loan levels........ 963 145 160
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 86.79 82.46 71.51
--------- --------- ----------
1329 Weighted average subsidy rate... 86.79 82.46 71.51
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 176 120 114
1330 Subsidy budget authority: Russia
food assistance................. 635
--------- --------- ----------
1339 Total subsidy budget authority.. 811 120 114
Direct loan subsidy outlays:
1340 Subsidy outlays................... 326 667 140
--------- --------- ----------
1349 Total subsidy outlays........... 326 667 140
----------------------------------------------------------------------------

Administrative expense data:
3510 Budget authority.................. 4 2 2
3590 Outlays from new authority........ 3 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

[[Page 160]]

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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 3 3 2
41.0 Grants, subsidies, and
contributions................... 268 706 114
--------- --------- ----------
99.9 Total new obligations........... 271 709 116
---------------------------------------------------------------------------

P.L. 480 Direct Credit Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 282 907 160
00.02 Interest on Treasury borrowing.... 38 33 32
00.05 Reestimates of direct loan subsidy 55
00.06 Interest on reestimates of direct
loan subsidy.................... 26
--------- --------- ----------
10.00 Total new obligations........... 320 1,021 192
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 45 188 108
22.00 New financing authority (gross)... 464 941 192
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 509 1,129 300
23.95 Total new obligations............. -320 -1,021 -192
24.40 Unobligated balance available, end
of year......................... 188 108 108
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 164 267 28
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 392 678 164
68.10 Change in receivables from
program account............. -58 -4
68.47 Portion applied to repay debt. -34
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 300 674 164
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 464 941 192
----------------------------------------------------------------------------

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

72.40 Obligated balance, start of year 2 -59 108
72.95 Receivables from program account 130 72 68
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 132 13 176
73.10 Total new obligations............. 320 1,021 192
73.20 Total financing disbursements
(gross)......................... -439 -858 -195
Unpaid obligations, end of year:

74.40 Obligated balance, end of year.. -59 108 105
74.95 Receivables from program account 72 68 68
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 13 176 173
87.00 Total financing disbursements
(gross)......................... 439 858 195
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -347 -665 -148
Non-Federal sources:
88.40 Interest received on loans.. -34 -8 -8
88.40 Principal received on loans. -11 -5 -8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -392 -678 -164
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 58 4
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 130 267 28
90.00 Financing disbursements........... 47 180 31
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 282 907 160
--------- --------- ----------
1150 Total direct loan obligations... 282 907 160
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,529 1,927 2,699
1231 Disbursements: Direct loan
disbursements................... 401 777 195
1251 Repayments: Repayments and
prepayments..................... -3 -5 -8
--------- --------- ----------
1290 Outstanding, end of year........ 1,927 2,699 2,886
---------------------------------------------------------------------------

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101 Fund balances with Treasury..... 45 188 188 188
Investments in US securities:
1106 Receivables, net.............. 131 72 68 68
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 1,529 1,927 2,699 2,886
1402 Interest receivable............. 23 34 8 8
1405 Allowance for subsidy cost (-).. -1,220 -1,566 -2,205 -2,346
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 332 395 502 548
1901 Other Federal assets: Other assets 20
------------ -------------- ------------ -------------
1999 Total assets.................... 528 655 758 804
LIABILITIES:
Federal liabilities:

2101 Accounts payable................ 4 8 8 8
2103 Debt............................ 417 539 560 560
2105 Other........................... 122 102 105 105
------------ -------------- ------------ -------------
2999 Total liabilities............... 543 649 673 673
------------ -------------- ------------ -------------
4999 Total liabilities and net position 543 649 673 673
-----------------------------------------------------------------------------------------------

Debt Reduction--Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Payment to liquidating account.... 24 32
00.02 Interest on debt to Treasury...... 4 4
00.05 Reestimates of direct loan subsidy 1
00.06 Interest on reestimates of direct
loan subsidy.................... 1
--------- --------- ----------
10.00 Total new obligations........... 30 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2 19
22.00 New financing authority (gross)... 9 45 51
22.40 Capital transfer to general fund.. -7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 47 70
23.95 Total new obligations............. -30 -36
24.40 Unobligated balance available, end
of year......................... 2 19 34
----------------------------------------------------------------------------

[[Page 161]]

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 11
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 9 34 51
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 9 45 51
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year -1 -18
73.10 Total new obligations............. 30 36
73.20 Total financing disbursements
(gross)......................... -45 -52
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -1 -18 -33
87.00 Total financing disbursements
(gross)......................... 45 52
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -32 -49
88.40 Non-Federal sources........... -8 -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -9 -34 -51
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 11
90.00 Financing disbursements........... -9 11 1
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351 1999 actual 2000 est. 2001 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........ 63 63 61
1251 Repayments: Repayments and
prepayments..................... -2 -2
--------- --------- ----------
1290 Outstanding, end of year........ 63 61 59
---------------------------------------------------------------------------

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

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4143-0-3-351 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 63 63 61 59
1405 Allowance for subsidy cost (-).. -25 -17 -18 -18
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 38 46 43 41
------------ -------------- ------------ -------------
1999 Total assets.................... 38 46 43 41
LIABILITIES:
2103 Federal liabilities: Debt......... 38 46 36 36
2203 Non-Federal liabilities: Debt..... 14 14
------------ -------------- ------------ -------------
2999 Total liabilities............... 38 46 50 50
NET POSITION:
3300 Cumulative results of operations.. -7 -9
------------ -------------- ------------ -------------
3999 Total net position.............. -7 -9
------------ -------------- ------------ -------------
4999 Total liabilities and net position 38 46 43 41
-----------------------------------------------------------------------------------------------

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 1999 actual 2000 est. 2001 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
23.95 Total new obligations.............
24.40 Unobligated balance available, end
of year......................... 4
----------------------------------------------------------------------------

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

Sales of U.S. commodities under the credit portion of the Food for
Progress were made to Russia in 1993. The assistance is subject to
credit reform budgeting. No credit has been issued since.

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 12 12 12
00.05 Reestimates of direct loan subsidy 33
00.06 Interest on reestimates of direct
loan subsidy.................... 14
--------- --------- ----------
10.00 Total new obligations........... 12 59 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 28 35
22.00 New financing authority (gross)... 15 59 12
22.40 Capital transfer to general fund.. 4 -35
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 47 59 12
23.95 Total new obligations............. -12 -59 -12
24.40 Unobligated balance available, end
of year......................... 35
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.15 Authority to borrow (indefinite) 52 5
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 15 7 7
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 15 59 12
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 12 59 12
73.20 Total financing disbursements
(gross)......................... -12 -59 -12
87.00 Total financing disbursements
(gross)......................... 12 59 12
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.40 Offsetting collections (cash)
from: Interest collections.... -15 -7 -7
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 52 5
90.00 Financing disbursements........... -3 52 5
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4078-0-3-351 1999 actual 2000 est. 2001 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

[[Page 162]]

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 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401 Direct loans receivable, gross.. 508 508 508 508
1402 Interest receivable............. 11 15 15 15
1405 Allowance for subsidy cost (-).. -268 -328 -328 -328
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 251 195 195 195
------------ -------------- ------------ -------------
1999 Total assets.................... 251 195 195 195
LIABILITIES:
Federal liabilities:

2103 Debt............................ 183 195 195 195
2105 Other........................... 68
------------ -------------- ------------ -------------
2999 Total liabilities............... 251 195 195 195
------------ -------------- ------------ -------------
4999 Total liabilities and net position 251 195 195 195
-----------------------------------------------------------------------------------------------

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................... 523 75
22.00 New budget authority (gross)...... 478 1 24
22.40 Capital transfer to general fund.. -926 -75 -24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 75 1
24.40 Unobligated balance available, end
of year......................... 75
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

Offsetting collections (cash):
69.00 Offsetting collections (cash). 478 442 436
69.00 Offsetting collections (cash). 1 24
69.27 Capital transfer to general fund -442 -436
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 478 1 24
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources--debt
reduction................... -1 -24
88.40 Principal and interest
collections................. -478 -442 -436
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -478 -443 -460
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -442 -436
90.00 Outlays........................... -478 -443 -460
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 9,146 8,810 8,535
Repayments:

Repayments and prepayments:
1251 Repayments and prepayments.... -336 -272 -273
1251 Repayments and prepayments--
debt reduction.............. -1 -24
1264 Write-offs for default: Other
adjustments, net--debt reduction -2 -242
--------- --------- ----------
1290 Outstanding, end of year........ 8,810 8,535 7,996
---------------------------------------------------------------------------

Program Activities

[In millions of dollars]

1999 actual 2000 est. 2001 est.
Ocean freight differential (title I) 38 114 20
Commodities supplied in connection
with dispositions abroad (title II). 949 962 837
Commodities supplied in connection
with dispositions abroad (title III) 28 5
------------------------------------
Total program level........... 1,015 1,081 857
====================================

RECONCILIATION OF PROGRAM LEVEL TO PROGRAM COSTS FUNDED BY P.L. 480

[In millions of dollars]

1999 actual 2000 est. 2001 est.
Title I

Commodity credits................... 804 255 159
Ocean freight differential and ocean
transportation...................... 38 95 20
------------------------------------
Total program level, current
year........................ 842 350 179
Prior year obligations financed..... 141 266 137
Obligations financed in succeeding
years............................... -266 -137 -94
Administrative costs................ 4 2 2
------------------------------------
Total program costs, funded
program level............... 721 481 224
====================================
Title II

Commodity costs..................... 492 554 480
Ocean and inland transportation..... 457 408 357
------------------------------------
Total program level, current
year........................ 949 962 837
Prior year obligations financed..... 505 565 614
Current year obligations financed in
succeeding years.................... -565 -613 -607
------------------------------------
Total program costs, funded
program level............... 889 912 844
====================================
Title III

Commodity costs..................... 20 3
Ocean and inland transportation..... 8 2
------------------------------------
Total program level, current
year........................ 28 5
Prior year obligations financed..... 28 19 4
Current year obligations financed in
succeeding years.................... -19 -5
------------------------------------
Total program costs, funded
program level............... 37 19 4
====================================

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.

[[Page 163]]

When U.S.-flag vessels are required to ship commodities under this
title, the Corporation will pay the difference between U.S.-flag rates
and foreign-flag rates. In limited cases, full transportation costs to
port-of-entry or point-of-entry abroad may be included along with the
cost of the commodity in the amount financed by CCC in order to ensure
that U.S. food aid can reach the most needy recipients.

Financing sales of agricultural commodities for dollars on credit
terms (title I).--Payment by developing countries or private entities
may be made over a period of not more than 30 years with a deferral of
principal payments for up to 5 years. Interest accrues at a concessional
rate as determined appropriate.

Section 411 of P.L. 480 authorizes the President to waive payments
of principal and interest under dollar credit sales agreements for
countries that meet certain enumerated requirements. Such debt relief
may be provided only if the President notifies Congress and may not
exceed the amount approved for such purpose in an Act appropriating
funds to carry out P.L. 480.

Financing sales of agricultural commodities for local currency,
including for local currency on credit terms.--Payment by a recipient
country may be made in local currencies for use in carrying out
activities under section 104 of P.L. 480.

Foreign currency received in payment for credit extended may be used
for payment of U.S. obligations abroad, subject to the appropriation
process. The P.L. 480 program is reimbursed for the dollar value of
currencies so used.

The financing of sales of agricultural commodities for local
currencies on credit terms is subject to the same terms that are
applicable to dollar credit financing.

Furnishing commodities to carry out the Food for Progress Act of
1985, as amended (title I).--Funds appropriated to carry out title I may
be used to furnish commodities to carry out the Food for Progress Act of
1985. Such commodities may be furnished on credit terms or on a grant
basis in order to assist developing countries and countries that are
emerging democracies that have made a commitment to introduce and expand
free enterprise elements in their agricultural economies.

The following table reflects the composition of the combined
appropriations (in millions of dollars):

SALES FOR DOLLARS ON CREDIT TERMS

[In millions of dollars]

1999 actual 2000 est. 2001 est.
Item:
Expenses of shipments (Title I):
Commodity costs:
Long-term credit.............. 804 255 159
------------------------------------
Total commodity costs..... 804 255 159
====================================
Ocean freight and freight
differential (support of U.S.
Merchant Marine):
Long-term credit.............. 38 21 20
------------------------------------
Total ocean freight and
freight differential.... 38 21 20
------------------------------------
Total expenses of shipments....... 842 277 179
====================================
Appropriation--Title I loan subsidy. 177 128 114
====================================
Appropriation--Ocean freight
differential........................ 16 21 20
====================================
Title I credit not subsidized
through appropriation............... 152 27 45
====================================

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]

1999 actual 2000 est. 2001 est.
Item:
Expenses of shipments:
Commodity Credit Corporation
stocks and other costs in
connection with commodities
supplied...................... 492 554 480
Ocean transportation............ 457 408 357
------------------------------------
Total program costs........... 949 962 837
====================================
Appropriation or estimate..... 949 962 837
====================================

Commodities supplied in connection with dispositions abroad (title
III).--Under title III, agricultural commodities are furnished to least
developed countries as defined in section 302(a). They are provided
through foreign governments for direct feeding, development of emergency
food reserves or may be sold with the proceeds of such sale used by the
recipient country for specific economic development purposes.

The Corporation may pay, in connection with furnishing commodities
under title III, the same cost items as authorized under title II.
Although no funding is requested for Title III, up to 15 percent of
funds from other titles under P.L. 480 may be transferred for this
program.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-2274-0-1-151 1998 actual 1999 actual 2000 est. 2001 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 523
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

Direct loans, gross:
1601 Direct loans, gross........... 9,146 8,810 8,538 8,265
1601 Direct loans, adjustment--Debt
Reduction................... -3 -269
1602 Interest receivable............. 116 115
1603 Allowance, loans receivable (-). -5,516 -5,639
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 3,746 3,286 8,535 7,996
------------ -------------- ------------ -------------
1999 Total assets.................... 4,269 3,286 8,535 7,996
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 4,269 3,286 8,538 8,265
------------ -------------- ------------ -------------
2999 Total liabilities............... 4,269 3,286 8,538 8,265

[[Page 164]]

NET POSITION:
3300 Cumulative results of operations--
Debt Reduction.................. -3 -269
------------ -------------- ------------ -------------
3999 Total net position.............. -3 -269
------------ -------------- ------------ -------------
4999 Total liabilities and net position 4,269 3,286 8,535 7,996
-----------------------------------------------------------------------------------------------

Trust Funds

Miscellaneous Contributed Funds

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8232-0-7-352 1999 actual 2000 est. 2001 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 (object
class 41.0)..................... 3 3 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 4 5 6
22.00 New budget authority (gross)...... 2 4 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6 9 10
23.95 Total new obligations............. -3 -3 -3
24.40 Unobligated balance available, end
of year......................... 5 6 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

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 2
73.10 Total new obligations............. 3 3 3
73.20 Total outlays (gross)............. -1 -4 -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 2 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 4 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2 4 4
90.00 Outlays........................... 1 4 4
---------------------------------------------------------------------------

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, [$111,561,000] $128,558,000, of which $5,000,000
shall be available only for simplifying procedures, reducing overhead
costs, tightening regulations, improving food stamp [coupon handling]
benefit delivery, and assisting in the prevention, identification, and
prosecution of fraud and other violations of law and of which not less
than [$3,000,000] $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, 2000.)

Note.--The following schedule includes $2 million provided by section
746.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Food program administration..... 111 112 129
00.03 Congressional hunger center
fellowships..................... 2
09.01 Reimbursable administrative
services provided to Federal
agencies........................ 1
--------- --------- ----------
10.00 Total new obligations........... 112 114 129
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 112 114 129
23.95 Total new obligations............. -112 -114 -129
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 109 113 129
42.00 Transferred from other accounts. 2 1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 111 114 129
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 112 114 129
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 14 14 12
73.10 Total new obligations............. 112 114 129
73.20 Total outlays (gross)............. -112 -116 -127
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 14 12 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 100 102 115
86.93 Outlays from discretionary
balances........................ 11 14 12
--------- --------- ----------
87.00 Total outlays (gross)........... 112 116 127
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

Net budget authority and outlays:
89.00 Budget authority.................. 111 114 129
90.00 Outlays........................... 110 116 127
---------------------------------------------------------------------------

Food program administration funds most of 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.

Funds are also provided to build partnerships that will improve the
delivery of currently authorized federal programs to impoverished areas
along the United States/Mexico border.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 75 78 85
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 1 1 2
--------- --------- ----------
11.9 Total personnel compensation.. 78 81 89

[[Page 165]]

12.1 Civilian personnel benefits....... 16 16 18
21.0 Travel and transportation of
persons......................... 3 3 4
23.3 Communications, utilities, and
miscellaneous charges........... 2 3 3
24.0 Printing and reproduction......... 2
25.2 Other services.................... 9 6 8
26.0 Supplies and materials............ 1 1 2
31.0 Equipment......................... 2 2 3
41.0 Grants, subsidies, and
contributions................... 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 111 114 129
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 112 114 129
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 1,442 1,531 1,675
---------------------------------------------------------------------------

Food Stamp Program

For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
2011 et seq.), [$21,071,751,000] $22,131,993,000, of which
[$100,000,000] $1,000,000,000 shall be placed in reserve for use only in
such amounts and at such times as may become necessary to carry out
program operations: Provided, [That none of the funds made available
under this heading 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 heading shall
remain available until expended, as authorized by section 16(h)(1) of
the Food Stamp Act. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Properly issued benefits........ 14,117 14,368 15,556
00.02 Estimated state erroneous
issuances..................... 1,604 1,509 1,576
00.03 State administration............ 1,716 2,026 2,046
00.04 Employment and training program. 291 314 337
00.05 Other program costs............. 54 67 87
00.06 Puerto Rico..................... 1,236 1,268 1,301
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 23
00.09 The emergency food assistance
program (commodities)......... 90 98 100
00.10 Modified food stamp program in
American Samoa................ 5 5 5
00.11 Community food project.......... 3 3 3
09.01 Reimbursable program.............. 194 197 197
--------- --------- ----------
10.00 Total new obligations........... 19,385 19,930 21,285
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 87 74 166
22.00 New budget authority (gross)...... 21,430 21,269 22,329
22.10 Resources available from
recoveries of prior year
obligations..................... 46 76
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 21,563 21,419 22,495
23.95 Total new obligations............. -19,385 -19,930 -21,285
23.98 Unobligated balance expiring or
withdrawn....................... -2,105 -1,323 -1,000
24.40 Unobligated balance available, end
of year......................... 74 166 210
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 5 28
Mandatory:

60.00 Appropriation................... 21,232 21,067 22,104
69.00 Offsetting collections (cash)..... 194 197 197
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 21,430 21,269 22,329
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 723 806 736
73.10 Total new obligations............. 19,385 19,930 21,285
73.20 Total outlays (gross)............. -19,199 -19,924 -21,232
73.40 Adjustments in expired accounts
(net)........................... -57
73.45 Adjustments in unexpired accounts. -46 -76
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 806 736 789
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 4 20
86.93 Outlays from discretionary
balances........................ 2
86.97 Outlays from new mandatory
authority....................... 18,474 19,114 20,476
86.98 Outlays from mandatory balances... 723 806 734
--------- --------- ----------
87.00 Total outlays (gross)........... 19,199 19,924 21,232
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -194 -197 -197
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 21,236 21,072 22,132
90.00 Outlays........................... 19,005 19,727 21,035
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 21,236 21,072 22,132
Outlays........................... 19,005 19,727 21,035
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 24
Outlays........................... 24
------------------------------------
Total:
Budget Authority.................. 21,236 21,072 22,156
Outlays........................... 19,005 19,727 21,059
====================================

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 nutrition 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................ 3 4 4
12.1 Civilian personnel benefits..... 1 1 1
21.0 Travel and transportation of
persons....................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 3 3 3
24.0 Printing and reproduction....... 8 7 6
25.2 Other services.................. 35 48 68
26.0 Supplies and materials.......... 145 153 155
31.0 Equipment....................... 2 2 2
41.0 Grants, subsidies, and
contributions................. 18,993 19,514 20,848
--------- --------- ----------
99.0 Subtotal, direct obligations.. 19,191 19,733 21,088
99.0 Reimbursable obligations.......... 194 197 197
--------- --------- ----------
99.9 Total new obligations........... 19,385 19,930 21,285
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 51 56 56
---------------------------------------------------------------------------

[[Page 166]]

Food Stamp Program

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3505-4-1-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Legal immigrant restoration..... 25
00.02 Vehicle proposal................ 1
00.03 Income definition conformity.... 5
00.04 Interaction with child support
enforcement proposals......... -7
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 24
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 24
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 24
73.20 Total outlays (gross)............. -24
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 24
----------------------------------------------------------------------------

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

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.

This proposal also provides States with the option to: (1) conform
their food stamp vehicle policy with their Temporary assistance for
needy families vehicle policy, so long as food stamp households are held
harmless; and, (2) conform food stamp and Medicaid income definitions.

The proposal is net of food stamp savings due to child support
enforcement proposals.

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;
[$9,554,028,000] $9,546,056,000, to remain available through September
30, [2001] 2002, of which [$4,618,829,000] $4,578,482,000 is hereby
appropriated and [$4,935,199,000] $4,967,574,000 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, except as specifically provided
under this heading, none of the funds made available under this heading
shall be used for studies and evaluations: Provided further,] That of
the funds made available under this heading, up to [$7,000,000]
$6,000,000 shall be for school breakfast pilot projects, including the
evaluation required under section 18(e) of the National School Lunch
Act: Provided further, That up to [$4,363,000] $4,511,000 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
School lunch program:

00.01 Above 185% of poverty........... 268 320 335
00.02 130-185% of poverty............. 596 550 574
00.03 Below 130% of poverty........... 4,653 4,682 4,894
--------- --------- ----------
00.91 Subtotal, school lunch program.. 5,517 5,552 5,803
School breakfast program:

01.01 Above 185% of poverty........... 78 81 86
01.02 130-185% of poverty............. 134 140 148
01.03 Below 130% of poverty........... 1,143 1,188 1,262
--------- --------- ----------
01.91 Subtotal, school breakfast
program....................... 1,355 1,409 1,496
Child and adult care feeding program:

02.01 Above 185% of poverty........... 188 194 208
02.02 130-185% of poverty............. 86 91 97
02.03 Below 130% of poverty........... 1,304 1,381 1,478
02.04 Audits.......................... 21 24 24
--------- --------- ----------
02.91 Subtotal, child and adult care
feeding program............... 1,599 1,690 1,807
Other mandatory activities:

03.01 Summer food service program..... 296 298 324
03.02 Special milk program............ 18 17 17
03.03 State administrative expenses... 114 118 127
03.04 Commodity procurement........... 327 325 351
--------- --------- ----------
03.91 Subtotal, Other mandatory
activities.................... 755 758 819
Discretionary activities:

04.01 School meals initiative......... 9 10 10
04.02 Coordinated review.............. 4 4 5
04.03 Nutrition studies and surveys... 3
04.04 Nutrition education and training 2
04.05 Computer support and processing. 6 9 9
04.06 School breakfast demonstrations. 7 6
04.07 Food safety education........... 2 2 2
--------- --------- ----------
04.91 Subtotal, discretionary
activities.................... 21 32 37
Activities with permanent appropriations:

05.01 Homeless children nutrition
program....................... 1
05.02 Food service management
institute and information
clearinghouse................. 3 3 3
05.03 Alternative meal count grants... 2 2
--------- --------- ----------
05.91 Subtotal, activities with
permanent appropriations...... 4 5 5
--------- --------- ----------
10.00 Total new obligations........... 9,251 9,446 9,967
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 13 56 419
22.00 New budget authority (gross)...... 9,184 9,559 9,551
22.10 Resources available from
recoveries of prior year
obligations..................... 147 250
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 9,344 9,865 9,970
23.95 Total new obligations............. -9,251 -9,446 -9,967
23.98 Unobligated balance expiring or
withdrawn....................... -38
24.40 Unobligated balance available, end
of year......................... 56 419 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5 14 18
Mandatory:

60.00 Appropriation................... 4,131 4,610 4,565
62.00 Transferred from other accounts. 5,048 4,935 4,968
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 9,179 9,545 9,533
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 9,184 9,559 9,551
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 1,322 1,541 1,384
73.10 Total new obligations............. 9,251 9,446 9,967
73.20 Total outlays (gross)............. -8,878 -9,354 -9,892
73.40 Adjustments in expired accounts
(net)........................... -6
73.45 Adjustments in unexpired accounts. -147 -250
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1,541 1,384 1,459
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 7 10
86.93 Outlays from discretionary
balances........................ 8 8 7
86.97 Outlays from new mandatory
authority....................... 7,551 7,797 8,491

[[Page 167]]

86.98 Outlays from mandatory balances... 1,314 1,542 1,384
--------- --------- ----------
87.00 Total outlays (gross)........... 8,878 9,354 9,892
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 9,184 9,559 9,551
90.00 Outlays........................... 8,878 9,354 9,892
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 9,184 9,559 9,551
Outlays........................... 8,878 9,354 9,892
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -1
Outlays........................... -3
------------------------------------
Total:
Budget Authority.................. 9,184 9,559 9,550
Outlays........................... 8,878 9,354 9,889
====================================

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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 6 6 6
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 3
25.2 Other services.................... 5 8 8
26.0 Supplies and materials
(Commodities)................... 327 325 351
41.0 Grants, subsidies, and
contributions................... 8,909 9,102 9,597
--------- --------- ----------
99.9 Total new obligations........... 9,251 9,446 9,967
---------------------------------------------------------------------------

Personnel Summary

Child Nutrition Programs

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-4-1-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
Child and adult care feeding program:

02.01 Above 185% of poverty........... -7
02.04 Audits.......................... 6
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -1
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... -1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. -1
73.20 Total outlays (gross)............. 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1
90.00 Outlays........................... -3
---------------------------------------------------------------------------

This legislative proposal will improve management and oversight in
the Child and Adult Care Food Program.

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), [$4,032,000,000] $4,148,100,000, to remain
available through September 30, [2001] 2002: 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] notwithstanding section
17(h)(10)(A) of such Act, up to $14,000,000 shall be available for the
purposes specified in section 17(h)(10)(B), no less than $6,000,000 of
which shall be used for the development of electronic benefit transfer
systems: 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] such Act: Provided further, That none of the funds provided
shall be available for activities that are not fully reimbursed by other
Federal Government departments or agencies unless authorized by section
17 of [the Child Nutrition Act of 1966] such Act. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 4,076 4,158 4,248
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 2
22.00 New budget authority (gross)...... 3,924 4,032 4,148
22.10 Resources available from
recoveries of prior year
obligations..................... 155 124 101
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4,079 4,158 4,249
23.95 Total new obligations............. -4,076 -4,158 -4,248
23.98 Unobligated balance expiring or
withdrawn....................... -1
24.40 Unobligated balance available, end
of year......................... 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3,924 4,032 4,148
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 310 283 258
73.10 Total new obligations............. 4,076 4,158 4,248
73.20 Total outlays (gross)............. -3,942 -4,059 -4,149
73.40 Adjustments in expired accounts
(net)........................... -6
73.45 Adjustments in unexpired accounts. -155 -124 -101
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 283 258 257
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3,638 3,899 3,891
86.93 Outlays from discretionary
balances........................ 304 159 257
--------- --------- ----------
87.00 Total outlays (gross)........... 3,942 4,059 4,149
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,924 4,032 4,148
90.00 Outlays........................... 3,942 4,059 4,149
---------------------------------------------------------------------------

The Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC) provides at-risk pregnant and

[[Page 168]]

post-partum women, infants, and children with vouchers for nutritious
supplemental food packages, nutrition education and counseling, and
health and immunization referrals.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3510-0-1-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 3
41.0 Grants, subsidies, and
contributions................... 4,076 4,158 4,245
--------- --------- ----------
99.9 Total new obligations........... 4,076 4,158 4,248
---------------------------------------------------------------------------

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,
[$133,300,000] $158,300,000, to remain available through September 30,
[2001] 2002: 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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Commodity supplemental food program:

00.01 Commodity procurement........... 70 80 74
00.02 Administrative costs............ 20 20 19
--------- --------- ----------
01.92 Subtotal, commodity supplemental
food program.................. 90 100 93
The emergency food assistance program:

02.01 Administrative costs............ 45 45 45
03.01 Farmers' market nutrition program. 20
--------- --------- ----------
10.00 Total new obligations........... 135 145 158
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 10 8
22.00 New budget authority (gross)...... 131 133 158
22.10 Resources available from
recoveries of prior year
obligations..................... 2 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 143 145 158
23.95 Total new obligations............. -135 -145 -158
24.40 Unobligated balance available, end
of year......................... 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 131 133 158
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 18 14 23
73.10 Total new obligations............. 135 145 158
73.20 Total outlays (gross)............. -136 -132 -168
73.40 Adjustments in expired accounts
(net)........................... -1
73.45 Adjustments in unexpired accounts. -2 -4
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 14 23 13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 118 122 144
86.93 Outlays from discretionary
balances........................ 18 10 23
--------- --------- ----------
87.00 Total outlays (gross)........... 136 132 168
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 131 133 158
90.00 Outlays........................... 136 132 168
---------------------------------------------------------------------------

The Commodity Assistance Program includes the Commodity Supplemental
Food Program (CSFP), the Emergency Food Assistance Program and the
Farmers' Market Nutrition 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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
26.0 Supplies and materials
(commodities)................... 70 80 74
41.0 Grants, subsidies, and
contributions................... 65 65 84
--------- --------- ----------
99.9 Total new obligations........... 135 145 158
---------------------------------------------------------------------------

Food Donations Programs

For necessary expenses to carry out section 4(a) of the Agriculture
and Consumer Protection Act of 1973; 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, [$141,081,000] $151,081,000, to remain available
through September 30, [2001] 2002. (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, 2000.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Nutrition program for the elderly. 141 141 150
00.02 Pacific island assistance......... 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 142 142 151
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 1
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...... 142 142 151
23.95 Total new obligations............. -142 -142 -151
24.40 Unobligated balance available, end
of year......................... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 141 141 151
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 33 29 28
73.10 Total new obligations............. 142 142 151
73.20 Total outlays (gross)............. -144 -143 -151
73.45 Adjustments in unexpired accounts. -1
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 29 28 30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 111 114 122
86.93 Outlays from discretionary
balances........................ 33 28 27
--------- --------- ----------
87.00 Total outlays (gross)........... 144 143 151
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 141 141 151

[[Page 169]]

90.00 Outlays........................... 144 143 151
---------------------------------------------------------------------------

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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3503-0-1-605 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
26.0 Supplies and materials (grants of
commodities to States).......... 4 3 4
41.0 Grants, subsidies, and
contributions................... 138 139 147
--------- --------- ----------
99.9 Total new obligations........... 142 142 151
---------------------------------------------------------------------------

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
Maintenance'', and ``Land Acquisition'', $1,269,504,000] $1,286,571,000,
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 [unobligated balances available at the start of fiscal year 2000
shall be displayed by extended budget line item in the fiscal year 2001
budget justification] up to $30,000,000 may be transferred to the
infrastructure account to fund the construction enhancement, or
maintenance of recreation facilities or trails to further tourism, rural
development and recreation goals: Provided further, That up to
$15,000,000 shall be available for those forests or regions that have
implemented innovative practices to improve customer service, enhance
coordination and reduce overhead. (Department of the Interior and
Related Agencies Appropriations Act, 2000, as enacted by section
1000(a)(3) of the Consolidated Appropriations Act, 2000 (P.L. 106-113.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 74 78 82
Receipts:
02.01 Fees, operation and maintenance of
recreational facilities......... 4 4 4
--------- --------- ----------
04.00 Total: Balances and collections... 78 82 86
--------- --------- ----------
07.99 Total balance, end of year........ 78 82 86
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 National forest system.......... 1,327 1,281 1,325
00.04 Flood supplemental.............. 5 4
00.05 Disaster relief................. 13 12
09.01 Reimbursable program.............. 73 71 73
--------- --------- ----------
10.00 Total new obligations........... 1,418 1,368 1,398
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 114 86 51
22.00 New budget authority (gross)...... 1,350 1,333 1,360
22.10 Resources available from
recoveries of prior year
obligations..................... 43
22.21 Unobligated balance transferred to
other accounts.................. -5
22.22 Unobligated balance transferred
from other accounts............. 1 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,503 1,420 1,412
23.95 Total new obligations............. -1,418 -1,368 -1,398
24.40 Unobligated balance available, end
of year......................... 86 51 12
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,299 1,269 1,287
40.15 Appropriation (emergency)....... 2
40.76 Reduction pursuant to P.L. 106-
113........................... -8
41.00 Transferred to other accounts... -1
42.00 Transferred from other accounts. 1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,300 1,262 1,287
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 50 71 73
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,350 1,333 1,360
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 122 197 226
73.10 Total new obligations............. 1,418 1,368 1,398
73.20 Total outlays (gross)............. -1,301 -1,338 -1,356
73.45 Adjustments in unexpired accounts. -43
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 197 226 268
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,179 1,144 1,168
86.93 Outlays from discretionary
balances........................ 122 193 189
86.98 Outlays from mandatory balances... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 1,301 1,338 1,356
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -39 -56 -57
88.40 Non-Federal sources........... -11 -15 -16
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -50 -71 -73
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,300 1,262 1,287
90.00 Outlays........................... 1,251 1,267 1,283
---------------------------------------------------------------------------

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 planning, assessment, and conservation of ecosystems while
delivering multiple public services and uses. These are delivered
through 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, and law enforcement. These programs maintain
the capability to manage natural resources in a manner consistent with
ecological principles and responsibilities. Funds have not been included
for the general administration activity programs now financed directly
by the Forest and Rangeland Research, State and Private Forestry,
National Forest System, Wildland Fire Management, Reconstruction and
Construction, and Land Acquisition appropria

[[Page 170]]

tions. In prior years, administration of these programs was funded
through NFS.

The 2001 Budget includes an emphasis on sustainable forestry. The
proportion of timber production 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 $10 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.

The Budget proposes a new $65 million Planning, Inventory and
Monitoring Initiative. The initiative includes funds for forest land
management planning, and wildlife and resource inventory and monitoring.
These funds are needed to adequately follow through on the new Forest
Planning regulations, including funds to: accelerate forest planning
work that has been slowed in recent years; support the proposed
community advisory groups, bio-regional and watershed planning; select
species representatives; establish new protocols for focal species
monitoring; enhance monitoring to better evaluate survey populations and
pursue adaptive management. In addition, funds are included to pursue
the Clean Water Action Plan assessment costs, called for under the
Unified Federal Policy for Watershed Management on Federal Lands.

Increased funds are also included for the Survey and Manage
monitoring work. $10 million in additional funding for these activities
is provided in timber sale management; $10 million is provided in
inventory and monitoring; and additional funds are dispersed throughout
different budget line items.

The Watershed Restoration and Enhancement Agreements is proposed for
use by the National Forest System when carrying out forest and watershed
planning. The purpose of this funding is to enhance the forest planning
process--particularly the bio-regional and watershed assessments--by
providing funding to non-federal entities for work on lands surrounding
or adjacent to national forests as part of the forest planning process
for the betterment of the national forest. The program would emphasize
corridor creations and cooperative arrangements among land owning
entities, in which $5 million would be available to establish or enhance
buffers around national forests for habitat protection, wildlife
corridors between national forests and other federal and state land
holdings, and riparian zones to protect rare aquatic species present
within the national forest. (Sec. 323 of the Department of the Interior
and Related Agencies Appropriations Act, 1999, as included in Public Law
105-277, section 101(e).).

$30 million in new funding is proposed for a new Tourism/Rural
Development Initiative for developing tourism plans, analyzing special
use permits, developing trails, restoring or constructing recreational
facilities and enhancing tourism appeal on national forests. The sites
chosen for this program target lower income, resource-dependent areas,
adjacent to National Forests, where there are promising tourism
opportunities. This initiative would target roughly 20 priority forest
locations, and after discussions with local communities, would develop
``destination'' tourism infrastructure and opportunities, establishing
new economic prospects for these gateway communities.

To support management reforms, an advance appropriation of $15
million will be available to reward those forests that adopt approved
restructuring or streamlining management practices (efficiency-
enhancing, cost-savings or customer service-producing) by the end of
2001. FS will publish a list of different management practices at the
beginning of 2001 and management units will be evaluated for those that
achieve these goals by the end of the year.

Recommendations from the Report by the National Academy of Public
Administration note that the current discretionary budget structure for
the Forest Service does not support adequate linkage of the agency
strategic plan, forest plans, and performance measures. As a result,
accountability and financial integrity have suffered. Accordingly, USDA
will present the Congressional Justification for the 2001 Budget in a
format that supports a performance-based budgeting approach. This budget
proposal is a significant opportunity to present a budget based on
performance in a manner consistent with the agency strategic plan and
the Government Performance and Results Act. The new budget structure
will accomplish the following:

--Focus debate on outputs and outcomes rather than budget line
items;

--Reflect the nature of the real work being done by the Forest
Service (ecosystem and multiple use), allowing the field staff
to avoid artificially categorizing a task to match budget lines;

--Eventually link forest plans and the budget (a Committee of
Scientist recommendation):

--Provide increased accountability in agency program delivery;

--Simplify the agency accounting, allowing field staff to do more
natural resource related work instead of accounting work
(estimated by GAO to account for tens of millions of dollars
annually);

--Simplify the budget (e.g., reducing the National Forest System's
budget line items and extended budget line items from 29 to 3),
supporting the goal of achieving a clean opinion for the
agency's financial statements.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 504 531 560
11.3 Other than full-time permanent 54 57 60
11.5 Other personnel compensation.. 19 20 21
--------- --------- ----------
11.9 Total personnel compensation 577 608 641
12.1 Civilian personnel benefits..... 128 135 142
13.0 Benefits for former personnel... 18 19 20
21.0 Travel and transportation of
persons....................... 55 54 54
22.0 Transportation of things........ 9 7 7
23.1 Rental payments to GSA.......... 47 47 47
23.2 Rental payments to others....... 19 16 15
23.3 Communications, utilities, and
miscellaneous charges......... 51 42 41
24.0 Printing and reproduction....... 5 4 4
25.2 Other services.................. 292 244 237
26.0 Supplies and materials.......... 75 62 60
31.0 Equipment....................... 39 33 32
32.0 Land and structures............. 3 2 2
41.0 Grants, subsidies, and
contributions................. 23 20 19
42.0 Insurance claims and indemnities 2 2 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 1,343 1,295 1,323
99.0 Reimbursable obligations.......... 73 71 73
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........... 1,418 1,368 1,398
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 15,786 16,602 17,486

[[Page 171]]

Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 756 723 740
Allocation account:
3001 Total compensable workyears: Full-
time equivalent employment...... 10 10 10
---------------------------------------------------------------------------

[Reconstruction and Maintenance] Infrastructure

For necessary expenses of the Forest Service, not otherwise provided
for, [$398,927,000] $424,914,000, 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 on each decommissioning project: Provided
further, That any unobligated balances of amounts previously
appropriated to the Forest Service ``Reconstruction and Construction''
account as well as any unobligated balances remaining in the ``National
Forest System'' account for the facility maintenance and trail
maintenance extended budget line items at the end of fiscal year 1999
may be transferred to and merged with the ``Reconstruction and
Maintenance'' account]. (Department of the Interior and Related Agencies
Appropriations Act, 2000, as enacted by section 1000(a)(3) of the
Consolidated Appropriations Act, 2000 (P.L. 106-113.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Reconstruction and construction. 284 392 436
00.03 Flood supplemental.............. 22 13
09.01 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 307 406 437
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 112 119 111
22.00 New budget authority (gross)...... 300 398 426
22.10 Resources available from
recoveries of prior year
obligations..................... 7
22.22 Unobligated balance transferred
from other accounts............. 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 424 517 537
23.95 Total new obligations............. -307 -406 -437
24.40 Unobligated balance available, end
of year......................... 119 111 100
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 297 399 425
40.15 Appropriation (emergency)....... 2
40.76 Reduction pursuant to P.L. 106-
113........................... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 299 397 425
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 300 398 426
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 81 120 161
73.10 Total new obligations............. 307 406 437
73.20 Total outlays (gross)............. -260 -365 -400
73.45 Adjustments in unexpired accounts. -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 120 161 198
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 219 299 320
86.93 Outlays from discretionary
balances........................ 41 66 79
--------- --------- ----------
87.00 Total outlays (gross)........... 260 365 400
----------------------------------------------------------------------------

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.................. 299 397 425
90.00 Outlays........................... 259 364 399
---------------------------------------------------------------------------

Funding for infrastructure provides capital improvements and
maintenance of facilities, roads, and trails. The program emphasizes:
better resource management decisions based on the best scientific
information and knowledge; an efficient and effective infrastructure
that supports public and administrative uses; and quality recreation
experiences with minimal impact to ecosystem stability and conditions.

Facilities.--Provides for capital improvements and maintenance of
research, fire, administrative, and other (FA&O), and recreation
facilities, including site components such as roads and trails and the
acquisition of buildings and other facilities necessary to carry out the
mission of the Forest Service. Capital Improvements include: new
construction of a facility; alteration of an existing facility to change
the function; and expansion of a facility to change the capacity or to
serve needs that are different from what was originally intended.
Maintenance is divided into four primary areas: annual maintenance,
deferred maintenance, decommissioning, and operations. Deferred
maintenance work includes the repair, rehabilitation, or replacement of
the facility or components of the facility.

Roads.--Provides for capital improvements and maintenance of roads.
The program also focuses on decommissioning unneeded roads and/or roads
that are degrading the ecosystem. Capital improvements include: new road
construction; alteration of an existing road to change the function; and
expansion of the road to change the capacity or to serve needs that are
different from what was originally intended. The agency will continue to
address the growing road system maintenance backlog. Funding priorities
are health and safety, resource protection, and mission critical needs.
Maintenance is divided into four primary areas: annual road maintenance,
deferred road maintenance, road operations, and decommissioning.

Trails.--Provides for capital improvements and maintenance of
trails. Capital improvements include: new trail construction; alteration
of an existing trail to change the function; and expansion of the trail
to change the capacity or to serve needs that are different from what
was originally intended. Maintenance funding is used to protect capital
investments by keeping trails open for access and protecting vegetation,
soil, and water quality. Work includes clearing the pathway of
encroaching vegetation and fallen trees, and repairing or improving
trail signs, treadways, drainage facilities, and bridges. Maintenance is
divided into four primary areas: annual trail maintenance, deferred
trail maintenance, trail operations, and trail decommissioning.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 118 127 122
11.3 Other than full-time permanent 12 13 12
11.5 Other personnel compensation.. 5 5 5
--------- --------- ----------
11.9 Total personnel compensation 135 145 139
12.1 Civilian personnel benefits..... 31 33 32
13.0 Benefits for former personnel... 2 2 2
21.0 Travel and transportation of
persons....................... 5 8 9
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 6 6 6
23.2 Rental payments to others....... 2 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 4 7 8

[[Page 172]]

24.0 Printing and reproduction....... 1 1
25.2 Other services.................. 85 142 168
26.0 Supplies and materials.......... 10 16 19
31.0 Equipment....................... 5 8 9
32.0 Land and structures............. 18 30 35
41.0 Grants, subsidies, and
contributions................. 2 3 4
--------- --------- ----------
99.0 Subtotal, direct obligations.. 306 405 436
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 307 406 437
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 3,502 3,737 3,587
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 4 4 4
---------------------------------------------------------------------------

Road and Trail Fund

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 25
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 31
23.95 Total new obligations............. -25
24.40 Unobligated balance available, end
of year......................... 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 25
62.00 Transferred from other accounts. 6
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 31
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 25
73.20 Total outlays (gross)............. -20
73.32 Obligated balance transferred from
other accounts.................. 5
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 20
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 31
90.00 Outlays........................... 20
---------------------------------------------------------------------------

This proposal would decouple the road and trail fund from the
receipts of national forests. Instead, fixed mandatory funding would be
available for annual expenditures. The program would continue to focus
on infrastructure needs of reconstruction and maintenance for roads and
trails. In addition, the fund would be managed so as to give priority to
opportunities to provide contracts to support public works contracts and
other job creating programs in rural communities through Jobs in the
Woods, Youth Conservation Corps, and similar special employment programs
to employ displaced timber workers and residents of rural communities
near national forests.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 7
11.3 Other than full-time permanent.. 1
11.5 Other personnel compensation.... 1
--------- --------- ----------
11.9 Total personnel compensation.. 9
12.1 Civilian personnel benefits....... 2
23.1 Rental payments to GSA............ 1
25.2 Other services.................... 6
26.0 Supplies and materials............ 3
33.0 Investments and loans............. 4
--------- --------- ----------
99.9 Total new obligations........... 25
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1128-4-1-303 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 209
---------------------------------------------------------------------------

Forest and Rangeland Research

For necessary expenses of forest and rangeland research as
authorized by law, [$202,700,000] $231,008,000, 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, 2000, as enacted by section 1000(a)(3) of
the Consolidated Appropriations Act, 2000 (P.L. 106-113.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.06 Forest and rangeland research..... 197 201 229
09.01 Reimbursable program.............. 21 22 24
--------- --------- ----------
10.00 Total new obligations........... 218 223 253
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 20 13 15
22.00 New budget authority (gross)...... 209 225 255
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 231 238 270
23.95 Total new obligations............. -218 -223 -253
24.40 Unobligated balance available, end
of year......................... 13 15 17
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 197 203 231
40.15 Appropriation (emergency)....... 1
42.00 Transferred from other accounts. 1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 199 203 231
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 10 22 24
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 209 225 255
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 56 78 77
73.10 Total new obligations............. 218 223 253
73.20 Total outlays (gross)............. -194 -224 -247
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 78 77 83
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 138 164 186
86.93 Outlays from discretionary
balances........................ 56 60 61
--------- --------- ----------

[[Page 173]]

87.00 Total outlays (gross)........... 194 224 247
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -9 -20 -22
88.40 Non-Federal sources........... -1 -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -10 -22 -24
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 199 203 231
90.00 Outlays........................... 184 202 223
---------------------------------------------------------------------------

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.

Priority will be placed on supporting the implementation of forest
planning regulations. This includes analyzing watershed integrity
measurement and systems, evaluating monitoring systems and assessing
results, providing information about compatible forest uses. In order to
appropriately designate the new ``focal'' species, additional funding in
this budget will 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
global climate change research, particularly the use of small diameter
trees for biomass energy uses and carbon cycle studies. Finally, work
will continue on development of improved quantitative analytical tools
to support forest planning goals to maximize net public benefits in a
more objective and transparent manner.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 96 101 99
11.3 Other than full-time permanent 7 8 8
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 104 110 108
12.1 Civilian personnel benefits..... 22 24 23
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 8 7 11
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 3 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 6 5 8
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 10 10 14
25.5 Research and development
contracts..................... 22 21 33
26.0 Supplies and materials.......... 8 8 11
31.0 Equipment....................... 6 6 9
41.0 Grants, subsidies, and
contributions................. 5 4 6
--------- --------- ----------
99.0 Subtotal, direct obligations.. 197 201 229
99.0 Reimbursable obligations.......... 21 22 24
--------- --------- ----------
99.9 Total new obligations........... 218 223 253
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 2,271 2,414 2,369
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 61 61 62
---------------------------------------------------------------------------

State [and], Private and International 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, [$202,534,000] $261,331,000,
to remain available until expended, as authorized by law, of which
$106,000,000 is for Lands Legacy: Provided, That $6,000,000 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, community green space, and community development goals, as
authorized under the Development Loans 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 limitations. (Department of the Interior and Related
Agencies Appropriations Act, 2000, as enacted by section 1000(a)(3) of
the Consolidated Appropriations Act, 2000 (P.L. 106-113.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.05 Forest health management........ 61 62 61
00.06 Cooperative fire protection..... 24 28 35
00.07 Cooperative forestry............ 114 121 169
00.08 International forestry.......... 10
09.01 Reimbursable program.............. 4 5 7
--------- --------- ----------
10.00 Total new obligations........... 203 216 282
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 59 27 24
22.00 New budget authority (gross)...... 171 212 268
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 230 239 292
23.95 Total new obligations............. -203 -216 -282
24.40 Unobligated balance available, end
of year......................... 27 24 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 171 202 261
40.20 Appropriation (special fund,
definite)..................... 5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 171 207 261
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 5 7
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 171 212 268
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 160 183 196
73.10 Total new obligations............. 203 216 282
73.20 Total outlays (gross)............. -180 -203 -254
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 183 196 224
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 128 160 203
86.93 Outlays from discretionary
balances........................ 52 43 51
--------- --------- ----------
87.00 Total outlays (gross)........... 180 203 254
----------------------------------------------------------------------------

[[Page 174]]

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -5 -7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 171 207 261
90.00 Outlays........................... 180 198 247
---------------------------------------------------------------------------
Distribution of budget authority by
account:
State and private forestry............
----------------------------------------------------------------------------

Distribution of outlays by account:
State and private forestry............
Emergency pest suppression fund.......
---------------------------------------------------------------------------

State, Private, and International 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.

The new Wildland/Urban Interface Program will reduce fire damages
and personal risks. 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 for the Forest Legacy, Urban and Community Forestry and the
Smart Growth Partnership Loans within this account is proposed as part
of a new Lands Legacy discretionary spending catergory to provide
dedicated and protected funding for the President's Lands Legacy
Initiative. See the Environment Chapter in the Budget for a summary of
the 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.

New funding in the Economic Action Programs will be targeted to
support new agreements for rural development cooperation in forest
resource dependent locations. Also, the Smart Growth Partnership is a
new USDA direct loan program to use subsidized loans for smart growth
land acquisition, management and use 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.

International Programs.--The 2001 Budget expands International
Programs to $10 million (as a specific line item). The programs will
emphasize habitat protection for migratory birds along the length of the
flyway, preventing the introduction of new invasive species, and
sustainable forestry techniques development for other timber exporting
nations.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 32 36 33
11.3 Other than full-time permanent 2 2 2
--------- --------- ----------
11.9 Total personnel compensation 34 38 35
12.1 Civilian personnel benefits..... 7 8 7
21.0 Travel and transportation of
persons....................... 5 5 8
23.1 Rental payments to GSA.......... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 2
25.2 Other services.................. 27 28 39
26.0 Supplies and materials.......... 4 4 5
31.0 Equipment....................... 2 2 3
41.0 Grants, subsidies, and
contributions................. 116 122 173
--------- --------- ----------
99.0 Subtotal, direct obligations.. 198 210 274
99.0 Reimbursable obligations.......... 4 5 7
25.2 Allocation Account: Other services 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 203 216 282
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 700 768 708
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 5 5 5
---------------------------------------------------------------------------

Healthy Investments in Rural Environments

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 315
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 745
23.95 Total new obligations............. -315
24.40 Unobligated balance available, end
of year......................... 430
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 315
62.00 Transferred from other accounts. 430
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 745
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 315
73.20 Total outlays (gross)............. -315
73.32 Obligated balance transferred from
other accounts.................. 63
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 64
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 252
86.98 Outlays from mandatory balances... 63
--------- --------- ----------
87.00 Total outlays (gross)........... 315
----------------------------------------------------------------------------

[[Page 175]]

Net budget authority and outlays:
89.00 Budget authority.................. 745
90.00 Outlays........................... 315
---------------------------------------------------------------------------

The Forest Service will propose legislation to decouple its
mandatory spending programs from timber receipts and instead to
authorize spending from the Treasury at current baseline-assumed levels
(fixed, specific levels of spending) under a new, broader-purposed
program.

The revised policy would improve management and increase
accountability by severing the linkage between program spending and
timber harvest volumes, thereby eliminating concerns that the source of
funds influences decisions on the choices for management prescriptions,
and increase agency reliance on the funds to finance organizational
costs. The new mandatory account structure will preserve funding at
known, fixed, and dependable amounts, and display budget information
more visibly allowing the agency, Congress, and the public an expanded
role in funding allocation decisions. To ensure greater funding
visibility and improved targeting, funding decisions for the new account
will be displayed in the agency's Congressional Justification for the
Budget, using the annual performance measures to indicate the outcomes
of the intended spending. This results in a comparable effect to putting
the spending ``on-line'' through the discretionary budget.

The reforms to the permanent appropriations would establish the new
Healthy Investments in Rural Environments (HIRE) initiative to hire
thousands of skilled workers in rural communities through public works
contracts and begin to reduce the backlog of priority maintenance,
reconstruction, and forest health projects on National Forest System
lands. The HIRE would use Jobs in the Woods, Youth Conservation Corps,
and similar special employment programs to employ displaced timber
workers and other rural workers. HIRE would fund a range of different
projects, including reforestation, timber stand improvement, road
maintenance, fuels reduction, wildlife habitat restoration, erosion
control, or survey and monitoring work. In addition to the activities
now carried out with these funds (e.g., reforestation), other priorities
include road maintenance, and prescribed burns and other hazardous fuels
reduction. Funds could be leveraged through challenge cost-share to best
accomplish the program goals.

These changes would make mandatory funding more visible to the
public, more transparent for the budget and accounting system, better
targeted toward Forest Service priorities, removed from any unintended
incentives that affect management decisions, and available for increased
rural employment.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 96
11.3 Other than full-time permanent.. 13
11.5 Other personnel compensation.... 5
--------- --------- ----------
11.9 Total personnel compensation.. 114
12.1 Civilian personnel benefits....... 25
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 3
22.0 Transportation of things.......... 4
23.1 Rental payments to GSA............ 2
23.2 Rental payments to others......... 8
23.3 Communications, utilities, and
miscellaneous charges........... 4
24.0 Printing and reproduction......... 1
25.2 Other services.................... 114
26.0 Supplies and materials............ 16
31.0 Equipment......................... 4
32.0 Land and structures............... 1
41.0 Grants, subsidies, and
contributions................... 18
--------- --------- ----------
99.9 Total new obligations........... 315
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1126-4-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 2,675
---------------------------------------------------------------------------

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 title VIII of the Alaska National
Interest Lands Conservation Act (Public Law 96-487), $5,500,000, to
remain available until expended.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 3 6
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3 6
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 3 6
73.20 Total outlays (gross)............. -3 -6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6
86.93 Outlays from discretionary
balances........................ 3
--------- --------- ----------
87.00 Total outlays (gross)........... 3 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 6
90.00 Outlays........................... 3 6
---------------------------------------------------------------------------

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,
for support to federal emergency response, and for emergency
rehabilitation of burned-over National Forest System lands and water,
[$561,354,000] $620,372,000, to remain available until expended:
Provided, That such funds are available for repayment of advances from
other appropriations accounts previously transferred for such purposes:
[Provided further, That not less than 50 percent of any unobligated
balances remaining (exclusive of amounts for hazardous fuels reduction)
at the end of fiscal year 1999 shall be transferred, as repayment for
post advances that have not been repaid, to the fund established
pursuant to section 3 of Public Law 71-319 (16 U.S.C. 576 et seq.):]
Provided further, That notwithstanding any other provision of law, up to
$4,000,000 of funds appropriated under this appropriation may be used
for Fire Science Research in support of the Joint Fire Science Program:
Provided further, That all authorities for the use of funds, including
the use of contracts, grants, and cooperative agreements, available to
execute the Forest Service and Rangeland Research appropriation, are
also available in the utilization of these funds for Fire Science
Research.

[[Page 176]]

For an additional amount to cover necessary expenses for emergency
rehabilitation, presuppression due to emergencies, and wildfire
suppression activities of the Forest Service, [$90,000,000]
$150,000,000, to remain available until expended: Provided, That the
entire amount is [designed] 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,
2000, as enacted by section 1000(a)(3) of the Consolidated
Appropriations Act, 2000 (P.L. 106-113.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Fire management................... 724 557 632
09.01 Reimbursable program.............. 141 87 95
--------- --------- ----------
10.00 Total new obligations........... 865 644 727
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 135 113 117
22.00 New budget authority (gross)...... 837 648 865
22.10 Resources available from
recoveries of prior year
obligations..................... 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 978 761 982
23.95 Total new obligations............. -865 -644 -727
24.40 Unobligated balance available, end
of year......................... 113 117 255
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 762 562 620
40.15 Appropriation (emergency)....... 150
40.76 Reduction pursuant to P.L. 106-
113........................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 762 561 770
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 75 87 95
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 837 648 865
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 103 62 119
73.10 Total new obligations............. 865 644 727
73.20 Total outlays (gross)............. -899 -587 -700
73.45 Adjustments in unexpired accounts. -6
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 62 119 146
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 797 511 653
86.93 Outlays from discretionary
balances........................ 103 77 47
--------- --------- ----------
87.00 Total outlays (gross)........... 899 587 700
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -73 -84 -92
88.40 Non-Federal sources........... -2 -3 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -75 -87 -95
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 762 561 770
90.00 Outlays........................... 824 500 605
---------------------------------------------------------------------------

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 implementation,
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 $150,000,000 in contingent
funding for 2001 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........... 128 135 129
11.3 Other than full-time permanent 23 25 24
11.5 Other personnel compensation.. 57 61 58
11.8 Special personal services
payments.................... 2 2 2
--------- --------- ----------
11.9 Total personnel compensation 210 223 213
12.1 Civilian personnel benefits..... 43 46 44
13.0 Benefits for former personnel... 6 6 6
21.0 Travel and transportation of
persons....................... 28 28 28
22.0 Transportation of things........ 6 4 5
23.1 Rental payments to GSA.......... 6 6 6
23.2 Rental payments to others....... 5 3 4
23.3 Communications, utilities, and
miscellaneous charges......... 15 9 12
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 342 196 265
26.0 Supplies and materials.......... 48 27 37
31.0 Equipment....................... 11 7 9
41.0 Grants, subsidies, and
contributions................. 3 1 2
--------- --------- ----------
99.0 Subtotal, direct obligations.. 724 557 632
99.0 Reimbursable obligations.......... 141 87 95
--------- --------- ----------
99.9 Total new obligations........... 865 644 727
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears: Full-
time equivalent employment...... 6,393 6,790 6,496
Reimbursable:
2001 Total compensable workyears: Full-
time equivalent employment...... 10 10 10
---------------------------------------------------------------------------

[[Page 177]]

Payments to States--Northern Spotted Owl Guarantee

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1117-0-1-806 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 125 120 115
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 125 120 115
23.95 Total new obligations............. -125 -120 -115
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... 125 120 115
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 125 120 115
73.20 Total outlays (gross)............. -125 -120 -115
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 125 120 115
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 125 120 115
90.00 Outlays........................... 125 120 115
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 125 120 115
Outlays........................... 125 120 115
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -115
Outlays........................... -115
------------------------------------
Total:
Budget Authority.................. 125 120
Outlays........................... 125 120
====================================

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.

Payments to States--Northern Spotted Owl Guarantee

(Legislative proposal subjecct to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1117-4-1-806 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... -115
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -115
23.95 Total new obligations............. 115
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... -115
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. -115
73.20 Total outlays (gross)............. 115
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -115
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -115
90.00 Outlays........................... -115
---------------------------------------------------------------------------

Proposed legislation would stabilize funding levels through payments
to States nationwide, beginning in 2001, to provide predictable stable
payments for county roads and schools.

Payments to States Stabilization

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1112-4-1-806 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 270
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 270
23.95 Total new obligations............. -270
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.05 Appropriation (indefinite)...... 270
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 270
73.20 Total outlays (gross)............. -270
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 270
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 270
90.00 Outlays........................... 270
---------------------------------------------------------------------------

Current receipt sharing payments (25% payments) are proposed to be
replaced by a stable, guaranteed level of payments based on the concept
of the guaranteed payments, ``Payments to States, Northern Spotted Owl
Guarantee''. The Administration's objective is to secure a stable and
permanent source of funding for rural schools and other infrastructure
needs. The Administration's proposal would significantly increase
funding for these activities over current baseline levels.

Nationally, payments to States funding has declined 37% since 1989,
from $361 million down to $229 million last year (the 1999 payment is
based on 1998 receipts). The Administration's proposal would provide a
guaranteed $270 million annually to States. The Administration fully
recognizes the importance of these payments to local communities for
public schools and roads as a result of Federal landownership. By virtue
of this stabilization proposal, the Administration has shown its
commitment to continuation of the payments and will work to ensure they
are permanently provided every year in the future.

The Administration stands ready to work with Congress to produce
legislation that provides increased, guaranteed, stable payments to
States and communities. Any proposals, including those that would
establish a portion of the funding for ``special projects,'' should
allow the counties the option to participate or to use the full funding
for schools.

The Administration would consider additional special project funding
if the projects are targeted to provide better management, improved
community stewardship, or ecological restoration of the National
Forests, and Grasslands. This could provide opportunities for the Forest
Service to provide public works contracts and other job creating
programs in rural communities through Jobs in the Woods, Youth
Conservation Corps, and similar such special employment programs to
increase employment in rural areas.

[[Page 178]]

Southeast Alaska Economic Disaster Assistance Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1108-0-1-451 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 41.0)..................... 20 10 7
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 20 12
22.00 New budget authority (gross)...... 22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 20 22 12
23.95 Total new obligations............. -20 -10 -7
24.40 Unobligated balance available, end
of year......................... 12 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 22
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 20 10 7
73.20 Total outlays (gross)............. -20 -10 -7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 10
86.93 Outlays from discretionary
balances........................ 20 7
--------- --------- ----------
87.00 Total outlays (gross)........... 20 10 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 22
90.00 Outlays........................... 20 10 7
---------------------------------------------------------------------------

Public Law 104-134 established this appropriation, for the period
1996 through 2002, 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.

Facilities Acquisition and Enhancement Fund

(Legislative Proposal, subject to PAYGO)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5353-0-2-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Collections for facilities
acquisition and enhancement fund
[Legislative proposal, not
subject to PAYGO]............... 2
Appropriation:
05.01 Facilities acquisition and
enhancement fund [Legislative
proposal, not subject to PAYGO]. -2
--------- --------- ----------
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5353-4-2-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 32.0)..................... 2
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund,
indefinite)................... 2
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 2
73.20 Total outlays (gross)............. -2
----------------------------------------------------------------------------

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

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

Forest Service, in cooperation with the General Services
Administration, will propose that the agency have authority to sell
facilities, buildings, constructed features and any appurtenant land,
excess to its needs, and to use the proceeds for acquiring or developing
land and improvements. This proposal would establish a real property
capital account for the management, replacement, and capital
improvements for facilities.

The proposed real property capital account is a special fund, a
federal fund account both for receipts that are earmarked for specific
purposes and for the expenditure of these receipts. Unlike a general
fund account, receipts and expenditures are linked and, the receipts are
available only for a specific purpose.

[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 16 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, 2000, as enacted by section 1000(a)(3) of the
Consolidated Appropriations Act, 2000 (P.L. 106-113.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 2 2 2
Receipts:
02.01 Cooperative range improvements.... 3 3 3
02.02 Legislative proposal not subject
to PAYGO........................ -3
--------- --------- ----------
02.99 Total receipts.................. 3 3
--------- --------- ----------
04.00 Total: Balances and collections... 5 5 2
Appropriation:
05.01 Range betterment fund............. -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............. 3 3
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.25 Appropriation (special fund,
indefinite)................... 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
73.20 Total outlays (gross)............. -3 -3 -1

[[Page 179]]

74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2
86.93 Outlays from discretionary
balances........................ 1 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 3 3 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3
90.00 Outlays........................... 3 3 1
---------------------------------------------------------------------------

Funding for this activity will be available through the new Healthy
Investments in Rural Environments established through legislative
reforms to the existing permanent approprations. Additional funds are
included in the National Forest System.

Object Classification (in millions of dollars)

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 33 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, $79,575,000, to be derived
from the Land and Water Conservation Fund, to remain available until
expended, of which not to exceed $40,000,000 may be available for the
acquisition of lands or interests within the tract known as the Baca
Location No. 1 in New Mexico only upon: (1) the enactment of legislation
authorizing the acquisition of lands, or interests in lands, within such
tract; (2) completion of a review, not to exceed 90 days, by the
Comptroller General of the United States of an appraisal conforming with
the Uniform Appraisal Standards for Federal Land Acquisition of all
lands and interests therein to be acquired by the United States; and (3)
submission of the Comptroller General's review of such appraisal to the
Committee on Resources of the House of Representatives, the Committee on
Energy and Natural Resources of the Senate, and the Committees on
Appropriations of the House and Senate: 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 Fed. Reg. 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.] For acquisition of lands, waters, or interests therein, as
authorized by law, [$130,000,000,] $130,265,000, for Lands Legacy, to
remain available until expended, to be derived from the Land and Water
Conservation Fund, as amended and funds deposited by State, county, or
municipal governments, public school districts, or other public school
authorities pursuant to the Act of December 4, 1967: Provided, That
funds made available for the Beartooth Highway restoration under Title
V, Public Law 105-83, are 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, 2000, as enacted by section 1000(a)(3) of the
Consolidated Appropriations Act, 2000 (P.L. 106-113.)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-300 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 National forest lands under
special acts.................... 1 1 1
02.03 National forest lands under
special acts, legislative
proposal not subject to PAYGO... -1
--------- --------- ----------
02.99 Total receipts.................. 1 1
Appropriation:
05.01 Land acquisition accounts......... -1 -1
--------- --------- ----------
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 107 217 179
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 138 150 90
22.00 New budget authority (gross)...... 119 157 130
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 257 307 220
23.95 Total new obligations............. -107 -217 -179
24.40 Unobligated balance available, end
of year......................... 150 90 41
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

Appropriation (special fund,
definite):
40.20 Appropriation (LWCF).......... 118 156 130
40.20 Appropriation (special act)).. 1 1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 119 157 130
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 8 23 97
73.10 Total new obligations............. 107 217 179
73.20 Total outlays (gross)............. -92 -143 -139
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 23 97 137
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 86 104 86
86.93 Outlays from discretionary
balances........................ 7 40 53
--------- --------- ----------
87.00 Total outlays (gross)........... 92 143 139
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 119 157 130
90.00 Outlays........................... 92 143 139
---------------------------------------------------------------------------

This appropriation consolidates 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.

[[Page 180]]

Funding for this account is proposed as part of a new Lands Legacy
discretionary spending category to provide dedicated and protected
funding for the President's Lands Legacy Initiative. See the Environment
Chapter in the Budget for a summary of the 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.

The request proposes to extend the availability of title V, FY 1997
Interior and Related Agencies funds to be used for continuation of
maintenance and rehabilitation work on the Beartooth Highway. Funds are
due to expire on September 30, 2001. Extension of funding availability
allows continuation for road maintenance while the Environmental Impact
Statement (EIS) is being completed; the EIS, required by law, must be
completed before rehabilitation may commence.

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 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 propose administrative and legislative
reforms to land investments, including changes to the land exchange
program and increased authority for land sales and acquisition to more
efficiently acquire additional high priority lands to ensure increased
environmental benefits and government value.

The Forest Service has already taken the various actions (some
recommended by the Office of Inspector General) to the Land Ownership
program. On-going and future actions include:

--Implemented a National Policy that requires all FS land exchanges
to be reviewed and approved by the National Land Adjustments
Oversight Team (that has examined over 90 proposed exchanges to
date), and established national policy and guidelines (November
1998) on roles and responsibilities of third party facilators in
landownership adjustments;

--Issued guidance on September 10, 1999 requiring all desired
landownership configurations to be incorporated in Forest Plan
revisions;

--Announced that the future new policy will include full disclosure
of all appraisal information involving land exchanges;

--Determined that, along with the increased public information and
involvement in exchanges, an effort will be made to seek
competition in land exchanges by permitting other interested
parties to enter into the bidding for a FS property;

--Will propose new legislation permitting the Forest Service to
acquire new lands and dispose of unneeded existing property in
order to enhance managerial efficiencies, gain high quality
recreational and scenic plots, and protect and increase critical
habitat for sensitive species. This increased authority to buy
and sell lands--along with restrictions to protect
environmentally valuable properties--will enable the agency to
use the commercial real estate markets for more transactions.
The new authority will rely upon full openness in land-related
transactions, along with high levels of competition (no ``one-
on-one'' transactions).

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-300 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 5 5 5
12.1 Civilian personnel benefits....... 1 1 1
25.2 Other services.................... 17 36 30
32.0 Land and structures............... 84 175 143
--------- --------- ----------
99.9 Total new obligations........... 107 217 179
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9923-0-2-300 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 101 111 100
---------------------------------------------------------------------------

Land Acquisition Reinvestment Fund

(Legislative proposal, Subject to PAYGO)

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5359-0-2-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Proceeds of land sales, Forest
Service, legislative proposal
subject to PAYGO................ 1
Appropriation:
05.01 Land acquisition reinvestment
fund, legislative proposal
subject to PAYGO................ -1
--------- --------- ----------
07.99 Total balance, end of year........
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5359-4-2-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------

Obligations by program activity:
10.00 Total new obligations (object
class 32.0)..................... 1
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.25 Appropriation (special fund,
indefinite)................... 1
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1
----------------------------------------------------------------------------

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

Through increased authority for land sales and acquisitions, this
proposed legislation would focus on acquiring high priority wetlands,
riparian areas, threatened and endangered species habitat, areas of high
biological diversity, wildlife corridors, and other high value
conservation areas to ensure increased environmental benefits and
government value. Proposed legislation would facilitate making
appropriate sales and re-investment in Forest Service lands, including
lands where encumbrances or community needs make them more appropriate
for other public or private ownership, and where opportunities for
achieving market value for a property are better through a sale than an
exchange. The legislation will include sideboards or restrictions needed
to avoid potential land sale abuses, and ensure only appropriate lands
are available for sales (and reinvestment in new lands) at any one time.

[[Page 181]]

The proposed Land Acquisition Reinvestment Fund is a special federal
fund account for both receipts that are earmarked for specific purposes
and for the expenditure of these receipts. Unlike a general fund
account, receipts and expenditures are linked and, the receipts are
available for only a specific purpose.

Forest Service Permanent Appropriations

Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 340 274 282
Receipts:
02.01 National forests fund, Agriculture -64
02.02 Payments to states................ 103 114 106
02.03 Payments to states, legislative
proposal subject to PAYGO....... -106
02.04 Timber roads, purchaser elections. 6 6 6
02.05 Road and trails for States,
National Forest Fund............ 27 26 25
02.06 Timber salvage sales.............. 90 128 119
02.07 Deposits, brush disposal.......... 21 26 26
02.08 Recreational fee demonstration
program......................... 26 25 26
02.09 Rents and charges for quarters.... 7 8 8
02.10 National Grasslands............... -4 6 6
02.11 Miscellaneous special funds,
Forest Service.................. 4 2 2
02.12 National forests fund, Interior... 8 14 10
02.13 Timber sales pipeline restoration
fund............................ 3 6 6
02.14 Midwin national tallgrass prairie
rental fees..................... 1
02.15 Road and trails for States,
legislative proposal subject to
PAYGO........................... -25
02.16 Timber salvage sales, legislative
proposal subject to PAYGO....... -119
02.17 Timber sales pipeline restoration
fund, legislative proposal
subject to PAYGO................ -6
02.18 National Grasslands, legislative
proposal subject to PAYGO....... -6
02.19 Miscellaneous special funds,
legislative proposal subject to
PAYGO........................... 6
--------- --------- ----------
02.99 Total receipts.................. 228 361 84
--------- --------- ----------
04.00 Total: Balances and collections... 568 635 366
Appropriation:
05.01 Forest Service permanent
appropriations.................. -294 -353 -336
05.03 Legislative proposal subject to
PAYGO........................... 262
--------- --------- ----------
05.99 Subtotal appropriation............ -294 -353 -74
--------- --------- ----------
07.99 Total balance, end of year........ 274 282 292
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Payments to States, National
forest fund..................... 103 113 105
00.02 Payment to Minnesota.............. 1 1 1
00.03 Payments to counties, National
grasslands...................... 5 6 6
00.04 Recreation fee collection costs... 1 1 1
00.05 Recreation demonstration pilot
project......................... 20 39 26
00.06 Timber purchaser roads constructed
by Forest Service............... 2 6 8
00.07 Timber salvage sales.............. 124 119 119
00.08 Roads and trails for States....... 33 35 32
00.09 Expenses, brush disposal.......... 17 21 18
00.10 Restoration of forest lands and
improvements.................... 32 4 7
00.11 Operation and maintenance of
quarters........................ 7 8 8
00.13 Pipeline restoration fund......... 4 6 6
00.14 Land between the lakes............ 4 4
--------- --------- ----------
10.00 Total new obligations........... 349 363 341
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 291 268 263
22.00 New budget authority (gross)...... 317 359 342
22.10 Resources available from
recoveries of prior year
obligations..................... 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 615 627 605
23.95 Total new obligations............. -349 -363 -341
24.40 Unobligated balance available, end
of year......................... 268 263 264
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.25 Appropriation (special fund,
indefinite)................... 294 353 336
61.00 Transferred to other accounts... -4
62.00 Transferred from other accounts. 27 6 6
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 317 358 342
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 64 38 53
73.10 Total new obligations............. 349 363 341
73.20 Total outlays (gross)............. -367 -348 -336
73.45 Adjustments in unexpired accounts. -7
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 38 53 58
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 302 311 289
86.98 Outlays from mandatory balances... 64 38 47
--------- --------- ----------
87.00 Total outlays (gross)........... 367 348 336
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 317 359 342
90.00 Outlays........................... 366 348 336
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 317 358 342
Outlays........................... 366 349 336
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -429
Outlays........................... -278
------------------------------------
Total:
Budget Authority.................. 317 358 -87
Outlays........................... 366 349 58
====================================

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 in the
budget.

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.

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).

[[Page 182]]

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 2001, to provide
predictable payment for county roads and schools.

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). Proposed
legislation, to be transmitted later would pool certain receipt-based
funding, including the Salvage and Knutson-Vandenberg Funds into the
Healthy Investments in Rural Environments program. Funding would be
available for priority multiple-use projects in the locations of
greatest need, while emphasizing employment opportunities like Jobs-in-
the-Woods.

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)).

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)

Personnel compensation:

11.1 Full-time permanent............. 86 81 73
11.3 Other than full-time permanent.. 11 10 9
11.5 Other personnel compensation.... 4 4 3
--------- --------- ----------
11.9 Total personnel compensation.. 101 95 85
12.1 Civilian personnel benefits....... 23 22 20
13.0 Benefits for former personnel..... 1 1 1
21.0 Travel and transportation of
persons......................... 2 2 2
22.0 Transportation of things.......... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
23.2 Rental payments to others......... 5 6 6
23.3 Communications, utilities, and
miscellaneous charges........... 3 4 4
24.0 Printing and reproduction......... 1 1 1
25.2 Other services.................... 49 69 67
26.0 Supplies and materials............ 23 31 31
31.0 Equipment......................... 3 4 4
32.0 Land and structures............... 27 6 6
41.0 Grants, subsidies, and
contributions................... 109 120 112
--------- --------- ----------
99.9 Total new obligations........... 349 363 341
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 2,697 2,535 2,291
---------------------------------------------------------------------------

Miscellaneous Permanent Appropriations

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Payments to States, National
forest fund..................... -105
00.02 Payment to Minnesota.............. -1
00.03 Payments to counties, National
grasslands...................... -6
00.07 Timber salvage sales.............. -119
00.08 Roads and trails for States....... -25
00.13 Pipeline restoration fund......... -6
--------- --------- ----------
10.00 Total new obligations........... -262
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -429
23.95 Total new obligations............. 262
24.40 Unobligated balance available, end
of year......................... -167
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.25 Appropriation (special fund,
indefinite)................... -262
61.00 Transferred to other accounts... -167
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. -429
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. -262
73.20 Total outlays (gross)............. 278
73.31 Obligated balance transferred to
other accounts.................. -30
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -248
86.98 Outlays from mandatory balances... -30
--------- --------- ----------
87.00 Total outlays (gross)........... -278
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -429
90.00 Outlays........................... -278
---------------------------------------------------------------------------

[[Page 183]]

Current receipt sharing payments (``Twenty-Five Percent Fund'') are
proposed to be replaced by a stable, guaranteed level of payments based
on the concept of the guaranteed payments ``Payments to States, Northern
Spotted Own Guarantee''. See the legislative proposal following 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.

This proposal would permit non-timber interests to bid on timber
sales to enable recreation and conservation groups to participate in
auctions of timber harvest rights from federal lands. The proposal would
alter the 3-year requirement for harvesting timber from national
forests. The proposal serves to increase competition as more parties
could bid on timber sales. In addition, receipts would increase because
environmental and recreation groups may bid greater than the market
value of the timber, reflecting values different than only timber uses.
A portion of the receipts would be used for community employment and
stability work, such as using Jobs-in-the Woods restoration projects.

Proposed legislation would also require that the minimum bid level,
including rollbacks, on timber sales for commodity purposes, should be
equal to the costs of sale preparation and harvest management. The
proposal would not apply to stewardship timber sales. This will better
enable the agency to establish minimum appraisal levels for timber
sales. In 1914, minimum bids were set at 0.5/mbf, which was intended to
cover the costs of sale preparation and administration. In the 1950s,
existing minimum rates were reviewed and Regional Foresters instructed
to set a minimum price level of ``at least $1.00/mbf, which was deemed
to be the absolute minimum cost required to prepare and administer
commercial timber sales.''

In addition, the proposal would require a new timber contract to
avoid future damages. The proposal would establish new contract
cancellation procedures that would reimburse timber sale purchasers for
out-of-pocket expenses, but not for the cost of replacement timber as
current contracts now do. It would also require that the timber sale
purchaser obtain general liability insurance to protect the government
from liability; the contract would transfer title for the timber to the
purchaser at the time of payment, when the timber is cut, rather than
after the timber is removed from the sale site. The new contract also
would establish that timber sales purchasers could not cut undesignated
trees.

The proposal would also require the receipt of fair market value
from ski resorts on National Forest System lands in order to ensure that
the rental charges remain fair and equitable to both the United States
and the ski area permittees as mandated by Congress on the 1996 Omnibus
Parks bill.

A concession reform proposal would amend the Granger-Thye Act of
1950 to authorize up to 15 pilot projects to enable the private sector
to reconstruct, construct, or maintain, as well as to operate federally
owned facilities in a public/private pilot basis. The proposal would
target resorts, campgrounds, and marinas, to improve recreation
opportunities and enhance visitor experiences, while reducing the large
facility maintenance backlog. The proposal would also require that the
agency collect fair market value for recreation concessions other than
ski areas using appraisals, a competitive bid process, or other method
based on sound business management principles, as appropriate. Such fees
collected would be available for spending without further appropriation
for the purposes of increased concession opportunities and enhanced
visitor services, including infrastructure maintenance.

Fees charged for commercial film and photography would be retained
by the Forest Service for the purpose of enhancing national forest
recreational opportunities, increasing watershed and habitat
conservation and restoration, and administration and management of
special uses on National Forest System lands. Funds are available until
expended, with the authority to spend one year after funds were
collected.

Legislation would require the collection of market values for
special use permits for linear rights-of-way special uses, such as
powerlines and pipelines. Increased fee collections, above the 2000
collections would be retained by the Forest Service for the purpose of
enhancing national forest recreational opportunities, increasing
watershed and habitat conservation and restoration, and administration
and management of special uses on National Forest System lands. Funds
are available until expended, with the authority to spend one year after
funds were collected.

Proposed legislation would require all timber sales to be sold using
the sealed bidding method, rather than open bids as is now the case in
some places. The change would enhance the opportunities for achieving
market value for timber sales on federal lands. A waiver permitting open
bids would be available as determined by the Forest Service Chief where
oral auction would yield higher bids.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. -56
11.3 Other than full-time permanent.. -7
11.5 Other personnel compensation.... -3
--------- --------- ----------
11.9 Total personnel compensation.. -66
12.1 Civilian personnel benefits....... -15
13.0 Benefits for former personnel..... -1
21.0 Travel and transportation of
persons......................... -2
22.0 Transportation of things.......... -1
23.1 Rental payments to GSA............ -1
23.2 Rental payments to others......... -3
23.3 Communications, utilities, and
miscellaneous charges........... -2
24.0 Printing and reproduction......... -1
25.2 Other services.................... -44
26.0 Supplies and materials............ -12
31.0 Equipment......................... -2
41.0 Grants, subsidies, and
contributions................... -112
--------- --------- ----------
99.9 Total new obligations........... -262
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9921-4-2-999 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... -1,759
---------------------------------------------------------------------------

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Operating expenses................ 110 115 112
09.02 Capital investment................ 48 36 35
--------- --------- ----------
10.00 Total new obligations........... 158 151 147
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 106 115 98
22.00 New budget authority (gross)...... 165 134 134
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 273 249 232
23.95 Total new obligations............. -158 -151 -147
24.40 Unobligated balance available, end
of year......................... 115 98 85
----------------------------------------------------------------------------

[[Page 184]]

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 165 134 134
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 52 57 74
73.10 Total new obligations............. 158 151 147
73.20 Total outlays (gross)............. -151 -134 -134
73.45 Adjustments in unexpired accounts. -2
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 57 74 87
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 151 134 134
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -165 -134 -134
----------------------------------------------------------------------------

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

The Working Capital Fund is a self-sustaining revolving fund that
provides services to National Forests, to Research Experiment Stations,
to other Federal agencies when necessary, to State and private agencies
as provided by law, and to persons who cooperate with the Forest Service
in fire control and other authorized programs.

Forestry-related supply and support services include:

Equipment Services.--The fund owns, operates, maintains, replaces,
and repairs common-use, motor-driven, and similar equipment. This
equipment is rented to administrative units, that is, National Forests,
Research Experiment Stations, and other units, and, in some cases, to
other agencies, at rates which recover the cost of operation, repair and
maintenance, management, and depreciation. The rates also include an
increment which provides additional cash which, when added to
depreciation earnings and the residual value of equipment, provides
sufficient funds to replace the equipment.

Aircraft Services.--The fund operates, maintains, and repairs Forest
Service owned aircraft used in fire surveillance and suppression and in
other Forest Service programs. The aircraft are rented to National
Forests, Research Experiment Stations, and in some cases to other
agencies, at rates which recover the cost of depreciation, operation,
maintenance, repair, and improvements in the airworthiness of the
aircraft. Aircraft replacement costs are financed from either
appropriated funds or the Forest Service Working Capital Fund, or a
combination of both.

Computer Services.--The Fund provides computer hardware, software,
and radio equipment.

Supply Services.--The fund operates the following common services,
and provides for cost-recovery of Working Capital Fund Program
Management:

Photo reproduction laboratories that store, reproduce, and supply
aerial photographs, aerial maps, and other photographs of National
Forest lands. Photographic reproductions are sold to National Forests,
Experiment Stations, and others at cost.

Sign shops that manufacture and supply special signs for the
National Forests for use in regulating traffic and as information to the
public and other users of the National Forests. Signs are sold to
National Forests and Experiment Stations at cost.

Seed supply services that provide tree seed for direct seeding or
sowing in nurseries for the production of trees. Includes purchase or
collection of cones, extraction of seeds, cleaning and testing, and
storage and delivery. Operates in conjunction with tree nurseries; that
is, forest tree nurseries and cold storage facilities for storage of
tree seedlings. Tree seedlings are sold to National Forests, State
foresters, and other cooperators at cost.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
13.0 Benefits for former personnel..... 2 2 2
21.0 Travel and transportation of
persons......................... 3 3 3
23.2 Rental payments to others......... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 2 2 1
25.2 Other services.................... 1 1 1
26.0 Supplies and materials............ 22 20 19
31.0 Equipment......................... 127 122 120
--------- --------- ----------
99.9 Total new obligations........... 158 151 147
---------------------------------------------------------------------------
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 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Forest Service Cooperative fund... 163 166 210
02.02 Transfers from general fund of
amounts equal to certain customs
duties.......................... 30 30 30
02.04 Forest Service Cooperative fund,
legislative proposal subject to
PAYGO........................... -160
02.05 Transfers from general fund of
amounts equal to certain customs
duties, legislative proposal
subject to PAYGO................ -30
02.06 Transfer from TVA for land between
the lakes trust fund............ 1
--------- --------- ----------
02.99 Total receipts.................. 193 196 51
Appropriation:
05.01 Forest Service trust funds........ -193 -196 -240
05.03 Legislative proposal subject to
PAYGO........................... 190
--------- --------- ----------
05.99 Subtotal appropriation............ -193 -196 -50
--------- --------- ----------
07.99 Total balance, end of year........ 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. 117 239 216
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year................... 286 369 327
22.00 New budget authority (gross)...... 193 196 240
22.10 Resources available from
recoveries of prior year
obligations..................... 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 486 565 567
23.95 Total new obligations............. -117 -239 -216
24.40 Unobligated balance available, end
of year......................... 369 327 352
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... 193 196 240
----------------------------------------------------------------------------

Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance, start of year 61 39 83
73.10 Total new obligations............. 117 239 216
73.20 Total outlays (gross)............. -133 -195 -231
73.45 Adjustments in unexpired accounts. -7

[[Page 185]]

74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. 39 83 68
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 72 157 192
86.98 Outlays from mandatory balances... 61 38 39
--------- --------- ----------
87.00 Total outlays (gross)........... 133 195 231
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 193 196 240
90.00 Outlays........................... 133 195 231
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

1999 actual 2000 est. 2001 est.
Enacted/requested:
Budget Authority.................. 193 196 240
Outlays........................... 133 195 231
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -459
Outlays........................... -190
------------------------------------
Total:
Budget Authority.................. 193 196 -219
Outlays........................... 133 195 41
====================================

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.--Funds 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............. 62 55 53
11.3 Other than full-time permanent.. 9 8 7
11.5 Other personnel compensation.... 3 3 3
--------- --------- ----------
11.9 Total personnel compensation.. 74 66 63
12.1 Civilian personnel benefits....... 16 14 14
13.0 Benefits for former personnel..... 1 1 1
21.0 Travel and transportation of
persons......................... 3 3 3
23.1 Rental payments to GSA............ 1 1 1
23.2 Rental payments to others......... 4 8 6
23.3 Communications, utilities, and
miscellaneous charges........... 1 3 2
25.2 Other services.................... 10 130 114
26.0 Supplies and materials............ 4 7 6
31.0 Equipment......................... 1 2 2
32.0 Land and structures............... 1 2 2
41.0 Grants, subsidies, and
contributions................... 1 1 1
44.0 Refunds........................... 1 1
--------- --------- ----------
99.9 Total new obligations........... 117 239 216
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 2,038 1,804 1,742
---------------------------------------------------------------------------

Forest Service Trust Funds

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
10.00 Total new obligations............. -190
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -459
23.95 Total new obligations............. 190
24.40 Unobligated balance available, end
of year......................... -269
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.27 Appropriation (trust fund,
indefinite)................... -190
61.00 Transferred to other accounts... -269
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. -459
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. -190
73.20 Total outlays (gross)............. 190
73.31 Obligated balance transferred to
other accounts.................. -38
74.40 Unpaid obligations, end of year:
Obligated balance, end of year.. -38
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -152
86.98 Outlays from mandatory balances... -38
--------- --------- ----------
87.00 Total outlays (gross)........... -190
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -459
90.00 Outlays........................... -190
---------------------------------------------------------------------------

Proposed legislation would pool certain receipt-based funding,
including the Salvage and Knutson-Vandenberg Fund into the Healthy
Investments in Rural Environments Program. Funds would be available for
priority multiple-use projects in locations of greatest need, while
emphasizing employment opportunities, like Jobs-in-the Woods.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. -40
11.3 Other than full-time permanent.. -6
11.5 Other personnel compensation.... -2
--------- --------- ----------
11.9 Total personnel compensation.. -48
12.1 Civilian personnel benefits....... -10
21.0 Travel and transportation of
persons......................... -1
22.0 Transportation of things.......... -3
23.1 Rental payments to GSA............ -1
23.2 Rental payments to others......... -5
23.3 Communications, utilities, and
miscellaneous charges........... -2
25.2 Other services.................... -89
26.0 Supplies and materials............ -4
31.0 Equipment......................... -2
32.0 Land and structures............... -1
41.0 Grants, subsidies, and
contributions................... -24
--------- --------- ----------
99.9 Total new obligations........... -190
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9974-4-7-302 1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... -1,005
---------------------------------------------------------------------------

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.
Animal and Plant Health Inspection 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 materials management.
Rural Housing; Rural community fire protection grants.
Transportation: Federal Highway Administration, Highway Trust
Fund.
Labor: Employment and Training Administration, Training and
employment services.

[[Page 186]]

ADMINISTRATIVE PROVISIONS, FOREST SERVICE

Appropriations to the Forest Service for the current fiscal year
shall be available for: (1) purchase of not to exceed [110] 132
passenger motor vehicles of which [15] 13 will be used primarily for law
enforcement purposes and of which [109] 129 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 [three] six for replacement only, and acquisition of
sufficient aircraft from excess sources to maintain the operable fleet
at [213] [198] 192 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 [if and only if all previously appropriated emergency
contingent funds under the heading ``Wildland Fire Management'' have
been released by the President and apportioned].
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 No. 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 No. 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.]
Funds available to the Forest Service shall be available to conduct
a program of not less than [$1,000,000] $4,000,000 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.
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.
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 the 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, $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.] Notwithstanding any other
provision of law, up to 80 percent of the funds appropriated to the
Forest Service in the ``National Forest System'', ``Infrastructure'',
and ``Wildland Fire Management'' accounts, which are planned for support
of ``Jobs in the Woods,'' Youth Conservation Corps, and similar such
special employment programs to employ displaced timber workers and other
skilled rural workers, for projects on National Forest land, may be
granted directly to State agencies for accomplishment of planned
projects. Twenty percent of said funds may be retained by the Forest
Service for planning and administering projects. The Forest Service in
consultation with respective state agencies shall accomplish project
selection and prioritization, 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,

[[Page 187]]

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 from the Fund shall be considered direct payments for purposes
of all applicable law except that these direct grants may not be used
for lobbying activities: Provided, That a total of $22,000,000 is hereby
appropriated and shall be deposited into the Southeast Alaska Economic
Disaster Fund established pursuant to Public Law 104-134, as amended,
without further appropriation or fiscal year limitation of which
$10,000,000 shall be distributed in fiscal year 2000, $7,000,000 shall
be distributed in fiscal year 2001, and $5,000,000 shall be distributed
in fiscal year 2002. The Secretary of Agriculture shall allocate the
funds to local communities suffering economic hardship because of mill
closures and economic dislocation in the timber industry to employ
unemployed timber workers and for related community redevelopment
projects as follows:
(1) in fiscal year 2000, $4,000,000 for the Ketchikan Gateway
Borough, $2,000,000 for the City of Petersburg, $2,000,000 for the
City and Borough of Sitka, and $2,000,000 for the Metlakatla Indian
Community;
(2) in fiscal year 2001, $3,000,000 for the Ketchikan Gateway
Borough, $1,000,000 for the City of Petersburg, $1,500,000 for the
City and Borough of Sitka, and $1,500,000 for the Metlakatla Indian
Community; and
(3) in fiscal year 2002, $3,000,000 for the Ketchikan Gateway
Borough, $500,000 for the City and Borough of Sitka, and $1,500,000
for the Metlakatla Indian Community.]
Notwithstanding any other provision of law, any appropriations or
funds available to the Forest Service not to exceed $500,000 may be used
to reimburse the Office of the General Counsel (OGC), Department of
Agriculture, for travel and related expenses incurred as a result of OGC
assistance or participation requested by the Forest Service at meetings,
training sessions, management reviews, land purchase negotiations and
similar non-litigation related matters. [Future budget justifications
for both the Forest Service and the Department of Agriculture should
clearly display the sums previously transferred and the requested
funding transfers.]
[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 the Forest Service shall
implement and adhere to the definitions of indirect expenditures
established pursuant to Public Law 105-277 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 all future budget justifications, 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 indirect obligations
from the Brush Disposal, Cooperative Work-Other, Knutson-Vandenberg,
Reforestation, Salvage Sale, and Roads and Trails funds to 20 percent of
the total obligations from each fund].
Any appropriations or funds available to the Forest Service may be
used for necessary expenses in the event of law enforcement emergencies
as necessary to protect natural resources and public or employee
safety[: Provided, That such amounts shall not exceed $500,000].
[From any unobligated balances available at the start of fiscal year
2000, the amount of $5,000,000 shall be allocated to the Alaska Region,
in addition to the funds appropriated to sell timber in the Alaska
Region under this Act, for expenses directly related to preparing
sufficient additional timber for sale in the Alaska Region to establish
a 3-year timber supply.]
[The Forest Service is authorized through the Forest Service
existing budget to reimburse Harry Frey, $143,406 (1997 dollars) because
his home was destroyed by arson on June 21, 1990 in retaliation for his
work with the Forest Service.] (Department of the Interior and Related
Agencies Appropriations Act, 2000, as enacted by section 1000(a)(3) of
the Consolidated Appropriations Act, 2000 (P.L. 106-113.)

General Fund Receipt Accounts

(in millions of dollars)

----------------------------------------------------------------------------
1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
12-181100 National grasslands........ 18 24 24
12-222100 National forest fund....... 132 96 97
Legislative proposal, subject to
PAYGO............................. 8
12-223700 Collections to offset
payments to states stabilization:
Legislative proposal, subject to
PAYGO............................... 155
12-223800 Collections to offset
healthy investments in rural
environments: Legislative proposal,
subject to PAYGO.................... 285
12-270130 Agriculture credit
insurance, downward reestimates of
subsidies........................... 417
12-270210 Rural electrification and
telephone loans, negative subsidies. 5 8
12-270230 Rural electrification and
telephone loans, downward
reestimates of subsidies............ 167
12-270310 Rural water and waste
disposal, negative subsidies........ 18
12-270510 Rural community facility,
negative subsidies.................. 18
12-270630 Rural housing insurance,
downward reestimates of subsidies... 34
12-270710 Rural business and
industry, negative subsidies........ 4
12-271030 Rural development loans,
downward reestimates of subsidies... 8
12-271130 Rural telephone bank loans,
downward reestimates of subsidies... 12 1
12-271330 Economic development loans,
downward reestimates of subsidies... 2
12-311000 Collections to offset road
and trail fund: Legislative
proposal, subject to PAYGO.......... 25
--------- --------- ----------
General Fund Offsetting receipts from
the public............................. 413 543 602
---------------------------------------------------------------------------

Other Consolidated Receipt Accounts

(in millions of dollars)

----------------------------------------------------------------------------
1999 actual 2000 est. 2001 est.
----------------------------------------------------------------------------
12-977210 Miscellaneous contributed
funds............................... 5 1 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 [2000] 2001 under this Act shall be available for the purchase, in
addition to those specifically provided for, of not to exceed [365] 389
passenger motor vehicles, of which [361] 385 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] Secretary may transfer
funds provided under this Act and other available unobligated

[[Page 188]]

balances of the Department of Agriculture 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] acquisition of plant and capital
equipment necessary for the delivery of financial, administrative, and
information technology services.
Sec. 705. New obligational authority provided for the following
appropriation items in this Act shall remain available until expended:
Animal and Plant Health Inspection Service, the contingency fund to meet
emergency conditions, fruit fly program, integrated systems acquisition
project, boll weevil program, up to 10 percent of the screwworm program,
and up to $2,000,000 for costs associated with colocating regional
offices; Food Safety and Inspection Service, field automation and
information management project; funds appropriated for rental payments;
Cooperative State Research, Education, and Extension Service, funds for
competitive research grants (7 U.S.C. 450i(b)) and funds for the Native
American Institutions Endowment Fund; Farm Service Agency, salaries and
expenses funds made available to county committees; [and] Foreign
Agricultural Service, middle-income country training program and up to
$2,000,000 of the Foreign Agricultural Service appropriation 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 the Commodity
Credit Corporation and section 32 price support operations may be used,
as authorized by law (15 U.S.C. 714c and 7 U.S.C. 612c), to provide
commodities to individuals in cases of hardship as determined by the
Secretary of Agriculture.
Sec. 710. None of the funds in this Act shall be available to
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 charged against competitive agricultural research,
education, or extension grant awards issued by the Cooperative State
Research, Education, and Extension Service that exceed 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 provision of this Act, all loan
levels provided in this Act shall be considered estimates, not
limitations.
[Sec. 713. Notwithstanding any other provision of law, effective on
September 29, 1999, appropriations made available to the Rural Housing
Insurance Fund Program Account for the costs of direct and guaranteed
loans and to the Rural Housing Assistance Grants Account 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 with regard to each account.]
Sec. [714] 713. Appropriations to the Department of Agriculture for
the cost of direct and guaranteed loans made available in fiscal year
[2000] 2001 shall remain available until expended to cover obligations
made in fiscal year [2000] 2001 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. [715] 714. Such sums as may be necessary for fiscal year [2000]
2001 pay raises for programs funded by this Act shall be absorbed within
the levels appropriated by this Act.
Sec. [716] 715. Notwithstanding the Federal Grant and Cooperative
Agreement Act, marketing services of the Agricultural Marketing Service;
Grain Inspection, Packers and Stockyards Administration; 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; 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, 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. [717] 716. Notwithstanding any other provision of law
(including provisions of law requiring competition), the Secretary may
enter into cooperative agreements (which may provide for the acquisition
of goods or services, including personal services) with a State,
political subdivision, or agency thereof, a public or private agency,
organization, or any other person, if the Secretary determines that the
objectives of the agreement will: (1) serve a mutual interest of the
parties to the agreement in carrying out the Wetlands Reserve Program;
and (2) all parties will contribute resources to the accomplishment of
these objectives: 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. 718. None of the funds in this Act may be used to retire more
than 5 percent of the Class A stock of the Rural Telephone Bank or to
maintain any account or subaccount within the accounting records of the
Rural Telephone Bank the creation of which has not specifically been
authorized by statute: Provided, That notwithstanding any other
provision of law, none of the funds appropriated or otherwise made
available in this Act may be used to transfer to the Treasury or to the
Federal Financing Bank any unobligated balance of the Rural Telephone
Bank telephone liquidating account which is in excess of current
requirements and such balance shall receive interest as set forth for
financial accounts in section 505(c) of the Federal Credit Reform Act of
1990.]
[Sec. 719. 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] 717. None of the funds appropriated by 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] 718. 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 ap

[[Page 189]]

proval 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 2000, 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 15
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 2000, 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 15
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 transfer or obligation of
fiscal year [2000] 2001 funds under the provisions of section 793 of
Public Law 104-127, the Fund for Rural America.
[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.]
[Sec. 727. None of the funds appropriated or otherwise available to
the Department of Agriculture in fiscal year 2000 or thereafter 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. 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 150,000 acres in the fiscal year 2000
wetlands reserve program as authorized by 16 U.S.C. 3837.]
Sec. [729] 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 transfer or obligation of fiscal
year [2000] 2001 funds under the provisions of section 401 of Public Law
105-185, the Initiative for Future Agriculture and Food Systems.
[Sec. 730. Notwithstanding section 381A of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009), in fiscal year 2000 and
thereafter, 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. 731. 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. [732] 721. 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. 733. 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, or the Food and Drug
Administration Detroit, Michigan, District Office Laboratory; or to
reduce the Detroit, Michigan, Food and Drug Administration District
Office below the operating and full-time equivalent staffing level of
July 31, 1999; or to change the Detroit District Office to a station,
residence post or similarly modified office; or to reassign residence
posts assigned to the Detroit District Office.]
[Sec. 734. 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. 735. 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 2001 appropriations Act.]
[Sec. 736. 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. 737. 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. 738. 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 (7 U.S.C. 2036(a)) if such
program exceeds $98,000,000.]
[Sec. 739. None of the funds appropriated by this Act shall be used
to propose or issue rules, regulations, decrees, or orders for the
purpose of implementation, or in preparation for implementation of the
Kyoto Protocol which was adopted on December 11, 1997, in Kyoto, Japan.]
[Sec. 740. Notwithstanding any other provision of law, in fiscal
year 2000 and thereafter, 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 United States Department of Agriculture Civil Service
vacancies.]
[Sec. 741. None of the funds appropriated or otherwise made
available by this Act may be used to declare excess or surplus all or
part of the lands and facilities owned by the Federal Government and
administered by the Secretary of Agriculture at Fort Reno, Oklahoma, or
to transfer or convey such lands or facilities, without the specific
authorization of Congress.]
[Sec. 742. Notwithstanding any other provision of law, the Chief of
the Natural Resources Conservation Service shall provide funds, within
discretionary amounts available, for the settlement of claims associated
with the Chuquatonchee Watershed Project in Mississippi to close out
this project.]
[Sec. 743. (a) Not later than 180 days after the date of the
enactment of this Act, the Secretary of Agriculture shall offer to enter
into an agreement with the Governor of the State of Hawaii to conduct a
pilot program to inspect mail entering the State of Hawaii for any
plant, plant product, plant pest, or other organism that is subject to
Federal quarantine laws.
(b) The agreement described in subsection (a) shall contain the same
terms and conditions as are contained in the memorandum of understanding
entered into between the Secretary and the State

[[Page 190]]

of California, dated February 1, 1999, unless the Secretary and the
Governor agree to different terms or conditions.
(c) Unless the Secretary and the Governor agree otherwise, the
agreement described in subsection (b) shall terminate on the later of--
(1) the date that is 1 year after the date the agreement becomes
effective; or
(2) the date that the February 1, 1999 memorandum of
understanding terminates.]
[Sec. 744. Notwithstanding any other provision of law, the Secretary
is authorized under section 306 of the Consolidated Farm and Rural
Development Act, as amended (7 U.S.C. 1926), to provide guaranteed lines
of credit, including working capital loans, for health care facilities,
to address Year 2000 computer conversion issues.]
[Sec. 745. After taking any action involving the seizure,
quarantine, treatment, destruction, or disposal of wheat infested with
karnal bunt, the Secretary of Agriculture shall compensate the producers
and handlers for economic losses incurred as the result of the action
not later than 45 days after receipt of a claim that includes all
appropriate paperwork.]
[Sec. 746. In addition to amounts otherwise appropriated or made
available by this Act, $2,000,000 is appropriated for the purpose of
providing Bill Emerson and Mickey Leland Hunger Fellowships through the
Congressional Hunger Center, which is an organization described in
subsection (c)(3) of section 501 of the Internal Revenue Code of 1986
and is exempt from taxation under subsection (a) of such section.]
[Sec. 747. Notwithstanding any other provision of law, there are
hereby appropriated $250,000 for the program authorized under section
388 of the Federal Agriculture Improvement and Reform Act of 1996,
solely for use in the State of New Hampshire.]
[Sec. 748. The Immigration and Nationality Act (8 U.S.C. 1188 et
seq.) is amended--
(1) in section 218(c)(1) by striking ``60 days'' and inserting
``45 days''; and
(2) in section 218(c)(3)(A) by striking ``20 days'' and
inserting ``30 days''.]
[Sec. 749. Successorship Provisions Relating to Bargaining Units and
Exclusive Representatives. (a) Voluntary Agreement.--
(1) In general.--If the exercise of the Secretary of
Agriculture's authority under this section results in changes to an
existing bargaining unit that has been certified under chapter 71 of
title 5, United States Code, the affected parties shall attempt to
reach a voluntary agreement on a new bargaining unit and an
exclusive representative for such unit.
(2) Criteria.--In carrying out the requirements of this
subsection, the affected parties shall use criteria set forth in--
(A) sections 7103(a)(4), 7111(e), 7111(f )(1), and 7120
of title 5, United States Code, relating to determining an
exclusive representative; and
(B) section 7112 of title 5, United States Code
(disregarding subsections (b)(5) and (d) thereof ), relating
to determining appropriate units.
(b) Effect of an Agreement.--
(1) In general.--If the affected parties reach agreement on the
appropriate unit and the exclusive representative for such unit
under subsection (a), the Federal Labor Relations Authority shall
certify the terms of such agreement, subject to paragraph (2)(A).
Nothing in this subsection shall be considered to require the
holding of any hearing or election as a condition for certification.
(2) Restrictions.--
(A) Conditions requiring noncertification.--The Federal
Labor Relations Authority may not certify the terms of an
agreement under paragraph (1) if--
(i) it determines that any of the criteria referred to
in subsection (a)(2) (disregarding section 7112(a) of title
5, United States Code) have not been met; or
(ii) after the Secretary's exercise of authority and
before certification under this section, a valid election
under section 7111(b) of title 5, United States Code, is
held covering any employees who would be included in the
unit proposed for certification.
(B) Temporary waiver of provision that would bar an
election after a collective bargaining agreement is
reached.--Nothing in section 7111(f )(3) of title 5, United
States Code, shall prevent the holding of an election under
section 7111(b) of such title that covers employees within a
unit certified under paragraph (1), or giving effect to the
results of such an election (including a decision not to be
represented by any labor organization), if the election is
held before the end of the 12-month period beginning on the
date such unit is so certified.
(C) Clarification.--The certification of a unit under
paragraph (1) shall not, for purposes of the last sentence
of section 7111(b) of title 5, United States Code, or
section 7111(f )(4) of such title, be treated as if it had
occurred pursuant to an election.
(3) Delegation.--
(A) In general.--The Federal Labor Relations Authority
may delegate to any regional director (as referred to in
section 7105(e) of title 5, United States Code) its
authority under the preceding provisions of this subsection.
(B) Review.--Any action taken by a regional director
under subparagraph (A) shall be subject to review under the
provisions of section 7105(f ) of title 5, United States
Code, in the same manner as if such action had been taken
under section 7105(e) of such title, except that in the case
of a decision not to certify, such review shall be required
if application therefore is filed by an affected party
within the time specified in such provisions.
(c) Definition.--For purposes of this section, the term ``affected
party'' means--
(1) with respect to an exercise of authority by the Secretary of
Agriculture under this section, any labor organization affected
thereby; and
(2) the Department of Agriculture.]
[Sec. 750. None of the funds appropriated or otherwise made
available by this Act or any other Act shall be used for the
implementation of a Support Services Bureau or similar organization.]
[Sec. 751. Contracts for Procurement or Processing of Certain
Commodities. (a) Definitions.--In this section:
(1) HUBZone sole source contract.--The term ``HUBZone sole
source contract'' means a sole source contract authorized by section
31 of the Small Business Act (15 U.S.C. 657a).
(2) HUBZone price evaluation preference.--The term ``HUBZone
price evaluation preference'' means a price evaluation preference
authorized by section 31 of the Small Business Act (15 U.S.C. 657a).
(3) Qualified HUBZone small business concern.--The term
``qualified HUBZone small business concern'' has the meaning given
the term in section 3(p) of the Small Business Act (15 U.S.C.
632(p)).
(4) Covered procurement.--The term ``covered procurement'' means
a contract for the procurement or processing of a commodity
furnished under title II or III of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1721 et seq.),
section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)),
the Food for Progress Act of 1985 (7 U.S.C. 1736o), or any other
commodity procurement or acquisition by the Commodity Credit
Corporation under any other law.
(b) Prohibition of Use of Funds.--None of the funds made available
by this Act may be used:
(1) to award a HUBZone sole source contract or a contract
awarded through full and open competition in combination with a
HUBZone price evaluation preference to any qualified HUBZone small
business concern in any covered procurement if performance of the
contract by the business concern would exceed the production
capacity of the business concern or would require the business
concern to subcontract to any other company or enterprise for the
purchase of the commodity being procured through the covered
procurement; and
(2) in any contract awarded through full and open competition in
any covered procurement--
(A) to fund a price evaluation preference greater than 5
percent if the dollar value of the contract awarded is not
greater than 50 percent of the total dollar value being
procured in a single tender for a commodity; or
(B) to fund any price evaluation preference at all if
the dollar value of the contract awarded is greater than 50
percent of the total dollar value being procured in a single
tender for a commodity.]
[Sec. 752. Redesignation of National School Lunch Act as Richard B.
Russell National School Lunch Act. (a) In General.--The first section of
the National School Lunch Act (42 U.S.C.

[[Page 191]]

1751 note) is amended by striking ``National School Lunch Act'' and
inserting ``Richard B. Russell National School Lunch Act''.
(b) Conforming Amendments.--The following provisions of law are
amended by striking ``National School Lunch Act'' each place it appears
and inserting ``Richard B. Russell National School Lunch Act'':
(1) Sections 3 and 13(3)(A) of the Commodity Distribution Reform
Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-
237).
(2) Section 404 of the Agricultural Act of 1949 (7 U.S.C. 1424).
(3) Section 201(a) of the Act entitled ``An Act to extend the
Agricultural Trade Development and Assistance Act of 1954, and for
other purposes'', approved September 21, 1959 (7 U.S.C. 1431c(a); 73
Stat. 610).
(4) Section 211(a) of the Agricultural Trade Suspension
Adjustment Act of 1980 (7 U.S.C. 4004(a)).
(5) Section 245A(h)(4)(A) of the Immigration and Nationality Act
(8 U.S.C. 1255a(h)(4)(A)).
(6) Sections 403(c)(2)(C), 422(b)(3), 423(d)(3), 741(a)(1), and
742 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)(C), 1632(b)(3),
1183a note, 42 U.S.C. 1751 note, 8 U.S.C. 1615; Public Law 104-193).
(7) Section 2243(b) of title 10, United States Code.
(8) Sections 404B(g)(1)(A), 404D(c)(2), and 404F(a)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1070a-22(g)(1)(A), 1070a-
24(c)(2), 1070a-26(a)(2); Public Law 105-244).
(9) Section 231(d)(3)(A)(i) of the Carl D. Perkins Vocational
Education Act (20 U.S.C. 2341(d)(3)(A)(i)).
(10) Section 1113(a)(5) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6313(a)(5)).
(11) Section 1397E(d)(4)(A)(iv)(II) of the Internal Revenue Code
of 1986.
(12) Sections 254(b)(2)(B) and 263(a)(2)(C) of the Job Training
Partnership Act (29 U.S.C. 1633(b)(2)(B), 1643(a)(2)(C)).
(13) Section 3803(c)(2)(C)(xiii) of title 31, United States
Code.
(14) Section 602(d)(9)(A) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 474(d)(9)(A)).
(15) Sections 2(4), 3(1), and 301 of the Healthy Meals for
Healthy Americans Act of 1994 (42 U.S.C. 1751 note; Public Law 103-
448).
(16) Sections 3, 4, 7, 10, 13, 16(b), 17, and 19(d) of the Child
Nutrition Act of 1966 (42 U.S.C. 1772, 1773, 1776, 1779, 1782,
1785(b), 1786, 1788(d)).
(17) Section 658O(b)(3) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858m(b)(3)).
(18) Subsection (b) of the first section of Public Law 87-688
(48 U.S.C. 1666(b)).
(19) Section 10405(a)(2)(H) of the Omnibus Budget Reconciliation
Act of 1989 (Public Law 101-239; 103 Stat. 2489).]
[Sec. 753. Public Law 105-199 (112 Stat. 641) is amended in section
3(b)(1)(G) by striking ``persons'' and inserting ``governors, who may be
represented on the Commission by their respective designees,''.]
[Sec. 754. Section 889 of the Federal Agriculture Improvement and
Reform Act of 1996 is amended--
(1) in the heading, by inserting ``HARRY K. DUPREE'' before
``STUTTGART'';
(2) in subsection (b)(1)--
(A) in the heading, by inserting ``HARRY K. DUPREE''
before ``STUTTGART''; and
(B) in subparagraphs (A) and (B), by inserting ``Harry
K. Dupree'' before ``Stuttgart National Aquaculture Research
Center'' each place it appears.]
[Sec. 755. Tobacco Leasing and Information. (a) Cross-County
Leasing.--Section 319(l) of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1314e(l)) is amended in the second sentence by inserting ``,
Ohio, Indiana, Kentucky,'' after ``Tennessee''.
(b) Tobacco Production and Marketing Information.--Part I of
subtitle B of title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1311 et seq.) is amended by adding at the end the following:

``SEC. 320D. TOBACCO PRODUCTION AND MARKETING INFORMATION.

``(a) In General.--Notwithstanding any other provision of law, the
Secretary may, subject to subsection (b), release marketing information
submitted by persons relating to the production and marketing of tobacco
to State trusts or similar organizations engaged in the distribution of
national trust funds to tobacco producers and other persons with
interests associated with the production of tobacco, as determined by
the Secretary.
``(b) Limitations.--
``(1) In general.--Information may be released under subsection
(a) only to the extent that--
``(A) the release is in the interest of tobacco
producers, as determined by the Secretary; and
``(B) the information is released to a State trust or
other organization that is created to, or charged with,
distributing funds to tobacco producers or other parties
with an interest in tobacco production or tobacco farms
under a national or State trust or settlement.
``(2) Exemption from release.--The Secretary shall, to the
maximum extent practicable, in advance of making a release of
information under subsection (a), allow, by announcement, a period
of at least 15 days for persons whose consent would otherwise be
required by law to effectuate the release, to elect to be exempt
from the release.
``(c) Assistance.--
``(1) In general.--In making a release under subsection (a), the
Secretary may provide such other assistance with respect to
information released under subsection (a) as will facilitate the
interest of producers in receiving the funds that are the subject of
a trust described in subsection (a).
``(2) Funds.--The Secretary shall use amounts made available for
salaries and expenses of the Department to carry out paragraph (1).
``(d) Records.--
``(1) In general.--A person who obtains information described in
subsection (a) shall maintain records that are consistent with the
purposes of the release and shall not use the records for any
purpose not authorized under this section.
``(2) Penalty.--A person who knowingly violates this subsection
shall be fined not more than $10,000, imprisoned not more than 1
year, or both.
``(e) Application.--This section shall not apply to--
``(1) records submitted by cigarette manufacturers with respect
to the production of cigarettes;
``(2) records that were submitted as expected purchase
intentions in connection with the establishment of national tobacco
quotas; or
``(3) records that aggregate the purchases of particular
buyers.''.]
[Sec. 756. Notwithstanding section 306(a)(7) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926(a)(7)), the City of
Berlin, New Hampshire, shall be eligible during fiscal year 2000 for a
rural utilities grant or loan under the Rural Community Advancement
Program.]
[Sec. 757. Cranberry Marketing Orders. (a) Paid Advertising for
Cranberries and Cranberry Products.--Section 8c(6)(I) of the
Agricultural Adjustment Act (7 U.S.C. 608c(6)(I)), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, is
amended in the first proviso--
(1) by striking ``or Florida grown strawberries'' and inserting
``, Florida grown strawberries, or cranberries''; and
(2) by striking ``and Florida Indian River grapefruit'' and
inserting ``Florida Indian River grapefruit, and cranberries''.
(b) Collection of Cranberry Inventory Data.--Section 8d of the
Agricultural Adjustment Act (7 U.S.C. 608d), reenacted with amendments
by the Agricultural Marketing Agreement Act of 1937, is amended by
adding at the end the following:
``(3) Collection of cranberry inventory data.--
``(A) In general.--If an order is in effect with respect to
cranberries, the Secretary of Agriculture may require persons
engaged in the handling or importation of cranberries or cranberry
products (including producer-handlers, second handlers, processors,
brokers, and importers) to provide such information as the Secretary
considers necessary to effectuate the declared policy of this title,
including information on acquisitions, inventories, and dispositions
of cranberries and cranberry products.
``(B) Delegation to committee.--The Secretary may delegate the
authority to carry out subparagraph (A) to any committee that is
responsible for administering an order covering cranberries.
``(C) Confidentiality.--Paragraph (2) shall apply to information
provided under this paragraph.
``(D) Violations.--Any person who violates this paragraph shall
be subject to the penalties provided under section 8c(14).''.]
[Sec. 758. Beginning in fiscal year 2001 and thereafter, the Food
Stamp Act (Public Law 95-113, section 16(a)) is amended by inserting

[[Page 192]]

after the phrase ``Indian reservation under section 11(d) of this Act''
the following new phrase: ``or in a Native village within the State of
Alaska identified in section 11(b) of Public Law 92-203, as amended.''.]
[Sec. 759. Education Grants to Alaska Native Serving Institutions
and Native Hawaiian Serving Institutions. (a) Education Grants Program
for Alaska Native Serving Institutions.--
(1) Grant authority.--The Secretary of Agriculture may make
competitive grants (or grants without regard to any requirement for
competition) to Alaska Native serving institutions for the purpose
of promoting and strengthening the ability of Alaska Native serving
institutions to carry out education, applied research, and related
community development programs.
(2) Use of grant funds.--Grants made under this section shall be
used--
(A) to support the activities of consortia of Alaska
Native serving institutions to enhance educational equity
for under represented students;
(B) to strengthen institutional educational capacities,
including libraries, curriculum, faculty, scientific
instrumentation, instruction delivery systems, and student
recruitment and retention, in order to respond to identified
State, regional, national, or international educational
needs in the food and agriculture sciences;
(C) to attract and support undergraduate and graduate
students from under represented groups in order to prepare
them for careers related to the food, agricultural, and
natural resource systems of the United States, beginning
with the mentoring of students at the high school level
including by village elders and continuing with the
provision of financial support for students through their
attainment of a doctoral degree; and
(D) to facilitate cooperative initiatives between two or
more Alaska Native serving institutions, or between Alaska
Native serving institutions and units of State government or
the private sector, to maximize the development and use of
resources, such as faculty, facilities, and equipment, to
improve food and agricultural sciences teaching programs.
(3) Authorization of appropriations.--There are authorized to be
appropriated to make grants under this subsection $10,000,000 in
fiscal years 2001 through 2006.
(b) Education Grants Program for Native Hawaiian Serving
Institutions.--
(1) Grant authority.--The Secretary of Agriculture may make
competitive grants (or grants without regard to any requirement for
competition) to Native Hawaiian serving institutions for the purpose
of promoting and strengthening the ability of Native Hawaiian
serving institutions to carry out education, applied research, and
related community development programs.
(2) Use of grant funds.--Grants made under this section shall be
used--
(A) to support the activities of consortia of Native
Hawaiian serving institutions to enhance educational equity
for under represented students;
(B) to strengthen institutional educational capacities,
including libraries, curriculum, faculty, scientific
instrumentation, instruction delivery systems, and student
recruitment and retention, in order to respond to identified
State, regional, national, or international educational
needs in the food and agriculture sciences;
(C) to attract and support undergraduate and graduate
students from under represented groups in order to prepare
them for careers related to the food, agricultural, and
natural resource systems of the United States, beginning
with the mentoring of students at the high school level and
continuing with the provision of financial support for
students through their attainment of a doctoral degree; and
(D) to facilitate cooperative initiatives between two or
more Native Hawaiian serving institutions, or between Native
Hawaiian serving institutions and units of State government
or the private sector, to maximize the development and use
of resources, such as faculty, facilities, and equipment, to
improve food and agricultural sciences teaching programs.
(3) Authorization of appropriations.--There are authorized to be
appropriated to make grants under this subsection $10,000,000 for
each of fiscal years 2001 through 2006.]
[Sec. 760. Effective October 1, 1999, section 8c(11) of the
Agricultural Adjustment Act (7 U.S.C. 608c(11)), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, is
amended by adding at the end the following: ``The price of milk paid by
a handler at a plant operating in Clark County, Nevada shall not be
subject to any order issued under this section.''.]
[Sec. 761. Notwithstanding any other provision of law, the City of
Olean, New York, shall be eligible for grants and loans administered by
the Rural Utilities Service.]
[Sec. 762. 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. 763. Section 1232(a) of the Food Security Act of 1985 (16
U.S.C. 3832(a)) is amended--
(1) in paragraph (9), by adding ``and'' after the semicolon at
the end;
(2) in paragraph (10), by striking ``; and'' and
inserting a period; and
(3) by striking paragraph (11).]
[Sec. 764. None of the funds made available by this or any other Act
shall be used to implement Notice CRP-338, issued by the Farm Service
Agency on March 10, 1999, nor shall funds be used to implement any
related administrative action including implementation of such
procedures published in Farm Service Agency program manuals: Provided,
That rental payments for any lands enrolled in the Conservation Reserve
Program under this section shall be reduced by an amount equal to the
Federal cost of any remaining value of a federally cost-shared
conservation practice as determined by the Secretary.]
[Sec. 765. None of the funds made available by this or any other Act
shall be used to implement Notice CRP-327, issued by the Farm Service
Agency on October 26, 1998, nor shall funds be used to implement any
related administrative action including implementation of such
procedures published in Farm Service Agency program manuals: Provided,
That this section shall not apply to any lands for which there is not
full compliance with the conservation practices required under terms of
the CRP contract.]
[Sec. 766. The Federal facility located in Riverside, California,
and known as the ``U.S. Salinity Laboratory'', shall be known and
designated as the ``George E. Brown, Jr., Salinity Laboratory'':
Provided, That any reference in any 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 ``George E. Brown, Jr.,
Salinity Laboratory''.]
[Sec. 767. Sections 657, 658, 1006, and 1014 of title 18, United
States Code, are amended by--
(1) inserting ``or successor agency'' after ``Farmers Home
Administration'' each place it appears; and
(2) inserting ``or successor agency'' after ``Rural Development
Administration'' each place it appears.]
[Sec. 768. Notwithstanding any other provision of law, the maximum
income limits established for single family housing for families and
individuals in the high cost areas of Alaska shall be 150 percent of the
State metropolitan income level for Alaska.]
[Sec. 769. Section 1232(a)(7) of the Food Security Act of 1985 is
amended--
(1) by striking ``except that the Secretary may permit
harvesting'' and inserting ``except that the Secretary--
``(A) may permit--
``(i) harvesting'';
(2) by striking ``emergency, and the Secretary may permit
limited'' and inserting ``emergency; and
``(ii) limited'';
(3) by inserting ``and'' after the semicolon at the end; and
(4) by adding at the end the following:
``(B) shall approve not more than six projects, no more
than one of which may be in any State, under which land
subject to the contract may be harvested for recovery of
biomass used in energy production if--
``(i) no acreage subject to the contract is harvested
more than once every other year;
``(ii) not more than 25 percent of the total acreage
enrolled in the program under this subchapter in any crop
reporting district (as designated by the Secretary), is
harvested in any 1 year;

[[Page 193]]

``(iii) no portion of the crop is used for any
commercial purpose other than energy production from
biomass;
``(iv) no wetland, or acreage of any type enrolled in a
partial field conservation practice (including riparian
forest buffers, filter strips, and buffer strips), is
harvested;
``(v) the owner or operator agrees to a payment
reduction under this section in an amount determined by the
Secretary.
``(C) the total acres for all of the projects shall not
exceed 250,000 acres.''.] (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Appropriations Act, 2000.)

GENERAL PROVISIONS--THIS CHAPTER

[Sec. 101. Notwithstanding section 196 of the Agricultural Market
Transition Act (7 U.S.C. 7333), the Secretary of Agriculture shall
provide up to $20,000,000 in assistance under the noninsured crop
assistance program under that section, without any requirement for an
area loss, to producers located in a county with respect to which a
natural disaster was declared by the Secretary, or a major disaster or
emergency was declared by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).]
[Sec. 102. Section 814 of Public Law 106-78 is amended by inserting
the following after ``year'': ``(and 2001 crop year for citrus fruit,
avocados in California, and macadamia nuts)''.]
[Sec. 103. Of the funds made available under section 802 of Public
Law 106-78 not otherwise needed to fully implement that section, the
Secretary of Agriculture may use up to $4,700,000 to carry out title IX
of Public Law 106-78.]
[Sec. 104. (a) Of the funds made available under section 802 of
Public Law 106-78 (excluding any funds authorized by this Act to carry
out title IX of Public Law 106-78) and under section 1111 of Public Law
105-277 not otherwise needed to fully implement those sections, the
Secretary of Agriculture may provide assistance to producers or first-
handlers for the 1999 crop of cottonseed.
(b) Of the funds made available under section 802 of Public Law 106-
78 and section 1111 of Public Law 105-277 not otherwise needed to fully
implement those sections (excluding any funds authorized by this Act to
carry out title IX and to provide assistance to producers or first-
handlers for the 1999 crop of cottonseed under subsection (a) of this
section), the Secretary may provide funds to carry out subsection (c) of
this section.
(c) The Agricultural Market Transition Act is amended by inserting
after section 136 (7 U.S.C. 7236), the following new section:

``SEC. 136A. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE
COTTON.

``(a) Competitiveness Program.--Notwithstanding any other provision
of law, during the period beginning on October 1, 1999, and ending on
July 31, 2003, the Secretary shall carry out a program to maintain and
expand the domestic use of extra long staple cotton produced in the
United States, to increase exports of extra long staple cotton produced
in the United States, and to ensure that extra long staple cotton
produced in the United States remains competitive in world markets.
``(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
``(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple cotton
(adjusted to United States quality and location and for other
factors affecting the competitiveness of such cotton), as determined
by the Secretary, is below the prevailing United States price for a
competing growth of extra long staple cotton; and
``(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for other
factors affecting the competitiveness of such cotton), as determined
by the Secretary, is less than 134 percent of the loan rate for
extra long staple cotton.
``(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States who enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
``(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive 4-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive 4-week period.
``(e) Form of Payment.--Payments under this section shall be made
through the issuance of cash or marketing certificates, at the option of
eligible recipients of the payments.''.]
[Sec. 105. The entire amount necessary to carry out this chapter and
the amendments made by this chapter shall be available only to the
extent that an official budget request for the entire 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: Provided, That the entire amount is designated by the Congress
as an emergency requirement pursuant to section 251(b)(2)(A) of such
Act.] (Miscellaneous Appropriations, 2000, as enacted by section
1000(a)(5) of the Consolidated Appropriations Act, 2000 (P.L. 106-113.)

TITLE II--OTHER APPROPRIATIONS MATTERS

[Sec. 201. Section 733 of Public Law 106-78 is amended by striking
after ``Missouri'' ``, or the Food and Drug Administration Detroit,
Michigan, District Office Laboratory; or to reduce the Detroit,
Michigan, Food and Drug Administration District Office below the
operating and full-time equivalent staffing level of July 31, 1999; or
to change the Detroit District Office to a station, residence post or
similarly modified office; or to reassign residence posts assigned to
the Detroit District Office''.]
[Sec. 202. None of the funds made available to the Food and Drug
Administration by Public Law 106-78 or any other Act for fiscal year
2000 shall be used to reduce the Detroit, Michigan, Food and Drug
Administration District Office below the operating and full-time
equivalent staffing level of July 31, 1999; or to change the Detroit
District Office to a station, residence post or similarly modified
office; or to reassign residence posts assigned to the Detroit District
Office: Provided, That this section shall not apply to Food and Drug
Administration field laboratory facilities or operations currently
located in Detroit, Michigan, if the full-time equivalent staffing level
of laboratory personnel as of July 31, 1999, is assigned to locations in
the general vicinity of Detroit, Michigan, pursuant to cooperative
agreements between the Food and Drug Administration and other laboratory
facilities associated with the State of Michigan.]
[Sec. 203. Notwithstanding any other provision of law, the Secretary
of Agriculture may use funds provided for rural housing assistance
grants in Public Law 106-78 for a pilot project to provide home
ownership for farm workers and workers involved in the processing of
farm products in Salinas, California, and the surrounding area.]
[Sec. 204. Notwithstanding any other provision of law (including the
Federal Grants and Cooperative Agreements Act), the Secretary of
Agriculture shall use not more than $9,000,000 of Commodity Credit
Corporation funds for a cooperative program with the State of Florida to
replace commercial trees removed to control citrus canker until the
earlier of December 31, 1999, or the date crop insurance coverage is
made available with respect to citrus canker; and the Secretary of
Agriculture shall use not more than $7,000,000 of Commodity Credit
Corporation funds to replace non-commercial trees (known as dooryard
citrus trees), owned by private homeowners, and removed to control
citrus canker.]
[Sec. 205. (a) Continuation of Revenue Insurance Pilot.--Section
508(h)(9)(A) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(9)(A))
is amended by striking ``1997, 1998, 1999, and 2000'' and inserting
``1997 through 2001''.
(b) Expansion of Crop Insurance Pilots.--In the case of any pilot
program offered under the Federal Crop Insurance Act that was approved
by the Board of Directors of the Federal Crop Insurance Corporation on
or before September 30, 1999, the pilot program may be offered on a
regional, whole State, or national basis for the 2000 and 2001 crop
years notwithstanding section 553 of title 5, United States Code.]
[Sec. 206. Sales Closing Dates for Crop Insurance.--Section 508(f
)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(f )(2)) is
amended--
(1) by inserting ``(A) In general.--'' before the first
sentence;
(2) by striking the last sentence; and

[[Page 194]]

(3) by adding at the end the following:
``(B) Established dates.--Except as provided in
subparagraph (C), the Corporation shall establish, for an
insurance policy for each insurable crop that is planted in
the spring, a sales closing date that is 30 days earlier
than the corresponding sales closing date that was
established for the 1994 crop year.
``(C) Exception.--If compliance with subparagraph (B)
results in a sales closing date for an agricultural
commodity that is earlier than January 31, the sales closing
date for that commodity shall be January 31 beginning with
the 2000 crop year.''.]
[Sec. 207. The Secretary of Agriculture may use not more than
$1,090,000 of funds of the Commodity Credit Corporation to provide
emergency assistance to producers on farms located in Harney County,
Oregon, who suffered flood-related crop and forage losses in 1999 and
several previous years and are expected to suffer continuing economic
losses until the floodwaters recede. The amount made available under
this section shall be available for such losses for such years as
determined appropriate by the Secretary to compensate such producers for
hay, grain, and pasture losses due to the floods and for related
economic losses.]
[Sec. 208. Tillamook Railroad Disaster Repairs. In addition to
amounts appropriated or otherwise made available for rural development
programs of the United States Department of Agriculture by Public Law
106-78, there are appropriated $5,000,000 which may be made available to
repair damage to the Tillamook Railroad caused by flooding and high
winds (FEMA Disaster Number 1099-DR-OR) notwithstanding any other
provision of law.]
[Sec. 209. At the end of section 746 of Public Law 106-78, insert
the following before the period: ``: Provided, That the Congressional
Hunger Center may invest such funds and expend the income from such
funds in a manner consistent with this section: Provided further, That
notwithstanding any other provision of law, funds appropriated pursuant
to this section may be paid directly to the Congressional Hunger
Center.''.]
[Sec. 210. The Secretary of Agriculture may reprogram funds
appropriated by Public Law 106-78 for the cost of rural electrification
and telecommunications loans to provide up to $100,000 for the cost of
guaranteed loans authorized by section 306 of the Rural Electrification
Act of 1936.]
[Sec. 211. Section 755(b) of Public Law 106-78 is hereby repealed.]
(Miscellaneous Appropriations, 2000, as enacted by section 1000(a)(5) of
the Consolidated Appropriations Act, 2000 (P.L. 106-113.)